Customization at Bmw Case Study

Based on the 3 types of quality costs that have been discussed and reviewed above, I recommend that we look at doing more appraisals and inspections during the manufacturing process, this will limit the number of design changes that happen early in the process but it should help in cutting down our external failure costs and help limit

Optimization of machinery so that production setups are not required for small customizations which can be managed manually.

However, as a new member with a new product, electronic product in North American market, the reputation is also an important attribute. Especially, quick delivery time is a key attribute for this company, due to the demand of quick delivery in all markets. Moreover, the manufacturing process of the new product, electronic product, on which our company will definitely focus, has a lot demands. Such as, technology, innovation and quick delivery time even the ability to make the product be the first one appearing in the market (other company, which is developing the same product, may become our competitive opponents). Especially, technology is predicted to play the most important role in the manufacturing process. On the other hand, the traditional cost system has a lot of limitations. Traditional costing system focuses on the cost reduction and the efficiency, particular the products with relatively few standardized components; Clifton, however, produces a wide range of airplane components. In addition, nonfinancial aspects of

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)

Founded in 1917, the BMW Group is now one of the ten largest car manufacturers in the world and, with its BMW, MINI and Rolls-Royce brands, possesses three of the strongest premium brands in the car industry. The group also has a strong market position in the motorcycle sector and operates a successful financial services business.

While mass customization is a viable option in manufacturing with digital factories and employing lean manufacturing designs, service firms have to employ a more productive environment to make mass customization profitable. Mass customization refers to using mass production technologies to quickly and cost-effectively assemble goods that are uniquely designed to fit the demands of individual customers (Daft, 2016, p. 271). The key challenge for service mass customization is to translate information about consumer preferences gained through market research into a format that can be easily used for service modularization decisions and customer-contact personnel training (Haas & Kunz, n.d., p. 603). In the service arena, mass customization becomes an ongoing configuration process with direct involvement of the customer coupled with professional advice by service personnel who understand the configuration rules and know them by heart. A clear understanding of the customer’s needs is required, as well as a requirement by service personnel to provide the customer clear and concise configuration options that strike the perfect balance between flexibility and complexity. Also, a continuous interaction between frontline contact personnel and the customer is a consequence that must be

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.

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?

There are two key channels what LM uses to deliver value for its customers: the community and the regional microfactories. The community is a core element of LM’s business model and consists of a group of car enthusiasts and designers who communicate mainly on an online platform, but they also meet in person during events organized by LM. Microfactories serve as places for car manufacturing but they mean a lot more for the company. They are places to gather together with the community and to work together with customers whilst assembling. Both key channels are important parts of LM’s marketing strategy and play a prominent role in the customer experience. LM uses mainly these own and direct channels to reach its customers. It raises awareness about its cars using mostly its website. This platform also helps potential customers in evaluating the offerings of LM as community members share their opinion, knowledge and experience there. The purchase, the delivery and the after sales service happen through the channel of microfactories.

Specific Purpose: To inform my audience of the excellence achieved by BMW over the coarse of the past 85 years.

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.

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

BMW is currently the 1st most valuable car brand in the world and the 23rd most valuable brand in the world; in 2011 it was the 2nd right behind Toyota. BMW’s brand value increased 10% while Toyota’s brand value decreased by 10%. It currently own “Rolls-Royce Motor Cars” which is a British manufacturer of luxury automobiles and “MINI” which is a British automotive marque which specializes in small cars.

In phase 2, the company faced the challenged of sustaining the hype around its new car and ensuring that potential customers actually purchase the Z3 when it is available. After reviewing the advantages and disadvantages of both marketing methods (traditional and non-traditional) and considering the success of phase 1, it is recommended for BMW to continues use the non-traditional approach and use minimum traditional strategies.

"The mission statement up to the year 2020 is clearly defined: the BMW Group is the world 's leading provider of premium products and premium services for individual mobility."