Total T otal Quality Management in BMW
Bayerische Motoren Werke (B
Submitted To: Mam Mahreen Fatima
Sargodha University, Gujranwala Campus Total Quality Management in BMW
BY a!i" #ia
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$ana Shoai+ slam
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Umar Shari!
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Muhammad hsan
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si! 01+al
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Waheed Musta!a
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DEDICATION
Dedicated to
Faculty & Students Sargodha UNIVERSITY, u!ran"ala Ca#$us
COMPANY OVERVIEW
Bavarian Motor Works (BMW) Bayerische Motoren Werke (BMW) Founer ! Matthe" E#en Ruark Foune ! $%$&
With its +rands BMW, M020 and $olls3$oy4e, the BMW Group 4on4entrates e54lusively on the premium segments o! the international automo+ile and motor4y4le mar6ets, with an out4ome that
others in the industry are striving !or7 From development, through produ4tion to the mar6eting o! its produ4ts, the BMW Group displays an un4ompromising 4ommitment to the premium 4laim7
The 4ompany is now the world8s leading premium manu!a4turer in the automotive industry7 0n addition to the development, produ4tion and mar6eting o! automo+iles and motor4y4les, the BMW Group o!!ers its private and +usiness 4ustomers a 4omprehensive range o! !inan4ial servi4es7
Under the BMW +rand 9 one o! the most prestigious automo+ile +rands in the world 9 the 4ompany 4urrently o!!ers eight model series, all o! whi4h em+ody the prover+ial :ultimate driving ma4hine;7 With M020, the BMW Group has also +een e5tremely su44ess!ul in positioning its produ4t at the premium end o! the small 4ar segment7 $olls3$oy4e automo+iles, on the other hand, have +een synonymous with timeless, everlasting per!e4tion !or more than &(( years7 0n the motor4y4le industry as well, the BMW Group has !or years played a leading role in all the segments in whi4h it has an interest7 0n respe4t o! te4hnology, sa!ety and environmental prote4tion, BMW motor4y4les are among the +est on the mar6et7
The Finan4ial Servi4es +usiness also ma6es an important 4ontri+ution to the su44ess o! the 4ompany7
0t has a presen4e with its own sales su+sidiaries in -& 4ountries around the world, and maintains an e5tensive networ6 o! independent dealers7 ppro5imately &(( other mar6ets are loo6ed a!ter +y importers7 The e!!i4ien4y o! the international BMW Group produ4tion networ6 !orms the +asis !or the 4ontinued growth o! the 4ompany7 With .' produ4tion sites, the BMW Group is a4tive in &. 4ountries 9 in4luding Chennai in 0ndia, where the 4ompany opened its latest plant in .((=7
To dete4t trends at an early stage and put !orward appropriate solutions, the BMW Group also runs a worldwide resear4h and development networ67
ll the a4tivities o! the BMW Group are designed to in4rease the value o! the 4ompany 4ontinuously and over the long term7 0n the view o! the Group, long3term growth is generated +y thin6ing long3term and a4ting in a sustaina+le manner7 The 4entral !a4tors !or su44ess are 4on4entrating on the premium segment, the s6ill and dedi4ation o! our employees, the ma5imum !o4us on what the 4ustomer wants, plus an a+ility to innovate, whi4h is !irmly rooted in the 4orporate 4ulture7
'O'A *AI'Y MANA+EMEN' Total 1uality management >TQM? is +est thought o! as a philosophy o! how to approa4h the organi"ation o! 1uality improvement7 This philosophy, a+ove everything else, stresses the :total; o! TQM7 0t is an approa4h that puts 1uality at the heart o! everything this is done +y an operation and in4luding all a4tivities within an operation7 This totality 4an +e summari"ed +y the way TQM lays parti4ular stress on the !ollowing >Sla46, Cham+ers @ Aohnston, .((-?3 • • •
