Benchmarking

Benchmarking

• Benchmarking is a process involving a structured comparison between similar products, services or processes on some dimensions of performance.
• For example, it can be used to compare the availability and delivery of features in a product.
• The main purpose of benchmarking is to improve the quality of existing product.
• Benchmarking is also done before developing a new product, to study the quality of the existing products of top brands so that new product can be developed with improved features and cost effective.
• In Automotive industry it is used for comparison of similar products, services and on dimensions performance.

Application

• Benchmarking can be between the competing organizations.
• It can be between the sectors using the same process.
• It can also be between the different factories or in the same factory to improve the services.

Basic steps of Benchmarking:

• The very first step in benchmarking is to decide what kind of product we need as a final output.
• Then do some research on the existing product of same kind which we need as a final output.
• Collect the maximum possible data of the existing top brands products available in the market.
• Compare and examine that collected data with what we want as a final output.

Benefits:

• Benchmarking helps the companies to gain profit and become more efficient.
• It also helps an employee to understand the cost structures and the internal processes within the organization.
• It encourages team building and cooperation.
• It helps the employees understand how small processes or any small feature of a product can play a major role in success of organization or a product.

CASE STUDY:

• D.S. Pughazhyendhii is a married man who lives in Bangalore which is a highly crowded city.
• His family comprises of 5 members including his wife, five-year old boy, his father, and mother. He visits his native place Madurai which is 500-kms away from Bangalore once in a month. Also, he will be using his car to commute to his office. His budget falls between 8-10 lakhs on road.
• Please suggest him with options so that he will buy a good car for his family.
• Note: Pughazhyendhii is fond of big cars.

Given Data:

• Budget: 8-10 Lakhs
• Persons to accommodate: 5
• Total driving (Monthly basis): 1780 to 1900 kms

30 kms Daily x 26 days = 780 kms (Office)

500 kms Monthly (Trip to Madurai)

780 (Office) +500 (Single Journey) + 500(Return Journey) = 1780 kms

1. Hyundai Venue S 1.2 Petrol:
2. 

On Road-price, Bangalore: 9.43 Lakh

Key specifications:

• Mileage (ARAI): 17.52 kmpl
• Engine: 1197 cc
• Transmission: Manual
• Fuel Type: Petrol
• Seating Capacity: 5-Seater

2. Maruti Suzuki Dzire VXi AGS:

On-road price, Bangalore: 9.22 Lakh

Key Specifications:

• Mileage (ARAI): 24.12 kmpl
• Engine: 1197 cc
• Transmission: AMT
• Fuel Type: Petrol
• Seating Capacity: 5-Seater

3. KIA Sonet HTE 1.2:

On-road price, Bangalore: 8.74 Lakh

Key Specifications:

• Mileage (ARAI): 18.4 kmpl
• Engine: 1197 cc
• Transmission: Manual
• Fuel Type: Petrol
• Seating Capacity: 5-Seater

4. Tata Tigor XZ Plus

On-road price, Bangalore: 9.08 Lakh

Key Specifications:

• Mileage (ARAI): 20.3 kmpl
• Engine: 1199 cc
• Transmission: Manual
• Fuel Type: Petrol
• Seating Capacity: 5-Seater

Conclusion:

• As Bangalore is a highly crowded city and traffic issue, I personally would recommend Automatic transmission car for hassle free driving in city.
• So, I would recommend Maruti Suzuki Swift Dzire VXi AGS as it would give good mileage and the kerb weight of the vehicle is also less ass compared to the other 3 models which I have chosen in these Case Study.