MASS CUSTOMIZATION

GROUP NO. 5
 History
• Established – 1917
• Bayerisch Motoren Werke (BMW)
• They were the first European company
to establish a plant in Japan.
• Outsold their biggest competitor
Mercedes for the first time in 1990.
• For the first time their revenues
exceeded USD 3.03billion in 2000.
• Established a new plant in
Leipzig area of Germany
in 2005.
• Invested more than
USD1.3billion.
• The plant was to
manufacture BMW 3-
series cars.
• The Leipzig plant was
designed to allow
maximum flexibility and
communications.
 MASS CUSTOMIZATION
• Mass customization is a business
strategy that aims at fulfilling
customer needs with near mass
production efficiency
• Ability to provide your customers
with anything they want profitably
any time they want it and in the
way they want it.
• Use of flexible processes and
organizational structure to produce
 BENEFITS TO
MASS CUSTOMIZATION
• CUSTOMER
• Personalized Car
• Higher Customer Satisfaction
• Great Amount of Flexibility
• Perfectly Matching the need of Customer
• BMW
• Brand Image in the auto industry
• Company's Profitability
• Cut in Inventory
• Elimination of Parts Storage line.
• Competitive Advantage.

•
 ADVANTAGES
• Better use of working capital.
• Levels out economic fluctuations.
• Customer has control over products.
• Does not have to pay for features
which the customer does not
wants.
•
C O M P E T IT IV E D IM E N T IO N S A T B M W

Cost

Flexibility Delivery

Quality
ONLINE ORDERING SYSTEM
•
• Improved interface
• Platform to showcase the company’s
products
• Customize options
• Dealer’s role
• Good ERP systems
•
•
FIVE PILLARS OF OPERATIONS MANAGEMENT
AT BMW

•
• People orientation
• Plant layout
• Parts customized
• Process control
• Planning
•
 Process Selection
1.Conversion •

2.Fabrication •
3.Assembly
4.Testing
 Process Flow Structure
1.Job shop
2.Batch production
3.Assembly line
4.Continuous flow
W – S u p p ly C h a in M a n a g e m e n t
• Integrating the networking and communication
infrastructure between businesses and suppliers
•
• Having the right product in the right place, at the right
time, at the right price, and in the right condition
•
• Designed to improve organizational processes by
optimizing the flow of goods, information, and
services between buyers and suppliers in the value
chain
•
• Coordination of logistics for timely delivery of goods or
products
•
 CHALLENGES TO
MASS CUSTOMIZATION
• To Balance the Mass Production and
Differentiation.
• Improvement in Manufacturing
Process and More efficient.(Pull
Manufacturing System)
• Reduction in Order Processing Time.
• Effective Communication.
• Relationship with Suppliers.
•
 CHALLENGES TO
MASS CUSTOMIZATION
• Requirement of Large no of
Showrooms & Online ordering
system
• Company's image Vs Customer
Prefere
• Location of Suppliers.
• Rely on Manpower rather the
machine.
• Flexible work program.
•
eer Driving Pleasure