Lean Management and Value Stream - An Example of BMW Essay

Lean Management and Value Stream - An Example of BMW - Essay Example Automobile firms are trying to keep up with the market changes and shifts in consumer behaviour by designing an adaptive manufacturing process. Based on this consideration, the research will focus on the utilization of lean manufacturing and value stream mapping in BMW. As defined by Vokurka (2006), value stream mapping is implemented for identifying the state of the current status of the operations process and conniving a better process for future operations of the company. Wilkinson and Dale (2007) noted that most of the firms often misdirect their value chain process by focusing on the rectifying the mistakes in the existing operational process which also affects the layout designed for future process. The manufacturing process of BMW is basically run on a centralized structure which allows the company to manage the functions in all its subsidiaries. The international business of BMW is receiving its supply from only manufacturing units established all over the world (BMW, 2014). The manufacturing process of BMW is co-ordinated with by creating a holistic approach in all the manufacturing units of the business. BMW maintains their manufacturing process by creating demands for their luxury products and reducing the supply of the products (BMW, 2014). The growth of their product line has however now transformed from a luxury brand and has expanded their consumer base from niche market to the mass market also. However, Ballou (2007) criticised that often organizations tend to lose potential market space and consumer base by reducing their supply which hampers the brand availability of the firm. The manufacturing process of BMW mainly is formed on the basis of innovation in production, designing, and presentation of their products to the mass market. The process of production can be better explained by observing their Value Stream Mapping.