Mass Customization: The BMW Way
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Please note:
This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.
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Case Details: |
Price: |
| Case Code |
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OPER051 |
For delivery in electronic format: Rs. 300;
For delivery through courier (within India): Rs. 300 +Shipping & Handling Charges extraThemesOperations Management, Mass Customization |
| Case Length |
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12 Pages |
| Period |
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1990-05 |
| Organization |
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BMW Group |
| Pub Date |
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2005 |
| Teaching Note |
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Available |
| Countries
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Germany |
| Industry |
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Automobile |
Abstract:
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For years BMW had a reputation for cars that combined great styling with
exceptional performance. However, since the 1990s, the company has also gained
recognition for its customization program, which allowed buyers to design their
own cars from a set of available options. The cars were then delivered within 12
days of the order being placed. Industry analysts have termed this process 'mass
customization', implying that it combined the features and advantages of both
mass production and customization.
This case discusses the process and elements of mass customization at BMW. It
traces the process from the time an order is placed till the final delivery of
the cars.
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It talks about the supply chain and logistics
practices that BMW followed. It also discusses the benefits of
mass customization to the company and customers, and the
challenges in the implementing the process. The case concludes
with a note on the future of mass customization.
Issues:
» Understand the concept of mass customization and how it differs from mass
production and customization
» Competitive advantages accruing to a major car maker employing mass
customization
» The role of suppliers in implementing manufacturing changes and lowering
inventory
Contents:
Keywords:
BMW Group, Karl Friedrich Rapp, Mercedes-Benz, MG Rover, Land
Rover, Range Rover, Ford Motor Company, Rolls Royce, Mass Customization, General
Motors Corporation, Enterprise Resource Planning, Toyota Motor Corp., Volkswagen
AG, DaimlerChrysler AG, Mass production
BMW's New Plant
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