With more than 75 years of experience, LSG Sky Chefs is the world’s leading provider of airline catering and services. Our global presence with over sites across more than 50 countries is matched by top positioning worldwide in market share, quality, and innovative strength Jul 02, · 2- Lean construction (production planning and control, decision-making, social dynamics, construction supply chain) 3- Cyber-physical system / digital twins. 4- Jul 28, · The emphasis has shifted from a mass production system in the early part of the 20th century to a lean production system in the ’s (seen in the TPS-Toyota Production System) and now to a more demand driven process over the last decade (Zhan ). Negi,S.,K.,Pratik "LeanFlexible andJITmethodinBMW manufacturing."Master thesis
Analysis of BMWs Global Supply Chain Network - its production - distr…
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Analysis of BMWs Global Supply Chain Network - its production - distribution - sourcing strategies and mechanisms 1. Title Page No Executive Summary 2 1. Introduction 3 2. Designing the Automobile Supply Chain 4 3. BMW Case Study 5 3, master thesis lean production. T Analysis of BMW's Supply Chain 21 5. Recommendations 22 6.
Conclusion 23 7. References master thesis lean production 3. For the literature review firstly look at the key aspects of the automobile supply chain and how they differ from other chains in terms of the processes involved in planning and design.
We then focus on the BMW supply chain and analyse the important parts of chain that includes the supplier selection and sourcing mechanisms, design and production, distribution and reverse logistics network, master thesis lean production.
Finally based on our research we carry out a S. T analysis highlighting the main strengths that is attributed to their success, the kind of weakness and threats accompanied with their chain and the opportunities of the company's supply chain to reach higher levels of performance, master thesis lean production.
Expert views from the industry are master thesis lean production consider in our study in order to get a more balanced opinion on their supply chain, master thesis lean production. Based on industry best practices and expert views we formulate our recommendations to the firm to overcome the threats and weaknesses of the supply chain network and reach greater performance levels. We take this journey of manufacturing the BMW car from idea generation to concept formulation and design, master thesis lean production, from there to production and finally to the customer.
We look into the key aspect of BMW supply chain, from raw materials source to final product as well as the reverse logistics network. The automobile industry is complex, highly competitive and is characterized by highly volatile demand environment with constantly changing customer taste and preferences.
In order to sustain automobile manufacturers need to constantly change their strategies with the changing times. Continuous improvement and innovation have become increasingly critical master thesis lean production order to survive in such an environment. Every component in the automobile chain is equally important and must be carefully planned and implemented in order to achieve higher performance and gain competitive advantage.
We concentrate on supply chain up-stream and down-stream components such as sourcing strategies, purchasing and procurement, supplier network and management, master thesis lean production, production, distribution and master thesis lean production logistics. We illustrate concepts by looking into some of the management practices of BMW and describe the master thesis lean production reason for the success of their global supply chain by carrying out an S, master thesis lean production.
T analysis. Finally, we give our views and recommendations based on our research and other best practices followed by top firms that can enable the BMW group to achieve greater results and take their quality to the next level. Designing the Automobile Supply Chain Figure 1. Automobile Supply Chain, Source - Thomas The Automobile supply chain is characterized by complex franchise network of suppliers master thesis lean production to tier3manufactures, dealers, distributors and logistics providers as shown in Figure1 Ambe The car itself is a product of great complexity where myriad of components are brought together in a precise master thesis lean production. Thomas points out that a typical car would be made of about parts and key components.
In addition to this every automobile manufacturer sells multiple models which require periodic up gradation. The automobile supply chain hence must have a robust and flexible production line, an effective supplier and distribution network along with responsive sales and customer care department.
The quality and delivery of supplies is critical aspect of auto chains and there needs master thesis lean production be an effective and holistic approach in the selection and evaluation of suppliers. The sourcing mechanisms in place must be able to deliver to the firm's specific requirements. The production line that is usually built to last the complete product cycle which is typically about 6 to 8 yrs. must be capable to handle the changes in demand. For this an effective and flexible universal production line, one which can handle different models at the same time as well as one which can be upgraded has become a competitive necessity.
