sirris manufacturing day2011_complexity-management-bmw

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BMW Group Dr. ChristlPurchasing and Supplier Network

A global undertaking



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BMW Group Strategy Number ONE

Working with our suppliers for peak performance

Swift access to new technologies

Summary


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The world’s hhhhhhh hhhhhhh OEMh

BMW Motorrad

Husqvarna Motors

Rolls-Royce

BMW

MINI

MINI Financial Services

BMW Financial Services

AutomobilesRetail sales

Business year 2010: Revenues: €60.5 billion Sales 2010:

1.461 million automobiles 110,113 motorcycles

Headcount: approx. 96,000

Business year 2011: Goal: More than 1.5 million

vehicle deliveries EBIT 2011 margin in Q1

11.9% in the automobile segment

1,224.280

234,175

2,711

+ 14.6 %

+ 8.1 %

+ 170.6 %

BMW Group

Financial ServicesMotorcycles


BMW Ghhhh Shhhhhhh Nhhhhh ONEh

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MINI Cooper SClubman:135 kW / 184 hp5.9 l / 137 g

MINI Cooper DClubman:82 kW / 112 hp3.9 l / 103 g

MINI Cooper SCabrio:135 kW / 184 hp6.0 l / 139 g

MINI OneCabrio:72 kW / 98 hp5.7 l / 133 g

MINI CooperClubman:90 kW / 122 hp5.5 l / 129 g

Fuel consumption in l/100km in the EU test cycle. CO2 emissions in g/km. * EfficientDynamics Edition

MINI CooperCabrio:90 kW / 122 hp5.7 l / 133 g

BMW 116d 5-door:85 kW / 115 hp4.5 l / 118 g

BMW 118d 5-door:105 kW / 143 hp4.5 l / 119 g

BMW 118d 3-door:105 kW / 143 hp4.5 l / 119 g

BMW 123d 3-door:150 kW / 204 hp5.1 l / 135 g

BMW 120d 5-door:130 kW / 177 hp4.7 l / 125 g

BMW 123d 5-door:150 kW / 204 hp5,1 l / 135 g

BMW 120d 3-door:130 kW / 177 hp4.7 l / 125 g

BMW 316d Touring:85 kW / 115 hp4.5 l / 119 g


BMW 320d Convertible:135 kW / 184 hp5.1 l / 135 g

BMW 320d Coupé:135 kW / 184 hp4.7 l / 125 g

BMW 320d xDrive Touring:135 kW / 184 hp5.3 l / 140 g


BMW 320d xDrive Coupé:135 kW / 184 hp5.2 l / 137 g

BMW 320d*:120 kW / 163 hp4.1 l / 109 g

BMW 320d:135 kW / 184 hp4.7 l / 125 g

BMW 316d:85 kW / 115 hp4,5 l / 118 g

BMW 320d xDrive:135 kW / 184 hp5.2 l / 137 g


BMW 520d:135 kW / 184 hp4.9 l / 129 g

BMW 318d:105 kW / 143 hp4.5 l / 119 g

MINI Cooper DCabrio:82 kW / 112 hp4.0 l / 105 g





BMW 116d 3-door:85 kW / 115 hp4,5 l / 118 g



MINI One DCountryman:66 kW / 90 hp4.4 l / 115 g

MINI OneCountryman:72 kW / 98 hp6.0 l / 139 g

MINI One:55 kW / 75 hp5.4 l / 127 g

MINI CooperCountryman:90 kW / 122 hp6.0 l / 140 g

BMW X1 sDrive18d:105 kW / 143 hp5.2 l / 136 g

BMW X1 sDrive20d:130 kW / 177 hp5.3 l / 139 g

MINI Cooper DCountryman:82 kW / 112 hp4.4 l / 115 g

MINI Cooper D ALL4Countryman:82 kW / 112 hp4.9 l / 129 g

MINI One D:66 kW / 90 hp3.8 l / 99 g

MINI One MINIMALIST:72 kW / 98 hp5.1 l / 119 g

MINI One Clubman:72 kW / 98 hp5.5 l / 129 g

MINI Cooper:90 kW / 122 hp5.4 l / 127 g

MINI One:72 kW / 98 hp5.4 l / 127 g

MINI One DClubman:66 kW / 90 hp3.9 l / 103 g

MINI Cooper D:82 kW / 112 hp3.8 l / 99 g

MINI Cooper S:135 kW / 184 hp5.8 l / 136 g

MINI One MINIMALIST:55 kW / 75 hp5.1 l / 119 g

10/2010

BMW EfficientDynamics – The “ 140g fleet”.52 hhhhhh hhhh hhhh 140h CO2hhh hh hhhhh


