Technology and Operational Strategy

Course Faculty : Presented By:

Dr. Prakash HS Asra Badbade
Director (2SD20BA010)
INTRODUCTION:
 Bayerische Motoren Werke, commonly referred to as BMW,
is a German multinational corporate manufacturer of luxury
vehicles and motorcycles headquartered in Munich, Bavaria,
Germany.
 The corporation was founded in 1916 as a manufacturer
of aircraft engines. 
 Automobiles are marketed under the brands
BMW, Mini and Rolls-Royce, and motorcycles are marketed
under the brand BMW Motorrad.
 BMW is headquartered in Munich and produces motor
vehicles in Germany, Brazil, China, India, Mexico, the
Netherlands, South Africa, the United Kingdom, and the
United States.
•
PLACE OF PLANT
As a global company, the BMW Group operates 31 production and
assembly facilities in 15 countries and has a global sales network
in more than 140 countries. 
• Manufacturing Plant: BMW produces complete automobile
factories in Germany(Munich, Regensburg, Leipzig), US(Greer),
South Africa(Rosslyn), China(shenyang)
• Assemble Plant: Thailand, Russia, Egypt, Indonesia, Malaysia,
India(Chennai)
Reasons:
 The layout of the plant, which has developed in parallel with
the urban residential surrounding area, features complex plant
structures and innovative manufacturing processes.
 The availability of specialist personnel, the ability to use
existing logistics and suppliers and a good infrastructure for
transport and supply.
 In conjunction with the Research and Innovation Center, the
BMW Group plant in Munich serves as an internal
competence center: from here, knowledge about processes
and technologies and experience from over 90 years of
automotive engineering reaches other production sites
worldwide.
Manufacturing Layout:

Central Building
Body Shop
Paint Shop

Assembly

Supply
 Central Building: The central building is inter-linked with
the three core production areas of the plant, namely body
shop, paint shop and assembly line
 Body Shop: Body shop means the precise assembly of
several hundred individual parts made of steel and aluminum
of different sizes and thickness to a precision body.
 Paint Shop: Four more coats of paint, protect the vehicle
against environmental influences and give a durable color
gloss. After each production step, the quality is checked in
the paint.
 Assembly Line:  This has been done to create enough space
around the production lines to allow for additional lines to be
installed in the future with minimum disruption to
production.
Quality Control Techniques
 The BMW Group uses its Smart Data Analytics digitalization
cluster to analyze this data selectively and enhance its
production system.
 Results from intelligent data analysis make an effective
contribution towards improving quality in all areas of
production and logistics.
 Data-driven improvements to processes and systems help
reduce lead times and lower costs. 
  Each body part is marked with an ID that
allows for machine adjustments based on the
individual characteristics of the part.

 Recording and analysis of bolting

process curves provide accurate
feedback on the quality of bolted
connections.

 In assembly, many conveyor systems

are now equipped with a large
number of sensors that monitor
various factors
 Robots and control technology are fitted with the
necessary sensors, allowing maintenance staff
analyze the data and draw the right conclusions.
Inventory Management Techniques:
 BMW’s SAP MCP (master control program) system already
stores and tracks inventory levels and integrates shipping
notifications and scans at key locations across the supply
chain. 
 The system is entirely integrated into BMW’s SAP system for
production, so clicking on a truck, supplier location or cross
dock shows up-to-date information on the quantities shipped,
as well as inventory at the plant for the relevant parts;
 Supply Chain Management
Maintenance and Material Handling
 The BMW Group production system is characterized by the
highest degree of flexibility. The company produces a wide
range of models and variants on its assembly lines, but is
nevertheless competitive—as confirmed by independent
benchmarks. 
 In assembly, many conveyor systems are now equipped with a
large number of sensors that monitor various factors,
especially temperature, vibration and electrical power. These
sensors are cost-effective enough to allow them to be widely
used.
 Data from these sensor kits and other process data is streamed
live to the BMW internet-of-things platform, where it is
visualized and analyzed in real-time.
 If the data detects a trend indicating deviation or
patterns from previous breakdowns, the platform
notifies maintenance staff. Staff can then decide
whether the hanger should be removed for
maintenance.
 In automotive production, every second counts. If a
part isn’t available on time or a system fails, the
production process is delayed and it disrupts the
value chain.
Role of technology:
 The BMW Group is pressing ahead with
digitalization of its production system in the
following technology clusters:
 Smart data analytics;
 Smart logistics;
 Innovative automation & assistance systems
 Additive manufacturing.
Operation Strategy of BMW
 BMW believes that sustainability management is an
investment in the future success of the company.
They leverage new business opportunities, minimize
risks and seek to overcome social and business
challenges.
 Goals: To develop and demonstrate exceptional skills
in constantly creating and capturing value, through
its innovations and development of new products.
 BMW’s innovative strategy- Based on four main pillars
 In-house R&D and investments in long-term and risky projects
 Establishing an innovation culture and working environment
 Open innovation
 Appropriability Strategy

 Results(Benefits):
(1)BMW was able to exploit various path breaking technological
innovations, right from the idea generation stage to the market
introduction stage.
(2)The company was able to develop continuous stream of new products
and brands.
(3)BMW successfully withstood competitive pressures and held on to its
market position, and established itself as one of the leading players in the
premium segment of the global automobile market.
(4)BMW was awarded the Outstanding Corporate Innovator(OCI) title for
2002 by the Product Development & Management Association(PDMA).
THANK YOU