CONTENTS

EXECUTIVE SUMMARY ......................................................................................................................................2

BACKGROUND OF COMPANY .........................................................................................................................3
Manufacturing of Cars ...................................................................................................................................3
BMW's mission statement .............................................................................................................................5
BMW’s vision statement ................................................................................................................................5
Organizational chart .......................................................................................................................................5
Core business activities ................................................................................................................................5
Competitive advantage ..................................................................................................................................6
HOW OPERATION MANAGEMENT PLAYS ROLE IN BMW.......................................................................8
PRODUCT DESIGN ........................................................................................................................................... 10
Production focus .......................................................................................................................................... 10
Production strategy ..................................................................................................................................... 12
Product design process.............................................................................................................................. 13
Manufacturing process ............................................................................................................................... 16
CORPORATE SOCIAL RESPONSIBILITY (CSR) AT BMW GROUP ...................................................... 20
CONCLUSIONS.................................................................................................................................................. 26
RECOMMENDATION ........................................................................................................................................ 27
REFERENCES .................................................................................................................................................... 29

1
EXECUTIVE SUMMARY

This report is written for the purpose of studying the operations management of the BMW automobile
production, specifically the product design and sustainability. The first part of this report breaks down
into the background of the company and how operational management plays a key role in the BMW
Group and the important operational strategies and production focus of BMW car designs The second
part of the report analyzes the product design and the process design of the BMW cars produced that
is how they are first planned, outlined, designed, and manufactured. It also uncovers the various
aspects involved in the process design of the cars, the sustainability practiced in the operations, the
gaps in their design and operations and how they can solve the gaps in their design in order to
achieve full efficiency and friendly-environmental elements. In overall, this report therefore gives a
clear in-depth analysis in the design aspect in the operation of the plant of BMW automobile
production.

2
BACKGROUND OF COMPANY

Manufacturing of Cars

In 1966, Hans Glas Company acquired Bayerische Motoren Werke (BMW), owing to their switch as
automobile manufacturing unit. 'Dixi' was BMW's first car, named based on its Austin 7 model. In
the year 1992, a large California based stake industrial design studio have been acquired for the
production and development in US.
Two years later they acquired British Rover Group. This group was a merger of the Rover at the
same time, with Land Rover and MG brands including few inputs from Austin and Morris. Owing
to the loss of Rover in 2000, BMW sold it to the Phoenix Consortium which was later acquired
by Ford.

Presenting its customers and users by best quality and the manufacturing process involved in
developing of each automobile, BMW has been voted as the most successful automobile with
production unit of 1,845,186 automobiles and 117,109 motorcycles as of 2012. The production
of BMW automobiles and motorcycles has seen a steep rise over the last couple of years .

Be a big sponsor for some different big sporting events and leagues including various football
clubs, events at Olympics, United States Olympic Committee, European golf events and PGA
Championship including BMW International Open and BMW Italian Open in Germany. BMW start
to shine its production with the customary BMW blue and white logo. The logo is derived from
the ancestral Rapp Motoren Werke company circular logo, including the colors of Bavarian flag.

3
 CEO: Harald Krüger has been working in BMW
since 1992, and from May 2015, is the CEO and
Chairman of the Board of Management.

OWNERS: As of 2016, the Owners of the

BMW are Stefan Quandt who owns 29% of
the shares, Susanne Klatten, who owns 21%
and the other 50% are publicly owned.

According to reputed magazines and surveys, BMW has its name listed among the top
automobile manufacturers and among top 20 best technical companies to work with. With 4
operating divisions - BMW Motorrad, Mini, BMW Motorsport and BMWi, the company was able to
generate revenue of €76.84 billion as of 2012.

4
BMW's mission statement

“To become the world's leading provider of premium products and premium services for individual
mobility.” The statement shows that BMW has come of age and no longer settles on normal or what
can be defined as satisfactory products Instead, the company goes beyond this expectation to bring
first-class cars, and that explains why the German corporation is held in high ostentation across the
globe.

BMW’s vision statement

“To be the most successful premium manufacturer in the industry.”

