1. BMW Lean Manufacturing Eng.\ Ashraf Sofy Production Assist. Gen. Manager Suez Oil Company

2. BMW history BMWBavarian Motor Works NationalityGerman IndustryAutomobile, motorcycle and engine manufacturing company Foundation date 1916 Other Branches Owns MINI Brand and Rolls Royce Motor Cars

3. TQM Operation Approaches in BMW Exceptional people Flexible working hours Eco Friendly Customer Centric approach Quality Management "Made by BMW Group" seal of approval. Quantum leap in flexibility and throughput time Production Automobiles

4. WHAT IS LEAN PRODUCTION SYSTEM Lean manufacturing or lean production is a production practice that considers the expenditure of resources for any goal other than the creation of value for the end customer to be wasteful, and thus a target for elimination. Lean is centered on preserving value with less work Lean is about doing more with less: less time, inventory, space, labor, and money. Lean manufacturing shorthand for a commitment to eliminating waste, simplifying procedures and speeding up production.

5. Components of Lean Production System Lean Value Chain Lean Manufacturi ng Total Quality Management IT Solutions Virtual Integration Lean Supply Chain Outsourcing Just – In - Time Flexible Manufacturing

6. Areas drive lean manufacturing/production 1.Cost 2.Quality 3.Delivery 4.Safety, and 5.Morale.

7. Benefits of Lean Production Establishment and mastering of a lean production system would allow you to achieve the following benefits:  Waste reduction by 80%  Production cost reduction by 50%  Manufacturing cycle times decreased by 50%  Labor reduction by 50% while maintaining or increasing throughput  Inventory reduction by 80% while increasing customer service levels  Capacity in current facilities increase by 50%  Higher quality  Higher profits  Higher system flexibility in reacting to changes in requirements improved  More strategic focus  Improved cash flow through increasing shipping and billing frequencies

8. Characteristics of a Lean Enterprise Integrated single piece continuous workflow Close integration of the whole Value Chain from raw material to finished product JIT (Just in Time) Processing Short order-to-ship cycles times; Production is based on orders rather than forecasts; Minimal inventories at each stage of the production process Quick changeovers of machines and equipment Layout is based on product flow (TQM)Total Quality Control -Active involvement by workers in trouble shooting and problem solving. Defect prevention rather than inspection and rework.

9. Goals of lean manufacturing Improve quality Eliminate waste Reduce time Reduce total costs

10. Flexible manufacturing with lean strategy Bmw’s is betting that flexible manufacturing ability to shift production of different models among different plants also building different models of autos within the same plant. production was built to customer order BMW has made a specialty of offering a very wide array of factory-installed options that can be ordered individually, while mass-market brands are cutting back on variety. BMW builds most of its vehicles with specific colors, features and options the way individual customers order them via a dealer. BMW customers can change their orders within five days of when their car is built.

11. Just-in-time (JIT) The JIT inventory philosophy defines how inventory is viewed and how it relates to management. Main benefits of JIT include: Reduced setup time. Reduce or eliminate inventory for "changeover" time. The flow of goods from warehouse to shelves improves Small or individual piece lot sizes reduce lot delay inventories. Employees with multiple skills are used more efficiently. Having employees trained to work on different parts of the process allows companies to move workers where they are needed. Production scheduling and work hour consistency synchronized with demand. If there is no demand for a product at the time, it is not made. Increased emphasis on supplier relationships. Supplies come in at regular intervals throughout the production day.

12. HOW BMW HAS USED THE JIT and Lean Production VIN number modification (LEAN Production concept used) Computerized system for the dealers Scheduling glitches (LEAN Production used) Supplier Side -------- (JIT concept used) Plans to attain (JIT concept used) Cross-functioning (JIT concept used) Brand identity ( LEAN Manufacturing ) New initiatives by the company in Lean and JIT principles