Case Problems

Low quality launch as compared to

competitors => customer complaints
Decisions over the Cockpit Design
(i.e.: Hand Crafted vs. Automated
Production)
Ways to improve operation objectives
(quality, flexibility)

1a. Causes and consequences of BMWs quality

problems with newly launched products

Cause 1: using different tools and materials in the

prototyping process as compared to the production
models

Consequences:
Current results obtained from
materials used in prototype testing
may not conform with desired results
in final production models

Cause 2: used part designers drawings and clay

models rather than pre-production tools in the first
prototyping stage for all parts

Consequences:
Masked many design and manufacturing
problems
Lowers their opportunity to discover and
fix quality problems
Require more highly skilled craftsmen to
take care of the hand-built prototype =>
labour cost and more time taken

Cause 3: mixed-model ramp up strategy: produces

the new series on the same production line as the
old models
Consequences:
Greater confusion among workers and made the
logistics more complex
Not all problems were discovered or solved in the
pilot production phase
People spent a lot of their time identifying and
solving the big problems => less time for minor
problems and fine tuning
High customer complaints despite of intensive/extra
resrouces for quality assurance, inspection and
rework==> Affected the quality of new models
being produced

Cause 4: let suppliers involve in final

engineering drawings and commercial
production process late

Consequences:
If suppliers come across problems
during the commercial production
=> take time for adjustment in
design
Unable to supply the materials or
tools that BMW wants to procure

1b. Ways to improve its launch quality ???

Make sure: Performance >/=

Customers expectations in such of
critical dimensions:
Durability (life-span)
Reliability
Defects per unit
Scrap level

Cause 1:
Minimizing the gap between prototype and production process in
terms of tools and materials used.
Cause 2:
Using sudden changeover approach (Exhibit 7)
Giving cross-training for labours to improve the ability and
flexibility in switching the design and production of different
models.
Cause 3:
Using pre-production tools to build most of prototype parts in
early prototyping (expensive investment : DM 50 for entire car)
Cause 4:
Involving the most reliable suppliers in the industry earlier in the
development process and use their experience and skill to
improve efficiency in trouble shooting
Helping the supplier get a more detailed understanding of what
they are looking for exactly
Creating strong, close supplier relationships

2 a. Recommendations concerning the 7-Series

prototypes
New pre-production tools should be applied at the
early prototype stage. Learning from the
prototypes.
Employees in the factory should be well-trained
Reducing the time spent in development process,
prepare for frequently prototypes.
Maximizing the utilization of the existing grade
tools
Focusing on core competencies and outsource if
needed.
Let suppliers involve earlier in the design of
prototype parts.
Additional single outside vendors to support as

2b. Recommendation
Development Projects

Regarding

Future

Strategic Objective Enhancement

SO 1: considering and applying lean

production/manufacturing
S0 2: decreasing the development lead time
S0 3: competitive benchmarking (lower customers
complaints per car)

Adopt concurrent engineering

Expanding the relationship with the third party logistic.

Promoting the interaction, communication among
departments and suppliers
Having specialists and experts participate in the production
process.
Manufacturing capacity extension
Corporating with potential vendors, suppliers and
universities.

3. Recommended for changes in developing new

models and expected improvement
In construction of prototypes for new model: using the actual parts
instead of substitute parts
=> Avoid problems, complications
=> The investment will pay off in the long run.
Testing all things from the design stage
Beside investment in R&D and styling, need to conduct marketing
studies
Employ Lean Product Design elements
Applying concurrent engineering
Simplify the production process & minimizing the number of parts in a
product :
+ Design for Manufacturing (DFM)
+ Design for Assembly (DFA)
=> Reduce product assembly cost, number of assembly operations
and design complexity for new models