GREEN, LUXURIOUS, FAST

Operations and Supply Management(5BU012)

Group Members: -1823244

1821678
1827160
1817747

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 Declaration Form
I hereby declare that
- The submission is my own work
- All materials used has been acknowledged & appropriately referenced.
- I have not allowed another student to have access to my work.
- The work has not been submitted previously.

Group Members Name: Kartik Purohit,

Kavish Wane,
Rahul Bhamboo,
Ansh Obhan
UID Numbers: 1823244
1821678
1827160
1817747

Signatures:

Group Members Names :-

Kartik Purohit
Kavish Wane
Rahul Bhamboo
Ansh Obhan

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TABLE OF CONTENTS

SR.NO TOPICS PG.NO

1. Executive Summary 4
2. Introduction to BMW Group 5
3. Application of 4V’s Typology 6-8
● Volume (low)
● Variety (high)
● Variance (high)
● Variability (low)
4. Process type and Process layout of BMW 8-10
5. Conclusion and Recommendation for BMW 11
6. Bibliography 12-13
7. Appendix 14-17
8. Peer Review 18

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● Executive summary: -

BMW I8 is a comprehensive and ground-breaking concept for sustainable mobility. It

represents visionary electric vehicles and mobility services, inspiring design and a new

understanding of premium that is strongly defined by sustainability. And it thrills with its

innovative vehicles: the all-electric a locally emission-free vehicle for city driving that is

sustainably designed throughout, and the BMW i8 concept as the future of the sports

vehicle.The most progressive sports car : more efficient – through intelligent lightweight

construction with carbon and an aerodynamic design. More sustainable – with recyclable

materials in the interior. Without forfeiting dynamics and its sporty appearance. The

BMW i8 is a plug-in hybrid that brings together the advantages of electromobility and

innovative engine technology. The result is an extraordinarily dynamic driving experience

– with extremely low consumption and CO2 emissions. Moreover in this report the

author talks about the application of 4 V’s typology and talks about how the volume,

variety, variability, and variance of the BMW I8 and the process is also being discussed

below.

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 ● Introduction :-

The automobile industry is highly complex and competitive characterized by constantly

changing consumer taste and preference. Automobile manufacturers need to constantly

change and adapt new strategies in order to sustain this dynamic environment. BMW

follows Lean management as they continuously work on improving its performance, work

processes to keep the quality high and also respects its employees, it also improves its

productivity and efficiency of its processes. BMW combined global sales of electrified

cars is more than 62,000 units in 2016, which increased to 103,080 in 2017 and

increasing. In 2019, its overall sales increased by 1.2% whereas it sold over 37,347 units

in total in 2018 which increased to 42,249 units in 2019. First automobile manufacturer

worldwide to use lightweight carbon in large-series production. With their focus on

sustainable future mobility they have launched the BMW i series. These cars are hybrids

or full-electric vehicles. They have no exhaust emissions which contributes to global

warming which promotes sustainable mobility. It also improves public health as the

exhaust emissions of harmful gases is reduced overall. BMW has been developing its

variety of vehicles with innovative technologies and has been developing it since 10

years. BMW 10 years ago had a less variety of vehicles which developed over years.

(Refer to Appendix 2) (BMW i Models - BMW USA, 2020)

● Application of 4 V’s typology :-

Volume :- LOW

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The volume is low because it is a very niche car. Caters to niche segments so it's important that

they ensure very high quality in terms of performance and safety. BMW Group follows a

complex production process focusing on its high quality and performance vehicles to keep the

customers satisfied and dependent on the company as they target the niche segment of the car.

In total 130 BMW I models are produced at the plant per day in Leipzig (How a BMW i is

created, 2020) . Since the volume is low the process is very particular to the car so resulting in

high per unit cost. They use recycled material in making the interiors of i8 which results in

reducing their production cost and keeps them sustainable in the automobile industry making

them flexible in its operations. (samples, 2020)

Variety :- HIGH

BMW I8 has 6 models. The BMW comes up with a new model every year with change in

technologies. BMW production of vehicles is slow and complex which increases the quality of

the vehicle. BMW Group offers a high variety of models targeting all the needs of its customers

as having a flexible manufacturing of vehicles because the time required for conventional

production is reduced to half due to its Parallel assembly line which serves its customers

efficiently keeping the quality and performance high whereas all its i8 models have a different

pricing ranging from $148,500 to $164,300. They produce 130 models in a day (BMW i, 2020).

