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Supply Chain in the Motor Vehicle Industry. How does Supply Chain Management Contribute to the Competitive Advantage of Mini?
Introduction
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Outline Part I : An Overview of the BMW Group A) BMW AG B) BMW in the United Kingdom C) Mini Part II : The Contribution of Supply Chain Management to the Competitive Advantage of the Motor Vehicle Industry A) What is a supply chain? B) Evolutions C) Current issues Part III : Mini, the Production Triangle A) A philosophy of production B) Production Part IV : Mini, the Extended Production Network A) Logistics B) Purchasing policies C) The role of suppliers
Part I: An Overview of the BMW Group
A) BMW AG ,[object Object],1, 286,310 cars delivered in 2009 50,681 million euros of revenue in 2009 96,230 employees Net revenue decreased by 36.4% 14th largest car manufacturer in terms of production
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[object Object]
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B) BMW in the United Kingdom 3 rd  largest market of the group 2 nd  biggest production country Only country where the three brands are manufactured 3 rd  largest car manufacturer in the UK £1.7 billion worth of exports in 2004, representing almost 1% of British exports. 8,000 employees
[object Object],Goodwood: 1,000 employees 1,212 cars in 2008 Hams Hall: 1,000 employees Four-cylinder petrol engines 372,000 engines in 2008 Swindon: 1,000 employees Pressings and sub-assemblies for the Mini Oxford: 3,700 employees Production and assembly of the Mini 216,000 cars sold in 2009
C) Mini 1913 First car produced in Oxford, the Bullnose Morris. 1930s Morris factory is established in its current location, in Cowley. 1954 The Pressed Steel Company ( later Pressed Steel Fisher) needs extra capacity outside its Oxford factory and establishes a car panel production facility in Swindon. 1959 Creation of Mini as a concept for British Motor Corporation: Morris Mini Minor and Austin Seven. 1965 Pressed Steel Fisher bought by Rover. 1968 Merger between BMC and Leyland, to create British Leyland. 1969 Separation between Austin and Morris models is lifted: all Mini cars are branded MINI. 1986 British Leyland renamed Rover Group.
1994 The BMW Group acquires the Rover Group. 2000 BMW sells Rover to the Phoenix Consortium, Land Rover to Ford and keeps the Mini brand. 2001 Opening of the Hams Hall Plant Launch of the Mini One and Mini Cooper. 2004 Launch of the Mini Convertible. 2006 Second generation of Mini. 2007 Launch of the Mini Clubman. 2008 The Mini E is unveiled. 2009 Launch of the new Convertible. 2010 Launch of the Mini Countryman.
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Part II: The contribution of Supply Chain Management to the Competitiveness of the Motor Vehicle Industry
A) What is a supply chain? First tier supplier Second tier supplier First tier customer Second tier customer End customer Demand side Supply side Purchasing and supply management Physical distribution management Logistics Materials management Supply chain management Information flow Physical flow
 
B) Evolution of supply chain management in the motor vehicle industry. ,[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],The traditional  way The new way ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
C) Current issues. ,[object Object]
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Part III: Mini, the Production Triangle
A) A philosophy of production ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object]
[object Object],[object Object]
[object Object],[object Object]
B) Production Engines: Delivered just-in-sequence. Traced through production. BMW knowledge. Body pressings and and sub-assemblies: Delivered just-in-sequence. Increased capacity and productivity. 80% of parts of the body shell. Body shell and assembly: 370 different interior trims and 320 exterior variants Flexibility of the facility  Modules
Part IV: Mini, the Extended Production Network
A) Logistics ,[object Object],[object Object],[object Object]
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[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
 
 
B) Purchasing policies ,[object Object],[object Object]
[object Object]
C) The role of suppliers ,[object Object],[object Object],[object Object],[object Object]
Conclusion
