BMW 2002 Annual Report Download - page 23

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001 BMW Group in figures
004 Report of the Supervisory Board
008 Supervisory Board
011 Board of Management
012 Group Management Report
031 BMW Stock
034 Corporate Governance
042 Group Financial Statements
106 BMW AG Financial Statements
112 BMW Group Annual Comparison
114 BMW Group Locations
116 Glossary
120 Index
22
Increased safety and efficiency in traffic
systems as a whole
The BMW Group is conducting research into sys-
tems which optimise the interaction between driver,
car and environment in traffic situations. These
activities are combined
within ConnectedDrive. Un-
der this concept, Telematic systems, online systems
and driver assistance systems are all linked with
one another to increase the safety and efficiency
of traffic systems as a whole. The vision of the
BMW
Group for congestion-free traffic is for
better
information, fewer accidents and less traffic delays.
Intelligent lighting systems are a good example
of ConnectedDrive functions. The brake-force dis-
play
system, for instance, can change the intensity
and
size of the brake lights based on the actual de-
celeration
of the vehicle. Other examples are adap-
tive headlights and pixel headlights.
Worldwide innovation network
Worldwide, the BMW Group has more than 8,000
employees working in research and development,
the majority at the Research and Development
Centre (FIZ) in Munich, that has now reached maxi-
mum spatial capacity. For this reason, a new building
complex is currently being constructed adjacent to
the existing FIZ buildings. This continues the under-
lying
FIZ
concept of short distances between
teams
working on vehicle development and model
design, as well as encouraging networking between
different divisions and departments. Further stages
of expansion are planned.
The research and development teams of the
BMW Group work closely together in a worldwide
innovation network to identify new trends and cus-
tomer needs, working also within the sales markets.
In addition to the BMW Group Research andTechnic
Centre (ZT) and the BMW Car IT in Munich, the
BMW Group also has two technology offices in Palo
Alto/California and Tokyo.Two further locations are
based in California: the design studio Designworks
USA
and the BMW Engineering and Emissions Control
Te st Center.
Purchasing: obtaining the benefits of a global
procurement market
As a result of the first full year of production of the
MINI
, the volume of purchases in Western Europe
and South America accelerated in 2002. Further-
more,
the BMW Group consistently took advantage
of the
benefits of local pricing in Central and East-
ern
Europe. The purchase of production materials
from this region increased at a greater pace com-
pared to the previous year.
The BMW Group is also striving for greater in-
tegration of local suppliers into the BMW Groups
production network, during the expansion into the
growth markets in the Asian region.
In particular, the growth potential of the Chinese
market and the future commitment of the
BMW
Group in a joint venture to manufacture cars in China
provide an opportunity for the BMW Group purchas-
ing to develop local supplier markets and to utilise
these markets as part of the supply and production
network of existing plants.
Expansion of supplier relationship
management
In conjunction with its E-business activities, the
BMW Group is continuing to integrate development
partners and suppliers into its work processes.The
focus is on improving the compatibility of processes
involving other external enterprises and on
facilitat-
ing
the establishment and management of networks
within the Group.
Online links to suppliers have significantly im-
proved the availability and quality of data exchanged
with suppliers. This also allows greater scope for
analysis, facilitating monitoring processes and
enabling the Group to identify technical, financial or
logistical discrepancies at an early stage. This en-
sures timely implementation of any necessary con-
trol measures.
Further extension of sales network
The BMW Group is present in more than 130
coun-
tries with 27 own sales companies and a dealer