Meeting the needs and e5pe4tations o! 4ustomers Covering all parts o! the organi"ation 0n4luding every person in the organi"ation
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5amining all 4osts that are related to 1uality, espe4ially !ailure 4ost Getting things :right !irst time; Developing the systems and pro4edures whi4h support 1uality and improvements Developing a 4ontinuous pro4ess o! improvement
s de!ined +y 0SE, TQM is a management approa4h o! an organi"ation, 4entered on 1uality, +ased on the parti4ipation o! all its mem+ers and aiming at long3term su44ess through 4ustomer satis!a4tion, and +ene!its to all mem+ers o! the organi"ation and to so4iety7 TQM re1uires that the 4ompany maintain this 1uality standard in all aspe4ts o! its +usiness7 This re1uires ensuring that things are done right the !irst time and that de!e4ts and waste are eliminated !rom operations7 The main o+je4tive o! TQM is to ultimately satis!y the 4ustomer needs7 The TQM wheel shown +elow helps us to understand the pro4ess o! total 1uality management in a +etter way7
RM O P "L O U Y C E T E " I N E S OI # I L N ! E P M R E O IN C T E ! S S OE SN I T # I N !U P O U U R S C I $ M A P S R I ON # E! MB E N C T $ % A R & IN # ! " E C IS IO N M A & IN # T O O L S The Total Quality Management Wheel
The wheel shows 4ustomer satis!a4tion as the 4hie! target7 0n order to a4hieve this, the employee must +e involved in 4ontinuous improvement >the inner 4ir4le? to rea4h 1uality in the !ollowing areas >represented in the outer 4ir4le?
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PRO,*C'-.ERVICE ,E.I+N Design 4hanges o!ten re1uire 4hanges in methods,
materials, or spe4i!i4ations in order to de4rease the rate o! de!e4tive items7 Change invaria+ly in4reases the ris6 o! ma6ing mista6es, there!ore sta+le produ4t and servi4e designs 4an help redu4e internal 1uality pro+lems7 The need to ma6e design 4hanges in order to have a 4ompetitive edge, BMW tries to 4are!ully test their models and redesigns them with a !o4us on simpli4ity and uni1ueness7 The manu!a4turers are very 4on4erned a+out the 1uality o! ea4h and every 4omponent that is +eing used to assem+le a multi3 •
!un4tional automo+ile whi4h is dura+le, relia+le and !uel3e!!i4ient7 PROCE.. ,E.I+N The design o! the pro4ess is a 6ey !a4tor a!!e4ting the 1uality o! the produ4ts or servi4es7 Ene o! the 6eys to o+taining high 1uality is 4on4urrent engineering, in whi4h operations managers and designers wor6 4losely together in the initial phases o! produ4t or servi4e design to ensure that produ4tion re1uirements and
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pro4ess 4apa+ilities are syn4hroni"ed7 P*RC/A.IN+ CON.I,ERA'ION. Most +usinesses depend on outside suppliers !or materials, servi4es or 4ertain e1uipments7 arge 4ompanies li6e BMW and Toyota have thousands o! suppliers !rom all parts o! the world, some o! whi4h supply the same type o! parts7
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supplier 1uality7 BENC/MAR0IN+ This is a 4ontinuous, systemati4 pro4ess that measures produ4ts, servi4es and pra4ti4es against those o! industry leaders7 Companies use this to understand where they stand in the industry and how to improve their own operations or rea4h a 4ertain target7 Typi4al +en4hmar6ing tools are 4ost per unit, pro4ess time per unit, revenue per unit, return on investment, 4ustomer retention rates, et47 Companies li6e BMW that are involved in 4ontinuous improvement rely on +en4hmar6ing to !ormulate goals and targets !or per!orman4e7 The !our +asi4 steps o! +en4hmar6ing are &7
