BMW's Innovative & Flexible Manufacturing System

We came across an eye-catching article by Peter Gumble in the European Time Magazine which boasted BMW’s flexible manufacturing system and the fact that it’s unlike any other in the world. So if you haven’t read it, we’ll save you a trip to the over-seas news-stands.

The main theme of the article highlighted the overall booming Germany economy and that BMW is a direct indication of the country’s increasing competitiveness. Although, being the car fanatics that we are, we couldn’t help but love the precision and agility of the German automaker's manufacturing process. We were intrigued and even slightly turned on by this ingenious engineering and its ability to cater to its buyers. For example, your BMW dealer will oblige you with as many changes as you care to make to the car that you purchase up until the six days cut-off point before your particular car goes into production. This is because the factory has been designed so that new production processes can be added to the assembly line at any time without disrupting the work flow. -Continued after the jump

The assembly line is basically what differentiates BMW production from the rest of the hagglers out there. With its highly sophisticated logistics, “workers that are stationed at regular intervals on the assembly line reach back for components in wire baskets that have been sorted into the right sequence”. The writer noted that “just past the section where car bodies are bolted onto the drivetrain and chassis, a gray three-door 1-series sticks out amid a convoy of silver 3-series cars.

In theory, the plant is set up to handle five or six different BMW models simultaneously.” Another important factor to consider is that BMW has based several key suppliers in the plant, “improving speed and reliability”. Something like the assembly of a customized cockpit could be put together in 20 minutes notice thanks to the French auto-parts firm Faurecia, which assembles cockpits and seats for BMW in Leipzig and some other plants. The deal works perfectly for both parties since BMW gets the parts it needs when it needs it and the firms don’t have to spend money delivering the supplies.

So now you might ask how cost effective this “last minute” ordeal is of adding new extras to different cars at different times. The answer is, it’s not really cost effective at all. Interestingly enough, according to the article, "BMW is not prepared to sacrifice its ability to give consumers the car they want. The alternative would be reduced costs but not the ability to charge a premium for customized cars. BMW's marginal revenue from customization is higher than the marginal cost advantage it gives up.”

What we have from company that made over $65 billion in revenues is accuracy, ingenious engineering techniques and the ability to provide service to fickle people with loads of money. Befriend one of them, and you’ll rule the world, as BMW has proceeded to do.

Via: timesmagazine