BMW also provides a wide range of customization to their customers which satisfy their

customers. This is a thoroughbred sports car that delivers a truly outstanding driving

experience. BMW Efficient Dynamics technology along with BMW eDrive and intelligent

lightweight construction keeps the quality and technology up to the mark. The central element in

the Life module is the passenger cell made from CFRP. (BMW iDisruption – Technology and

Operations Management, 2020). The high-voltage battery is placed extremely securely in the

energy tunnel between the two drive systems. The power electronics and chassis components

can also be found in the Drive module. (Car, i8 and Manz, 2020)

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Variability :- LOW

BMW Group keeps its car’s quality and performance high to be competitive in the industry. With

its intelligent drive system management, the BMW i8 strikes the balance between dynamic

ability and efficiency in a variety of driving situations keeping the quality and technology up to

the mark. The output of the engine and electric motor, the capacity of the high-voltage battery,

intelligent energy management and the vehicle’s overall weight are tailored to define the unique

character of the plug-in hybrid sports car making BMW flexible in their operations. (BMW i8

hybrid sports car, 2020).

The BMW eDrive drive system technology, a compact, highly turbocharged 1.5-liter gasoline

engine with TwinPower Turbo technology and intelligent energy management together creates

the i8. The three-cylinder combustion engine develops 170 kW/231 horsepower and drives the

rear wheels, while the 96 kW/131 horsepower electric motor draws its energy from a lithium-ion

battery, which can be charged from a conventional 110 volt power outlet and a 220 volt electric

vehicle charger, sends its power to the front axle. The use of the eDrive system helps the

consumers save money on fuel and reduce carbon emissions and with 24,870 units (+21.2%)

sold worldwide. (BMW i8 Roadster, 2020).

Visibility :- HIGH

The i8 still feels like it's a different type of vehicle than anything else available and it even feels

green. Talking in terms of number there’s a little reason to buy a $164,000 BMW I8 that the

BMW group takes care of their customers that the customization is done on point and moreover

BMW Group offers customers to see the ongoing process of BMW i8 so that the customer can

see the quality and even they are aware of each and every step taken by the BMW Group. The

BMW i8, while a trailblazer, hasn’t evolved to match what buyers want in 2019. While it still

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looks good on the outside, BMW’s iDrive infotainment system isn’t as modern as it once was,

and the i8’s failure to adopt modern active safety equipment makes it less well-rounded than

other cars in the class. (BMW i8 Models, Generations & Redesigns | Cars.com, 2020).

● Process type and Process Layout: -

Process layouts are layouts that group resources based on similar processes or functions. This

type of layout is seen in companies with intermittent processing systems. Process layout can be

in environments in which a large variety of items are produced in a low volume. It is more

efficient to group resources based on their function. The products are then moved from one

resource to another, based on their unique needs (R. Dan Reid,Nada R. Sanders) (Sign in,

2020).

BMW i PRODUCTION PROCESS

Innovative production of i8 starts from raw materials production to energy efficient vehicle

operations keeping its quality and performance high serving the niche segment. With attractive

designs, strong engines and high quality helps them in charging high prices to its customers.

The production and development of the engine and the electric motor of the i8 is handled by the

BMW. BMW i8 comprises a Life module which is the passenger cell made up of Carbon Fiber

Reinforced Plastic and Aluminium Drive Module which production is based in a plant in Moses

lake. The LifeDrive concept and use of CFRP allows production time to be cut in half and is also

less investment intensive. (How to Build a BMW i8 | BMW Car Club of America, 2020)

LIFE MODULE

The BMW Group handles Carbon fiber production using hydroelectric power situated near

Moses lake. The BMW Group also manufactures carbon fiber reinforced plastic components in

leipzig which is extremely economical. The BMW Group follows the Chassis Technology which

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comprises the Life module which is the passenger cell made up of CFRP and aluminium drive

module making the company more flexible in their operations. Bmw’s two-speed eAxle also

enables the motor and associated systems to be downsized, reducing mass and increasing

efficiency. Reduction of mass reduces the weight, thus reducing the emissions. With reduced

emissions the overall costs of running i8 also goes down. The use of carbon fibre in the making

of the car also increases the dependability and durability of its operations. (How a BMW i is

created, 2020)

LIGHTWEIGHT & ROBUST

The exterior of the BMW i8 is made of thermoplastic because it provides corrosion-free outer

protection and requires less energy to manufacture, keeping BMW flexible in its operations and

sustainable in the environment. The recyclable interiors help BMW in cutting production costs

which helps them in increasing overall profits. The interior of BMW i8 is made of 100% recycled

polyester, 34% of which comes from PET which equals to 53 recycled bottles which makes the

vehicle’s quality unique. They use high-voltage batteries in the i8 so the cars can run for a

longer period of time making BMW dependable on its operations. (How to Build a BMW i8 |

BMW Car Club of America, 2020)

PARALLEL PROCESS

During the parallel assembly process and the fact that the CFRP is made up of fewer parts, the

total processing time in the leipzig body shop and on the assembly line is about half the time of

what would be required for conventional production which makes the processes quick with that

kind of speed involved. (How to Build a BMW i8 | BMW Car Club of America, 2020.