And finally the distribution network both up- stream and down-stream has to be carefully planned which is critical to the success of an 6. In the next section we see how BMW goes about doing this.
BMW Case Study Figure 2: Brand Identity, Source - Gallagher Founded inBayerische Motoren Werke AG BMW is a German automobile, motorcycle and engine manufacturing company, headquartered in Munich, that is recognized world over for its reputation for quality and efficiency in the premium category which includes three main brands - BMW, MINI and Rolls-Royce shown figure 2.
BMW vehicles are characterized by exceptional design, light weight construction, master thesis lean production, and eco-friendly technologies such as electric drive to name a few. This along with their innovation and continuous improvement throughout their supply chain has enabled them to capture the substantial market share in the premium segment not only in Europe and America but also in developing countries like India and China.
As Negi describes it, this philosophy anchors the goals of achieving perfect results and optimum quality right from the beginning stage of the production cycle along with implementing continuous improvement practices throughout the chain. The main objective of its supply chain activities is to deliver these goals and achieve competitive advantage. Figure 3: BMW's Core Principles, Source - BMW Group, 3. It uses a build to order system along with mass customization strategy to deliver cars as per customer requirements.
Once a customer makes a request, it is captured in a central database. With the use of such integrated technologies amongst its suppliers, manufacturers and distributors the firm is able to deliver the customized car to its customer with lesser lead times.
The key process, strategies and participants involved in the chain are briefly explained next sections. As shown in figure 4, the percentage of purchasing volumes mainly comes from Germany and rest of Western Europe. The firms purchasing division is responsible for selection, validation, evaluation, quality assurance of supplied goods and services while ensuring sustainability is achieved throughout the value chain.
In order to achieve this they firstly train their employees extensively on the desired levels quality and sustainability and how to go about achieving them. The central purchasing headquarters is in Munich. As mentioned in BMW Group,there are two areas in particular that firm concentrates on, one is managing and minimising risks across the chain and secondly utilising opportunities and leveraging potential through continuous improvement practices together with their suppliers discussed in section 3.
As per reports the negative effects of exchange rates totalled to be about 2. To tackle this challenge the firm used the "natural hedging strategy" where money is spent in the same currency where sales happens.
It established factories in countries where they were selling their products, master thesis lean production. Also it's sourcing is done by moving towards these respective sales market also known as "local sourcing".
Both these helped in the value creation process. This has helped it its pricing strategy, making it more competitive. As suggested by James the significant price difference achieved by BMW have enabled them to have more variety in the production line and bring more agility in their supply chain network.
He also enlightens other benefits of their local sourcing such as quicker response times due availability of the resource locally, especially when there is a "sudden surge in demand" or surprise deadline.
There are various other advantages of local sourcing such as better waste management. The wasteful products from their business can be valuable commodity to other business locally discussed later in environmental sustainability section. The firm uses advanced e-sourcing technologies such as ASTRAS eRFX software Allocation Network, It has a central interface called the M portal that controls all process in the BMW group.
The e-sourcing constitutes of four phases. after which documents and specifications are created considering existing contracts and bidder information. In phase 2 once all specifications are received, suppliers are invited to submit their bids which are evaluated and classified into group specific request along with cost analysis structures.
This is then fed into ASTRAS where comparison are made. The
Lean Manufacturing - Pull Systems
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Jul 28, · The emphasis has shifted from a mass production system in the early part of the 20th century to a lean production system in the ’s (seen in the TPS-Toyota Production System) and now to a more demand driven process over the last decade (Zhan ). Negi,S.,K.,Pratik "LeanFlexible andJITmethodinBMW manufacturing."Master thesis With more than 75 years of experience, LSG Sky Chefs is the world’s leading provider of airline catering and services. Our global presence with over sites across more than 50 countries is matched by top positioning worldwide in market share, quality, and innovative strength Jul 02, · 2- Lean construction (production planning and control, decision-making, social dynamics, construction supply chain) 3- Cyber-physical system / digital twins. 4-
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