BMW Case Analysis: Carl-Peter Forester's 7-Series Prototypes

BMW CASE ANALYSIS
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BMW Case Analysis
Recommendations to Carl-Peter Forester concerning the 7-series prototypes
Forester should consider new insights into a range of aspects of the 7-series prototypes. The first recommendation is the need to consider new pre-fabrication tools. As evident in the case, the organization failed to identify quality problems with their cars until it was late due to the application of different tools in pre-fabrication and in developing new products. The organization must open a platform in which it can learn more from the prototypes (Pisano, 2002). If Forester considers new pre-production tools, he positions the organization to identify challenges as soon as they are realized. Also, Forester should prepare for regular prototypes. As noted in the case, quality concerns stem from more time spent on developing the prototypes that require efficient workmanship. Not only is the use of regular prototypes time-saving, but it also reduces costs incurred in acquiring skilled labor and clay materials in developing the prototypes and the cars eventually.
Forester should also focus on cost management in developing the 7-series. That is, the organization should consider pre-fabrication tools in developing prototype models. That is because one of the biggest quality challenges that the organization faced was a mismatch between materials used in the prototype and those used in real production (Pisano, 2002). The application of different materials implied discrepancies while assessing product quality. Once different materials are used, the organization understands that the products will reflect the quality of materials used in either the prototype or the real product and not in both. Still, in production tools, multiple factors contribute to the quality of the products realized, especially after the use of different materials. One of the avenues to bridge the gaps is by reducing the lead time in production. At BMW, the space between prototype production and the production of the products was too long. The time-lapse meant that materials could wear between the development of the prototype and the actual production. The characteristics of materials must be maintained both in developing the prototypes and in the execution of the actual products, something that is possible only with proper maintenance of material quality between the production phases.
Additionally, BMW also incurred a lot of costs in developing the prototypes at the expense of assuring a better quality of their final products. Notably, the organization employed fake materials in prototypes. Such a strategy implied that the quality problems of their vehicles would only be realized after the final products. Fixing quality problems at the prototype level would have allowed the company to lower quality assurance costs while executing the actual products. Also, the case implies that the organization invested heavily in the development of the prototypes. Highly skilled craftsmen and laborers were directed to develop the handmade clayed prototype. Such a strategy meant that the company took a long time in developing the prototypes. As the development of the prototypes took longer, the costs increased. It is recommendable that the organization spends more resources on products that corresponded to customer needs. The use of technologies to develop prototypes would be necessary. For instance, 3D printing would relieve the organization from overreliance on clay models. Additionally, the use of technology would ease faster completion of the projects and the eventual development of the cars in record times. On the same note, the use of pre-production tools would help to cut the costs as more quality issues would be detected right at the modeling stage.
BMW also triggered the mixed model ramp up a strategy that should be changed. At the time of the production of the new 7-series, the company was intending to revitalize its market position while cutting costs at the production line. Cost management led the organization into using the same production line for its old and new models. With the production line remaining mildly automated, it was challenging to develop a streamlined logistics protocol in the production line. It became more challenging to differentiate parts of the new models from those of the old models. Also, with the production line highly mixed up, it became more challenging to discover problems at the pilot production phases. In the end, employees focused on addressing the big problems that emerged at the production line while ignoring the smaller challenges that demanded fine-tuning. To that extent, separate ramps should be developed for the production of new models. Such a move can allow for the development of fine-tuning racks to allow for easier identification of smaller problems that culminate into long-term quality concerns for the organization.
Attributes to Improve
The first aspect of improvement that the organization should manifest is in the quality of the cars. The inclusion of suppliers in the entire production process should help with enhancing the quality of the final products. BMW failed to include commercial suppliers throughout the production line. Hence, such suppliers would only be informed of the problems as long as the issues were unearthed (Pisano, 2002). Poor interactions with suppliers meant that supplies for materials to address the identified problems took longer than necessary. That delayed the production of the cars. Also, it increased the bargaining power of suppliers if the organization included their inputs only in the extreme cases of need. Accommodating suppliers in the production loop would mean that the challenges are addressed with immediate supplies. That saves time on production while also enhancing cost management through the production lines. Within efficient production outcomes, each stakeholder should be allowed to play their roles without interruptions to inhibit delays. The management should focus more on streamlining production efficiency through active stakeholder participation at each level to limit quality concerns. Besides the suppliers, the future products should showcase better quality considering the emphasis on quality assurance right from pre-production. With the prototype and the actual product highly linked in terms of materials used, the products should be less problematic as the quality problems are identified earlier.
The future products are also expected to improve on the ramp-up style. The application of a single ramp for all the production at BMW is a major cause of quality compromise (Adari, Thrane, & Taube, 2004). With a single ramp, the organization easily confuses product parts that lead to poor quality. A single ramp for all the production lines also implied that the products will delay before reaching the customers as the production of older models continue on the same ramp. To that extent, one improvement that is needed is the development of a new ramp that should focus only on the production of the new products. With a new ramp, there will also be an improvement in production lead time. BMW spends more time in its production line, something that hampers its ability to meet the production targets. Part of the reason for delays is a mixed-up production line that forces employees to switch through different production models and still foster quality.
BMW is also expected to improve on the application of technologies. Improved technology enhances the production line through efficiency and accuracy. When products undergo a streamlined production line, they improve in quality. At BMW, outcomes are embedded in the inputs of skilled manpower. While the outcomes from human labor could be efficient, accuracy is always an issue with which to contend. As such, the implementation of emerging technological tools such as 3D printing is a necessity. 3D printing, for instance, will reduce the amount of time taken between developing the prototypes and the actual products. In developing a new ramp, BMW should also consider the inputs of robots that enhance the accuracy of the outcomes. Emphasis on technology reduces costs in terms of reduced lead time as well as limited reliance on human labor to deliver results. BMW produced previously below the market expectations due to production delays. Such delays should change with the new implementation of a ramp and different technologies in the production line.
The future products should also improve on stakeholder relationships. A highly streamlined production line consists of integrated activities performed by different stakeholders (Ackel, 2007). In the case, BMW tends to focus heavily on its internal environment with limited emphasis on the inputs of the external stakeholders. The company barely listened to the customer needs. With a broken link between customers and products, improvements cannot be achieved. The future products should enhance feedback mechanisms in which customer needs are addressed efficiently. The longer duration of delivery and the quality concerns are some of the customer feedback that the organization must address effectively. Additionally, part of the cause of the quality issues at BMW stemmed from the exclusion of suppliers in the course of production. More inputs of suppliers are needed at all the production stages. That should help to address the identified ...