The use of parallel processing reduces the cost of production and further reduces the time from

when the customer orders the car according to his specifications to the delivery day. The

production of i8 is fast so it can be delivered on-time with providing its customer with the best

quality product which makes BMW flexible in its manufacturing process serving the niche

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segment.

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 ● Conclusion and Recommendation: -

BMW i8 is a green, luxurious and ultimate driving machine with an recyclable interior which

makes it an environment friendly vehicle with good looks. It reduces fuel usage and emissions

also follows a Slow and steady production process keeping its quality and performance

developed. BMW has cross functional teams which helps them in managing and solving their

problems arising in an effective way. BMW makes its vehicles as per the needs of the

customers keeping them satisfied in all ways. They have also been making changes in the

quality management by changes in operations management strategies like outsourcing and

reengineering.

In order to maximize profits of the company, BMW group will have to reduce costs. The BMW

group’s future strategy is investment on research and development and with new innovation and

technology, find ways to decrease the manufacturing costs of the BMW I8. This reduction in

costs can be done by doing more effective Supply Chain Management. BMW 10 years ago has

less variety of vehicles which made them less innovative but as years past, BMW continuously

tends to change its technology with a wider range of vehicles to cope up with its competitors like

Tesla which has been the leader of electric vehicles. BMW can be innovative with its

technologies like Tesla to serve the niche segment. (Refer to Appendix 1 and 2)

A positive aspect of BMW Group’s future strategy is investment in emission reduction

technologies. BMW Group is also aware of the environmental hazards that are taking place in

the world. Investment in this area will lead to a greater number of customers for the company.

BMW group should also look and make collaboration with other major car manufacturers in

order to remain the leader in the automobile industry and further enhance its brand image.

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● Bibliography: -

1. Bmw.in. 2020. BMW I. [online] Available at: <http

2. s://www.bmw.in/en/all-models/bmw-i.html> [Accessed 24 February 2020].

3. Bmwgroup.com. 2020. Supply Chain Management. [online] Available at:

<https://www.bmwgroup.com/en/responsibility/supply-chain-management.html>

[Accessed 18 February 2020].

4. Digital.hbs.edu. 2020. BMW Idisruption – Technology And Operations Management.

[online] Available at: <https://digital.hbs.edu/platform-rctom/submission/bmw-

idisruption/> [Accessed 27 February 2020].

5. samples, F., 2020. Bmw's Operation Management. [online] New York Essays. Available

at: <https://newyorkessays.com/essay-bmws-operation-management/> [Accessed 13

March 2020].

6. Eria.org. 2020. [online] Available at:

<https://www.eria.org/RPR_FY2014_No.44_Chapter_6.pdf> [Accessed 12 March 2020].

7. Bmwusa.com. 2020. BMW I Models - BMW USA. [online] Available at:

<https://www.bmwusa.com/vehicles/bmwi.html> [Accessed 27 March 2020].

8. Bmwcca.org. 2020. How To Build A BMW I8 | BMW Car Club Of America.

[onlineAvailable at: <https://www.bmwcca.org/content/how-build-bmw-i8> [Accessed 27

March 2020].

9. Bmwgroup-plants.com. 2020. How A BMW I Is Created. [online] Available at:

<https://www.bmwgroup-plants.com/en/produktion/bmw-i.html> [Accessed 27 March

2020].

10. report, B. and Frankel, A., 2020. BMW I8 Long-Term Test Review: Final Report |

Autocar. [online] Autocar. Available at: <https://www.autocar.co.uk/car-news/our-

cars/bmw-i8-long-term-test-review-final-report> [Accessed 7 March 2020].

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11. Cars.com. 2020. BMW I8 Models, Generations & Redesigns | Cars.Com. [online]

Available at: <https://www.cars.com/research/bmw-i8/> [Accessed 27 February 2020].

