MIL-OSI Translation: BMW iFACTORY. LEAN. GREEN. DIGITAL. – The master plan for the production of the future.

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MIL OSI translation. Region: Germany/Germany –

Source: BMW GroupMunich. It is the master plan for the automobile production of tomorrow: With the BMW iFACTORY production strategy, the BMW Group defines the future orientation of its plants and production technologies and provides answers to the challenges of the transformation towards e-mobility. “Automobile construction of the future requires new, holistic thinking. With the BMW iFACTORY, we are leading the way and setting new standards in flexibility, efficiency, sustainability and digitization,” says Milan Nedeljković, Board Member for Production at BMW AG. For decades, the BMW Group has seen itself as a benchmark in terms of innovative, flexible and efficient production technologies in vehicle construction. Starting from this level, the company is now redefining operational excellence. BMW iFACTORY. LEAN. GREEN. DIGITAL. stands for the strategic target image of the worldwide production network and pursues a global, integrative approach. “The BMW iFACTORY is not a one-off showpiece, but will be implemented in all of our plants in the future. In the 100-year-old main plant in Munich as well as in the future plant in Debrecen, Hungary,” emphasizes BMW AG Production Director Milan Nedeljković. The claim: LEAN. GREEN. DIGITAL.With the BMW iFACTORY, the BMW Group focuses its production expertise on three key areas: LEAN, i.e. efficient, precise and highly flexible. GREEN means sustainable, resource-optimized and circular. And DIGITAL describes the effective use of digitization in the areas of data science, artificial intelligence and virtualization. The high standards of the BMW production system in terms of flexibility, start-up competence and integration capability form the foundation of the holistic approach of the BMW iFACTORY.

LEAN: The basis is highly flexible and efficient production. The BMW Group’s production network is about to undergo a fundamental transformation: the New Class, which will be produced from 2025, is based on a completely redesigned vehicle architecture. With a clear focus on all-electric drive, the new class creates the framework conditions required to manufacture future vehicle generations efficiently and thus in line with the company’s profitability and quality goals. With BMW iFACTORY, Production Board Member Milan Nedeljković is strengthening the proven success factors of his global network: “Our production has three key strengths: maximum flexibility, excellent processes and outstanding integration capability. In these points we are the absolute benchmark. And that’s what we’re focusing on with BMW iFACTORY.” The focus on LEAN stands for highly flexible and efficient production based on lean processes in competitive structures. Flexibility is and will remain the central competitive advantage of BMW Group production. In several respects: The production structures are so flexible that different drive types and vehicle models can be produced on one line. The BMW Group sets standards with its high reaction and adaptation speed. Production can absorb supply bottlenecks or undersupply comparatively spontaneously and react extremely quickly to fluctuations in demand. In addition, customers can still change certain elements of their vehicle configuration six days before the production date.BMW iFACTORY is pursuing the goal of controlling global production in the future with even more meaningful real-time data across the entire production process, more precisely, more transparently and with maximum reaction speed. This applies both to volume and market planning, as well as to controlling the supply chain and inventory management. And last but not least for targeted quality work.

GREEN: Sustainability encompasses the entire value chain Avoiding consumption, conserving resources, using the latest technologies: With BMW iFACTORY, the BMW Group is focusing more than ever on sustainable production, thereby reinforcing its position as the most sustainable manufacturer of premium automobiles. “Ecological, economic and social responsibility are inseparable. We pursue this claim not only with regard to the product, but across the entire value chain. Our goal is to reduce the CO2 emissions from production by 80 percent by 2030 compared to 2019,” explains Production Director Nedeljković. Plant Debrecen: For the first time completely without fossil fuelsWith the new plant in Debrecen, Hungary, where the all-electric new class will roll off the assembly line from 2025, the BMW Group is starting a new era in terms of sustainable automobile production. “With our plant in Debrecen, we are planning to be the world’s first automobile plant that completely dispenses with the use of fossil fuels in its production processes,” explains Nedeljković: “The Debrecen plant will be our first CO2-free vehicle plant. This makes us a clear pioneer.” A significant proportion of the electricity required is to be produced directly on the factory premises. For the other shares, 100 percent renewable energy sources are to be used, the total requirement is to come primarily from regional sources. Nedeljković: “Our contribution to the energy transition makes sense not only ecologically, but also economically. The concept ensures price stability and security of supply.” Another element of sustainable production is consistent circularity. Production material and resources are reused whenever possible. For example, metal waste and chips that are produced during milling are recycled and reused. The waste heat from cooling flows into a cycle and can then heat rooms and water. While the lower consumption of resources represents a significant economic advantage for the company, the production of the BMW Group clearly stands out from the competition with intelligent and effective solutions, also from an ecological point of view . Examples of the technological commitment are the resource-saving wet-on-wet painting process (IPP) and the first use of direct current in body construction. All BMW Group plants worldwide only use green electricity, while the Leipzig site is also developing into a hydrogen competence center. In addition, the combination of in-house generation and storage of energy with flexible load profiles throughout production means that the BMW Group plants are becoming increasingly independent of external energy suppliers and other external influences in terms of energy technology. The latest digital methods and comprehensive systems ensure optimal transparency and support the consistent reduction of energy consumption and the needs-based use of regenerative energy thanks to precise forecasts. Biodiversity is another central topic for climate protection. Targeted measures tailored to the respective region, from beehives and falcons to meadow orchards, are therefore promoting the biodiversity of flora and fauna on the BMW Group’s premises. BMW iFACTORY is pursuing a technology-neutral approach in order to align logistics inside and outside the plants with the GREEN focus with a focus on ecologically sustainable concepts. For example, the Munich plant will implement local emission-free transport logistics within the next few years by means of increased rail transport and the use of electric trucks.

