BMW: The 7-Series Project Case
Team 7: Jonghoon Ahn, Sangdong Kim, Chae Won Lee,
Wonil Shin, Jonghwan Lee
Question 1: How does one define design quality?
Answer: Design quality means the product attributes that enhance the utility of the product for the customers. It is that making products for consumers to use the products better with more conveniences and values.
Question 2: What are the causes and consequences of BMW’s quality problems with newly launched products? What should be done to improve “launch” quality?
Answer: I think there are several reasons in BMW’s new model development way like below; 1. BMW doesn’t use pre-production tools during prototyping. -> BMW has less opportunity to uncover and solve many kinds
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It would save the time for solving problems with tool design, the part, or the process before the actual production starts and would save the money at last. 2. Let the vendors supply the prototype parts. They are the specialist for the products. They have more experience and skills in their filed. Using them in development process let them fix our problems in advance. After completing the final design approval, let them supply the parts for commercial production, too. It will make the relationships between BMW and vendors more cooperative and friendly. 3. Shorten the period from pilot production to commercial production. Apply pre-production tools in pilot production as early as possible and get rid of and shorten the period of factory pilot production if possible.
Regarding future development projects, same changes should be applied, I think.
Question 4: What changes would you recommend in the way BMW develops new models? What attributes of newly launched products would you expect to improve as a result of these recommendations? Which attributes might deteriorate?
Answer: I recommend like; 1. Design for production. In BMW, designing is the first thing in development. However I think, design people don’t consider efficient production engineering. If they make production engineering into design consideration, the development process will be more efficient and quality problems and period will decrease. However the creativity can be injured. 2.
To study the BMW case, the background information and role of new plant at Spartanburg will be described at the beginning. Secondly, the 3 alternatives options will be analyzed and compared accordingly to determine a proper conclusion. Finally, the recommendation will be presented with various considerations.
Q.1 What are the causes and consequences of BMW’s quality problems with newly launched products? What should be done to improve “launch quality”? (583 words)
According to the respondents’ perceptions, the infinity G20 and the BMW 318i are almost a like. BMW’s attractiveness is slightly higher. Both cars fall into the category of the best-built cars. Subsequently, respondents think that the two
All engineering companies are different in the procedure they use when designing a new product. However, some basic steps should always apply to ensure a successful outcome.
The BMW Group is driven by so-called Strategy Number ONE, aligning the Group with two targets: to be profitable and increase long-term value in times of change. All this refers to technological, structural and cultural aspects of the Group. Strategic initiatives of the Group aimed at keeping with the four pillars: Growth, Shaping the Future, Profitability and Access to Technologies and Customers. The BMW Group strategically keeps focus of their activities on the premium segments of the international automobile markets. The Groups mission statement up to the year 2020 clearly states: the BMW Group is the world’s leading provider of premium products and premium services for individual mobility.
|BMW is a major company in the automotive industry. They produce 4 wheeled vehicles along with 2 wheeled vehicles. |
styling, and comfort of the European luxury sedan. This combination set BMW apart from its
BMW is classified by NAICS to work in the motor vehicle body manufacturing industry. This includes the fabrication of trucks, buses, cabs and automobile chassis to either be assembled there or elsewhere. (NAICS, 2015) In 2007, BMW stated that they had one goal; to be the leading company in their industry by 2020 and that they would do so by focusing on four objectives: growth, shaping the future, profitability, and access to technologies and customers. (BMW, 2014) Since then BMW has created a second board, the sustainability board, composed of the same members as the board of directors to guarantee that BMW will plan long term. Stated in their 2014 Sustainable Value Report, BMW mentioned that they value the environment by working with other companies to search for more sustainable options as well as implementing safety features in their cars to make roads safer for everyone. (BMW, 2014) In summary,
BMW Political factors of Pestle analysis concentrate on the probable government regulations and laws, and restrictions that can apply to the automobile industry. These laws usually turn around the environmental norms that were to be fulfilled by any car industry. Therefore the businesses in the car industry had to take care of the environmental issues during production of cars. One of the examples of such critical factor for the automobile industry is taxes and government foreign policies. These foreign policies can help the business to decide the probability of success in the global market. The BMW group have opened a large number of manufacturing sites globally; the development for the Mini plant at oxford has allowed production specifically designed and innovation of BMW’s Mini range. The Mini organisational structure has many operations occurring simultaneously, the reality of this helps to adhere to both the political and legislative control which in turn become fundamental to Minis core objectives. Another important aspect could be new schemes in the US and Europe within the industry where regulations led to produce high mileage cars, with increase in automobile sales and production (Hill, 2008). Economical factors highlights the exchange rates, growth globally and the business setting prevalent in the industry. Economic downturn in the US market, which can effect on number of sold car by Mini.
To address its slump in European market and keep its brand value intact, BMW probably should create different brands for non-premium market segments instead of mixing the premium and no-premium in one, on linex of Toyota &
The car industry has constantly provided us the consumer with a wide range of choices and varieties to suit our needs, but with the vast amount of competition how do car manufacturers attract our attention. Unique designs, impressive technology, price and customer service are all the areas consumers look for in a car, to meet these demands car manufactures need to constantly come up with new ideas to stay ahead of other competitors, introducing creative ideas which are better than what was in use previously is innovation. Innovation can also be implemented internally as it can help manufacturers be more efficient and reduce costs before products are released. Depending on resources and stature, each manufacturer will manage
BMW face though competition in US market after try to improve the situation by introduce number of new model to the core series, adjust pricing so it can compete, reorganize the dealer network and introduce new series of car to the market. Now we have a chance to focus on brand campaign call “BMW films” which is very successful campaign base on number of people who visit the web site and number of people who want more information about BMW.
Bavarian Motor Works, better known by their acronym BMW, have produced vehicles all over the world for nearly a century. Through those years they introduced innovative technology and superior performance in support of their goal to build the ultimate driving machine. Today they participate in the production of motorcycles, sport utility vehicles, as well as sport and luxury classified vehicles. Bavarian Motor Works is also part of “The Big 3” German automakers, along with Audi and Mercedes. However, in the beginning when the company first came together in 1916, they didn’t even participate in the production of motor vehicles. Within the first four decades of the organization, BMW was environmentally involved in two world wars and experienced crippling occurrences. Plants and corporate building were destroyed and rebuilt as well, as the thousands of employees that went out of work. The company even experienced an ultimatum to risk losing the business for good or merging to survive.
The current challenges that have been identified are intense competition & speed and responsiveness. BMW is one the world leaders in luxury vehicles and world’s leading premium car brand. BMW has many fierce competitors which include: Lexus, Acura, Audi and Daimler Chrysler 's Mercedes Benz is the biggest competitor of BMW. With all of these competitors along with many others in the vehicle market it would be advantageous to get a head of the competition in producing an autonomous or self-driving vehicle, but that is not the case. Mercedes, Porsche, and GM have jumped out to a head start have begun funding research for a new autonomous self-driving vehicle. Along, with these known competitors Google and Apple could also appear to jump in and compete in this market as well. Therefore, speed and responsiveness will play a major part in this development of a new vehicle line. With all of these other companies already starting their research for an autonomous vehicle, BMW would be wise to start this as research as well, so to not fall too far behind the competition taking a proactive approach. Finally, BMW should also be worried about the Green Movement. The automotive industry has put a stress on environmental friendly vehicles, with the expansion of electric vehicles.
The main business problem that BMW is facing is reducing its long product development time. BMW's current design process began