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Bmw final group1


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Bmw final group1

  1. 1. Mass Customisation- The BMW way
  2. 2. BMW Opens a New Plant  In May 2005 ,BMW opened its new plant in Leipzig area of Germany.  W invested $1.3 billion.  Manufacture BMW 3- Series car.  Max annual capacity: 650 cars/day  Expected to create 5500 jobs in that area.
  3. 3. Why Leipzig area?  Availability of highly Qualified staff  High standards of superior quality  Legal security  Excellent Infrastructure  The Leipzig plant was designed to allow maximum flexibility and communications
  4. 4. The Evolution  In 1913 , Munich, Germany, Karl Friedrich Rapp established the Rapp-motorenwerke to manufacture Aircraft Engines.
  5. 5.  In 1916 ,During First World War Company secured contract to manufacture aircraft for Austria-Hungarian army  In 1917, Rapp needed additional financing to complete this contract.  He partnered with Camillo Castiglioni.The new partnership company named as Bayerische Motoren Werke Gmbh.  The company soon get into difficulty due to over expansion.  Sold it to Australian industrialist,Franz JosephPopp.
  6. 6. The First Aircraft Engine  In 1918 ,Bayersche Motoren Werke manufactured its first aircraft engine.It reached up to an altitude of 5000 metres in 29 minutes, creating a world record.
  7. 7.  Treaty of versailles banned Germany from producing Aircraft. The company shift to manufacture Railwaybrakes.  In 1922 , Bayerische flugzeugwerke AG. Manufacturer of small aircraft merged with BMW to form BMW AG. BMW AG
  8. 8.  BMW started manufacturing MotorcycleR32-500 cc Bike designed by Max Friz.  Company started producing cars in the late 1920’s.
  9. 9.  In 1928-BMW setup a car manufacturing unit in Eisenach region of Germany.  There they manufactured DIXI cars and sold under their name.  By early 1930 they started designing their own cars.  Introduced many successful car’s like 327 saloon and 328 roadster.
  10. 10. Saloon 327 and 328 Roadster
  11. 11.  In1959 launched BMW 700 of “sporty exterior´ which was the main selling point.  They launched other models based on BMW 700 and won many competitions.
  12. 12. 1961 – BMW launched the “Sporty Sedan”  BMW 1500 launched in 1961
  13. 13. 1970: BMW moves its headquarters to Munich.  In 1970 BMW moved its headquarters to Munich,Germany.  The building looks like the four cylinder of cars.
  14. 14.  From 1970 to 1990 they focused on exports market.  Like US ,south Africa, Australia, Asia, Japan, Austria and Bavaria.  In1992 BMW outsold the Mercedes for the first time in Europe.  The company became the first European car market to operate in US market.
  15. 15.  In1994 BMW attempted to enter in mass market by bringing British Car m/c MG Rover.  The purchase gave the company ownership of many successful brands like Mini, Land Rover, and Triumph etc.  But some of the models were clashing with the BMW model.
  16. 16.  In 2000 , BMW sold the MG Rover to Phoneix consortium for a nominal £10.  Mini and Triumph were held by the BMW and Land Rover and Range Rover were sold to Ford.  In Early 2000 BMW launched its 1-series and 6-series.  For launching this car model company faced many criticism.
  17. 17. 2000 - 2005 1 SERIES & 6 SERIES
  18. 18.  In 2004 company added three 3 car brands-BMW, Mini, and Rolls Royce  In 24 cities,12 Countries on 4 different continents.  Company employed 70,000 people.  Customer deliveries increases from 1.2millions unit.  Revenue in 2004=US $ 60.47 billions,Profit=US $ 3.03 billions.
  19. 19. WHY MASS CUSTOMISATION?  The factors: ◦BMW was reputed for its customisation programs ◦The orders recived were conveyed to the factories which manufactured and delivered to customers in the shortest possible time. ◦Meeting particular customer need on a large scale. ◦Basically combining the concepts of mass production with customisation
  20. 20.  One of the criticisms against B.M.W. was that most of its cars looked alike.  As a maker of luxury cars it had to deliver value to its customers.  In older system customer had to do away with whatever limited options they had.  Total customer satisfaction became the new buzzword.
  21. 21. BENEFITS TOMASS CUSTOMIZATION  Personalized Car  Higher Customer Satisfaction  Great Amount of Flexibility  Perfectly Matching the Need’s of the customer.  Better use of working capital.  Levels out economic fluctuations.  Customer has control over products.
  22. 22.  As a result of customization program there was a stocking more in showrooms.  COSP :Customer oriented sales and production.  Production process was defined by the car ordered by the customer.  This was supplemented by the online ordering system launched by the company
  23. 23. Supply Chain Management  Advance planning was the key reason for the excellent management for BMW supply chain management.  B.M.W. had a very efficient ERP solutions provided by SAP.  It connected the supply chain management very well.  Once the data entered it reached automatically to the production areas.  50-70% of the plant was automated  Used extensive use of Robots for heavy manual work.  Sophisticated machines moved around to help human efforts. ( Process , fixed position,product,cellular layouts)
  24. 24. PROCESS FLOW STRUCTURE  Batch shop  Batch production  Assembly line  Continuous flow
  25. 25. ONLINE ORDERING SYSTEM  Improved interface  Platform to showcase the company’sproducts  Customize options  Dealer’s role  Good ERP systems
  26. 26. Flexibility  BMW ‘s new plant was constructed in circular design keeping flexibility in mind.  This was done for future expansion and smooth flow of process from one stage to another.  Assembly lines designed in such a way that they can shift between models when demand fluctuated(each plant produced atleast two models of cars)  Flexible work programmes where plants operated in different capacities.  BMW had 300 different worker scheduling programs  Interchangeability of parts added to flexibility  Customised car was delivered in 12 days
  27. 27. Challenges faced  In 2000 , BMW had the lowest delivery times.  Consumer laws in US : Consumer could break a car deal at any time before delivery.  Integrate customer preferences to the image that the company carried.
  28. 28. Future of Mass Customisation  Computers ,cars and other industries are adopting mass customisation.  There was a school of thought which suggested that mass customisation is not economical in automobile industries as they thrived on volumes.  It is widely agreed that the potential of mass customisation is huge.