DIGITAL: Innovations become effective use casesIndividual premium vehicles, enthusiastic customers, excellent quality and on-time delivery: the BMW Group has always relied on digitization to achieve these goals. “With BMW iFACTORY, we are also leading the way when it comes to digitization. We create a new dimension of data consistency along the entire value chain and across all process chains. Innovation and effectiveness go hand in hand, because we use digital innovations to create effective use cases in production,” emphasizes Production Director Milan Nedeljković. BMW Group Production uses the latest technologies to network all relevant product, process, quality and cost data between development -, planning and production processes. The focus is on applications from the fields of virtualization, data science and artificial intelligence. Virtualization is an important element within the BMW iFACTORY strategy model. In a first step, all production sites are fully recorded in a 3D scan. In this way, they can be accessed virtually at any time and from anywhere and planning work can be carried out. This saves time and effort in production planning. The logical next step is an object-oriented virtual representation of an entire factory as a digital twin. This enables planning experts to collaborate in real time across different locations and time zones and takes the planning of all structures, production plants and even individual processes to a new level. For example, if the planners integrate the virtual product into the virtual factory at an early stage, this significantly reduces the planning effort. On the other hand, investments can be optimized and at the same time the efficiency of the processes and the stability of a product launch can be improved. Through partnerships such as with NVIDIA, the BMW Group combines the latest technology with a pioneering spirit and process knowledge. Applications such as augmented and virtual reality also support the qualification of employees for future processes and technologies. Global partners are also integrated into the value chain at an early stage through the digital planning of the production system. Data science creates the basis for decisions based on numbers, (real-time) data and facts. Data transparency and consistency make it possible to identify causes quickly and proactively and to optimize processes. When it comes to the effective use of artificial intelligence (AI), BMW Group production is already a pioneer within the automotive industry; she already uses more than 200 of these applications. With the help of AI, processes in logistics as well as in production are automated to ensure quality. Standardized platforms and self-services enable rapid scaling across all technologies and at all locations. Employees: Fit for the BMW iFACTORYThe focus of the BMW iFACTORY is on people as designers. A future-oriented and highly qualified workforce ensures competitiveness and the success of the transformation. The production department is investing massively in the restructuring of competencies in the areas of quality, logistics, maintenance, E/E, e-mobility and digital planning. This qualification takes place with foresight and future-oriented methods. Employees can design their learning processes independently and on their own responsibility by using e-learning. Extensive qualification programs support them in maintaining and expanding their skills. More than 50,000 BMW Group employees have already qualified for work in electromobility.

The background: customer requirements and responsibility The background to the transformation of BMW Group production is the developments in the automotive market and the requirements resulting from global climate change: The BMW Group will double production of electric vehicles as early as 2022 – in the first quarter alone more than 35,000 fully electric vehicles were manufactured delivered. Based on the latest technical innovations, the company also makes a significant contribution to climate protection and sustainability. Milan Nedeljkovic: “BMW iFACTORY takes into account the increasing customer demand for electric vehicles as well as the need to make a significant contribution to climate protection and sustainability as a member of society. We are thus using the opportunities of digitization and remain absolutely competitive.” If you have any questions, please contact: Corporate Communications Julian Friedrich, Head of Communications Production Network BMW Group Telephone: 49 89 382 25885 E-mail: Julian.Friedrich@bmw.de

Martina Hatzel, BMW Group Production Network CommunicationPhone: 49-89-382-11966Email: Martina.Hatzel@bmwgroup.com

Internet: www.press.bmwgroup.com/deutschlandE-Mail: presse@bmw.de The BMW Group production networkFor decades, the BMW Group has seen itself as a benchmark in terms of production technology and operational excellence in vehicle construction. BMW iFACTORY. LEAN. GREEN. DIGITAL. stands for the strategic vision of the worldwide production network. It provides the answers to the challenges of the transformation to e-mobility and follows a global approach. Lean stands for efficiency, precision, maximum flexibility and outstanding integration ability. Green includes the use of the latest technologies to establish production with the lowest use of resources. The aim is to reduce CO2 emissions in production per vehicle by 80% by 2030 compared to 2019. Digitally focused on data science, artificial intelligence and virtual planning and development. The production of the BMW Group thus makes a decisive contribution to the profitability of the company. The BMW GroupWith its brands BMW, MINI, Rolls-Royce and BMW Motorrad, the BMW Group is the world’s leading premium manufacturer of automobiles and motorcycles and a provider of premium financial and mobility services. The BMW Group production network comprises 31 production and assembly sites in 15 countries; the company has a global sales network with representatives in over 140 countries. In 2021, the BMW Group achieved worldwide sales of more than 2.5 million automobiles and over 194,000 motorcycles. Earnings before taxes in the 2021 financial year amounted to €16.1 billion and sales to €111.2 billion. As of December 31, 2021, the company employed 118,909 people worldwide. Long-term thinking and responsible action have always been the basis of the BMW Group’s economic success. The company set the course for the future at an early stage and consistently places sustainability and resource conservation at the center of its orientation, from the supply chain through production to the end of the use phase of all products. www.bmwgroup.comFacebook: http://www.facebook.com/BMWGroupTwitter: http://twitter.com/BMWGroupYouTube: http://www.youtube.com/BMWGroupViewInstagram: https://www.instagram.com/ bmwgroupLinkedIn: https://www.linkedin.com/company/bmw-group/

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