BMW Dadong factory
Delivering 90 brand new BMW cars in one hour for Chinese consumers
PROJECT STORY
The challenge
A super tight delivery schedule seemed needing a “Mission Impossible” team to guarantee every detail meets the requirement.
The solution
A digital project management platform was established to ensure the transparency, efficiency and stability of managing such an extremely complex project throughout the process.
The impact
The completion of the project rises the annual capacity to 440,000 cars.
650,000 M²
construction floor area
24%
construction cost saving
10million
safe working hours
The challenge
Transforming from a country on bicycles to on cars, China has experiencing a cultural shift pursuing a better quality of life for its people over last a couple of decades. The growing wealth has made families particularly the middle-class families are more-than-ever eager to own something that can truly reflect their social class and owning a word brand car is certainly on their wish list. Having seen the rapid growing demands of Chinese consumers, BMW – the world leading luxury car brand, was very keen to establish their first ever modern car manufactory in Shenyang, China with a goal to produce 90 brand new BMW each hour for its Chinese consumers. To achieve that, it required a world class project manager with not only the local knowledge but also the expertise and track record of managing such an extremely complex project while meeting the strict requirements related to quality control, cost management as well as Health and Safety etc.
The solution
Arcadis, working as the Project Management consultant, provided an end-to-end services package spanned from tendering management, program management, costs management, onsite management to contract management and project handover management etc. Besides, we helped client shift from traditional project management to being more digitalized in project management by not only applying BIM throughout the project but also building a digital management platform that hugely improved the transparency, efficiency, and stability of managing such a complex project during the process.
As a result, Arcadis was able to deliver the project – a 350,000 M² production plant within 7 months building close with over 10 million working hours with zero incidents reports, which set a record in client’s history for similar construction projects. Besides delivering the project on schedule, Arcadis was also able to help client reduce the direct construction cost by 24% without making any changes on existing scopes of work nor satisfying quality standard in deliverables. More importantly, none of any of the 22 major contract packages managed by Arcadis exceeded the original budget but gave a 95% accuracy rate against the original budget plan.
This project has received significant support and attention from both Chinese and German governments plus the industry leaders. "China is of high importance to the BMW Group, both as a market and as a location for production and innovation," said Milan Nedeljkovic, member of the board of management of BMW AG in February 2020.
The impact
The the application of digital technology will hugely reduce the production costs which finally benefits the consumers. The annual capacity of Dadong factory will rise to 440,000 cars after the expansion, including more than 50,000 energy vehicles.
BWM Dadong Factory proved a best example of how “Germany Industry 4.0” integrated into "China Manufacturing 2025" national initiative that aims not only to help the nation shifting from Made by China to Made in China but also ultimately benefits its people pursing a better quality of life.
