Company Analysis Essay on BMW

Published: 2021-06-23
1874 words
7 pages
16 min to read
Boston College
Type of paper: 
Critical thinking
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Task 1-Knowledge and Understanding

a. I chose Bayerische Motoren Werke abbreviated as BMW. BMW is a German automobile company manufacturing luxury vehicles and motorcycles. The company believes in the philosophy of quality assurance. Their belief is manifested in their continuous strive to provide the best rate luxury cars through one of the best-controlled production processes. Further, this resolve is highlighted in their mission which states that the company seeks to be the global leader in providing premium products and services. The quest for quality assurance is also entrenched in their vision which says that the firm aims to be the most successful automobile manufacturer.

b. The adoption of a modern controlled process and the use of the machine vision technology are two distinctive examples of how BMW have been able to not only distinguish but also maintain between quality assurance and quality control in their production process.

c. DIlrukshi and Amir (2008) highlights the importance of employee involvement in the quest to have a practical total quality management (TQM). In their case study, they note that the lack of proper employee involvement at any level in an organization was the reason for the lack of sustenance of the total quality management in an organization. The Berlin plant is an affirmation of complete corporation between all the employees of the company. As a way of appreciating this continuous effort, this plant has on several occasions been awarded for its prize-winning quality products.

Another way that everyones involvement is noted in this company is through constant supervision. In their case, nothing is left to chance during the production process. It, therefore, demands that everyone play their role efficiently to ensure that the quality of products is always maintained. Every single process of the manufacturing process here requires that the quality managers supervise the production process.

Task 2- Knowledge and Understanding

a) The fierce competition existing in the market has made all enterprises to have and adopt a complete production unit which regularly results in the desired quality product. Functional integration in such a manufacturing process means that a company reduces production gaps. In the case of BMW, the company has aligned their manufacturing process in a way that each point of the production domain adds value to the product. The ABS system, brakes, clutches, gearbox and the vehicle safety devices are fitted at different points, but at the end of the assembly line, all these devices are tested to ensure quality. The smaller regions are very rigorous, and by the end of the production line, the desired quality is obtained.

b) Wesley Snyder (2010) in his journal mention the use of a collection of lasers, cameras and image procession in what is termed as machine vision. The effect of the technology includes edge detection and shape characterization of the body parts of the vehicles under production. In U.S and other plants, the company has realized the importance of this technology, and they have integrated it into their manufacturing process. Through the use of this technology, BMW has eliminated the perceived gaps driving more consumers into buying vehicles from this company. Not only has the use of the technology improved the firms position in the market but it has also enhanced its products in the market.

c) Some of the instances that the company had to deal with some cases of perceived gaps include measurement lies, faulty body painting, and performance issues. Before the adoption of this technology, this firm had to deal with some of the perceived errors which were brought about by the uncontrolled production process. Today, measurements and quality measurement of paint and performance are performed in the manufacturing process. With the advantages that this technology brings, BMW has been able to control the quality of its products more. One of the most significant results that have been obtained through the use of this technology is increased production capacity of the firm. For example by the use of this technology, when the firm registers a reduced demand in minivans, the plant can switch over and start the process of building other in-demand sedans or pickups. The best part of the use of this technology by BMW is the easy integration of so many car components.

Task 3-Knowledge and Understanding

a. Continuous improvement is critical to any manufacturing process. The same case goes for BMW where they take value addition as a very serious issue in their production process. With this recognition, the firm has undertaken several steps into ensuring that continuous improvement of their products is well in line. Customers want value in every product they purchase. For instance, the firm has a dedicated team which always look for new ways of improving the products. BMW ensures that this process integrates with the other sections of the production by allowing staff to make suggestions of how improvements can be made to the manufacturing process. One of the instances that continuous improvement can be made is through the value-added production system. Value-adding is done in a situation where the firm intends to reduce waste and maximize the quality of the end product which is always their goal.

b. Mathew and Huberman (2013) mention the fundamentals of qualitative data analysis. This process involves the steps of processing data, creating codes, and projecting how process outcomes should appear. Specification sheets and service level agreements (SLAs) are electronic documents used to summarize the performance and other technical characteristics of a product. In the case of BMW, this is very important because of their ambition to provide quality automobiles. Within a continuously improving organization, it is important to regularly update these data sheets. In most cases, it is done in response to market demands and consumer satisfaction endeavors. With the information that there is always room for improvement, updating the databases allows the design engineer to integrate new ideas and customer demands on the product. With this database, process engineers can as well summarize the performance and the technical characteristics of the vehicle. The summarized data is later used as a reference for making better modifications.