Organizational chart

Core business activities

Type of Industry: Automobile manufacturer

BMW is now leading to be the world’s leading premium manufacturer of automobile and motorcycle.
By manufacturing its own mobility services with good up-to-date technology, BMW are able to give the
best performance and satisfaction to the customers.

Type of Product: Automobile and motorcycle

BMW is a well-known company that have been manufactured and producing high performance cars,
having three brands which are BMW, MINI and Rolls-Royce.

5
Competitive advantage

Differentiation:

1. ABILITY TO SATISFY ELITE

This is one of major competitive advantages of BMW, it is able to satisfy all of elite class
person with its cars. Having the big perception to the public that person using BMW car in their
daily life is a rich professional and affluent means BMW have been success in sharping its
strategy. This company’s car has been categorized among premium car owners and having
this car amounted as a big achievement or social status. Government itself have rank all
person rich in the society have a demand for every BMW model released.

2. TECHNOLOGICALLY ADVANCED

Offering its affluent and rich customers make BMW can offer a car with a higher price. Thus
BMW need to always maintain luxury segment that satisfies those customers and ensuring
them having willingness to return for new brands. BMW make a smart move when positioned
itself as technologically advanced automotive company, making innovation to their cars in
order to give full satisfaction and best driving experience.

3. COMPETITIVE MARKETING AND SERVICE

BMW laying on competitive marketing and post-sales service, this company have been
advertising its branded cars and showing off most stylish and elegant model of every series
and edition using modern and up-to-date technology such as iDrive and in-car infotainment
system. Follow up or post-sale service is also a big deal for BMW to make sure their customer
having the highest satisfaction level, make them being the loyal customer besides can always
improve their products and dealing services.

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Response:

1. BEST CUSTOMER ASSIST EXPERIENCE

In assisting their offline customers attending the showroom, they have a unique customer
understanding through their personal direct dialogue with all customers. They focus solely on
premium products and services, suitable with their objective to be the world’s leading provider
in that particular industry. They anticipate personally their customer needs and desires as each
of them have their own different want. They also make their customer happy and loyal to the
company by bringing these to life quickly and precisely in innovative and emotional offerings
and experiences.

2. PREORDER AND READY PRODUCT

In order for BMW facing the unpredictable request of each of every collection, they start
assisting its prospect and customers for any questions and information, including for the one
who want to book or make a pre-order before the release date of the new car model. This
strategy has been used up by BMW in order to make their car or product accessible and
achievable, avoiding prospect customers to jump or hop to other company selling or
manufacturing elite cars.

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HOW OPERATION MANAGEMENT PLAYS ROLE IN BMW

Operations management (OM) is responsible for managing the process of creation of the cars. It
involves planning, organizing, coordinating, and controlling all the resources needed to produce a
company’s products. This involves managing people, equipment, technology, information, and all the
other resources that requires in the production of the products.

BMW’s company hires about 11,000 people and places them at seven million square-foot
campus. Operation managers concern about producing vehicles that give thrill to customer besides
producing safe cars.

1. Production Process

The production process takes four steps which is press shop, body shop, paint, mounting.

In the press shop, this is the process where they molded parts such side frames, doors, hoods and
roofs. To produce that, they need to press, bent, punch and cut the aluminum sheet in the system coil.
Press shop provides the sheet metal parts for the bodywork. The available total press capacity of a
plant is up to 10,000 tons.

At the body shop, this is where they assembly of several hundred individual parts made of steel and
aluminum depends on vehicle requirement. They also need employee with high degree of knowledge
in joining techniques such as spot welding, soldering, screwing and gluing as well as the new laser
welding millimeter accuracy bodies. Most modern robots perform these serious and complex works
with maximum precision, while highly qualified employees control the machine and wait.

Then the bodies will first clean in plunge pools of degreases, then coated with zinc phosphate layer. It
will give the lasting corrosion protection. After that, they will add four more coats of paint to protect the
vehicle against environmental influences and give a durable color gloss. The quality is checked in the
paint.

