Business
You have to produce a report which is based on case study
You should produce a report of not more than 2,000 words, addressed to your module leaders addressing the following questions.
1) Following the final assembly process at Mini, identify where the process does and does not follow the concepts you have learnt in the module. You should comment on any extraneous factors, which have an impact here.
2) Comment upon the delivery lead-time with particular reference to the supply chain configuration and the impact this has on capacity and planning.
3) Produce a set of conclusions and recommendations, which address both your perceived strengths and weaknesses on the process.
Suggested Report Structure (for both outline and final)
1. Introduction
2. Final Assembly Process at Mini – use the themes from the case study to identify and explain the relevant theories, and what type of data will be obtained from Mini. If not sure of data, it is allowed to ask questions as part of the plan. This section could be sub-divided into a number of sub-headings based on the themes from the case study.
In the final assignment – we expect you to explain and apply the theories to Mini
3. Delivery Lead time – same approach as above
4. Conclusions and Recommendations – based on process strengths and weaknesses – we expect you to be able to synthesise and evaluate and make suitable recommendations
Case Introduction
BMW assembles MINI in 10 variants at its Oxford plant. Steel body panels, pressed into profile at the Swindon plant, are transported to Oxford where they are welded together by means of a robotic process into recognisable unpainted bodies. About 30% of the next day’s assembly is held in inventory at this point. The bodies are then chemically cleaned before going through a paint application process where about 50% of the next day’s assembly is again held as inventory. Engines and transmissions (drivetrain)are manufactured at the company’s Hams Hall plant in Birmingham and installed in the body at an early point, a substantial number of components and sub-assemblies are out-sourced and delivered on a “just in time” basis and about 800 vehicles are assembled each day.
Motor vehicle assembly has taken place at the Oxford plant for 101 years. The plant has had considerable investment in recent years by BMW over recent years but the fabric and layout of the plant is from an earlier manufacturing age.
Similarly the Mini brand has a rich heritage with its roots going back to the late 1950’s under the British Motor Corporation’s ownership. However, other than its name and reminiscence in its styling there is little in common between today’s Mini and its predecessor. Both models have been successful with over 2.4 BMW Mini’s being produced and it is now in its third generation. The product is highly customisable and it is BMW’s proud claim that each Mini is unique such is the range of options available to the customer
Existing Order Flow Process
MINI operates a customer oriented sales and production process. This process is designed, to allow customers a maximum amount of flexibility when it comes to ordering their new car as well as provide internal and external suppliers with a stable production planning horizon.
This process is based on a “virtual production pipeline” in which all customer orders flow. Every 67 seconds, a finished car rolls of the physical assembly line, which in turn means, all orders within the virtual pipeline move forward ones every 67 seconds (cycle time). This pipeline is split into three segments: Variable orders, a fixed order sequence and the physical assembly of the vehicles.
Variable Orders
The variable part of the production pipeline has no specific duration. Depending on how much demand there is at a given time, orders spend shorter or longer periods of time as a variable order. During this time, pretty much everything about the order can be changed and there are millions of unique configurations for every MINI. All orders in this variable section of the process can be re-sequenced as required by the BMW process planners. Some orders might be put all the way to the front of the queue, as they have priority. This includes for example show cars for motor shows or cars for BMW advertisements.
One week before a car is scheduled for its start of production it passes the “Freeze Sequence Time Fence” (FSTF). At this time fence, the order becomes part of a fixed order sequence. A controlling factor in establishing the FSTF is the lead time for order packaging.
Fixed Order Sequence
Once an order has passed the FSTF and is part of the fixed order sequence, there can be no more changes to the order. The Fixed Order Sequence is exactly six working days long. This duration is based on the longest lead time of all vehicle components, which is the main wiring harness and is the first item to be installed in the body
Because there are thousands of different variants, these parts are built only to order. Once the customer order cannot be changed (FSTF), component purchase orders go out to suppliers and within six days the part will arrive at plant Oxford. The “flow rate” within the production pipeline is 67 seconds and consequentially a completed vehicle leaves the production line every 67 seconds.
At the FSTF production planners produce a linear order sequence unique sequence of components to be fitted to each body. Each order then has a set finish date and time (on the second). This sequence includes any assembly constraints, these are rules dictated by the production process. For example, only every second car that runs on the line can be equipped with a sun roof, only one in four cars can be a convertible, every other car can have a automatic transmission, and so on. Another constraint is that of colour as it is more efficient to paint a batch of red cars then a batch of blue ones then perhaps green ones and this rationale transposes into final assembly where orders for one colour are sequenced together.
Every time a linear order sequence is produced, it is sent out to all suppliers via a special system. The suppliers then plan their production according to these schedules.
Additionally, orders for one day are packaged into a sub sequence. This order packages are created daily and then move along the production pipeline.
Order Packages
In order to create these order packages, an “order bank” of two weeks customer orders is held . One day’s worth of orders is then picked from this bank and set into sequence. This sequence considers the current production plan, which gives information on how many vehicles of which model BMW want to produce, taking into account possible assembly constraints , such as paint batching or body style , as it is more efficient to first paint all red bodies, then all blue bodies etc, order priorities and test constraints. Some vehicles need to go for excessive testing, which can take days.
Once this order package has been created, customers (in most cases MINI dealerships) get a commitment of production and a planned delivery date
Fixed Virtual Sequence
About 30 minutes before the planned “on assembly” time, which is the exact time, when a car rolls on to the final assembly line, another sequence is created. This “true sequence” is created, as soon as you can physically see that there will be no re-sequencing anymore. This moment is the signal for all of the JIS (Just in Sequence) Suppliers, to ship their parts to the manufacturing plant. These JIS parts include for example the modular front end and the exhausts. Suppliers for these parts are located in very close proximity to plant to guarantee a maximum amount of flexibility. Components are delivered by the supplier to delivery docks strategically placed around the outside walls of the assembly hall as close as possible to the point of installation. They are transported by of electric “tugs” towing trailers of sequenced components to the point on the line where they are required. The trailers are removed when empty by a passing tug returning to the loading dock.
Final Assembly, testing and rework
When the order package arrives at the final assembly line, there will be no more sequence interruptions. At the end of the assembly line, the fixed sequence is terminated and every car is tested and checked for faults or damage. Where faults or damage is detected, cars are reworked and then sent to the outbound logistics parking lot, where they will be prepared to be shipped to dealerships all around the world. Assembly team members may on occasions experience difficulty installing a component or subassembly and they can call for assistance from team leaders where the problem is serious or affix sticky red arrows to areas where smaller issues are noticed. The line can be stopped and vehicles can be removed from the sequence when quality issues are apparent.
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