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Dell is concerned about the satisfaction of the customer's requirements. The company is also having an eye on the price factor. Furthermore Dell is helping its own suppliers to improve the services they are offering to the company. In regards to Dell, here are the basic five performance objectives of Dell. This includes Quality, Speed. Dependability, Flexibility, Cost (Slack, N. Et al, 2001)
The performance objectives in accordance to the company Dell.
Doing the things in the right way by providing the error free goods and services, which will satisfy the needs of customers, is known as the quality.
According to many case studies, IBM products are ranked as the top of the year in the third party customer surveys. Dell Assembling and manufacturing process covers assembly and software installation of the computer system, also it includes the functional testing and quality control. Most of the company operations are done in house to measure and keep the quality high.
The second performance objective is the speed, which means that by doing things fastly is the key feature of the best companies. It also covers to minimise the time between the order and the availability of the product or service that the customer a speed advantage.
The techniques of Dell are focused to the operations that have reduced complexity by using simple and small process which have reduced complexity. By arranging layout and flow to enhance simplicity improves speed of production. As the era of machines have minimised the working of the human beings. So the company Dell is using the most advanced and simple means of building and assembling the computers.
Dependability is another performance objective of operations. It means that doing things in time for customers to receive the goods or the services when their delivery is promised. The Dell process includes Just-in- time (JIT) production system. To get the good result Dell is holding the multi skilled workers to cope up with its daily business operations. At Dell improving quality and efficiency is a concern for the managers and the technical staff and all other concerned employees. By doing this, Dell is giving a dependability advantage to its customers.
Dell have the philosophy of responding to the dynamic environment is that organization change their products and services the way do the business. This performance objective is known as flexibility.
A clear result of responding to a dynamic environment is that organisation change their products and services and changes the way they do business. This performance objective is known as 'flexibility'. According to research that we must learn to love change and develop flexible and responsive organizations to cope with the dynamic business environments (Peters, T., 1998)
In the company Dell, the manufacturing means the ability to adopt its efficient resources so that it can develop new products. On contrary IBM was able to achieve high level of flexibility, producing relatively small batches of different products with little or no loss of productivity and quality. During the past years Dell, has provided range of options that customers are able to choose the example is customised computer system, which user can modify the parts according to their own needs by going on the website of Dell.
One of the major Dell operations objectives is to remain the low cost producer. Particularly the companies are competing on the pries is the cost factor. As the low price is the universal attraction for the customers, which can be achieved at producing the low cost.
In order to do things cheaply, Dell is looking to be the low cost provider of goods and services. So already the company have planned and on other hand got some operations majorly in china where the cheap labour is available and the factors of production like resources physically available to be remained the low cost producer. Also internally, cost performance is helped by good performance in the other performance objectives that Dell has managed to produce high quality computers at a reasonable price.
By improving the quality, speed, dependability, flexibility and cost operations performance, Dell is a global growth and high percentage of customer satisfaction. Because of the success in the production by using the Just-in-time system of manufacturing and developments, Dell is world known brand. Dell is world leader in supply chain management and it keeps the production cost down with the high quality, maximum speed, on time delivery, flexibility. Dell has the supplies from those companies which are also the market leader in the computer industry. Dell has shifted its operations to different countries like china, Korea and Taiwan in search of the cheap input (raw material and labour). This makes easier for Dell to produce products at a lower cost.
Operating continuously gives dependability advantage to its customers by making it easy to deliver its production in the market palace. Using these operations objectives Del has managed to keep its customers happy and compete successfully with other companies in global market. Analysing these characteristics we can say that Dell is a world class company
Quality Management Tools at Dell
The company Dell is following the Japanese philosophy of lean manufacturing and Just-in-time system which is enabling the company to be the fastest growing company in the Technology market.
The basic concept of this system is to reduce the waste and increase the productivity, side by side this system have the efficiency that it reduce the labour cost by cutting the idle working hours for the production of a particular product.