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MINI E and BMW Concept Active E

BMW 7 Series and X6 Active Hybrid

Mega City Vehicle

BMW Vision Efficient Dynamics

BMW GroupDr. ChristlPurchasing andSupplier Network

Seite 7

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Product highlights Efficient dynamics

(e.g. 520 d with 129g/km CO2 best valuesin its sector)

Integral active steering Unique range of driver assistance

systems Head-up display Connected drive Remote control via Smart phone …

Key supply chain figures 90% material costs/

10% production costs BMW 10 000 parts/vehicle,

2500 are new per launch 75 pieces of optional equipment, 15

coats of paint, and complexity of combinatorics 30 – 35 JIS components:

instrument panel, front end, rear end, customised wiring harness, exhaust system …

The new 5 Series


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in Mio. Stück (2009) p.a. 1in Mio. Stück p.a. Projektion 20151

0.35

0.10

-10%

0.33 0.33

0.17

1. Only core derivatives examined in spare parts analysis (15 derivatives)2. 2015 Snr level at 2009 volumes

in million units p.a.1 projected for 2015

When we achieve the goals of our variant management programme, our larger volumes will almost compensate for the advantage other OEMs have.

before after

0.33

0.500.45

0.35

Other OEMs


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Lack

St rategie, Steuerung, Projekte

Logist ik

Qualit ät smanagement Teile

Karosserie

Int erieur, E/E

Fahrdynamik

Ant rieb

Invest it ionen, Waren, Dienst leist ungen

Rohbau Lack Montage

Press-werk

Produkt ion

Einkauf und Lieferantennetzwerk

Motor

Purchasing

Production material Indirect purchasing Cost engineering Controlling , projects

Logistics

Supply Material control Structure of value creation Management of variants

ComponentProduction Paint shop Cockpit/equipment Seats, injection die moulding Light alloy casting house

Quality QA Goodwill and

warranty/supplier recourse Sustainability Management system


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BMW Group Strategy Number ONE Breakthrough goals for BMW Purchasing and Supplier Network

Improvement of supply chain and schedule adherence

Sustainable improvement of profitability

Increase in capital productivity

Further quality improvements

Economic and sustainable natural hedging

More customer-relevant innovations

Supply Chain Number ONE

we create the most effective OEM supply chain worldwide Regarding quality, innovations, schedule adherence and costs,

in order to ensure the sustainable success of businesses.








Summary


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Power electronics High-voltage battery

Combustion engine

Transmission with electric motors


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Object of venture:

Lithium-ion-battery technology for power train and on-board power supply applications(µHEV, HEV, PHEV, EV).

Development: Distribution:Assembly:

cell/module

battery pack/ system/application

Korea: Giheung

Korea: GiheungGermany: StuttgartUSA: Orion/MI

Asia: tbdEurope: tbdUSA: Springboro/OH

Customer support including distribution and project management in all areas.

50% 50%

Korea: UlsanEurope: tbdUSA: tbd


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CFK-Gelege und -recycl ing

Wackersdorf

CFK-Fert igungMCV-Endmontage

Leipzig

CFK-Teilefert igungLandshut

Moses Lake,Washington State

Carbonfaser-produkt ion

In-house productionJoint-ventureSupplier qualification

… and othersSupplier

quali f icat ion

product ion

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Production ofcarbon fibre

CFRP productionfinal assembly of MCV

LandshutManufacture of CFRP

components

WackersdorfCFRP non-crimped

fabrics and recyclingLeipzig

Moses Lake,Washington State








Summary


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Purchasing follows sales development.

Capitalising on global competition.

Minimising currency risks.

Increasing purchasing and contract volumes in foreign currencies.

Making use of multicurrency orders (part payment in the currency in which value is actually being created).

Nutzung von Faktorkosten-vorteilen

Fokussierung aufWachstums-märkte(LC Anforderung)

3.9712.206

1.271 1.037 222-500

1.500

3.500

5.500

USD GBP CNY JPY KRW

Fremdwährungsüberschuß(Netto-Exposure) 2010

Lohnstückkosten

China 36%Indien 44%Mexiko 48%ggü. Deutschland

Mrd.€

Einkauf in Fremdwährung(Natural Hedging)

Jährl iche Wachst umsrat en GF PKW

China +6,4%Asien/Row +5,7%

Foreign currency excesses

Differences in factor costs

Local content requirements in growth markets

D Europa N-Amerika RoW

50%

25%

Umsatzerlöse in %

Einkaufsvolumen in %

Währungsrisiken

-Vergleich D-

Currency risksSales revenue in %

Purchasing volume in %

Unit labour costs

China 36%India 44%Mexico 48%- compared with Germany

Annual growth rates

a

BMW GroupDr. ChristlPurchasing andSupplier Network

Seite 18

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Quelle: Automotive News

Example: E-mobility

New technologies Swift progress in

technology New markets Global partner networks Opportunities for new

suppliers



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Summary


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Expertise in plastics "from one source".

