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Essay / Research Paper Abstract
This 4 page paper discusses changes and improvements to BMW’s logistical systems. Bibliography lists 3 sources.
Page Count:
4 pages (~225 words per page)
File: KV32_HVlogbmw.rtf
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Unformatted sample text from the term paper:
world. At BMW South Africa, the logistics function "constantly seeks opportunities to improve the supply of parts, sub-assemblies and other items to the production line to meet the just-in-time requirements
of the companys schedule" (BMW South Africa, 2008). The aim of the logistics department is to "achieve more output with less input" (BMW South Africa, 2008). In order to make
improvements in the logistics operation, BMW conducted a study to find places where they could improve (BMW South Africa, 2008). One of the most important findings was the way in
which manning levels related to the "pattern of component call-offs" from the production lines (BMW South Africa, 2008). The study found that there were huge demands at the beginning of
each shift, and logistics had been planned to meet those demands, which resulted in inefficiency later in the shift (BMW South Africa, 2008). In addition, stock-outs and overstocking were "significant
symptoms" of a chaotic supply process (BMW South Africa, 2008). BMW management recognized something important: it would be difficult to break these bad habits; they understood that any solution to
these problems would meet with some resistance (BMW South Africa, 2008). An examination of the problems led to the creation of "Auto Pull," a program that "automatically generates assembly line
material call-offs based upon dynamic demand" (BMW South Africa, 2008). There were a number of advantages derived from this program. First, it eliminated the "beginning of the shift" syndrome; second,
it eliminated unnecessary requests for parts; third, it decreased the amount of "fire fighting" (handling small crises) employees did and "increased planning, confirmation and monitoring" (BMW South Africa, 2008). The
new logistics program prioritized requests for parts, which meant they were "picked, delivered and confirmed faster"; it also eliminated overstock on the production line, as well as improving the accuracy
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