Dell computer is participating in both of the above activities and that is why they are the industry leaders. Dell Company has got a warehouse space at their manufacturing plant in which suppliers keep parts directly on site which is a quintessential JIT layout. Further to this the company is using the JIT for its inventories purpose where they are keeping all the inventories for only four days and this is how they are solving the supply chain problems.
On the other hand Del is maintaining the Just In Time inventory level as it is a part of JIT scheduling. By introducing such systems Dell Company is working to reduce inventory to the lowest possible working levels. Secondly by introducing such systems Dell is adjusting its schedule of ordering and delivering the computer systems. This is also filling the gap of communication both up and down of supply chain management.
The word partnership is the only key to success for making JIT truly working. A firm particularly cannot implement the JIT system by itself. It must be having a complete cooperation with its supply chain. The company have successfully implemented the concept of JIT. For that reasons Dell have particularly formed and nurtured a demanding relationship with its partners. That is why Dell and its suppliers are working a one company. Why Dell is the best example of JIT, because Dell has its suppliers store raw materials directly at the manufacturing plants. The whole scenario of lean manufacturing can be shown in the diagram below:
The other concepts of Just In Time system also needed to be introduced if the company is going for the lean manufacturing systems. The first thing that Dell makes is the rule of continuous improvement in its processes and products by means of quality and for production efficiency is another tool for that. To achieve its best Dell is always looking for the innovative ways to solve problems and increase focus on the quality of its suppliers. Dell believes that all are the cornerstones of JIT system.
On the other hand Dell is working its best to the workforce to get indulge them into the JIT system. The company have the philosophy that without the dedication of the workforce, any invention will fail. On contrary Dell is using the simple way to achieve workforce commitment. Dell is providing the facility of training its employees outside their work environments and business functions and also company is helping them to increase the problem solving ability.
Dell also believes that by practicing the above exercise the firm is empowering and giving the employees an overall view of the entire Dell operations, not just their single job. By doing this dell is supporting from the management side also they are increasing the resources to solve problems and an increase in employee roles and responsibilities. The workforce automatically feels empowered and works to make Just In Time a success for the business of Dell.
Benefits to Dell
Following are benefits which Dell has achieved so far by implementing the JIT system in its operations.
JIT enabled Dell to be cost effective, more efficient and customer responsive.
It enabled the company to purchase and store the components just before they are needed in the assembly line. This is how Dell is cutting the cost of housing and managing the idle parts of computers.
The company Dell enabled its suppliers to store their products in the Dell owned warehouses near to the assembling plants which is enabling Dell to produce double as compared to its production in past.
Dells keep the inventory for only four days; this is enabling the firm in operating context the size and the production technology management.
JIT enabling the company to remain dealing with its other operation and process of production rather to stuck with inventory that may become obsolete.
Dell is also enabled with the waste management system by introducing the JIT system.
JIT In Practice
Dell is a well known brand which is operating in the business of Technology. This is a only company that is effectively utilising Just in time system. Dell has the revolution of selling the personal computer system using the direct business model. According to this model Dell is taking the orders directly from the customers. This is how they are reducing the inventory and managing the distribution of its products. According to this model Dell start assembling the product when they receive the customer order.
For this particular purpose Dell have introduced the pull system within the supply chain. A pull system is a reactive system, it start responding when customers order something from the company. This unique system is making Dell to remain competitive with in the industry on computer systems.
The company Dell use to keep their inventory for a week almost. This is providing Dell with a time to market its product as a market leader. Also it is enabling the customers to get the fresh, latest and greatest technology of processors and all associated operating system currently introduced in the market. The minimal inventory helps Dell with the economic advantage. Because according to a research the value of the computer components and manufacturing material declines about one percent per week. The one week inventory system also minimises a customers' ability to change their desires before they receive their product.
The company Dell is using the JIT system which is resulting in the cost saving, superior customer's satisfaction, limited waste and the ability to provide their suppliers with more information. In the end it is making Dell an industry leader and the company which holds minimal inventory (www.academicmind.com)
While concluding the report for Dell, it is important to say that there are many factors which ar enabling the company to be an effective organization and the operations objectives and the JIT system of manufacturing is also allowing the company to remain as the market leader in the computer industry.