Manufacturing Perspective BY sweethearts 9-21-2013 Operations and Supply Management Introduction Not only does the BMW Group produce the “Ultimate Driving Machine” but they also provide high quality financial services. The success of the company has not only relied on the excellent quality of the automobiles they produce but the financial services they provide their customers. Financial services are a key factor for success in today’s mobile world.
At BMW, an extensive product portfolio is available that provides expert information regarding financing and leasing, insurance, asset management, dealer financing and company AR pools (BMW Group, 2013). The reminder of this paper will be dedicated to a thorough examination and review of the Financial Services segment of the BMW Group. Financial Services Exceptional service is the goal of the BMW Group. Providing their customers with some of the world’s most premium automobiles and motorcycles is not the only objective in a tough competitive mobile market.
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That’s where the exceptional financial services come into the picture. The core component of the financial services is the multiple financing options available for new BMW owners. BMW offers these many options in the form of loan customization, low competitive rates, no down payment, terms up to 60 months, and an Ownership program that features low monthly payments for new and certified pre-owned Bum’s (BMW Group, 2013).
The financial services aspect of BMW is designed to match the quality of the vehicles they are financing as well as meeting the expectations of the drivers. The financing and leasing programs available are designed to parallel the many exceptional vehicles extremely flexible terms that a customer can choose. The program gives them the ability to be flexible in their driving and financial obligations. The customer has several choices and less financial obligations up front with leasing.
After a customer has leased a vehicle through the pre- determined term, they have the flexibility to turn their BMW in for another one, release the same one for an additional term, buy the vehicle at a pre- determined price, or turn the car in and walk away. The aim of the financial services is to keep it all under one roof from the test drive to the end of the lease and ensure they meet all the automotive needs of the customer (BMW Group, 2013). Outsourcing BMW was founded in Germany but over the years they have expanded their reach across the globe from their headquarters in Munich to over 1 50 countries worldwide.
In 1994, they expanded into the United States by opening a manufacturing plant in Suppurating, South Carolina. As part of the BMW Group’s global manufacturing network it is the exclusive manufacturing plant for all XX and XX Sports Activity Vehicles. The BMW Group sales organization is represented by 339 BMW passenger car and light truck sales centers, 142 BMW motorcycle retailers, 115 MINI assenter cars dealers, and 33 Rolls-Royce Motor Car dealers in the United States (BMW Group, 2013).
They also have a sales and distribution headquarter for North, Central and South America located in Woodlice Lake, New Jersey. Process Improvement Not that any company can’t find some area of improvement to work on but there is not an obvious area of improvement needed in the BMW manufacturing process. It is unfortunately a hard thing to do, to find a fault in their system of manufacturing. Perhaps they could open another plant in the United States. Manufacturing Method BMW is a mix of make to stock and make to order manufacturing.
What that meaner is that yes they manufacture many vehicles to stock their many different showrooms and dealerships across the world but they manufacture many of their vehicles to specific customer specifications. The following statement was retrieved from the week two segment of this project. “One of the most unique aspects of the BMW Groups process and service strategy is the ability of customers to choose between a wide array of options and actually have the ability to make changes to their specifications to their car up to eight days before it hits the production line.