1. Mass Customisation-
The BMW way

2. BMW Opens a New Plant
 In May 2005 ,BMW
opened its new plant
in Leipzig area of
Germany.
 W invested $1.3
billion.
 Manufacture BMW 3-
Series car.
 Max annual capacity:
650 cars/day
 Expected to create
5500 jobs in that
area.

3. Why Leipzig area?
 Availability of highly Qualified staff
 High standards of superior quality
 Legal security
 Excellent Infrastructure
 The Leipzig plant was designed to allow
maximum flexibility and communications

4. The Evolution
 In 1913 , Munich, Germany,
Karl Friedrich Rapp established
the Rapp-motorenwerke to
manufacture Aircraft Engines.

5.  In 1916 ,During First World War Company
secured contract to manufacture aircraft
for Austria-Hungarian army
 In 1917, Rapp needed additional financing to
complete this contract.
 He partnered with Camillo Castiglioni.The new
partnership company named as Bayerische
Motoren Werke Gmbh.
 The company soon get into difficulty due to over
expansion.
 Sold it to Australian industrialist,Franz
JosephPopp.

6. The First Aircraft Engine
 In 1918 ,Bayersche Motoren Werke
manufactured its first aircraft engine.It
reached up to an altitude of 5000 metres
in 29 minutes, creating a world record.

7.  Treaty of versailles banned Germany from
producing Aircraft. The company shift to
manufacture Railwaybrakes.
 In 1922 , Bayerische flugzeugwerke AG.
Manufacturer of small aircraft merged with
BMW to form BMW AG.
BMW AG

8.  BMW started manufacturing
MotorcycleR32-500 cc Bike designed by
Max Friz.
 Company started producing cars in the
late 1920’s.

9.  In 1928-BMW setup a car manufacturing
unit in Eisenach region of Germany.
 There they manufactured DIXI cars and
sold under their name.
 By early 1930 they started designing
their own cars.
 Introduced many successful car’s like 327
saloon and 328 roadster.

10. Saloon 327 and 328 Roadster

11.  In1959 launched BMW 700 of “sporty
exterior´ which was the main selling
point.
 They launched other models based on
BMW 700 and won many competitions.

12. 1961 – BMW launched the “Sporty
Sedan”
 BMW 1500 launched in 1961

13. 1970: BMW moves its
headquarters to Munich.
 In 1970 BMW moved its headquarters to
Munich,Germany.
 The building looks like the four cylinder
of cars.

14.  From 1970 to 1990 they focused on
exports market.
 Like US ,south Africa, Australia, Asia,
Japan, Austria and Bavaria.
 In1992 BMW outsold the Mercedes for the
first time in Europe.
 The company became the first European
car market to operate in US market.

15.  In1994 BMW attempted to enter in mass
market by bringing British Car m/c MG
Rover.
 The purchase gave the company
ownership of many successful brands like
Mini, Land Rover, and Triumph etc.
 But some of the models were clashing
with the BMW model.

16.  In 2000 , BMW sold the MG Rover to
Phoneix consortium for a nominal £10.
 Mini and Triumph were held by the BMW
and Land Rover and Range Rover were
sold to Ford.
 In Early 2000 BMW launched its 1-series
and 6-series.
 For launching this car model company
faced many criticism.

17. 2000 - 2005
1 SERIES & 6
SERIES

18.  In 2004 company added three 3
car brands-BMW, Mini, and Rolls Royce
 In 24 cities,12 Countries on 4 different
continents.
 Company employed 70,000 people.
 Customer deliveries increases from
1.2millions unit.
 Revenue in 2004=US $ 60.47
billions,Profit=US $ 3.03 billions.

19. WHY MASS CUSTOMISATION?
 The factors:
◦BMW was reputed for its customisation
programs
◦The orders recived were conveyed to the
factories which manufactured and
delivered to customers in the shortest
possible time.
◦Meeting particular customer need on a
large scale.
◦Basically combining the concepts of
mass production with customisation

20.  One of the criticisms against B.M.W. was
that most of its cars looked alike.
 As a maker of luxury cars it had to
deliver value to its customers.
 In older system customer had to do away
with whatever limited options they had.
 Total customer satisfaction became the
new buzzword.

21. BENEFITS TOMASS
CUSTOMIZATION
 Personalized Car
 Higher Customer Satisfaction
 Great Amount of Flexibility
 Perfectly Matching the Need’s of the
customer.
 Better use of working capital.
 Levels out economic fluctuations.
 Customer has control over products.

22.  As a result of customization program
there was a stocking more in showrooms.
 COSP :Customer oriented sales and
production.
 Production process was defined by the
car ordered by the customer.
 This was supplemented by the online
ordering system launched by the company

23. Supply Chain Management
 Advance planning was the key reason for the
excellent management for BMW supply chain
management.
 B.M.W. had a very efficient ERP solutions
provided by SAP.
 It connected the supply chain management very
well.
 Once the data entered it reached automatically
to the production areas.
 50-70% of the plant was automated
 Used extensive use of Robots for heavy manual
work.
 Sophisticated machines moved around to help
human efforts. ( Process , fixed
position,product,cellular layouts)

24. PROCESS FLOW STRUCTURE
 Batch shop
 Batch production
 Assembly line
 Continuous flow

25. ONLINE ORDERING SYSTEM
 Improved interface
 Platform to showcase the company’sproducts
 Customize options
 Dealer’s role
 Good ERP systems

26. Flexibility
 BMW ‘s new plant was constructed in circular
design keeping flexibility in mind.
 This was done for future expansion and smooth
flow of process from one stage to another.
 Assembly lines designed in such a way that they
can shift between models when demand
fluctuated(each plant produced atleast two
models of cars)
 Flexible work programmes where plants operated
in different capacities.
 BMW had 300 different worker scheduling
programs
 Interchangeability of parts added to flexibility
 Customised car was delivered in 12 days

27. Challenges faced
 In 2000 , BMW had the lowest delivery
times.
 Consumer laws in US : Consumer could
break a car deal at any time before
delivery.
 Integrate customer preferences to the
image that the company carried.

28. Future of Mass Customisation
 Computers ,cars and other industries are
adopting mass customisation.
 There was a school of thought which
suggested that mass customisation is not
economical in automobile industries as
they thrived on volumes.
 It is widely agreed that the potential of
mass customisation is huge.