Process - Competitive Benchmarking

Competitor product selection

Understand customer requirements
Study equivalent competitor products
Select right Competitor products for benchmarking
Collect all relevant information for benchmarking

Teardown

Black box analysis to compare product aspects without teardown
Strip client and competitor products to smallest part level
White box analysis to record size, weight, quantity, materials, assembly sequence, etc
Display functionally similar parts together for comparison
Prepare BoM with levels

Feature benchmarking

Compare the selling features of products
List out features that can be either created, enhanced or eliminated

Technology benchmarking

Compare the technologies used for achieving the same function in client and competitor products
Compare with Voice of Customer and Voice of Business and understand gaps in client product
List out technologies that can be adopted in client product

Function benchmarking

Group parts and sub-assemblies as per functions in client and competitor products
List out functions of parts and sub-assemblies
Calculate function cost
Determine how competitors have performed similar functions at a lower cost

Dynamic benchmarking

Dismantle and assemble client and competitor product few times
Record and compare assembly timing between functionally similar sub-assemblies between client and competitor products
Record Design for assembly issues in client product

Cost modelling

Cost estimation by should costing
Cost comparison of functionally similar parts
Theoretical best cost for functionally similar assemblies
Update BoM with cost details

Best of best analysis

Record and compare client and competitor products on the basis of different commodities used, no of parts, size, weight, should cost, etc
Record the best values in each category to arrive at a theoretical best benchmark if a new hybrid variant is to be developed

PROCESS – Competitive Benchmarking

Ideas for Enhancing Product Value