Lastly, they will be mounted together. There are vast amount of equipment, attachments, country
versions and distinctive customized product. Due to that, experienced and well-trained employees are
needed in the assembly line.

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2. Quality Management

As the features in BMW become more complex, therefore, they need more experts to take parts in this
process to ensure that they are able to produce a flawless series of 1,000 units per day. In addition,
they provides two things on one hand it examines the product at the end of production. In the other
hand, it already ensures that every single production step is executed perfectly during the entire
production process.

For the quality of the quality management at BMW, they use all available technical resources
beginning with ultrasound-camera scans, optical test, laser-based examination and so on. They also
make collaboration with suppliers and universities to develop new methods of optimize the process
even further.

However, quality management not neglects the important aspect which is human factor as human can
sense the error where the machine can’t. Machine can do everything that measureable but they also
need human touch in order to produce flawless product. All these factors can guarantee customers
with high-end premium quality of the BMW.

3. Supply Chain Management

Global supplier for BMW is a pillar for this company where they basically involve in value creation,
quality and innovation. BMW works with about 12,000 suppliers in 70 countries. These global
suppliers will make sure that they will fulfill the same environmental and social standard that has been
set by BMW and hence will bring success to company.

Supplier also takes part in BMW’s sustainability performance and sustainable development of society.
This is where suppliers of BMW have to follow the rules and regulations in BMW Group Supplier
Sustainability Policy. Sub-suppliers also comply with these regulations. In addition, BMW Company
will recognize outstanding supplier through their innovations in five categories, one of them is being
sustainability. Suppliers will be awarded with the BMW Supplier Innovation Award that held every two
years.

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PRODUCT DESIGN

Production focus

 INTERNATIONALIZATION
The goal of the BMW Group is to achieve a regional balance between Asia, the Americas and
Europe in its production. Its production system is characterized by unparalleled flexibility, high
efficiency levels and processes that enable the company to respond quickly to changes in the market
and fluctuations in regional sales. The production network of the BMW Group consists of a total of 31
locations in 15 countries. The BMW Group integrates groundbreaking digitalization and Industry 4.0
innovations across its production network, standardized processes and intelligent composite
construction. The production system maintains consistent premium quality and a high level of
customization. The strategy of the BMW Group is to integrate the production of fully and partially
electrified vehicles into the existing production system in order to ensure long-term capacity utilization
across the production network, with the ability to respond quickly and flexibly to customer wishes.

 QUALITY
The same standards apply for quality, safety and careful use of resources on all production sites within
the international production network of the BMW Group. Innovative product technologies and the high
level of employees’ expertise ensure that more than 20,000 individual parts can be converted into
“Made by BMW” premium vehicles.

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  SUSTAINABILITY
Sustainability by design: Green manufacturing. Economic success, responsible use of resources and
social responsibility are the foundations of sustainable growth and a gradual increase in the value of
business. The BMW Group has firmly established ecological and social criteria throughout the value
chain as well as a clear commitment to resource conservation. The BMW Group strives to be the
leading premium supplier of individual mobility with the highest resource efficiency. The company has
therefore implemented consistent group-wide environmental management, addressing environmental
aspects early in investment decisions and tracking environmental KPIs on an ongoing basis, as well
as pursuing ambitious goals. In fact, tried-and-tested methods are applied to the entire production
network.

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Production strategy

Digitalization and innovative technologies are impacting the entire BMW Group production value
chain. From assembly to logistics – every stage of production benefits from the use of digital
processes. The BMW Group also is the first automobile manufacturer worldwide to use lightweight
carbon in large-series production. The benefits of carbon are clear, especially for electro-mobility,
where it fully offsets the additional weight of the battery.

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Product design process

1. Identifying trends

First, it is a matter of understanding the future vehicle and the context in which it will be driven.
Designers have to understand far in advance what will be regarded as modern and cutting-edge in
tomorrow’s world – and how BMW customers’ needs may have changed by then. Designers gain their
inspiration from a wide-variety of sources – ranging from fashion and architecture all over the world to
nature. However, they can also get ideas from the BMW advanced team’s top secret vehicle projects
and concept cars.

