dell operation management.pptx

Operation Management

Presented by:

Neha Singh(007)

Ashu Rajoria(015)

Heena Rajora(024)

Anuradha(025)

Introduction DELL Company Product Design Process Production Process Technology Production Layout Supply Chain Inventory Management Quality model Human Resource Strategy Conclusion

To be Discussed

DELL- Purely You Dell is a technological sales company which performs their business in

the whole world.

Introduction

Triangle- Regional CentersRed Circle-Business CentersGreen Circles-Manufacturing & DistributionBlue Circle-Design Centers

The second largest computer manufacturer company in the word and the number one in United States with a net revenue of $61.133 billions.

Dell focuses on B2B and B2C commerce to satisfy their business and individual customers.

B2B stands for Business to Business & B2C stands for Business to Customer.

Dell differentiates between classes of customers because the needs of their business customers, who buy large quantities of computers, are different than the individuals who want to configure a single unit.

The presentation is oriented to analyse Dell from the point of view of operations management i.e how Dell forecast the coming productions rates, how Dell manages their inventory, which is the quality model followed by the company, which is the human resource strategy to finalize with conclusions and reflections.

Vision “Fully integrate environmental stewardship into the business of providing quality products, best-in-class services, and the best customer experience at the best value”.

Mission “Create a company culture where environmental excellence is second nature”

Dell Company

Operations Strategy

Identify the operations strategy of Dell is go almost in all the main activities of

the company where operations are relevant. Under this perspective, the list of

strategies is related to some areas of operations inside of the company:

Be the greenest technology company on the planet and the first computer company to achieve carbon-neutral operations by the end of 2008.

Continue leadership with the climate strategy and global recycling

programs.

Partner with customers in energy-efficiency and climate-protection

initiatives

Broaden the Global Citizenship commitment

Recommit efforts to improve sustainability governance

Globalization has impacted directly in the management of the product life cycle and the process of product development.

The most important factor introduced in the product life cycle is the environmental issue.

The design products have to be energy efficient, to avoid unnecessary materials and to be easy to use, which is supported by rigorous business controls and supplier audits that consider:

Energy Efficiency: Dell delivers optimized performance per watt, and help customers deploy systems efficiently.

Precautionary Chemicals and Materials Use: Dell design to eliminate the use of unregulated substances if we believe they possess hazard characteristics similar to other, regulated substances. If alternatives are not yet viable, Dell works to develop reliable, environmentally sound and commercially scalable solutions

Supply Chain Sustainability: We expect suppliers to uphold the same commitment to environmental responsibility as we do, as a condition of doing business with them.

Product Design Process

Dell design activities are compliant with this internationally recognized

standard for environmental management system criteria (ISO 14001

certification program).

Other main stream of definition of what Dell is doing in terms of product

design rely on the participation of their own customers.

The website “Dell IdeaStorm” (http://www.ideastorm.com) where

customers participate directly in the conceptualization of products giving

their own ideas of develop, voting for another ideas already posted or

simply criticizing products from the company.

This website is a very comprehensive platform to cover an appropriate

SWOT analysis of products design due to the huge variety of post and

group discussion on it.

The operational model of Dell is “Dell Direct”: Eliminate intermediaries.

Technology in manufacturing process is their key to success.

Dell is in “Mass Production Process Category”.Dell as a manufacturer:

Build new products in market.

Dell as an assembler: The production is by supplier.

PRODUCTION PROCESS

Dell manufacturing centers all over the world:

Customer order pull : receive electronic order closer to ship destination

Kitting : requirement for material is generatedBuild : using barcodes to the order

: allows better quality controlSoftware installation and testingBoxingOrder accumulation area

PROCESS

TECHNOLOGYImplemented large number of solutions constantly.Main source of constant improvement is internet.Dell (i2SCM) supply chain management.Partnership with IBM:

• To design the production lines for infrastructure.• Use of electronic catalogue with appropriate search functionality.

Process and assembly is one.◦ Doesn’t produce any piece of product.

Enjoys advantages of product layout:◦ Product gets ready on time.◦ Set up cost is low.

◦ Efficiency is increased.Level of expertise is not important.A negative point in Dell layout:

◦ Expensive infrastructure.

PRODUCTION LAYOUT

Supply ChainDell Company is in the middle of all the operations since suppliers till the final customer

Supply Chain(Contd.) The communication between Dell and suppliers is by Internet Usually suppliers have warehouse building nearby Dell’s

Manufacturing Centres The suppliers usually feed the starting point of the Dell’s assembly

line, but it is possible to have some suppliers after the production line of Dell (even out of Dell facilities).

Is important to recognize that the use of Internet is the blood of this system, without this technology would be impossible to coordinate such value system.

Dell has divided their home page into a number of major customer groups: Home & Home Office, Small Business Medium and Large Business and Government, Education & Healthcare

Inventory Management Dell has implemented “Just-In-Time Inventory System” which

operates on only 6 days of inventory. For Dell, it is not necessary to hire people to put in charge and

maintain the inventories They don’t hold obsolete technology in its small inventory.

Quality model Dell operations in China have been distinguished by Ministry of

Information Industry (MII) and China Quality Management Association for Electronics Industry (CQAE) receiving wards such as Excellent Quality Management Corporation Excellent Quality Management Team's Excellent Quality Management Individual

The main support behind this award is the constant focus in the customer-centric strategy

In Dell, the quality control process starts from engineering design and the early testing stages during which design for reliability is the priority

Dell has extended the “quality chain” putting great emphasis on suppliers' quality management.

The Quality Management during manufacturing process is the strongest guarantee of Dell products' quality.

Human Resources Strategy

Tell Dell” program, a voluntary and confidential employee opinion survey is done to developed and encourage employees to speak frankly and privately about Dell’s principles, values, strategies, policies, managerial effectiveness and employee engagement.

CONT…HRM department, after taken the

measurement, is able to act in direct response to surveys. Some responses to these kind surveys were for example in the past:

Implementation of an employee purchase program

Greater work-life flexibility Streamlined decision-making processes Increased focus on employee development Improved customer solutions

CONT...For Dell “diversity” is the core of their values

and winning culture. For this Dell has implemented the following activities:

Employees networking groups. A program that connect employees that share the same nationality, gender, ethnicity, etc.`

Diversity Education and Training. Providing quality professional development opportunities to all employees.

Work/Life Effectiveness. Committed to balance the employees contribution to the company with their personal lives.

CONCLUSION It is very interesting to remark that Dell, a

multinational company with a big size, is successfully capable to repeat basically the same formula of manufacturing process in every manufacturing center that the company has.

A problem is, Dell is relaying increasingly on new markets which it means that Dell is just applying best practices and knowledge in the field rather than go deep with a study of the new entrance. This could be a risk considering the diversity and cultural matters in between their customers

Thank You