.7 nalysis 9 determining the gap +etween 4urrent pro4ess and the +en4hmar6, identi!ying the signi!i4ant 4auses, et47 '7 0ntegration 9 esta+lishing goals, o+taining resour4es and s6illed managers !or a44omplishing the goals7 -7 4tion 9 developing a4tion plans, teamwor6, monitoring progress, developing 4ross3!un4tional teams, ma6ing improvements7 ,ECI.ION MA0IN+ 'OO. The !irst step in improving the 1uality o! an operation
is data 4olle4tion7 There are seven tools !or organi"ing and presenting data $1 CCH0STS 21 0STEG$MS 31 <$TE C$TS 41 SCTTT$ D0G$MS 51 CUS32D3FFCT D0G$MS &1 G$<S =7 DT S2EE<02G
Management must develop the proper tools to manage 1uality 9 not only ma4hine or hand tools, +ut also statisti4al methods to 4ontrol pro4ess or in4oming materials and to help identi!y the sour4es o! 1uality pro+lems7 W7 dwards Deming +elieved that statisti4al methods are the +a46+one o! management8s arsenal o! tools !or managing 1uality7 e 4reated a list o! &- points that summari"es his philosophy !or a4hieving +etter 1uality >Deming, &*/&3&*/.?7 Some o! his !undamental ideas in4lude 9 adopting a new philosophy, 4ease dependen4e on mass inspe4tion, drive out !ear, institute modern methods o! training and many more7
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0n a glo+al mar6etpla4e a major 4hara4teristi4 that will distinguish those organi"ations that are su44ess!ul will +e the 1uality o! leadership, management, employees, wor6 pro4esses, produ4t, and servi4e7 This means that produ4ts must not only meet 4ustomer and 4ommunity needs !or value, they must +e provided in a 4ontinuously improving, timely, 4ost3e!!e4tive, innovative, and produ4tive manner7 0n .(((, a!ter the 0nsuran4e 0nstitute !or ighway Sa!ety33a vehi4le sa!ety testing organi"ation33 tested BMWIs J), 0nstitute
Better 6nown !or their loo6s, whi4h aspire to rea4h the aestheti4 levels o! museum31uality s4ulpture, as well as their pre4ision me4hani4al superiority, BMW vehi4les are manu!a4tured to e5a4ting toleran4es7 But attaining su4h an astonishing sa!ety rating is eviden4e that, !or the J), BMW raised the standard even higher7 0t goes without saying that 1uality and sa!ety are
interrelated, a!!irms duard Wale6, BMWIs J) proje4t leader7 0! you 4anIt guarantee that ea4h vehi4le whi4h 4omes o!! the produ4tion lines was produ4ed in a44ordan4e with a high 1uality standard, you 4anIt ensure a high standard o! sa!ety either7 But thereIs more to it than that7 Sa!ety must +e designed, simulated, tested and, !inally, produ4ed7 During all o! these stages, high 1uality standards must +e met as !ar as 4omputation, 4onstru4tion, testing and produ4tion are 4on4erned7
.7 Custo7ers .atis8action Driving pleasure, premium 1uality and relia+ility guarantee the latest models !rom the BMW and M020 +rands the highest a44laim in international automo+ile mar6ets7 That has +een 4on!irmed yet again in a re4ent study 4ondu4ted +y international mar6et resear4h !irm A7D7
<? 9 assessing satis!a4tion levels among 2orth meri4an new 4ar +uyers, the BMW ) Series range, BMW J', BMW #- and M020 Countryman emerged as winners o! their respe4tive vehi4le segments7 0n addition, !our more models !rom the BMW Group !inished in the top three o! their 4ategory7 This tally means the BMW Group +oasts the highest num+er o! segment winners o! all manu!a4turers in the latest < survey7
Su4h e54ellent individual s4ores also +oosted the overall ran6ings o! the BMW and M020 +rands, with BMW 4oming third in the latest survey7 s well as the 4lass3winners 9 the BMW ) Series range, BMW J' and BMW #- 9 the outstanding results o! the BMW = Series range also 4ontri+uted to this out4ome7 The lu5ury saloon not only 4ame se4ond in its segment +ut also 4laimed the se4ond3highest individual s4ore o! all the vehi4les involved in the < survey,