2. Hand-drawn sketches

The competition begins with hand-drawn sketches, where BMW’s designers initially express their
ideas in countless hand-drawn sketches. Inspiration and a clear vision are the starting points for
creative tasks. It is on a blank sheet of paper that they first acquire form, solely through a pen and the
hand that guides it. The sketch is the most emotional form of an idea. This is why the designers first
work out their ideas exclusively with a pen and paper. The concern here is not feasibility. Instead, the
sketch is intended to bring life to the character of the model, which then remains the guiding image
throughout the design process.

3. Tape Drawing

The emotional character of the sketch still has little to do with the technical package. Tape drawings
are where emotional vision and technical reality meet for the first time. Using flexible adhesive tapes,
the designers transfer their draft sketch to so-called package plans, a type of road map of the
subsequent vehicle with all the technical details on a 1:1 scale. From the finished tape drawing, it is
already possible to distinguish the silhouette and character lines of the personality that will later
emerge.

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 4. Digital models

At this stage state-of-the-art digital technologies come to play in the design process. From two-
dimensional sketches, CAS (computer-aided styling) designers create a virtual three-dimensional
vehicle. among other things, they use Virtual Reality. Also, the digital headsets facilitate collaboration
between departments. Designers and developers are no longer spatially bound to a model. Instead,
they are able to see the model through their VR headsets. Hence, the design process becomes more
efficient and also delivers a context – so the new model can be presented in the respective living
environment.

5. Clay Modelling

So far, the car designs have been two-dimensional, but now the form-finding process becomes three-
dimensional. The designers, who concluded the selection process successfully, are given the
opportunity to work up their designs three-dimensionally on a 1:1 scale. These models are made from
clay. A clay prototype is essential for working up surfaces, lines and details perfectly. The car design
can be brought to life only in three-dimensional form and original size. It becomes a thrilling moment
when people actually see the sketches in front of them as a complete entity – a being that they can
walk around. Once the clay model is ready, the designers wrap it in special sheeting that imitates the
effect of car paintwork. This makes it possible to assess the lines, surfaces and proportions of a clay
model in different light conditions. It takes about one month for a model to achieve the desired level of
perfection. Then it goes forward to the next round in the decision-making process. About two years
before the vehicle goes into production, the BMW Board of Management selects the winner from two
remaining car designs.

6. Drawing the interior car design

Interior designers sketch and refine their models at the same time as exterior designers. They also
work with clay in this process. In so-called seat boxes, they also make the entire interior come alive –
from seats and details to surfaces and materials. Also in this process, VR headsets provide support,
making it possible to look around a virtual car interior as though they were sat in.

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 7. Fine-tuning

The BMW Design has a dedicated team for the detailed car design as well as for colors and materials.
Both on the exterior and in the interior of the vehicle, these fine-tuning experts perfect all the elements
down to hundredths of a millimeter. Close coordination among car designers, engineers and
production technicians is especially important at this stage. From this early stage, it still takes a few
years to pass before the new car design is introduced to the public.

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Manufacturing process

SMART DATA ANALYTICS

Includes applications used to capture and evaluate data and improve processes. For example, factory
digitalization enables a three-dimensional image of a production plant to be generated with millimeter
accuracy. Later, 3D data can also be used in modifications and calculations at the factory.

1. INNOVATIVE NUTSETTER
Algorithms analyze thousands of bolted
connections in vehicle assembly and provide
important input for more reliable identification
of errors before they occur. A green light
means everything is OK.

2. VIRTUAL REALITY
Virtual reality is used to simulate an interactive
3D environment in real time. The technology
offers both gamers and companies real added
value. The international team at the BMW Group
Virtual Reality Lab creates virtual spaces and
scenarios that can be used to optimize processes
and safety, for example, for the logistic factor.

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SMART LOGISTICS

The BMW Group is developing ground-breaking systems in the area of smart logistics. Smart data
technologies provide real-time information on the entire supply chain. This ensures that delivery of
supplies to plants can be adjusted quickly and flexibly in response to changing conditions.