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References 7-forum. «The fascinating power of production, Production of the BMW 7series in Dingolfing (Germany).» March 2002. Retrived on 24 April 2010 from <http://www.7-forum.com/modelle/e65/7series_production_dingolfing_7.php>. Austin Rover Online. «Company timeline.» 2008. Retrieved on 26 May 2010 from <http://www.aronline.co.uk/index.htm?histindexf.htm>. Belkin, Maxine. «Oxford's supermodel.»  Automotive Logistics  May 2005: 24-28. BMW AG. «Annual Report 2009.» 2010. «BMW fends off to remain world's top premium brand.»  States News Service  13 April 2010.   BMW Group website. 2010. Retrieved on 3 April 2010 from <http://bmwgroup.com>. Cox, Andrew, et al. «Chapter 9: Information assymetry, innovation, scale and regulation.», Supply Chain, Markets and Power. (Routledge, 2001). p. 185-206. Dowman, Robert. Interview. April 2010. Filippi, Francesco. «Postponement.»  Università di Roma website. Greer, Lindsay. «BMW moves beyond just-in-time production .»  Automotive  News  25 March 2002. Gumbel, Peter. «BMW drives Germany.»  Time Magazine  16 July 2007. Hams Hall plant website. 2010. Retrieved on 3 April 2010 from <http://www.bmw-plant-hamshall.com>. Hoffen, Martin. Presentations. 2010. Lichtmann, Dirk. «Planning and optimisation of the BMW powertrain network.» 7 October 2004.  rwth-aachen.  Retrieved on 4 April 2010 from <www.or.rwth- aachen.de/berkeley2004/Lichtmann.pdf>. «Mini module with big advantages.»  Automotive Engineer  Febrary 2007: 43. MINI production triangle in the UK. 2010. Retrieved on 29 March 2010 from  <http://www.Mini-production-triangle.com/static/en/>. MINI website. 2010. Retrieved on 4 April 2010 from <http://www.Mini.co.uk>. Mortimer, John. «BMW creates production triangle in the UK to manufacture the new Mini.»  Industrial Robot  2007: 26-31. Motoring File. «The MINI Production Triangle.» 13 September 2006. Retrieved on 29 March 2010 from <http://www.motoringfile.com/2006/09/13/the-Mini-production-triangle/>. mynewcars website. «Quantum leap in flexible response to customisation requests.» 2008.  «mySAP puts the new BMW X5 utility on the road.»  Business World.  2000. Organisation Internationale des Constructeurs d'Automobiles website.  «2008 World ranking of manufacturers.» 2009.  Original Equipment Suppliers Association website. «2004 OESA Presentations.»  «Outraged Mini workers throw fruits as 150 job cuts are announced.»  Western Daily Express  2009. Oxford Economic Forecasting Special Report. The Economic Contribution of the BMW Group in the UK. 2006. Parker, John. «Delivering drivers' dreams.»  Traffic World  8 October 2001. Pritchard, Richard. «Control of the supply chain turns critical.»  Financial Times  2007. Slack, Nigel, Chambers, Stuart and Johnston, Robert.  Operations Management.  (Harlow: Pearson Education, 2007). Slideshare. «BMW Group. Investor presentation.» September 2009. Retrieved on 4 May 2010 from <http://www.slideshare.net/investorrelation/investor-presentation-of-bmw-group-2009>. Turnbull, Peter, Olivier, Nick and Wilkinson, Barry. «Buyer supplier relations in the UK automotive industry: strategic implications of the Japanese manufacturing model.»  Strategic Management Journal  1992: 159-168. Waters, Donald.  Logistics, an Introduction to Supply Chain Management.  (Basingstoke: Palgrave Macmillan, 2003). Winton, Neil. «Build-to-order promises fatter auto profits.»  Reuters News  28 November 2001.

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Supply Chain Management in the Motor Vehicle Industry, the Example of Mini.

  • 1. Supply Chain in the Motor Vehicle Industry. How does Supply Chain Management Contribute to the Competitive Advantage of Mini?
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  • 7. Outline Part I : An Overview of the BMW Group A) BMW AG B) BMW in the United Kingdom C) Mini Part II : The Contribution of Supply Chain Management to the Competitive Advantage of the Motor Vehicle Industry A) What is a supply chain? B) Evolutions C) Current issues Part III : Mini, the Production Triangle A) A philosophy of production B) Production Part IV : Mini, the Extended Production Network A) Logistics B) Purchasing policies C) The role of suppliers
  • 8. Part I: An Overview of the BMW Group
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  • 14. B) BMW in the United Kingdom 3 rd largest market of the group 2 nd biggest production country Only country where the three brands are manufactured 3 rd largest car manufacturer in the UK £1.7 billion worth of exports in 2004, representing almost 1% of British exports. 8,000 employees
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  • 16. C) Mini 1913 First car produced in Oxford, the Bullnose Morris. 1930s Morris factory is established in its current location, in Cowley. 1954 The Pressed Steel Company ( later Pressed Steel Fisher) needs extra capacity outside its Oxford factory and establishes a car panel production facility in Swindon. 1959 Creation of Mini as a concept for British Motor Corporation: Morris Mini Minor and Austin Seven. 1965 Pressed Steel Fisher bought by Rover. 1968 Merger between BMC and Leyland, to create British Leyland. 1969 Separation between Austin and Morris models is lifted: all Mini cars are branded MINI. 1986 British Leyland renamed Rover Group.
  • 17. 1994 The BMW Group acquires the Rover Group. 2000 BMW sells Rover to the Phoenix Consortium, Land Rover to Ford and keeps the Mini brand. 2001 Opening of the Hams Hall Plant Launch of the Mini One and Mini Cooper. 2004 Launch of the Mini Convertible. 2006 Second generation of Mini. 2007 Launch of the Mini Clubman. 2008 The Mini E is unveiled. 2009 Launch of the new Convertible. 2010 Launch of the Mini Countryman.
