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 1955 BMW. In the year the Iron The BMW 503 and 507 BMW introduces the 1923 Curtain fell, BMW sports cars are todays first 7 Series car. The The first BMW motorcycle 733i sets new standards has another first by 'golden oldies'. 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 2000 1000 0 1998 1999 2000 2001 2002 Capital Expenditures

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