1. AUTONOMOUS TUGGER TRAIN

Autonomous tugger trains are mainly used in
assembly logistics, relying on laser signal to
navigate themselves independently through the
production halls.

2. SMART TRANSPORT ROBOT

Smart Transport Robots are able to transport
components weighing up to 0.5 tons
independently from A to B. once wireless
transmitters have determined their location,
they can calculate the best route to the
destination for themselves. Powered by
recycled BMW i3 batteries, they can drive for
eight hours.

3. CONNECTED DISTRIBUTION
With Connected Distribution, the vehicle sends
and receives important information en route from
the plant to the dealership. When it comes to a
stop, the vehicle relays its current geolocation and
status to the logistics center via mobile phone
connection.

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INNOVATIVE AUTOMATION

Innovative automation means using intelligent solutions to relieve employees, and completing human
flexibility and sensitivity with the strengths of robots. They work side by side with employees to ease
their tasks.

1. COLLABORATIVE LIGHTWEIGHT ROBOTS

Collaborative robots work directly alongside
employees, where they perform strenuous and
high-precision tasks. Their speed is limited and
they come to a standstill if any danger arises.

2. EXOSKELETON
Exoskeletons, like a second skeleton,
serve as an external support structure for
the body and strengthen the employees’
legs, arms or back.

3. WORKING WITH AN INDUSRIAL ROBOT

Nowadays, it is even possible for humans to
work directly with conventional, large-scale
industrial robots. Naturally, safety is also
essential; if a person gets dangerously close to
a robot, the latest safety technology kicks in to
halt the movement of the robot arm.

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ADDITIVE MANUFACTURING

The BMW Group has used additive manufacturing in prototyping since 1990 and has continued to
develop this technology, also known as 3D printing, ever since. New additive manufacturing methods
will further shorten production times for parts from the 3D printer. Tool-less production holds great
potential for more economical and flexible production, as well as for individualization of components.

1. ADDITIVE MANUFACTURING CENTRE

The Additive Manufacturing Centre at the BMW Group Research and Innovation Centre in
Munich handles almost 25,000 prototype orders and builds more than 100,000 components
per year – from small plastic holders to design samples to metal chassis components for
function trials. In the meantime, parts are also produced this way for series production of
customer vehicles.

2. CUSTOMIZED ASSEMBLY AIDS

3D printing is also used to
produce individual thumb
supports to relieve employees
working in vehicle assembly.
The flexible assembly aid is
individually molded to fit the
shape of the employee’s hand
and avoid excessive strain on
the thumb joint.

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CORPORATE SOCIAL RESPONSIBILITY (CSR) AT BMW GROUP

The definition of Corporate Social Responsibility (CSR) is a balanced approach for organizations to
address the economic, social and environmental issues in a way that aims benefits to people,
communities and society. BMW Group is one of the world leaders in Corporate Social Responsibility.

In their CSR activities, the BMW Group is proactive and illustrates. In all aspects of business, they
include stakeholders. For creating a sustainability report, the BMW Group took the time. This was a
comprehensive report and the best way to document their contributions in relation to the CSR.
Benchmarks and long-term goals had been set in the sustainability report. Above all,
PricewaterhouseCoopers (one of the Big Four auditors, along with Deloitte, EY and KPMG) carried out
the verification of the sustainability report. The BMW Group's CSR activities are expected to far
surpass the worldwide expectations of every organization

The example of CSR activities that were carried out by BMW Group:

1. BMW Safety 360 Programme (Malaysia)

 This programme is currently educating around 3,000 pre-shcoolers and parents on the
topic of road safety – highlighting the importance of both active and passive: from using an
appropriate child seat to how drivers should behave behind the wheel.
2. BMW Kids Tour (Italy)
 The BMW Kids Tour is a fun programme for children and their families, with workshops and
info and cultural events covering all aspects of road safety.
3. Care 4 Water
 BMW Financial Services, searching for a program that allowed for employees to give back
to their local communities. The goal was to engage each of more than 8,000 worldwide
employees to support dedicated projects in developing countries that BMW operates in.

