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Arjun Gaur
14810004
Manish
14810029
Maqbool Ahsan 14810031
Background
World 16th largest car maker & held 1.5% share of the
world market.
Leading player in Luxury Car Segment (1 out of every 10
of the 5 million car sold annually was a BMW)
Companies in this market competed on the Tangible
product characteristic (Acceleration, handling, comfort)
and Intangible(Perceived quality and image)
Highly competitive market
Prices : Cars at highest end - $1,00,000 and growing
segment is in range of $20,000 to $40,000
By the Late 1980s: New Competitor had begun to
challenge the European high-end Producers
Japan was giving
competition
as compared to
Toyota,Honda, Nissan
Japanese Luxury cars Priced below competitive European
Models
BMW 7-Series
Toyota (Lexus)
Honda (Acura)
Nissan (Infiniti)
Case Problems
Prototyping
3 to 5 batches of full Prototypes where
made during the whole production cycle.
Prototypes hand built by highly skilled
craftsmen at BMWs Design and Engineering
Centre.
The parts or the materials used may not be
the same as the used in the final production.
( But it will be resembling parts or
materials)
Each prototype car costs around DM 1.5
million
Later generation of prototypes may be build
using Pre- production tools
Prototypes made from Actual production grade
Prototyping
BMW approach provided maximum flexibility within design
cycle. Because no specialized tools were used (Changes can be
made very quickly).
BMW management even allows changes to be made at the late
stages.
Final design frozen before 16-180 months before actual market
introduction. (Its called Cubing)
The Case
Whether to go for a pre production
tools in prototyping.
In-house prototyping vs outsourced.
Decision over handcrafted and
automated methods.
Level of prototyping. (More parts to
be included)
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