Operation Management

Presented by: Neha Singh(007) Ashu Rajoria(015) Heena Rajora(024) Anuradha(025)

To be Discussed

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

Introduction

DELL- Purely You Dell is a technological sales company which performs their business in the whole world.

Triangle- Regional Centers Red Circle-Business Centers Green CirclesManufacturing & Distribution Blue 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.

Dell Company
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

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

Product Design Process

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.

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.

PRODUCTION PROCESS
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.

 Dell

manufacturing centers all over the world:

PROCESS
Customer

order pull : receive electronic order

closer to ship destination

Kitting : requirement for material is generated
Build : using barcodes to the order

: allows better quality control

Software Boxing

installation and testing

Order

accumulation area

TECHNOLOGY
Implemented

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.

PRODUCTION LAYOUT
Process Enjoys

and assembly is one.

Doesnt produce any piece of product.

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.

Supply Chain
Dell 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 Dells Manufacturing Centres The suppliers usually feed the starting point of the Dells 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 dont 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 Dells 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