Sustainability in BMW

Sustainability often associated with corporate social responsibility. It also refers to meeting the needs
of the present without compromising the ability of future generations to meet their own needs. It more
than going green. Includes employees, customers, community, and company reputation – not only
environmental resources. There are three approach which are system views, common and triple
bottom line. Most clearly, BMW use the triple bottom line.

The triple bottom line refers to a company that not only reports revenue but also includes social and
environmental reports. Just the idea of the triple bottom line shows how in today’s culture companies
20
have to take CSR much more seriously. BMW does in fact report the triple bottom line, as clear as
they report their revenues they boast the environmental impact they have. They also report how they
give back locally and internationally to make a social impact.

BMW not only lists what environmental agencies they partner with and what foundations they give to
but also every year they publish a company sustainability report. This sustainability report discusses
the two parts of the triple bottom line other than the revenue. Financial reports are also stated clearly
for financial investors.

According to BMW Group Sustainable Value Report 2018, in order to maintain BMW position in future,
they consistently integrate sustainability into their business model. BMW see global challenges like
climate change or urbanization as opportunities for the development of innovative products and
services. Sustainability thus secures the company economic success on a long-term basis. Their
innovations are not only developed to enhance the benefits for customers – they also want them to
have a positive impact on society and the environment.

Besides in the report said, to pursue the mission to be the most successful and most sustainable
premium provider of individual mobility, the BMW Group set out ten strategic goals in 2012. They
consistently follow these goals, which have been defined through to 2020. Their focus is on three key
areas of action:

 Products and services

 Production and value creation
 Employees and society

In addition to pursuing their ten long-term goals, BMW continuously address sustainability topics in the
current public discourse and discuss their points of view on these issues with the stakeholders. These
include, for example, the diesel debate, discussions on critical issues of the supply chain or the global
regulation of CO2 and contaminants, as well as the definition of favorable framework conditions for
electro mobility.

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 Figure 1: The ten sustainability goals of the BMW Group and their potential influence on the SDGs

The Sustainability Management in BMW

Electrification and innovations

For car makers, climate protection is particularly relevant. They have been continuously increasing the
efficiency of their combustion engines for many years. Their goal is emission-free mobility. With its
sustainable 360-degree approach, BMW i3 was a pioneer in electric mobility.

Today, BMW are the European market leaders in electric vehicles. In 2018, they delivered more than
140,000 electric vehicles and plug-in hybrids worldwide. BMW are electrifying all brands and model
series.

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BMW four strategic innovation fields are consistently geared towards the future of mobility: automated
driving, connectivity, electrification and services. In this way BMW are not just reducing emissions and
increasing sustainability in individual mobility – they are also extending their customers’ digital world
into their cars.

Efficient supply chain

BMW also make sure that they keep environmental footprint as small as possible in their
manufacturing processes. In Europe, BMW are already using electricity generated exclusively from
renewable sources. In addition, BMW are continuously optimizing their value chain. By signing the
BMW Group Code on Human Rights and Working Conditions, they have made a clear statement. It
focuses on equality, diversity, safety in the workplace and the protection of personal data. BMW also
have their suppliers and sales partners commit to this code.

Urban mobility

In 2018, BMW intensified their dialogue with stakeholders in the world’s urban centers.

In Los Angeles, Melbourne, Shenzhen, Rotterdam and Berlin, they analyzed the effects increasing
traffic has on those cities and which solutions can be provided by the BMW Group. In this way they
are improving the quality of urban life. It is crucial that the worlds of politics, business and society
develop solutions together.

BMW’s contribution

BMW are already implementing this collaborative approach by entering into partnerships in many
areas. This ranges from their membership in the UN Global Compact and partnerships along the
supply chain to product development alliances with new tech players.

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Product life cycle is longer than conventional car

Any product has four stages of life cycle: introduction, growth, maturity, and decline. However, this
concept does not quite fit with BMW's products. Jim McDowell says "If a product is declining, we
would prefer to withdraw it from the market, as opposed to having a strategy for dealing with the
declining product," In other words, Maturity and Decline stages do not usually exist in BMW's product
life cycle. Before a product reaching the Maturity stage that characterized by decreasing sales rate
and declining profit, BMW pulls it out from the market. BMW cars typically have product life cycle of
seven years. Thus, the best sales number is often achieved in sixth or seventh year after product
introduction.

