5990377-DELL-Operation

DELL : 

DELL It’s Production and Operations Mgmt. and How It Makes Work By: Mohit Malviya Varsha Nair Aniket Bushal

COMPANY HISTORY : 

COMPANY HISTORY In 1984, Michael Dell founded the company In 1985, company produced the first computer on its own It develops, manufactures, sells, and support personal computers and computer related products Employs more than 77000 people as of 2009 In 1996, Dell began selling computer via web In 1999, overtook Compaq to become largest seller

OPERATIONS AND STRATEGY : 

OPERATIONS AND STRATEGY Build-to-Order Manufacturing and Mass Customization Dell built its computers and other products to order, none were produced for inventory. Dell customers can customize their PC’s based on their needs of their applications. This sell-direct strategy means that Dell had no in-house stock of finished goods inventories and that unlike competitor using traditional value of chain model

DELL’s WAY : 

DELL’s WAY Traditional PC’s Industry Value Chain (Utilized by Compaq, IBM, HP and Most Other) Build-to-Order/Direct Sales Value Chain (Employed by: Dell) Manufacturing of PC’s Component By Suppliers Assembly of PC by PC Makers (to Fill order from Suppliers) Manufacturing of PC’s Component By Suppliers Purchase By PC Users Service and support activities Provided to PC Users Sales and Marketing Activities of Reseller to self Inventories of PC’s on hand Service and Support activities Provided to PC Users Purchase By PC users Customized Assembly of PC’s By PC Makers

Slide 5: 

Partnerships with Supplier Dell made partnership with reputable suppliers of PC parts and components rather than manufacturing on its own. The advantages: Using branded components enhanced the quality and performance of Dell PC’s. Assurance of getting components on time as needed It feasible to have some of supplier engineers assigned to Dell product design team and for them to be treated as part of Dell. Dell’s long-run commitment to its suppliers laid the basis for just-in-time delivery suppliers product to Dell assembly plants

Slide 6: 

Committed to Just-in-Time Inventory Practices Dell's just-in-time inventory emphasis yielded major cost advantages and shortened the time for Dell to introduce their new products. New advances were coming so fast in certain computer parts and components (particularly microprocessors, disk drives, and modems) that any given item in inventory was obsolete in a matter of months Dell’s close partnership with vendors allowed it to operate with no inventories The economics of minimal component inventories were dramatic.

Slide 7: 

Direct Selling Firsthand intelligence of customer preference. Immediate feedback on design Ability to respond quickly gave a significant advantage Totally customer driven

Dell’s use of market segmentation : 

Dell’s use of market segmentation Earlier- Corporate and government and small buyer Segment was sub-divided Sixty five percent of Dell’s sales were to large corporations, government agencies, and educational institutions Dell was partnering with Intel, Microsoft, Computer Associates, and other prominent PC technology

Library : 

Library www.dell.com Other related sources of Dell Company.

Thanx : 

Thanx