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Company Overview
BMW has established a reputation as both an engine producer and the manufacturer
of luxury vehicles. They built the 3, 5 and 7 series, the M5, which represents sheer
power, or the Z8, an innovative car. BMW has also proven its capability to resurrect
legendary cars, reviving the legendary Mini and its acquisition of the Rolls-Royce
brand (BMW Official Website, 2009). While the company’s main office is still based
in Munich in Germany, it has ten manufacturing plants all over the globe – seven in
Germany, one in Austria, one in South Africa and one in America, and sales units in
sixteen nations where the vehicles are transported (The BMW Group, 2009). Aside
from the vehicle segment, it stays as one of the important European producers of
engines for civil aviation, through its partnership with Rolls Royce. Power merged
with innovation is what BMW stands for.
The present automotive industry is classified by increasing product diversity and brief
development periods. One of the important activities is to enter the market quicker by
organizing the product development and production start-up procedures. One can
attain this streamlining by doing a huge number of effectively coordinated procedures
in parallel, utilizing a data structure that has all the data regarding the product and its
types and is available at each phase to all people included in production planning
(Clarke, 2007). This process, pertained to as integrated product and process
engineering, is at available when one utilizes mySAP Automotive.
* Competent staff and talent with effective procedures for workforce and talent
acquisition
* Product and service dominance with improved procedures for product control
* Excellent client value with improved procedures for sales and service
mySAP Automotive is particularly created to address the needs and challenges of the
BMW and the automotive industry. It is a comprehensive and effective solution for
BMW that encompasses business procedures from engineering design, preparation,
manufacturing, purchasing, sales and service (SAP for Automotive Website, 2010).
Created to be a comprehensive and holistic management information system, mySAP
Automotive is organized based on various market sectors that create the foundations
of automotive industry.
a) Operations
More than any operational aspect, operations of BMW have been affected by
significant developments in technology. As a consequence, production processes have
evolved. For example, inventories are given just in time in order that huge sums of
funds are not used for storing large inventories (Kiley, 2004).
mySAP Automotive offers solutions for BMW in terms of vehicle and procedure
modeling, preparation and manufacturing implementation. mySAP Automotive helps
BMW ins terms of the improvement of the planning of the manufacturing process.
Consolidated product and process modeling is attained within BMW through mySAP
Automotive, where the modeling of every vehicular model and production procedures
from the initial prototyping stage to the manufacturing stage is accomplished in one
framework (Kidd, 2000). This minimizes information redundancy and the necessity
for interfaces as information is saved in a solitary system. Cooperative engineering
with suppliers provides new opportunities for more effective and quicker product
development with suppliers online.
b) Accounting
c) Finance
mySAP Automotive offers financial data to all financial managers within BMW
including the head of the finance department. The head of the finance department of
BMW studies historical and present financial outputs, predicts long term financial
necessities, and tracks and manages the usage of money over time utilizing the data
produced by the mySAP Automotive (Buxmann, 2004).
mySAP Automotive offers solutions that allow sales and pricing of cars through
configuration, status monitoring of cars, sales and allocation of available components.
Car customization and pricing online improved car sales of BMW by providing
clients with the alternative of customizing their cars (Seese, 2008). Once the car is
customized, car customization and pricing will identify the price of the car according
to the customization. Car search and locator allows BMW to look and find cars that
satisfy the particular configurations, attaining quicker delivery to clients.
d) Marketing
mySAP Automotive aids the marketing initiatives of BMW in the aspect of product
development, dissemination, pricing choices, advertising, and sales prediction
(Forquer, 2005). More than any other operational aspect, mySAP Automotive
depends on outer sources of information. These references include rivalry and clients,
for instance.
e) Human Resource
To make the operational level decision making within BMW very simple and
effective, mySAP Automotive helps in offering and disseminating updated data to
proper users. mySAP Automotive is created to improve the reporting of data that will
be critical in the correct decision making within the operational level of BMW.
mySAP Automotive is able to immediately gather and edit information, summarize
outcomes, and able to cope and correct mistakes immediately.
mySAP Automotive has automated and manual internal controls that help in the
management level decision making activities in BMW (Kogent, 2009). Data is
obtained through proper editing and inner control checks. A detailed inner and outer
audit program is used within BMW through mySAP Automotive.
• System’s integration and management. Management always takes into account the
usage of business management processes to track development as mySAP Automotive
is being integrated. Inner controls are created into the procedures and periodically
assessed by auditors.
BMW sends these comprehensive analyses and accurate JIT delivery timeframes to its
suppliers. Major suppliers get the data through electronic data interchange (EDI).
Other suppliers enter the mySAP Automotive official site, where BMW states the
requisites to offer the latest data on its delivery necessities (Kuhlin, 2005). By logging
online, suppliers can check this data in actual time, including release time frames,
procurement files, receipts, and engineering files.
When they send components, the suppliers send BMW forward transport notifications
to give BMW with accurate data on component figures and delivery schedules.
Components entering at the BMW premises are then obtained and shipped
immediately to the line. There, BMW utilizes mySAP Automotive to check
manufacturing status in actual time (Dickersbach, 2007). mySAP Automotive takes
note of the manufacturing validation and components consumption data every three
minutes. Components used during manufacturing are eliminated from the inventory
list, and expenses are posted to compute the value of work in process.
Client demand for BMW’s new X5 sports car and its famous Z3 models needed a
solution that would effectively increase and assist streamlined manufacturing. mySAP
Automotive aids the company to minimize order-to delivery time, improves its supply
chain initiatives in the aspects of demand planning and monitoring and locating of
material deliveries, and enhances inventory precisions all over its production
facilities- allowing BMW to tremendously minimize time to client for its efficient
cars.
Effective Solution
BMW had been utilizing a customized data solution to handle its supplier and
logistics needs. The organized was able to finish its integration of mySAP
Automotive only a month after this management information system became
accessible. mySAP Automotive provides BMW an effective, measurable structure
that can be widened and changes to consider new functionality or developments in
business procedures.
mySAP Automotive offers BMW with top notch Internet operations and the
commonly utilized business procedures – from production preparations and
purchasing to sales and allocation- for a total supply chain management remedy. The
effective coordination between BMW and its business partners aids the engineering
and massive manufacturing of customized products (Woods, 2006). BMW takes
advantage of actual coordination on the Internet and instant pipeline visibility,
enabling them to track developments in the midst of the development and
manufacturing stages.
Immediate Access to Data
Important BMW business procedures are merged with mySAP Automotive so data
stored in BMW systems can be readily viewed, including prediction requisites on a
component stage, sales orders, and car bills of material. Since mySAP Automotive is
not that hard to integrate, BMW is able to connect it with its modernized warehouse.
The information system’s transparent setting and expandability have also allowed
BMW to immediately merge its own programs into the enterprise site for suppliers in
mySAP Enterprise Portals.
Enhanced efficiency
mySAP Automotive enables BMW to optimize profit opportunity, handle and limit
expenses, enhance quality, and speed up time to delivery.
Minimized risk
Widened reach
With mySAP Automotive, BMW is able to control the whole value chain, interacting
through enterprise sites and allowing holistic coordination among workers, suppliers,
and clients.
Increased sales
Locate-to-order and make-to-stock procedures offer perspectives into the client needs,
inventory, and capability – allowing BMW to address client demands.
With mySAP Automotive, BMW is able to know client demands, improve customer
service, and offer excellent assistance to improve revenues in the top end aftermarket
business.
Easy integration
Conclusion