Task 4-Knowledge and Understanding

In general, there is a whole lot of how the quality of products can be measured. Consumers perception varies widely depending what quality means to a particular user and how they project the product to impact on their lives positively. For this case, quality can be termed according to the demands, tastes, and preferences that users have on specific products. For the automobiles company BMW, the quality of their vehicles are measured based on the following standards:

Vehicle class

Long term reputation



Dealer performance

For a consumer, if a particular series befit their economic demands, expected fuel consumption then the buyer tends to associate more with it. For luxury buyers their idea of quality depends on the ability of the car to satisfy their luxury demands. The long-term reputation of a company also plays a very crucial role in the quality perceptions that consumers have. In most instances, the actual quality of the vehicle is often ingrained on the reputation that the brand has already gained in the market.

Consumers also look at the ability to repair the brand of vehicle they are going to choose. That often means that the customers look at the product with a view that the producer is willing to repair the product in case issues arise about the ability or performance of the product. How dealers handle customers also has a huge bearing on the perception of the vehicle by a client. Many believe that prominent car producers like BMW relate well with consumers because of the confidence that they have on their products. Another standard that consumer looks at to determine quality is about the features that a product offer. Most of the BMW series productions have come with features which have become benchmark features for other companies.

Task 5- Application and analysis

Horst Meier and Henning (2013) assert that for efficient delivery of quality goods in an industrial setup, it is imperative to have a systematic approach that looks at the performance of the firm. Three of the key performance associated with BMW include total economic value, the net profit and, the net promoter score recorded over time.

a. Each of these factors has a way of contributing to the organizations strategy. Total economic value, for instance, shows the economic contribution of every employee. If employees are competitive, then the firm can compete on the global market. With an insight of the companys total economic value, top managers can change the organizations strategy in production, marketing and advertising of the products.

Net profit is used to rate the performance of the firm in the market. As registered in the past, the net profits of BMW have been steadily rising. Such results can only be attributed to better sales which can also be related to better performance. Knowing the net profit of the firm has enabled BMW to adopt their organizational strategy which has favored the maintenance of the operational profits of the company.

As one of the parameters used to measure customer satisfaction, BMW did register a net promoter score of 72. NPS was reached by subtracting the distractors of the company from its promoters. NPS is one of the popular scores which have enabled the company to strengthen and improve its marketing strategies with the confidence of having consumer backing.

b. Mara, Peter, and Angela (2007) explore the impact that a perceived corporate image affects customer satisfaction. The 3 KPIs have helped BMW to gain knowledge of the existing customer expectation gap. If the companys total economic value is low, then the customer expectations were not met. In order to narrow down the expectation gap, the company would have to employ strategies improving its total economic value. When we buy a product, and it does not work, we are always first to talk about our frustrations from them we can stop buying the product translating to a reduced profit. One of the ways to reduce the gap would be emphasizing to the customer that their value always comes first. On the other hand, the net promoter score can reduce the client expectation gap by indicating to the customer the satisfaction score of the firm, and from this, their expectations will be realistic.

Task 6-Application and analysis

a. TQM is a body of guidelines formed with the intention of improving quality. Ideally, we can say that the total quality management is a customer focused methodology which intends to promote a process and make various improvements to the system for a better outcome. The following are the three theories that pertain to the total quality management strategy.

I. Demings theory: Changiz and Shervin (2015) on their study of means through which quality of a process can be improved mention the relationship between TQM and performance of a firm. One of the models or theory is the Demings theory. Sallis (2014) states that Demings theory is based on the plan-Do-Check-Act cycle. The following four points give profound insight into this system:

System appreciation

Variation knowledge

Knowledge theory

Psychology knowledge

II. Juran's theory: This theory is based on the acts of quality planning, improvement and quality control. Jurans theory argues that for quality to be improved, actions must adequately be planned and controlled to ensure that the desired outcome is achieved.

III. The European Founda...

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