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Bayerische Motoren Werke
          BMW
    “The Ultimate Driving Machine”
                Dinh
                Dino
                Rezar
                 Rob
                Jamie
             DDRRJ, LLC
BMW – The Company

History




                                                                                         1981
1916                                                 1962                                BMW becomes the first
RMW (Rapp Motoren                                    The 1500 model                      European carmaker to
                          1928
Werke ) is founded as                                establishes the trend for           establish a subsidiary in
                          The first BMW
an aircraft-engine                                   the "new class" of sporty           Japan.
                          automobile, the Dixi 3/15,
factory in Munich. In                                compact touring cars.
                          is developed in Munich.
1917, Changed to                                                        1977                        1989
BMW.                                         1955
              1923                           The BMW 503 and 507 BMW introduces the                 In the year the Iron
              The first BMW motorcycle       sports cars are today’s first 7 Series car. The        Curtain fell, BMW
                                             'golden oldies'.           733i sets new standards     has another first by
              leaves the Munich
                                                                        in technology, design       producing half a
              production site.
                                                                        and equipment.              million cars.
BMW – The Company

Strategy
 Respect for the individual

Competition
  •   Mercedes Benz
  •   Jaguar
  •   Infinity
  •   Lexus
  •   Cadillac
  •   Lincoln
Customers
 The person that appreciates, and is willing to pay for, the
 “Ultimate Driving Machine.”
BMW – Process Simplification



•Frequent Production Changes
•Process Variety
•Process Flexibility
•Process Focus
BMW – Process Simplification


•   Acquisition Methodology
•   Control R&D Expenditures
•   Currency Exchange
•   Target Costing
•   Employee Training and Empowerment
•   Preventive Maintenance
BMW – Automation


• Four Levels of Automation
  – Changes in the level of automation can drastically
    affect quality of the product, cost, efficiency of a
    process, and flexibility to produce different products.
• Level 1
  – deals with material handling, automated
    conveyors, and robotic operations
• Level 2
  – deals with equipment and plant layout
BMW – Automation


• Level 3
  – involves manufacturing software and flexible
    manufacturing systems
• Level 4
  – involves computer integration
BMW – Managing Policy Changes


• Measurements of:
       –   Flexibility
       –   Quality
       –   Manufacturing Effectiveness
       –   Costs

• Incentive Compensation
• Leadership Style
BMW – Managing Policy Changes

                     Capital Expenditures (In Euros)


5000

4000

3000
                                                       Capital Expenditures
2000

1000

  0
       1998   1999      2000     2001     2002
BMW – Managing Policy Changes

                      Production Per Employee



                  12.000
                  10.000
                   8.000
Aggregate Units    6.000
                   4.000
                   2.000
                   0.000
                           1998   1999   2000   2001   2002

                                                         Prod/Employee
BMW – Conclusion


 Need More Information
• Process Simplification
• Increase Automation
• Measuring Flexibility

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Bmw

  • 1. Bayerische Motoren Werke BMW “The Ultimate Driving Machine” Dinh Dino Rezar Rob Jamie DDRRJ, LLC
  • 2. BMW – The Company History 1981 1916 1962 BMW becomes the first RMW (Rapp Motoren The 1500 model European carmaker to 1928 Werke ) is founded as establishes the trend for establish a subsidiary in The first BMW an aircraft-engine the "new class" of sporty Japan. automobile, the Dixi 3/15, factory in Munich. In compact touring cars. is developed in Munich. 1917, Changed to 1977 1989 BMW. 1955 1923 The BMW 503 and 507 BMW introduces the In the year the Iron The first BMW motorcycle sports cars are today’s first 7 Series car. The Curtain fell, BMW 'golden oldies'. 733i sets new standards has another first by leaves the Munich in technology, design producing half a production site. and equipment. million cars.
  • 3. BMW – The Company Strategy Respect for the individual Competition • Mercedes Benz • Jaguar • Infinity • Lexus • Cadillac • Lincoln Customers The person that appreciates, and is willing to pay for, the “Ultimate Driving Machine.”
  • 4. BMW – Process Simplification •Frequent Production Changes •Process Variety •Process Flexibility •Process Focus
  • 5. BMW – Process Simplification • Acquisition Methodology • Control R&D Expenditures • Currency Exchange • Target Costing • Employee Training and Empowerment • Preventive Maintenance
  • 6. BMW – Automation • Four Levels of Automation – Changes in the level of automation can drastically affect quality of the product, cost, efficiency of a process, and flexibility to produce different products. • Level 1 – deals with material handling, automated conveyors, and robotic operations • Level 2 – deals with equipment and plant layout
  • 7. BMW – Automation • Level 3 – involves manufacturing software and flexible manufacturing systems • Level 4 – involves computer integration
  • 8. BMW – Managing Policy Changes • Measurements of: – Flexibility – Quality – Manufacturing Effectiveness – Costs • Incentive Compensation • Leadership Style
  • 9. BMW – Managing Policy Changes Capital Expenditures (In Euros) 5000 4000 3000 Capital Expenditures 2000 1000 0 1998 1999 2000 2001 2002
  • 10. BMW – Managing Policy Changes Production Per Employee 12.000 10.000 8.000 Aggregate Units 6.000 4.000 2.000 0.000 1998 1999 2000 2001 2002 Prod/Employee
  • 11. BMW – Conclusion Need More Information • Process Simplification • Increase Automation • Measuring Flexibility