The Sustainability in BMW i8

The BMW i8 is a sustainable mobility concept that is integrated and innovative. It means visionary
electric vehicles and services for mobility, inspiring design, and a new understanding of prime smart
sustainability.

The BMW i8 concept is an innovative emission-free sportscar, which the "i" means innovation and
incubator function. It focuses on the incubator function for electromobility. The BMW i8 is well-
designed to introduce the entire life cycle of BMW vehicles with the principle of resources conservation
and sustainability.

Visionary Mobility: BMW Connected Drive

The BMW i8 is packed with the Digital Services from BMW ConnectedDrive, which connects to a
"Driver Assistance" app. It act as build in system monitor for driver that focus to other road user safety
and focuses on the essentials choice of the car owner, which stands as a traveling companion and act
as car main safety features.The BMW Connected organizes the mobility agenda and supports
seamlessly embedded car owner's daily routine.

BMW eDrive

The BMW eDrive is designed to harmonize vibrant city life in every detail and characteristic. It is the
intelligent and dynamic way to boast impressive purely electrical mode. According to Car And Driver, it
provides a synchronous electric motor and enormous torque that sustains mobility and agility from
acceleration to maximum speed.
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It is powered by a fully emission-free electric motor, lithium-ion high-performance battery and clever
energy management. It also has an Air Breather that channels the air on the front wheels. It reduces
turbulence on the wheel housings and breaks down the air swirls. Thus, fuel consumption and CO2
emissions are reduced. This will cause 50% lower greenhouse effect than conventional automobiles.

BMW EfficientDynamics: Less Fuel Consumption

The BMW i8 runs with fewer emissions and providing excellent driving pleasure. It is the strategy that
minimizes fuel consumption and "Carbon Dioxide Emissions." It also helps increase dynamics drive
system, which manages energy, aerodynamics and engine efficiency. However, the fuel and power
consumption depend on the wheel and tire sizes selected.

BMW ActiveE

The BMW i8 is bundled with BMW ActiveE, which displays innovative concepts of electric driving. It is
typically an electrical small scale that provides BMW driving pleasure of 170 horsepower. The average
energy consumption of 0.12 kWh/km defines the electrical driving in the future, which is needed to be
recharged after approximately 160 km. It has an impressive acceleration, which is up to 250 Nm of
torque.

Figure 2: BMW i8

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CONCLUSIONS

For the conclusion, operations management is very important for the company and the fact is realized
by everyone. The company that does not plan and follow their strategy in the operations management
will less likely be successful. BMW is a very successful company as they have their own identity and
strategy in producing their product. They have made it presence known in the international market and
it could feel that is it well attributed from it detail product design and sustainability plan. The company
use very detailed process in making their product to ensure that they can meet their customer’s
expectation and to produce the most perfect product in every aspect that they can. BMW have been
able to perform well thanks for their advanced technology, detailed product process, lean production
technique and continuous improvement strategies.

The company would have to make some changes and improvement in the few aspects that we
already state in the recommendation parts. They can consider to make some changes in the number
of supplier, their sustainability in car spotlight range that could harm other road user and their car’s
safety from hacker. Overall, BMW is a company other company can make as an example when
looking to the almost perfect company they can learn from to be successful.

26
RECOMMENDATION

However, there are some issues regarding product design and sustainability in BMW. Product design
time, focus on specific supplier and production unit are include in product design issues. Meanwhile,
problems in sustainability of BMW are they have wide range of light, system monitor breakdown and
exposed to hacker.

PRODUCT DESIGN

1. Product Design Time

When BMW wants to create a new model, they consumes a lot of time. Why is this happening?
It is because they went through many processes from identifying trends to fine tuning. Processes that
involve in creating new model are identifying trends, hand sketches, tape drawing, drawing interior,
clay models, digital models, manufacturing and fine tuning. If we look back at the process, we see
there are some unnecessary steps that we can simply eliminate or skip them to save time such as
tape drawing process.

