International Supply Case Study bmw outline

Increasing Product Complexity

• Product variety & Part complexity
• 1032 possible combinations of products at BMW
• 1017 possible combinations of BMW 7 series
• ~70 million configurations of the Ford Escape
• >240 configurations of Toyota Scion

Ford Escape

• 5 models (XLS manual, XLS automatic, XLT automatic, XLT sport, Limited automatic)
• 2 drive options (Front-wheel drive or four-wheel drive)
• 2 engine sizes (2.3L or 3.0L)
• 9 exterior color options (Dark Shadow Grey, Titanium Green, Redfire, Blazing Copper, Sonic Blue, Dark Stone, Black, Silver, Oxford White)
• 3 interior colors (Black, Flint, Pebble)
• 2 transmission options (4-speed, 5-speed)
• 4 wheel options (15” aluminum, 15” styled, 16” aluminum, 16” Bright Machined aluminum
• 2 choices of tires (BSW or OWL)
• 4 options of electronics (AM/FM Single CD with clock, AM/FM 6-CD, AM/FM Single-CD Cassette, Audiophile 6-CD)
• 4 options of seats (Cloth, Premium cloth, leather trimmed, premium leather)
• 5 special package options (Cargo convenience, convenience, leather comfort, safety, towing) representing 32 different possibilities
• 4 different upgrades (Spare tire, moon roof, roof rack and side step) representing 16 further options.
• These options lead to 70 million ~ 5x2x2x9x3x2x4x2x4x4x32x16

BMW 7 Series

• 350 Model
• Versions

• ... leading to e.g. 1017 theoretical combinations
• only for the BMW 7 Series

• 175 Interior
• Equipment Options

• Source: Goudiano CSCMP 2005

• 500 Extra
• Equipment Options

• 90 Standard
• Exterior Colors

Product Complexity

• A finite set of part numbers
• “Infinitely” many end products

BTO & Product Complexity

• BTO makes it possible to
• Address tremendous product variety
• Face the challenges of managing the variability in component demand.