BIKE IN A BOX
BMW Thailand has mastered the art and science of turning out as many as 19 different car and bike models, but proposed new government rules may cramp its style.
frankly, can keep production here if this regulation passes.”
He added that BMW invests differently because it has a different business model. The company already has adequate capacity in paint and body activities located elsewhere to supply other markets.
“We already have capacity, so why invest in more capacity? Here we want to specialise in high-tech manufacturing and next-generation products,” he said, hoping the finalised regulation will not be applied to low-volume manufacturers such as BMW.
Being a small-production facility where flexibility is the cornerstone, less automation seems to be the key, despite the productivity and cost advantages it can create in some industries.
“I would fight against automation because our strength is in being flexible and having the speed to meet the market demand,” Mr Gaudiano said.
“From my experience, if we increase automation significantly, it takes away from our flexibility to bring a lot of new models into the factory. The greater amount of automation and special fixtures would be cost-prohibitive. It will create fixed-point assembly that takes away some of our flexibility.”
The Thai workforce, he added, has a special craftsmanship that can be applied to manufacturing, different from Germany where it is more of a skill than a craft.
“There is a place for automation and there is a place for flexibility. There is this aspect of industry 4.0 (the fourth industrial revolution dominated by automation). I can imagine that in a mass-production facility,” he said.
“But the number and the variety of cars that we build, for us it doesn’t make so much sense. We will continue this way because it’s the type of market that we are producing in.”
Anyone who has ever wanted to see how cars and motorcycles are produced would marvel at the efficiency of the BMW manufacturing plant in Amata Industrial Estate in Rayong.
Well organised, well lighted and tidy, it is a place where everything is exactly where it needs to be to keep the process flowing.
The plant is divided into two rooms: one for the assembly line and another for the warehouse.
Precisely labelled parts are delivered from the warehouse to the assembly line, which is divided into sections connected by a rail transport line. At each station the workers — usually five or six — have exactly 18 minutes to complete their task before the rail starts moving.
Workers in each section are responsible for knowing how to put together five different models, all of which are hand-assembled to provide maximum flexibility in fabrication.
“Automation takes away flexibility to bring new models to our factory. Thailand has a special craftsmanship. What people can do with their hands is incredible. It is different from Germany where it is skilled craftsmanship. Here it is more of an artistic craftsmanship,” says Jeffrey Gaudiano, managing director and CEO of BMW Manufacturing (Thailand) Co Ltd.
“You can see that whenever you walk down and see how people are really doing with these cars. Every station has 18 minutes and what they are doing is precise and perfect.”
The same approach applies to the BMW Motorrad motorcycle, which starts out as “one bike in a box”, as Chayapak Laisuwan, director of communications and public affairs, calls it. Just like a toybox, but for bigger boys.
“In this one box, we have the exact number of parts we need for one Motorrad — no extras,” said Mr Chayapak.