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Bmw Case Study

1472 words - 6 pages

1. Recommendation
1-1. We recommend 3-series touring wagon development project as a target of Digital Car Project. The ultimate objective of the project is to halve lead time of product development in BMW from 60 months to 30 month. As a result, the firm can incorporate reflect fickle customers’ tastes and the latest technology to their product development quickly and it enable them to fit the market needs strategically. If this change is successful, the experience and knowledge can be transferred to 7-series and all other new projects. It will make BMW in front of the competition. And it will save huge money and time of the firm.
1-2. Digital technology, such as CAD, is considerably ...view middle of the document...

As a result, staff at the operational level may not be able to adapt to the new digital project easily and quickly. They do not have rich experience of change and they do not have clear plan that tell all the managers and developers what they should do in the new scheme. There might be some intense pressure within the firm. It is not the technology problems. The development of new capabilities and changes to processes and organization will bring the confusion to staffs and uncertainties to the firm. Therefore, pilot project should be conducted by use 3-series.
2-2. Senior managers should fully consider and anticipate the outcome of any strategic change. If BMW really uses the latest and revolutionary 7-Series platform as a “breaking-point” for the new digital technology, the whole development team will be pushed towards the ambitious goal, which may cause demoralization amongst the developers and engineers. Moreover, there seems no way back if the project cannot be implemented as planned because the project would serve as a psychological Rubicon. And if the change not successful as the firm expect, it will ruin the current good condition of the firm and cause the production processes slower than before. Even worse, they will lose part of market share. In our point of view, senior managers should avoid to make such a ruthless and aggressive decision when the company is running successfully. We appreciate the necessity and significance of changing but it would be highly risky to corner yourself.
3-3. In a purely technological perspective, it is a more appropriate idea to make changes to derivative 3-Series than 7-Series. 7-Series is still at the early stage of its development and there would be quite a few technological problems occurring in the later processes. If BMW uses 7-Series, probably everyone will be too busy with the other technological problems to pay enough attention to the digital process itself. In this experiment, the impact on the result from one variable (the new digital process) would be ambiguous because of other variables (the other technological problems). Whereas, if the derivative 3-Series is the subjective in the experiment, there will be no such ambiguity because most of its technological problems had already been solved. How effectively and efficiently the new digital process can shorten the development period will be measurable.
3. Implementation
BMW will adopt concurrent engineering in the new project will be to shorten the development lead time. However, the real objective is not just to synchronize the activities in the project, but also it is to promote and increase interaction among the concurrence activities to increase accuracy of problem identification and solving, namely the capability of front loading. Thus, by promoting the interaction in more efficient way and increasing the competency of problem solving in the project.
3-1. Frequent and periodical meeting between different teams, and in the each team....

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