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The case study is about BMW s new plant in Leipzig which implemented mass customization as its major feature.

BMW s reputation was build on cars that combine great styling with exceptional performance. In 1990 s the company was levied with criticism that all BMW cars look alike, which led BMW to introduce customization program. BMW identified POST PURCHASE CUSTOMISATION was a big business in Europe & US and they tried to cater to this huge market. COSP was launched where production process at any time was defined by the car purchaser and not by the company, a interactive website was launched to facilitate online ordering.

BMW offered 10 raise to 32 variations for customization. Advance planning was an important aspect in Supply chain management which helped in maintaining adequate inventory. BMW invested hugely in Enterprise resource planning technology by SAP, which helped suppliers interact with the company. The suppliers were located within 20 miles of the manufacturing plants. Each plant was designed keeping flexibility in mind, Leipzig plant was constructed in circular design, where most of the buildings surrounded the central building. As no two cars manufatured were similar, accurate sequencing of the indiviual parts on the assembly line was crucial. 50% to 75% of the work was automated. The assembly line were designed to allow shifting between the models when demand fluctuated.

The car was manufactured within 2 days and required 10-12 days to deliver it to the customer. Flexibility, Interchangeability and Differentiation were important features of the BMW plants. BMW treated its buyers as Investors and not as Customers The BMW market was majorly focused in Europe because in US consumer protection laws allowed the customers to break the car deal at any time before delivery.

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