BMW: The 7 Series
1. What are the causes and consequences of BMW’s quality problems with newly launched products? What should be done to improve “launch quality”?
The causes and consequences of BMW’s quality problems with newly launched products were plentiful and apparent all throughout the case study. For instance, BMW does not use pre-production tools during prototyping. This significantly lowers their opportunity to discover and fix quality problems earlier in the production process. Secondly, they let suppliers have a say in development after “cubing” has occurred. Unfortunately, if suppliers come across problems during the first production, they often don’t have enough time to fix it before new model introduction. Finally,
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For future development projects, Carl-Peter Foster should concentrate on BMW’s core competencies of concept design and assembly- then outsource its parts to experienced suppliers who can offer further technological knowledge. In order for BMW to introduce more models more frequently, they need to decrease the lead-time from the concept phase of the car to the release of the final product to the market.
3. 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?
We would recommend that BMW use the actual parts instead of substitute parts; for example, using sheet metal instead of fiberglass when developing new series models. This will help BMW detect problems earlier in the production process and make quality improvement a much easier task to achieve. Since they are using suppliers that will manufacture parts using specialized tooling, BMW should also reduce the amount of prototype batches from five to three. The first prototype batch should be done using its current process of hand design, the second prototype will use pre-production process and the third will incorporate the use of specialized tools. Using this process will significantly decrease prototyping cost and lead time.
As a result of these recommendations, the construction of prototypes
Selection of outside suppliers at the initial stage was crucial. Three advantages would benefit from authorized supplier involvement in design and production process. Firstly, they could foresee major problems in the design cycle by pulling their expertise and methodologies. Secondly, this model embedded quality into BMW’s production system up and down the supply chain. Thirdly, supplier was able to realize the critical connection between quality and profit through high customer satisfaction.
significant improvements in the product line. BMW wanted to position itself as the "best" rather
BMW marketing veers towards standardization rather than towards adaptation although it has a combination of both. The aesthetics for instance on its websites and the rest of its marketing mix are similar on all its material reflecting standardization. The classic design accords with the image of the company and does not differentiate according to specific country. So, for instance, users switching from the Taiwanese website to the American one will find the same design. The dominant colors of BMW, too - blue, black, silver and grey- remained the same regardless of country, and the pictures are the same too
The history of BMW is one of ground-breaking innovations and exceptional automobiles, including motorcycles and aircraft engines. It has a history with people of vision and of pioneering creation in the world of aviation engineering. Already we can begin to see that the BMW group is a well known and significant player in its market.
process BMW had to launch a reengineering task force who was responsible for meet a bold target of for slashing product
The current process is working well to deliver the unique styling and quality that defines BMW, however, it is very time consuming and a major roadblock to reducing the product development time.
This marketing report aims to examine and explain the marketing strategies of BMW , In this report I will be focusing on:
The increasing numbers of sub-model cars can also affect the brand quality through increasing any risk issues once launched to the public. Furthermore, according to (Stephen, 2004) Mercedes customers have high expectations about the high quality promised by the company. In 2003, the company disappointed many customers when they sold over 2000 vehicles with an extra option for a navigation system, which were not ready to be delivered at the right time, also accompanied by other mechanical issues. On the other hand, the company made an announcement about its new high quality hydraulic breaking system, which increased its competitiveness in terms of safety and quality against other competitors in the industry.
BMW (U.S) Holding Corporation is a franchise of the high-end performance based global automotive company BMW. For the first time in its history, BMW is to launch its first American made car, the BMW Z3 Roadster. Having only made cars in Germany, this time the car is to be assembled in Spartanburg, South Carolina. BMW’s objective is to expand its market share in the U.S., make the brand name more global and improve its dealer network. With this in mind, the company developed a two phases launch plan for the BMW Z3 Roadster.
BMW Group uses various different materials for the production of these components. Accordingly, the casting methods used are diverse and innovative. In engine production the cast components is processed using high precision, computer controlled machine tools, the workers being predominantly
BMW must take action to compete with the Japanese auto companies by putting great emphasis on quality service at a reasonable price to gain the competitive
BMW is in a fierce market with many external environmental variables impacting their current situation. There are governmental factors, demographic and economic factors, technology factors, and environmental and legal factors.
There are two crucial components that will set us apart from the rest of the automotive industry. The first being, mass production and the second one will be in-house production of essential manufacturing elements.
Continuous development and responsiveness of suppliers at the early age of product development process is critically important. “Honda tries to encourage suppliers’ suggestions early before finalizing drawings, particularly in the area of cost reduction and quality improvement.”
BMW Group has its excellent technical system which offers a competitive advantage over its rivals. Training courses are also delivered to all the employees in order to develop new skills and highest quality standards.