BMW – Digital Car Project
Design Process Optimization
3 . 11 . 03
MIT
1.464
Robert Corser,
Ariel Duren,
Joerg Flachowsky,
Douglas Kallfelz
BMW – Digital Car Project
Table of
Contents
1.
Competitive Analysis
-Industry Transformation
2.
A/E/C Industry Parallels
- Frank O. Gehry Associates / CATIA
- Zahner Sheet Metal
- The Beck Group
3.
Conclusions / Questions
- BMW as construction buyer
Competitive Analysis
Five
Forces
Problem:
- Increasing customer demand for novelty
- Existing 5 year lead-time for new models
- Competitors shortening time to market
Strategy:
Competitive Analysis
- Improve responsiveness to consumer trends
- Decrease product development time 50%
- Leapfrog competition’s incremental gains
- Maintain BMW’s quality & craftsmanship
Competitive Analysis
Industry
Value
System
BMW’s Industry Value System:
Comparison with World Co.’s Industry Value System:
Cycle Time:
+/- 6 months
Competitive Analysis
Internal
Supply
Chain
Approach:
Optimization of BMW’s internal
product-development supply chain
BMW product development:
Cycle Time
- old system: 72 months, 3 full iterations
- current system: 60 months, 2 full iterations
Competitive Analysis
Product
Design
Cycle
CURRENT:
-Technology:
IT, CAD, CAS
multiple physical prototypes
“DIGITAL CAR”:
-Technology:
IT, CAD, CAS
PLUS Digital Prototyping
Comments:
Industry Transformation
- More “evolutionary” than “revolutionary”
- Will not ”alter relative positions wholesale”
- Not a “Category Killer” -no big win
- Competitors must adopt simply to
maintain their current market position
-“Sustaining” of the automotive industry’s current structure
-giving buyers “something more or better of the attributes
they already value” in Bower and Christensen’s terms.
- “Disruptive technology” internally to BMW’s product
development
-introduces “ a very different package of attributes from the
one mainstream customers (engineers) historically value.”
BMW – Digital Car Project
Table of
Contents
1.
Competitive Analysis
-Industry Transformation
2.
A/E/C Industry Parallels
- Frank O. Gehry Associates / CATIA
- Zahner Sheet Metal
- The Beck Group
3.
Conclusions / Questions
-BMW as construction buyer
Integrated Design Process
CATIA
Integrating geometry and engineering
Surface analysis
Stress and vibration analysis on a part assembly.
CATIA +
Database
3D to 4D in the AEC Space
- Multiple Users / Multiple Platforms
- Pushes information in the 3-d model further
down the supply chain.
Case Study 1
Gehry
Conceptual Design
Digitizing
Physical Model
Manual Physical Model Production
Creation of Digital Model (CATIA) Prototype
Milled From
Digital Model
Case Study 1
Gehry
Composite Model
Elevations
Steel
Mtl Panel
Concrete
Windows
Plans
Gehry
Case Study 1
Subs
Subs
Const
(GC)
Owner
Construction
Manager
Users
(Tenants)
Subs
Gehry – Design Process
Subs
Sustaining
Subs
Low
cost
Design – non-integrated service.
Technology allows Gehry be a differentiated
player – allowing the firm to effectively document
designs / forms.
Incremental increase in design phase
Efficiency achievable through “digital building”
may not be meaningful in light of more significant
efficiency challenges in the remainder of the
supply chain
Qual
Diff.
fast
Time To Mkt
slow
Industry structure & lack of Consolidation
Mitigates the potential value of transparency that might
be possible using data rich 3-d models.
Theory
Case Study 2
Zahner
Zahner Sheet Metal Co., Kansas City, MO
- Specialty Sub-Contractor, Custom Sheet Metal Fabrication
- Design-Build, extensive In-House Engineering
- Parametric 3D solid-modeling: CATIA, Pro-Engineer
- CNC fabrication
MIT Stata Center,
Frank O. Gehry, Architect
Case Study 2
Zahner
Competitive Issues for
specialty sub – contracting
-Highly differentiated
-High barriers to entry
-Low Buyer Power
-Strong Rivalry
-Niche Market
MIT Stata Center,
Frank O. Gehry, Architect
The
Beck
Group
Case Study 3
‘Destini’-
Integrated 4-D design
“The DESTINI software incorporates object-oriented,
parametric modeling technology to develop a rules-based application for the AEC
industry. This technology will help us design, engineer, estimate, purchase and
construct projects substantially faster than is possible today. The goal of this
initiative is to enable clients to reduce the total delivery time for their facilities by
as much as 40%, with commensurate savings in design and construction costs.”
SBC Communications
Pinnacle Park
Dallas, TX
-Consolidated
A,E,CM firm
-Proprietary Software
-High Costs of Development
-Low Complexity
-How do they CAPTURE VALUE?
The
Beck
Group
Possibly
Disruptive
Tech.
Beck Group
Case Study 3
Subs
Subs
Cont.
(GC)
Subs
Owner
Construction
Manager
Users
(Tenants)
Design Process - Destini
Low
cost
Design – Integrated service.
fast
Technology allows Beck to harness time savings
By integrating digital design / systems specifications
and procurement.
Time To Mkt
Increase in design phase efficiency very pronounced
In low complexity structures – some consolidation / transparency
In supply chain achievable through design-build structure.
Decrease in direct costs – design phase thru construction
Decreases Buyer power and rivalry while increasing
Barriers to entry to the markets Beck competes in.
slow
Qual
Diff.
BMW – Digital Car Project
Table of
Contents
1.
Competitive Analysis
-Industry Transformation
2.
A/E/C Industry Parallels
- Frank O. Gehry Associates / CATIA
- Zahner Sheet Metal
- The Beck Group
3.
Conclusions / Questions
-BMW as construction buyer
BMW as construction buyer
Facility
cycle
60 months product development cycle
60% of time for factory
requirements
50% of time
BMW Product Dev.
36 months
30 months product
development cycle
24 months
15 months
Design
15 months
Design
8 months
6 months
Construction
Construction time
20 months
12 months
Design & construction
28 months
Process
specifics
18 months
Current development process
‘Digital car’ development process
• Delayed determination of scope
• More rapid establishment of construction
scope
• results fits ‘past’ development cycle instead
future requirements
• Follows linear product development pattern
• Will require A/E/C to adopt an optimized
development process
• knowledge based digital models tied to cost
and schedule
Questions / Conclusions
•
Data rich 3-D Modeling alone is not a disruptive technology
– Must be tied to real time industry cost data and supporting integrated
contractual alliances!
•
Who within the AEC industry will / can initiate transformation?
•
How will value from process optimization be captured and by whom?
•
BMW had to risk the development of the their flagship, 7-Series in order
to implement the “Digital Car” project.
– Owners and Contractors under extreme pressure to perform will be the
leaders in developing and adopting this advance, possibly disruptive
technology.
7-Series
The
Digital
Car