12. Car, P., i8, B. and Manz, V., 2020. BMW I8. [online] www.prestigeelectriccar.com.

Available at: <https://www.prestigeelectriccar.com/en/articles/1183/BMW_i8> [Accessed

30 February 2020].

13. Reinforced Plastics, 2012. BMW unveils i8 Spyder. 56(3), p.5.

14. designboom | architecture & design magazine. 2020. Behind The Scenes: Creating The

Electric BMW I8 From Scratch. [online] Available at:

<https://www.designboom.com/technology/behind-the-scenes-bmw-i8-production-05-07-

2014/> [Accessed 27 February 2020].

15. Bmwgroup-plants.com. 2020. How A BMW I Is Created. [online] Available at:

<https://www.bmwgroup-plants.com/en/produktion/bmw-i.html> [Accessed 30 February

2020].

16. Brooks, G., 2020. VEHICLE ANALYSIS: BMW I8. [online] Just-auto.com. Available at:

<https://www.just-auto.com/analysis/bmw-i8_id150763.aspx> [Accessed 16 March

2020].

17. 2020. [online] Available at:

<https://aos.bmwgroup.com/downloads/d8c88ad3d61be11f53ace284d42068ae/5e7cb95

c/rescue-information/bmwi/rescue-handbooks/en_Rettungshandbuch_i8.pdf> [Accessed

22 February 2020].

18. Energydigital.com. 2020. BMW I8 Hybrid Sports Car Leads The Field In Innovation.

[online] Availableat:<https://www.energydigital.com/renewable-energy/bmw-i8-hybrid-

sports-car-leads-field-innovation> [Accessed 27 March 2020].

19. Bmw.com.sg. 2020. BMW I8 Roadster: The New Version Of The Plug-In Hybrid. [online]

Available at: <https://www.bmw.com.sg/en/all-models/bmw-i/i8-roadster/2017/bmw-i8-

roadster.html> [Accessed 27 March 2020].

