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The new MINI is being manufactured on one of the world's most modern and advanced production systems at the BMW Group plant at Oxford - the result of a £230 million investment programme at the factory.
BMW's new UK engine production plant at Hams Hall, near Birmingham, was formally opened at a ceremony which brought good news for the British car industry. BMW Group has invested £400 million in the factory, which will build a new generation of four-cylinder gasoline engines for delivery to its car assembly plants in Germany, South Africa and the US.
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BMW :
Factory of the Future"
Nothing has changed quite as much since the infancy of assembly line production as the desires and individual demands of the customer. This has also changed the demands on production - on us. On the contrary -challenges continue to rise:
What we at BMW call "the factory of the future" must keep pace with these dynamics. Ladies and Gentlemen, the BMW Group manufactures BMW and MINI products in a global production network. We produce at 22 locations in 14 countries: Seven production facilities for BMW and MINI vehicles as well as BMW motorcycles, three engine plants, four manufacturing locations - among others for components - and eight assembly plants. Identical standards for quality, safety and processes within the production network guarantee premium products worldwide. The considered handling of resources is a guiding principle for production planning, and a fixed component of all production processes of the BMW Group. As a company, we bear a responsibility to society, which we exercise at all of our locations: We want to be an active and fair partner for the regions and their people. So-called "breathing" structures enable the BMW Group to react quickly and flexibly - that is, with agility - to the various market demands. This includes a multitude of flexible working-time models and working-time accounts, in addition to the capability to build particular models in additional plants, depending upon demand. To give an example: In order to meet the unexpectedly high demand for the X5, the original planned capacity was dramatically increased to well over 50,000 vehicles by progressive stages. Whenever the BMW Group is building a new plant or introducing new models, the agile production network reveals its special strengths, including intelligent networking of know-how beyond the boundaries of the plant. In addition, the extraordinary commitment, direct responsibility and recognition of employees contribute to a timely production start, a steep ramp-up curve and high product quality from the beginning. Last year, the production of BMW and MINI automobiles amounted to more than 946,700 units - of which 42,390 belonged to the MINI brand-name. That was an increase of approximately 13 percent in comparison to the previous year. This was made possible by a continuous increase in the efficiency of our production systems and the flexibility of our production network, in addition to well directed expansion of our capacities and the commitment to achievement from our employees. They are the key to the strength of the BMW Group. They created our excellent position in the market. The BMW Group will continue its product and market offensive and continue increasing its sales volume and revenue in the next six years. Most importantly, we are planning 20 new car models and three new engine series. We are on our way to the production of over 1 million vehicles this year. Plans to expand the BMW brand-name include X3 as sports activity vehicles and the 1-series as a smaller vehicle. With the 6-series, we will continue the BMW tradition of elegant, high-performance coupes in that highly exclusive market. For this purpose, we structured ourselves so that products and new vehicle concepts can be planned quickly, but also be pushed ahead quickly for series production. Renaming the FIZ from Research and Engineering Center to Research and Innovation Center is more than merely symbolic. In the next six years, we are planning investments of approximately 16 billion euro for:
The most important decision during the past business year was the selection of the Leipzig/Halle region as the location of our new automobile plant. We are expanding our production network with this plant and creating capacities for our product and market offensive. The future BMW plant in Leipzig represents many things that constitute the success of the BMW Group:
With the Leipzig plant, we are building the factory of the future which will meet, like our other production facilities, the oncoming challenges. We are bringing the vision within reach. Our Leipzig plant sets new standards of a "breathing factory" with its structural design. It is designed to be flexible and easily expanded. The central building will be the communications hub of the plant and is a benchmark in the BMW Group. The architectural office Zaha Hadid in London set new standards in the design of the plant as a meeting place and also as a center for discussion - to help on efficiency of the plant. The plant structure combines optimal communication possibilities with flexible expansion for all manufacturing sectors: Body shop, paint shop and assembly are grouped in a circle around a central building to allow growth potentials for higher volumes and new technologies, while maintaining the basic structure. State-of-the-art methods come into play during the planning process to define production facilities and manufacturing processes, and these processes are tested by means of computer simulations using virtual reality before the final version is selected. This ensures that all facilities are working harmoniously and that the production flow can proceed efficiently without problems. The most advanced simulation methods make a valuable contribution to the design of ergonomic work stations in the Leipzig plant. In the BMW Group enterprise, we are not measuring the factory of the future by means of productivity and flexibility only. It must equally reflect our responsibility for people and nature. The BMW Group acknowledges its commitment to lasting management and considered handling of resources. The factory premises are, therefore, strictly designed according to ecological aspects, and we are utilizing state-of-the-art, environmentally sound technologies. One example is the use of powder clear coat paint technology. When we talk about sustainability, we are not only referring to a product cycle of seven or eight years. Since the BMW plant in Leipzig will be present in the region for many decades, sustainable, flexible structures and organizations were created. We are saving resources by handling water, energy and all other materials as economically and environmentally appropriate as possible. We are rigorously taking advantage of opportunities for recovery of valuable materials and substances, and waste is, of course, disposed of properly. Our plant of the future is built in such a way that expansions and structural changes are always possible with minimal effort. The Leipzig plant is already prepared for future innovations in vehicles or manufacturing. This includes, for example, lightweight body concepts. Ladies and gentlemen, The BMW Group dedicates most of its attention in the "factory of the future" to the most precious of all resources - our employees. We spare no effort to: ·
