Benchmarking

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

Note: Pughazhyendhii  is fond of big cars

Sol: We will calculate  the total distance covered by him in a month :

Assuming that he travels 20 kms per day to office , total kms per month = 600 kms

Distance to village = 500 kms

Total kms per month = 1100 kms

Kms Per day = 36 kms 

Now assuming he consumes two litres of petrol per day , the mileage will be = 18 kms /l

Therefore we need a vehicle which has this mileage , in range of 8 to 10 lakhs and is big for 5 people.

The following models were selected :

1.Renault Triber 

Mileage : 20 kms /hour 

Cost 6.5 lakhs

Capacity : 7 people 

2.Ertiga 

Mileage : 19 kms/l

Cost : 7.59 lakhs

Capacity :7

3.Mahindra Nuvosport 

Mileage :17 kms /l

Cost :7.98 lakhs

Capacity : 7

4.Datsun

Milaege : 20 kms / l

Cost : 6.15 lakhs

Capacity : 7

Conclusion :

From this we can conclude that datsun is the best vehicle for him as it satifies all his needs of mileage ,cost and capacity.

 2.Define Benchmarking

Benchmarking is defined as the process of measuring products, services, and processes against those of organizations known to be leaders in one or more aspects of their operations. Benchmarking provides necessary insights to help you understand how your organization compares with similar organizations, even if they are in a different business or have a different group of customers.

Technical benchmarking is performed by design staff to determine the capabilities of products or services, especially in comparison to the products or services of leading competitors. For example, on a scale of one to four, four being best, how do designers rank the properties of your organization’s products or services? If you cannot obtain hard data, the design efforts may be insufficient, and products or services may be inadequate to be competitive.

Competitive benchmarking compares how well (or poorly) an organization is doing with respect to the leading competition, especially with respect to critically important attributes, functions, or values associated with the organization’s products or services. For example, on a scale of one to four, four being best, how do customers rank your organization’s products or services compared to those of the leading competition? If you cannot obtain hard data, marketing efforts may be misdirected and design efforts misguided.