INTERNATIONAL INSTITUTE OF PLANNING AND MANAGEMENT
LEAN + Flexible
Professor A.B Raju
Pratik K S Negi
Manufacturing in BMW (Usage of Lean and JIT production)
BMW Bayerische Motoren Werke AG (BMW), (literally English: Bavarian Motor Works) is a German automobile, motorcycle and engine manufacturing company founded in 1916. It also owns and produces the MINI brand, and is the parent company of Rolls-Royce Motor Cars. BMW produces motorcycles under BMW Motorrad and Husqvarna brands. BMW is known for its performance and luxury vehicles Company history
After World War I, BMW was forced to cease aircraft (engine) production by the terms of the Treaty. The company consequently shifted to motorcycle production in 1923 once the restrictions of the treaty started to be lifted, followed by automobiles in 192829 The circular blue and white BMW logo or roundel is portrayed by BMW as the movement of an aircraft propeller, to signify the white blades cutting through the blue sky an interpretation that BMW adopted for convenience in 1929, twelve years after the roundel was created, combined with the white and blue colors of the flag of Bavaria, reversed to produce the BMW roundel. However, the origin of the logo being based on the movement of a propeller is in dispute, according to an article recently posted by the New York times, quoting "At the BMW Museum in Munich, Anne Schmidt-Possiwal, explained that the blue-and-white company logo did not represent a spinning propeller, but was meant to show the colors of the Free State of Bavaria." BMW's first significant aircraft engine was the BMW IIIa inline-six liquid-cooled engine of 1918, much preferred for its high-altitude performance. With
German rearmament in the 1930s, the company again began producing aircraft engines for the Luftwaffe. Among its successful World War II engine designs were the BMW 132 and BMW 801 air-cooled radial engines, and the pioneering BMW 003 flow turbojet, which powered the tiny, 1944-1945-era jet-powered "emergency fighter", BMW 003 jet engine was tested in the A-1b version of the world's first jet fighter, the Messerschmitt Me 262, but BMW engines failed on takeoff, a major setback for the jet fighter program until successful testing with Junkers engines. By 1959 the automotive division of BMW was in financial difficulties and a shareholders meeting was held to decide whether to go into liquidation or find a way of carrying on. It was decided to carry on and to try to cash in on the current economy car boom enjoyed so successfully by some of Germany's ex-aircraft manufacturers such as Messerschmitt and Heinkel. The rights to manufacture the Italian Iso Isetta were bought, the tiny cars themselves were to be powered by a modified form of BMW's own motorcycle engine. This was moderately successful and helped the company get back on its feet. The controlling majority shareholder of the BMW Aktiengesellschaft since 1959 is the Quandt family, which owns about 46% of the stock. The rest is in public float. BMW bought the British Rover Group (which at the time consisted of the Rover, Land Rover and MG brands as well as the rights to defunct brands including Austin and Morris), and owned it for six years. By 2000, Rover was making huge losses and BMW decided to sell the combine. The MG and Rover brands were sold to the Phoenix Consortium to form MG Rover, while Land Rover was taken over by Ford. BMW, meanwhile, retained the rights to build the new MINI, which was launched in 2001.
TQM Operation Approaches in BMW.
Premium means exceptional for the customer. This added value becomes tangible through the superior product substance and superior quality of the BMW Group's emotionally appealing automobiles and motorcycles. BMW production is committed to fulfilling premium demands related to product quality and to meeting deadlines. Some 70,000 employees in 23 locations ensure that every customer receives his or her tailor-made vehicle on time throughout the world. We do this with our "Customer-oriented Sales and Production Process", or COSP for short. The principle behind COSP is that the car ordered by the customer defines the production process not the car planned by the company. In this way, the customer can make last-minute changes to the equipment and accessories theyve ordered shortly before the vehicle goes to assembly without delaying the date of delivery.
The performance capability of the BMW Group's production network depends on the special commitment, identification, and know-how of its employees. In addition to future-oriented technologies and the most modern equipment, our employees are the central element in the manufacture of premium products. Systematic linking of internal and external partners as well as targeted knowledge transfer ensures both today and in the future that the customer will obtain his dream automobile by the agreed-upon delivery date and in the high quality expected of all "made by BMW Group" vehicles. Flexible working hours
The over 70,000 employees of the worldwide production network are united in their common enthusiasm for all of the concern's vehicles, their quest to achieve highest quality results in all working processes, and their will to make a significant contribution to the BMW Group's success now and in the future. Innovative forms of work are important factors for stimulating performance, creativity, and gratification in the workplace. The BMW Group uses over 300 successful work-schedule models. These enable the corporation to utilize its plants flexibly and react to customer as well as market demands and at the same time, to respond to the needs of its employees. Eco Friendly
To improve efficient use of resources (material, energy, water) by products as well as during production, a precise balance between ecological and economical issues must be sought after. In addition to the BMW Group's recycling strategy with its core elements RDZ (German: Recycling und Demontagezentrum; English: Recycling and Disassembly Center), Design-for-Recycling, and Material Labeling, the BMW Group focuses primarily on the most efficient possible use of resources in intelligent systems.
Water is the basis of all life. In production where almost one-third of all waste water
accumulates we have succeeded in promoting exceptionally frugal use of water. This has been made possible by
closed cooling cycles, closed-circulation water usage and waste water treatment equipment, and the use of future-oriented technologies such as powdered clear varnish as well. Example: Energy. To save energy, production uses sophisticated central routing technology, for example. This enables energy-using components to be turned on and off precisely when needed. In addition, the use of heat reclamation equipment, use of industrial waste heat, and cold generation in absorption equipment supports the development of circulation systems. This makes it possible to exploit primary energy to a high degree, ensuring an energy supply which is also environmentally friendly. Example: Waste material avoidance, then utilization. The BMW Group places great value on designing products which are optimised for recycling as well as separating and utilizing waste materials which accrue during production. Care is taken, for example, only to transfer waste materials to recovery and cleanup partners who have passed the BMW Group's recovery audit. Our uppermost goal, however, is to not accrue waste materials in the first place. Each location has responsible employees who use a waste material information system to optimise processes and procedures. This system enables a precise overview of the flow of waste materials. This enables the continual development of further strategies for waste reduction and avoidance
Customer Centric approach
The goal of BMW Group Production is to deliver the customer's custom-tailored premium automobile or motorcycle by the agreed-upon deadline in our customary high quality. This claim requires us to continually develop our processes and structures further, and thus, to adapt regularly to new situations. As a learning organization, the BMW Group must recognize changing demands at an early stage and orient itself rapidly and flexibly to new conditions. One example of this is our "Customer-oriented sales and production process", or KOVP as it is abbreviated in German. Quality Management
The tradition of quality at the BMW Group permeates all work processes of the worldwide production network. A comprehensive, multi-level quality management system ensures quality in all work processes as well as components and materials, and ultimately - products. But above all, the BMW Group orients its quality management system to the needs of its customers. One foundation of "Made by BMW Group" is our employees. "Customer-oriented thought and action" - abbreviated in German as "KDH" - is part of corporation philosophy and anchors our goal of achieving perfect results in all manufacturing areas. Our employees' attitude to quality from the very beginning, continuing along the entire process chain, prevents mistakes and ensures continual improvement. "Made by BMW Group" seal of approval. In addition to successful, regularly recurring certification of the quality management system of all production plants according to DIN EN ISO 9000 ff., external studies in the automobile industry attest to the first-class quality level of the BMW Group's manufacturing plants. The renowned US American market research institute J.D