BMW 7-Series Project A Case Solution
On the other hand, the ramp-up production strategy of the company has been creating confusions, and has made the logistics more complex in order to best utilize fixed overheads in the production. Meanwhile, the problems would increase even not all problems were discovered into the pilot production. So, the ramp-up strategy creates more problems. Since, the company do not stop the production of the previous models to cover the fixed costs associated with the production.
On the other hand, it can be determined that there would be confusion in the parts, since the material and parts of the both models new and old would create confusion in the operations, so the chances of the mistakes increases with the ramp-up strategy. Meanwhile, it could be changed, and revised to reduce the confusion, and make the logistics of the company simpler.
7-Series Cockpit Production
The Cockpit is most important segment for the car manufacturing company. Because, the cockpit is the first thing that catch the eyes. Therefore, the company has to put its all efforts on the quality, reliability and also has to take care the overall look of the cockpit. However, it is very complicated because cockpit has 97 parts that are interlinked with each other. Meanwhile, the Excellency in the quality of cockpit is must, because it has impact on the overall look of the car.
Meanwhile, if the company selects a vendor to supply the whole cockpit prepared over the specifications, then there would be many loop holes initially since the quality of the cockpit would definitely increase but it is also possible that vendor might not be able to meet with the demand of the productions. Because, BMW get almost orders from the customer with customized specifications. So, different parts with different size, color, and style would be required for each customer order.
Similarly, however, it can be determined that outsource of the cockpit production has more automated methods, specialized tools, whereas there is lack of skilled workers in the process. On the other hand, the handcraft of the cockpit production is much based on the highly skilled labor force, less automated, time consuming, average quality, and high cost.
Conclusion and Recommendation
BMW is most trusted car manufacturer in the market, meanwhile it has been operating in the luxury car market, and in sport car market. Since, it has good name, and reputation in the market. However, its share in the global market is 1.5%. But, it is ranked 16th largest car manufacturer in the market. Furthermore, the products of the company are well known for its quality, reliability and customer satisfaction. Indeed, the increasing complications in the market has emphasized over the improving the quality, reducing lead time, and introducing variety of cars with less lead times but with the quality and reliability as well.
On the other hand, the company has been encountering problems issues in many areas including in the production. Therefore, it is recommend for the company that it should not outsource the complete cockpit, meanwhile, it should involve the supplier or the vendor in the pilot production to avoid any technical issues and problem during the commercial production. Therefore, the involvement of the supplier would reduce such chances of errors during the production, because the supplier would be able to understand the production process from in-depth, and then it could provide the parts as the specifications. Meanwhile, an additional supplier could also be helpful in this regard to meet with the market demand and customer specifications.
Furthermore, this would increase the quality and reliability of the cars. Similarly, it is also recommended for the company that it should reduce the lead time for production of the prototypes, and introduce variety of products as an alternatives for the various segmented markets. This would enable company to compete in the market effectively. However, it is important that company should not mix up the production of the previous models and new model to utilize the fixed overhead costs. Because, it would create many confusions, and logistics complexities, so the risk that quality might be undermined due to the confusion and complexities………………
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