2. Focus on specific suppliers

Even though BMW have 12,000 suppliers all around the world and more likely they wouldn’t face
any shortage of inventories, they still need to consider this consequence too. This is because, BMW
focus on specific suppliers only. What if those suppliers cannot maintain its good performances (such
as suddenly having financial problems or changing in management)? Thus, BMW could widen their
supplier network or they can even produce their own component to ensure that they will not face
shortage that can cause pending in production line.

3. Production unit

BMW will produce their cars according to the pre-order list. Hence, they will only order specific types
and particular numbers of compartments from suppliers. In fact, BMW is actually spending more
money for every single order to transporting the compartments. Our recommendation to BMW is to
order their compartments more than the pre-order list in single order. It gives more benefits to BMW
which they not only cutting down their transportation cost but also can boost their production rate.
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SUSTAINABILITY

1. Tremendously wide range of light

BMW guaranteed its users with high quality cars which align with their mission, “To become the
world’s leading provider of premium products and premium services for individual mobility”. Therefore,
BMW provide its users with tremendously wide range of light which can give benefit to their users
especially when driving in night and on dark road. However, it can give negative impact to other
drivers where their eyes will dazzle with those light and thus might cause an accident road. This one-
sided benefit can be eliminated by providing BMW’s drivers with buttons or remote for them to change
their spotlight colors and to control the range of light.

2. System monitor breakdown

There are some issues rising in BMW cars and one of them is system monitor breakdown. There are
some reports where BMW’s driver having bad experiences with the system in the cars. In instance,
they cannot use their biometric fingerprint sensors to unlock their cars and unfortunately BMW’s are
keyless. In conclusion, BMW should use traditional way such as create a car key and keyhole if
system monitor breakdown. This solution can help driver control their cars manually especially during
emergency.

3. Exposed to hackers

In April 28, 2018, The Sun reported that BMW admits it has ‘no control’ over thieves who hack keyless
car fobs using cheap devices available on eBay. In other hand, there are also researchers from China
who hack BMW system and discover more than dozen of vulnerabilities. This can be concluded that
BMW system has many flaws and penetrable. The hacker may control the car with or without physical
access to the car. In order to overcome this problem, Research and Development of BMW should at
least invent a new technology that able to scan body temperature of owner based on access. Other
than that, R&D BMW could build a system where they give notification on device to particular person.

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REFERENCES

BMW i3 and i3s: New Vehicles: BMW UK. (2019). Retrieved October 31, 2019, from
https://www.bmw.co.uk/en/all-models/bmw-i/i3/2019/at-a-
glance.html?_ga=2.38584291.11925822.1572486477-1564761302.1572486477.

Blunck, E. (2016). ‘Germany BMW’s Sustainability Strategy of Evolution and Revolution towards a Circular
Economy’, in Anbumozhi, V. and J. Kim (eds.), Towards a Circular Economy: Corporate Management and Policy
Pathways. ERIA Research Project Report 2014-44, Jakarta: ERIA, pp.75-92.

Zöbelein, K., Hilmer, M., & Berger, E. (2018). BMW Group Sustainable Value Report 2018. Munich: BMW Group.

Phillips, K. (2015). CSR Analysis BMW. Retrieved October 31, 2019, from
https://www.academia.edu/16838431/CSR_Analysis_BMW.

Sustainability at the BMW Group. (2019). Retrieved October 31, 2019, from
https://www.bmwgroup.com/en/responsibility/sustainability-at-the-bmw-group.html.

Social Commitment. (2019). Retrieved October 31, 2019, from

https://www.bmwgroup.com/en/responsibility/social-commitment.html.

Cervantes, M. (2017). BMW i8: More Than A Car; Intelligent Sustainability And Visionary Mobility. Retrieved 26
November 2019, from http://www.itechpost.com/articles/78353/20170127/bmw-i8-more-than-a-car-intelligent-
sustainability-and-visionary-mobility.htm

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