Line 2017: How is BMW Fighting Demographic Time Bomb<br />HabetMadoyan, Crosby MBA<br />HabetMadoyan, Crosby MBA<br />Line...
Line 2017: How is BMW Fighting Demographic Time Bomb<br /><ul><li>Company
Problem
Solution
Results
Conclusion
Reference</li></ul>Line 2017: How is BMW fighting Demographic Time Bomb<br />Habet Madoyan, Crosby MBA<br />
Company<br />BMW was founded in 1916 as a producer of aircraft engines.From 1929 it started to produce automobiles.<br />I...
Problem of Age<br />Line 2017: How is BMW fighting Demographic Time Bomb<br />Habet Madoyan, Crosby MBA<br /><ul><li>Avera...
Problem of Age<br />Line 2017: How is BMW fighting Demographic Time Bomb<br />Habet Madoyan, Crosby MBA<br />Why just not ...
Solution<br />Company launched pilot production line where the average age of workers was 47 years. Modified line is produ...
Solution<br />At the beginning of the project, there was strong resistance among workers against the line.<br />WHY ?<br /...
Solution<br />Management organized consultations with workers to encourage and explain them the concept of the new line.<b...
Upcoming SlideShare
Loading in...5
×

Line 2017, How is BMW fighting demographic time bomb

961

Published on

This presentation is prepared for Crosby MBA MB_Communication class

Published in: Sports, Business
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
961
On Slideshare
0
From Embeds
0
Number of Embeds
2
Actions
Shares
0
Downloads
18
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Line 2017, How is BMW fighting demographic time bomb

  1. 1. Line 2017: How is BMW Fighting Demographic Time Bomb<br />HabetMadoyan, Crosby MBA<br />HabetMadoyan, Crosby MBA<br />Line 2017: How is BMW fighting Demographic Time Bomb<br />
  2. 2. Line 2017: How is BMW Fighting Demographic Time Bomb<br /><ul><li>Company
  3. 3. Problem
  4. 4. Solution
  5. 5. Results
  6. 6. Conclusion
  7. 7. Reference</li></ul>Line 2017: How is BMW fighting Demographic Time Bomb<br />Habet Madoyan, Crosby MBA<br />
  8. 8. Company<br />BMW was founded in 1916 as a producer of aircraft engines.From 1929 it started to produce automobiles.<br />It’s main production facilities are in Germany, Bavaria.<br />In 2009 the company sold 1,068,770 cars under the BMW brand.<br />Financials 2009<br />Revenue € 50.68 bil.<br />Net Profit € 210 mil. <br />Employees 96,239<br />Line 2017: How is BMW fighting Demographic Time Bomb<br />Habet Madoyan, Crosby MBA<br />
  9. 9. Problem of Age<br />Line 2017: How is BMW fighting Demographic Time Bomb<br />Habet Madoyan, Crosby MBA<br /><ul><li>Average age of the BMW’s plants workers is expected to rise from 39 to 47 by 2017</li></ul>Why is it a problem ?<br />Older workers has less productivity.<br />Absenteeism rate is higher among them<br />Health Care and Insurance is more expensive<br />
  10. 10. Problem of Age<br />Line 2017: How is BMW fighting Demographic Time Bomb<br />Habet Madoyan, Crosby MBA<br />Why just not fire older and hire youngers? <br />BMW is known for being dependable employer.<br />There is not enough young workforce.<br />At the national level it will be interpreted as discriminatory.<br />BMW is the largest employer in Lower Bavaria. The decision would have political consequences.<br />
  11. 11. Solution<br />Company launched pilot production line where the average age of workers was 47 years. Modified line is producing rear-axle gearboxes and is operated by 42 employees.<br />Line 2017: How is BMW fighting Demographic Time Bomb<br />Habet Madoyan, Crosby MBA<br />
  12. 12. Solution<br />At the beginning of the project, there was strong resistance among workers against the line.<br />WHY ?<br />-Younger workers feared that they will suffer from less productivity of older workers. <br />-Older workers felt they would be less productive if moved from their comfort zones.<br />Line 2017: How is BMW fighting Demographic Time Bomb<br />Habet Madoyan, Crosby MBA<br />
  13. 13. Solution<br />Management organized consultations with workers to encourage and explain them the concept of the new line.<br />Management organized workshops and surveys to understand what changes workers would like to see in new line.<br />As a result new line was combined by the ideas that came from employees<br />Line 2017: How is BMW fighting Demographic Time Bomb<br />Habet Madoyan, Crosby MBA<br />
  14. 14. Solutions<br />Examples of the ideas from workers to improve workplace<br />Wooden flooring<br />-Reduces knee strain and exposure to static electricity jolt<br />Orthopedic footwear<br />-Reduces strain on feet<br />Magnifying lenses<br />-Reduces eyestrain and minimizes sorting errors <br />Total 70 changes were made<br />Line 2017: How is BMW fighting Demographic Time Bomb<br />Habet Madoyan, Crosby MBA<br />
  15. 15. Results<br />Improvements in Line 2017 costs BMW just € 40,000.<br />70 changes increased productivity by 7% in one year, bringing it on a par with lines in which workers were, on average, younger.<br />Absenteeism rate dropped to 2%, bellow the plant average.<br />BMW now touts Line 2017 as model of productivity and high quality for all its plants. <br />BMW has the model of production line with average age of 47 and still have a time to improve it.<br />Line 2017: How is BMW fighting Demographic Time Bomb<br />Habet Madoyan, Crosby MBA<br />
  16. 16. Conclusion<br />Ageing of world population is inevitable. However companies can make them less painful.<br />BMW made 70 improvements to its Line 2017. All the changes came from workers. <br />By spending € 40,000 BMW could increase its productivity by 7% and decrease absenteeism rate to 2%.<br />Line 2017: How is BMW fighting Demographic Time Bomb<br />Habet Madoyan, Crosby MBA<br />
  17. 17. Philosophy<br />Preventing problems, instead of trying solve them later.<br />Line 2017: How is BMW fighting Demographic Time Bomb<br />Habet Madoyan, Crosby MBA<br />
  18. 18. Reference<br />Christoph H. Loch et al, “How BMW is Defusing the Demographic Time Bomb” Harvard Business Review <br />March 2010: 99.<br />BMW Group, “Annual Report 2009” http://www.bmwgroup.com/annualreport2009/_downloads/BMW_Group_2009.pdf<br />Habet Madoyan, Crosby MBA<br />Line 2017: How is BMW fighting Demographic Time Bomb<br />
  1. A particular slide catching your eye?

    Clipping is a handy way to collect important slides you want to go back to later.

×