ma6ing it the top uropean model in the entire 4ompetition7 The BMW ' Series range and the BMW JL also !inished as runners3up in their respe4tive segments7
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Continuous I76rove7ent
The BMW J) is just one e5ample o! the 4ompany8s relentless pursuit !or 1uality7 Sin4e its in4eption BMW has !o4used on produ4ing 1uality automo+ile, even i! that meant produ4ing less7 E!ten 4ited as the :Ultimate driving ma4hine;, BMW strives to give its 4ustomers the 1uality they gave 4omes to e5pe4t !rom BMW7 Quality +egins right !rom the sour4e7 ighly s6illed 4ra!tsmen and high3te4h !a4ilities 4ooperate hand3in3hand in the ssem+ly Shop, where the painted 4ar +odies are 4ompleted a44ording to the 4ustomers spe4i!i4 order7
Despite the most advan4ed and sophisti4ated plant te4hnology, the assem+ly o! an engine 4alls !or a high standard o! 4ra!tsmanship and a wide range o! s6ills and 6nowledge on the part o! all asso4iates involved7 The asso4iates wor6ing on the line move along with the 4ars on their own 4onveyor +elts !or several jo+ pro4esses one a!ter the other7 They wor6 together in small groups with a high standard o! personal responsi+ility7
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E769oyee Invo9ve7ent
mployees are the strength o! an organi"ation7 They are the prime 4ontri+utors to its su44ess 0n manu!a4turing plants all over the world, +oth managers and wor6ers have dis4overed that when employees are involved in wor6pla4e de4ision3ma6ing, produ4tivity rises7 0BM also involve employee in Quality improvement program7 For this purpose they 4ondu4t seminars, employee meetings et47
51 .u669ier .e9ection an Partnershi6 rgonomi4s on the jo+ is parti4ularly important point in the assem+ly pro4ess7 eavy 4omponents su4h as seats or pre3assem+led doors no longer have to +e li!ted up +y the asso4iates themselves, +ut are rather moved and pla4ed in position +y means o! easy3to3handle 4arrier systems7 Swivel units, in turn, maneuver and move the 4ars around on the assem+ly line, helping
to avoid tiring and strenuous jo+s and operations whi4h otherwise would have to +e per!ormed a+ove head level7 Fle5i+le and e!!i4ient assem+ly is guaranteed +y sophisti4ated logisti4s !or a smooth !low o! materials and e!!i4ient produ4tion without !ri4tion7 ll parts and 4omponents must arrive at the assem+ly line just3in3time or even just3in3se1uen4e in the interest o! ma5imum e!!i4ien4y 9 and this is only possi+le i! the suppliers are !ully integrated in the produ4tion networ67
!!i4ient logisti4s ensures pre4ise delivery o! the parts re1uired e5a4tly on time, with a smooth and e!!i4ient !low o! parts !rom BMW Group 4omponent plants or supplier 4ompanies7
2W D0 BMW 0ndia is loo6ing to in4rease the use o! lo4ally made 4omponents, a strategy that would help 6eep the pri4e o! its lu5ury 4ars more 4ompetitive here as the 4ompany targets dou+le3digit sales growth in .(&) a!ter posting a d rop last year7 The 4ar3ma6erIs strategy is to have at least hal! the 4omponents sour4ed !rom the 0ndian mar6et7
BMW has partnered with seven lo4al suppliers !or sour4ing 4omponents !or produ4tion o! 4ars at its Chennai plant7 These are For4e Motors BS &7-- N, #F ero Chassis, Drae5lmaier 0ndia, Tenne4o utomotive 0ndia, Kaleo 0ndia, Mahle Behr and ear 0ndia7
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Per8or7ance Measures
The highlight in assem+ly is the so34alled :marriage;, where the drive train made up o! the engine, transmission and 4hassis is +olted on to the +ody Fun4tional and visual inspe4tion, !inally, ensures that all 4ars 4ome o!! the assem+ly line with the high standard o! premium 1uality so 4hara4teristi4 o! a BMW Group produ4t7