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  • 20. Part II: The contribution of Supply Chain Management to the Competitiveness of the Motor Vehicle Industry
  • 21. A) What is a supply chain? First tier supplier Second tier supplier First tier customer Second tier customer End customer Demand side Supply side Purchasing and supply management Physical distribution management Logistics Materials management Supply chain management Information flow Physical flow
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  • 27. Part III: Mini, the Production Triangle
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  • 32. B) Production Engines: Delivered just-in-sequence. Traced through production. BMW knowledge. Body pressings and and sub-assemblies: Delivered just-in-sequence. Increased capacity and productivity. 80% of parts of the body shell. Body shell and assembly: 370 different interior trims and 320 exterior variants Flexibility of the facility Modules
  • 33. Part IV: Mini, the Extended Production Network
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  • 45. References 7-forum. «The fascinating power of production, Production of the BMW 7series in Dingolfing (Germany).» March 2002. Retrived on 24 April 2010 from <http://www.7-forum.com/modelle/e65/7series_production_dingolfing_7.php>. Austin Rover Online. «Company timeline.» 2008. Retrieved on 26 May 2010 from <http://www.aronline.co.uk/index.htm?histindexf.htm>. Belkin, Maxine. «Oxford's supermodel.» Automotive Logistics May 2005: 24-28. BMW AG. «Annual Report 2009.» 2010. «BMW fends off to remain world's top premium brand.» States News Service 13 April 2010. BMW Group website. 2010. Retrieved on 3 April 2010 from <http://bmwgroup.com>. Cox, Andrew, et al. «Chapter 9: Information assymetry, innovation, scale and regulation.», Supply Chain, Markets and Power. (Routledge, 2001). p. 185-206. Dowman, Robert. Interview. April 2010. Filippi, Francesco. «Postponement.» Università di Roma website. Greer, Lindsay. «BMW moves beyond just-in-time production .» Automotive News 25 March 2002. Gumbel, Peter. «BMW drives Germany.» Time Magazine 16 July 2007. Hams Hall plant website. 2010. Retrieved on 3 April 2010 from <http://www.bmw-plant-hamshall.com>. Hoffen, Martin. Presentations. 2010. Lichtmann, Dirk. «Planning and optimisation of the BMW powertrain network.» 7 October 2004. rwth-aachen. Retrieved on 4 April 2010 from <www.or.rwth- aachen.de/berkeley2004/Lichtmann.pdf>. «Mini module with big advantages.» Automotive Engineer Febrary 2007: 43. MINI production triangle in the UK. 2010. Retrieved on 29 March 2010 from <http://www.Mini-production-triangle.com/static/en/>. MINI website. 2010. Retrieved on 4 April 2010 from <http://www.Mini.co.uk>. Mortimer, John. «BMW creates production triangle in the UK to manufacture the new Mini.» Industrial Robot 2007: 26-31. Motoring File. «The MINI Production Triangle.» 13 September 2006. Retrieved on 29 March 2010 from <http://www.motoringfile.com/2006/09/13/the-Mini-production-triangle/>. mynewcars website. «Quantum leap in flexible response to customisation requests.» 2008. «mySAP puts the new BMW X5 utility on the road.» Business World. 2000. Organisation Internationale des Constructeurs d'Automobiles website. «2008 World ranking of manufacturers.» 2009. Original Equipment Suppliers Association website. «2004 OESA Presentations.» «Outraged Mini workers throw fruits as 150 job cuts are announced.» Western Daily Express 2009. Oxford Economic Forecasting Special Report. The Economic Contribution of the BMW Group in the UK. 2006. Parker, John. «Delivering drivers' dreams.» Traffic World 8 October 2001. Pritchard, Richard. «Control of the supply chain turns critical.» Financial Times 2007. Slack, Nigel, Chambers, Stuart and Johnston, Robert. Operations Management. (Harlow: Pearson Education, 2007). Slideshare. «BMW Group. Investor presentation.» September 2009. Retrieved on 4 May 2010 from <http://www.slideshare.net/investorrelation/investor-presentation-of-bmw-group-2009>. Turnbull, Peter, Olivier, Nick and Wilkinson, Barry. «Buyer supplier relations in the UK automotive industry: strategic implications of the Japanese manufacturing model.» Strategic Management Journal 1992: 159-168. Waters, Donald. Logistics, an Introduction to Supply Chain Management. (Basingstoke: Palgrave Macmillan, 2003). Winton, Neil. «Build-to-order promises fatter auto profits.» Reuters News 28 November 2001.