Internal and external know-how for the best solution in each case.

2700 employees in the supplier network.

250 employees at BMW. More than 15 sites around the world. Supplier empowerment through own

know-how.

Technology for exteriors

Supplierempowerment

Production & tool shop PurchasingTechnology-

development

Production and technology expertise for the supplier network.

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MINGHUA


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Best-of-class in

Business processes

Production system

Technology

Value stream

Quality

Bench-marking

via

OEE

Productivity

Cost performance

Supply service

Quality key parameters


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Quality: Examine current quality situation in detail. Assess status of collaborations, technical

and logistical delivery quality, field quality and quality defects.

Implement measures and follow up.

Costs: Agree cost targets and follow up with

appropriate measures. Address action points. Identify risks and opportunities for future

business relationship.

Durch-bruchs-

ziel

100%

50%

0%

Zielerreichung Kosten

Ziel

erfü

llung

Fel

dqua

lität

100% 50% Durch-bruchsziel

heut e morgen

heut e heut e

Achievement of cost targets

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lmen

t of f

ield

qua

lity

requ

irem

ents

TomorrowToday

Today Today

Breakthroughgoal

Breakthroughgoal


Production costs Staffing cross functional teams Cost circles and contract awards Cost peetration by commodities

Tools Optimisation of capital expenditure Tool-making map expertise in Asia and Europe

Supplier development costs Establish cost analysis Pilot projects in 1 and 3 Series and

MINI successors

Logistics Development of cost analysis for

inbound plant logistics 2nd-1st-tier logistics modules

28%09/2009

Ziel 12/2010: ~ 80%

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BMW Whhhh Chhhh Chhh Ehhhhhhhhhhh

80%12/2010


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Excellent quality is a fundamental prerequisite for successful business relations

Customer value is our main focus as wequestion vehicle requirements

We get our suppliers to deliver peak performancein intensive competition. We are tough but fair.

We demand the most efficient implementation in the world – from ourselves and our suppliers

We implement the principles of VPS along the entire value chain

The decisions we make are transparent and comprehensible

We are active around the world and take calculable risks. Foreign languages in different

cultures are no problem

We offer the organisation access to all the relevant innovations for the automotive business

We continuously review ournetwork structures and come up with

better solutions

We work and communicate actively and constructively with each other and

with our process partners

We compare ourselves with our competitors all the time. Continuous benchmarking

We resolve goal conflicts goals in the interests of our organisation and deliver on our promises.

Judge us by our deeds.

Working together for peak

performance








Summary


54% 51% 46%35%

22% 29% 25% 17% 22% 16% 11% 6% 15% 16% 9% 7% 8% 4% 6% 5% 3%

34% 37% 38%43%

39% 27% 31% 46% 33% 38% 44%38% 27% 21% 31% 33% 28%

22%29% 23% 21%

0%

20%

40%

60%

80%

100%

HighVery high

28% 26% 22% 27% 27% 26% 21%10% 15% 20% 12% 14% 10% 14% 8% 8% 7% 8% 5% 2% 3%

50% 47% 54% 45% 42% 40%34%

42% 35% 30% 41% 31% 32% 25%26% 25% 20% 27% 26%

24% 12%0%

20%

40%

60%

80%

100%

AttractiveVery attractive“Which carmakers

are most attractive to work with?”

Source: Supplier Business 2010

BMW – hhh hhhhhhh hhhhh

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“Which carmaker makes the highest demands for the

best product technology?”


BMW Shhhhh Chhhh Nhhhhh ONEh

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Fit for future mobility!




Supply Chain Number ONE

we create the most effective OEM supply chain worldwide Regarding quality, innovations, schedule adherence and costs,

in order to ensure the sustainable success of businesses.




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sirris manufacturing day2011_complexity-management-bmw

Technology

g mini

bmw groupdr

d coup

d touring

d convertible

g bmw x1 sdrive20d

g fleet

hp countryman