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 20. Canvas.wlv.ac.uk. 2020. Sign
<https://canvas.wlv.ac.uk/courses/21308/files/1778193?module_item_id=316424>
[Accessed 13 February 2020].
 APPENDIX
1. The comparison of BMW Group with one of its leading competitors Tesla Motors :-
BMW GROUP
Price - The suggested retail price for BMW i8
coupe is $148,500 whereas i8 roadster starts
around $164,300 as they target the niche
segment of the society.
Quality - The quality of a product is
determined by product design, process
design, delivery of the service, and the after-
sales services. The BMW Group has
continuously emphasized the quality of their
automobile products in order for them to be
viewed by customers as premium models.
Other models tend to look aggressive with
redesigned bumpers especially for sports
cars. With attractive designs, strong engines,
and generally high quality, many customers
prefer them despite their high prices.
Supply chain management - BMW works
with around 12,000 suppliers from 70
countries which keeps the quality and
innovation high. They coordinate and
collaborate with its suppliers based on its
product and production quality, competitive
pricing and innovation and also integration of
its sustainability requirements. BMW group
also awards the best supplier for the best
innovation and development on every year
basis. They consider all the needs of the
customers and design the vehicles as per
their requirement which helps them maintain
a good supply chain.
In. [online] Available at:
TESLA MOTORS
Price - Tesla motors manufactures and sells
its electric luxury cars between $70,000 to
$100,000. They target the middle-class and
high-class segment in earning profits.
Quality - Tesla is best known for its chairman
Elon Musk because of his production of high-
quality electric cars at affordable prices with
innovative technologies. Tesla follows its
objectives by regular quality check ups,
quality improvement initiatives. It also uses
high-powered batteries in their cars so it can
run for a longer period and also have high
impact protection, lowering the risk of
accidents. Vehicles also use ultrasonic
sensors to detect nearby cars and are used in
autopilot mode.
Supply chain management - Tesla motors
manufactures, designs its vehicles through
their service network and own sales. In the
USA, customers can buy vehicles directly
from the online-website with a wide range of
customizations. Tesla needs to coordinate
with the battery suppliers to keep the life of
the batteries comparatively high. The
company follows direct selling of its vehicles
without any third parties. Tesla has a unique
inventory management strategy, by keeping
little inventory and producing on demand;
tesla can reduce its amount of capital and
also the risk involved with storing excess
vehicles at once.
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Process and Layout - The architecture of
BMW i8 comprises a Life module which is the
passenger cell made up of Carbon Fiber
Reinforced Plastic and aluminium Drive
Module which production is based in a plant
in Moses lake. LifeDrive concept and use of
CFRP allows production time to be cut in half
and is also less investment intensive. During
the parallel assembly process and the fact
that the CFRP is made up of fewer parts, the
total processing time in the leipzig body shop
and on the assembly line is about half the
time of what would be required for
conventional production.
2. The difference between BMW 10 years ago and the current situation of BMW :-
BMW 10 YEARS AGO
● Product range: - BMW Series 1,
BMW series 3 , BMW series 5, BMW
series 6, BMW series 7,BMW x3,
BMW x5, BMWx6, BMW z4.
● Innovation: - BMW came up with
project I. The BMW Active concept
vehicle is a logical continuation of the
research and development work on
electric mobility being carried out by
the BMW Group under project I.
● Sales: - The statistics show BMW
group’s global automobile sales was
about 2.5 million worldwide.
● Change in technology: - BMW IPOD
Out it might not seem like a big deal
that BMW has used the little-known
spec of Apple’s iOS4 software called
ipod out to send the Ipod’s graphic
user interface(GUI) to a car’s in-dash
display. BMW has a Touchpad iDrive
system, a touchpad interface to input
Process and Layout - It started with the raw
materials like massive rolls of aluminum are
bent and formed to create a vehicle. The body
goes off painting. In the assembly line; the
battery, motor and interior is installed in the
vehicle with the help of 3,000 workers and
over 160 robots which makes its operations
innovative and fast. Most of the processes are
carried out by the robots which reduces the
work labour and makes it more efficient.
BMW CURRENTLY
● Product range :- BMW series 3,
BMW series 5, BMW series 7, BMW
series 8, BMW x1, BMW x3, BMW x4,
BMW x5, BMW x6, BMW x7,BMW
series 3 Gran Turismo, BMW series 6
Gran Turismo, BMW z4, BMW M2,
BMW M5, BMW 760li, BMW z4 M40i,
BMW 745le
● Innovation: - Now BMW has self
driving cars they have upgraded
versions with more safety measures
and moreover they have autonomous
driving so that it is beneficial to blind
people in routine life. BMW has also
been upgraded with E-mobility.
● Sales: - In 2019, the BMW Group
increased sales by 1.2% to a new
record 2.5 million deliveries worldwide
of BMW, Mini, and Rolls-Royce cars.
● Change in technology: -The
Consumer Electronics Show (CES)
– a showcase for the industry’s
latest developments – has been held
annually in Las Vegas since 1998.
Once again this year, the BMW
Group is presenting its latest
innovations and technological
masterpieces – including the BMW
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alpha-numerics into the navigation
system without needing to remove
your eyes from the road. True, may be
a small step behind in the production
race, but in terms of execution, its
system is slicker as it comes cleverly
integrated on top of the iDrive knob.
This makes BMW's transition to this
technology basically seamless, with
the added benefit of no extra clutter
on the center console.
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Vision iNEXT, a car that redefines
sheer driving pleasure and makes
autonomous technology a reality. In
a mixed-reality presentation that
guides visitors through the
exhibition, the BMW Group provides
a glimpse of the mobility experience
of the future.
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  Peer review: -
1. Group member name: - Kartik purohit (made by me) Mark (0-5)
UID NO. : - 1823244

Rationale for mark awarded: - 5/5

● Academic sourcing of whole report.
● Formatting of the whole report.
● The difference between BMW 10 years ago and the current
situation of BMW.
● The comparison of BMW Group with one of its leading
competitors Tesla Motors.
● Application of 4 V’s typology.
● Conclusion and Recommendation.

2. Group member name: - Kavish Wane Mark (0-5)

UID No. : -1821678

Rationale for mark awarded: - 5/5

● Collaborative approach with the group in completing the
assignment.
● Linking the 5 objectives with the 4V’s and also with the process
and layout of its operations.
● Made the flowchart to represent the process type and layout.
● Competitive analysis between BMW Group and Tesla Motors.

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 ● Attendance at meetings when required.

3. Group member name: - Rahul Bhamboo Mark (0-5)

UID No. : -1827160

● Rationale for mark awarded: - 5/5

● Gave recommendation and conclusion for BMW’s future.
● Linked the 4V’s to the company’s operations.
● Willingness to share ideas when required and also listen to it.
● Attendance at meetings when required.

4. Group member name: - Ansh Oban Mark (0-5)

UID No. : - 1817747

Rationale for mark awarded:- 5/5

● Offers constructive feedback and appreciates feedback given.
● Completed introduction to the company.
● Tasks allocated fairly and delivered on time.

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