Bmw Case Study Analysis

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BMW Case Study Analysis

BMW is preparing to enter another “era” called “post-just-in-time” manufacturing. The idea driving this new era is a new focus on the importance of suppliers of BMW. This focus is designed to make ordering BMWs as easy as possible for new BMW owners. This plan involves everything from redesigning the body shop in the South Carolina plant to tools ordering for dealerships. The body shop changes involve redesigning car models such that, differences in body structures is minimal. Other changes involve the manner in which VIN numbers are assigned such that customers have more time to make changes to their orders and add production flexibility. European dealerships are using a new streamlined computer ordering system. The South Carolina plant is also doubling capacity for the way in which it manages built cars production scheduling. This change will reduce issues that arise in order scheduling. The “don’t forget the suppliers” idea will be present at all levels of the supply chain. The computer system that will drive it is in testing and will be in production by the fall of 2002. The idea behind this change to a supplier-centric idea is to improve the accuracy of production. BMW will reduce the lead time needed for a production change. Reducing the lead time improves production accuracy. This reduction in lead time and the accuracy that result will free suppliers to produce parts ahead of time and will more confidence. An additional benefit will be to allow suppliers to make changes to deal with customer requests without significantly altering production. This computer system will update nightly. A new position has been created to deal with issues that arise in production. This new position has authority to make production decision across multiple departments in an effort to keep things running smoothly. This new position is called “indicator champion.” The driving force behind the idea of all the improvements BMW is making in the South Carolina plant is increase the number of customer ordered vehicles in the United States market. By making these improvements, BMW believes that customer confidence will improve such that people will not simply take what is on the lot, they will order their custom BMW knowing that the will get what they want when they are promised. Additionally, BMW believes that improved accuracy at the manufacturing level will lead to a better supplier-base. Reducing the variations between models leaving the plant will speed also production. There are several measurements for BMW’s supply chain performance. The first is customer order accuracy. BMW will need to measure, possibly using a survey, whether or not customers are getting what they ordered. This should not be very difficult. They simply ask the customer if they got what they ordered and the customer replies with a yes or a no. If no, then BMW can take further steps to determine where the inaccuracy occurred and take steps to prevent further inaccuracies. The second way in which BMW can measure their supply chain performance is the speed at which cars exit the plants. The more cars, obviously, the better the production speed. However, BMW will need to couple this measurement with accuracy measurements. Fast production is not of much use if 50 percent of the cars are not what the customer ordered. A third measurement is what this supply chain change is all about. Suppliers will need to give positive feedback on how BMW’s changes are truly working. If suppliers cannot keep up with BMW’s schedule, then problems will arise. If suppliers simply do not like the new system and the changes that occur, then BMW will need to address that by either getting new suppliers or devoting more time into training current suppliers. Global expansion has a major impact on any company’s capacity measurement and e-business has everything to do with it. When automakers in the US decided to sell their wares abroad, they greatly expanded their...
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