In doing so, we will help motivate them to continued top performances. We are sensitive to the need for a balance between family and career and so we offer flexibility to our employees through more than 300 working-time models. Together with board employee representatives, we developed the "BMW formula for work." This model takes the collective agreement into consideration, but significantly absorbs the competitive drawback of relatively high wages and short working times in Germany. Key to this model is a modular and highly flexible working-time system. Depending upon production volume and customer demand, the "BMW formula for work" allows for the incremental adjustment of the plant working time from 60 to 140 hours per week. In this situation, various working-time models are coordinated, thus separating the employees' individual working time from the overall plant working hours. Naturally, the international human resource principles of the BMW Group apply to the new location. Hence, the pay system of the new plant is oriented towards the principle of performance and counter-performance. This allows the "BMW formula for work" to significantly increase the productivity of the plant and contribute to optimum utilization of investments. Another milestone in the adoption of the premium strategy of the BMW Group will be the full brand-name responsibility for Rolls-Royce. At the beginning of 2003, we will introduce the new Rolls-Royce sedan to the market. We already have the first customer orders. Manufacturing is conducted at the Goodwood location in southern England. At Goodwood, we are implementing a plant characterized by a perfect synthesis of high technology and skilled manufacturing processes. Currently, the only two robots on site are installed in the future "Surface Technology Center." We are using environmentally friendly water-soluble paints and, in the best Rolls-Royce tradition, the lavish wood and leather used are crafted by hand. These luxury sedans are individually made to meet the customer's personal requirements. In a period of only two and one-half years, a small team has developed an automobile while simultaneously building a completely new head office and manufacturing plant - the new home of Rolls-Royce cars. Here, I can rightly say that we are setting another benchmark. The differences between the Leipzig plant and the Goodwood plant show that there is no single model for the factory of the future. The interplay of brand-name and production as well as the role of the plant in the production network must have a significant influence on the design of the plant. However, one quality shared among all our facilities will be individual planning, perfectly adjusted to current and future business conditions. For example, BMW uses a specially developed workflow simulation program with the designation of "Miles." The program allows analysis of all supply processes approximately 38 months prior to the start of production. Only through such highly flexible structures and processes can we possess the quickest response to individual customer requests and adapt rapidly to changing market trends -- and thus retain our competitive edge. Ladies and gentlemen, the Leipzig plant will be the ultimate state-of-the-art plant in the production network of the BMW Group. This will provide it with the best equipment for the task to become as successful as our other production facilities. In 2001, the J. D. Power Plant Award was given to the three best automotive plants in Europe. The plants in Munich and Dingolfing received two of those awards. This year, the Munich plant was awarded the silver and the Rosslyn plant in South Africa the golden J.D. Power Plant Award. Of the six best plants in Europe, four belong to the BMW Group. With respect to time quality, the BMW Group is also in the absolute top rank. An important reason for these accomplishments is the concept of the production network: Our plants both support each other, and also complement each other - flexibility has been our standard for a long time. An example: The BMW models of the 3-series are manufactured primarily in the Regensburg and Munich plants. Elsewhere in the production network, the Dingolfing plant produces the 7-series and 5-series. However, Dingolfing must also be able to perform a flexible capacity compensation for the 3-series. The highly differentiated nature of these products requires the maximum degree of flexibility with respect to technology and number of units. It was precisely this strength which came to bear when the demand for the 3-series increased and additional capacities were needed. Within only six months, the Dingolfing location took over additional production of approximately 50,000 to 70,000 units per year. The growth was implemented in making efficient use of the existing areas. The flexibility of the production network will help us in the future to realize our customer's needs even faster. In 2000, our processing times were between 25 and 30 days. Now we are aiming at twelve, and in the future at ten days. Our goal is to make certain that customers can order their individualized vehicle built to their own personal specificiations with delivery guaranteed at an agreed-upon time -- and still make changes up to 10 days before that delivery date. Ladies and gentlemen, the BMW Group learned at an early stage to rely on networks in order to optimize its own resources and to distribute the risks. Integrating innovative partners in our cooperative network plays an important role in our product and market offensive. For this reason, we will think and work even more in networks - internally as well as externally. In doing so, the BMW Group always maintains control over all factors that affect the values of its three premium brands. The cooperation agreement between BMW AG and Magna Steyr concerning the serial development and production of the X3 sports activity vehicle will increase the speed and volume flexibility of the group. The objectives of the BMW Group, Production Division are binding for the contracting partners with respect to delivery quality and adherence to deadlines. In conclusion I can say that the production network of the BMW Group is prepared for future customer and market demands. With our partners in the network, we can quickly and flexibly react to changes. Extraordinary people make their contribution in the BMW Group to a profitable growth. They are the key to our success. As one of the most attractive employers, we succeed again and again in winning the most qualified employees for the company and, in turn, their loyalty. In doing so, we are securing our future. I would like to conclude with a quote from Henry Ford which is still valid today: "A business that makes nothing but money is a poor kind of business." From the very first, the BMW Group enterprise has been concerned about more than sales volume, sales revenue and earnings. We are concerned about people; they are the outstanding performance factor of the BMW Group.
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