...------------------------------------------------- A Case study of Dell supply chain management Liu Xingrui 920514-7482 tml10xlu@student.hig.se Xiao Ziye 920801-6619 tml10zxo@student.hig.se Peng Yunyi 930204-9128 tml10ypg@student.hig.se Liu Siqi 921026-9628 tml10slu@student.hig.se Date Summary Dell’s supply chain is typical paragon among the computer manufacturing industry. The advantage of supply chain lead to a rather strong marketing performance for dell than it ever had been. This paper takes an overview of Dell’s supply chain and strategies used in supply development. Generally, three sections are involved in the analyses which are build-to-customer strategy, direct sale model and IT system. Build-to-customer strategy’s purpose is to give quick responsiveness from supplier to end of users to apply the customer diversification demands. Meanwhile combine with stronger IT system, information is highly sharing without enormous unnecessary intermediaries. Under the great execution of direct to sale model, JIT standard inventory control is obtained and supply efficiency is approved to handle the delivery time limit set Dell. SWOT analyze as the power tool to distinguish a company current situation. The result distinctively shows that despite the advantage of cost, there are still many opportunities as untapped market for Dell to exploit. But no matter how unpredictable the future would be. Right now the consequence is obviously that Dell’s supply chain is very successful and providing...
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...INVENTORY MANAGEMENT 1. INTRODUCTION DEFINATION AND MEANING Inventory is a list of goods and materials, or those goods and materials themselves, held available in stock by a business. Inventory are held in order to manage and hide from the customer the fact that manufacture/supply delay is longer than delivery delay, and also to ease the effect of imperfections in the manufacturing process that lower production efficiencies if production capacity stands idle for lack of materials. The reasons for keeping stock All these stock reasons can apply to any owner or product stage. Buffer stock is held in individual workstations against the possibility that the upstream workstation may be a little delayed in providing the next item for processing. Whilst some processes carry very large buffer stocks, Toyota moved to one (or a few items) and has now moved to eliminate this stock type. Safety stock is held against process or machine failure in the hope/belief that the failure can be repaired before the stock runs out. This type of stock can be eliminated by programmes like Total Productive Maintenance Overproduction is held because the forecast and the actual sales did not match. Making to order and JIT eliminates this stock type. Lot delay stock is held because a part of the process is designed to work on a batch basis whilst only processing items individually. Therefore each item of the lot must wait for the whole lot to be processed before moving to the next workstation...
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...which have been proven in cutting costs, improving quality and productivity and decreasing waste is the Just-In-Time (JIT) management approach. It is undoubted that JIT management application as a system for forced problem solving which brings a successful execution management of all production activities from designing to delivery. On the other hand, this approach draws out a number of limitations and risks that have to be overcome to achieve final goal. This paper presents the author’s findings and evaluation to investigate the impacts of JIT management approach within the context of operation management in the world of globalization. 2. Concept of Just-In-Time (JIT) Just-In-Time (JIT) is defined by Bozarth & Handfield in Introduction to Operations and Supply Chain Management, 2008 as “a philosophy of manufacturing based on planned elimination of all waste and on continuous improvement of productivity. In the broad sense, it applies to all forms of manufacturing and to many service industries as well.” Ideologically, JIT is that producing necessary items with a right demanding quantity and in the right required time is an eternal factor of production and operation management especially in today world’s globalization. Moreover, there are different production planning and control methods as Kanban system which has been drawn out to gain the purposes of JIT....
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...BUS 320 – Group Research Project “JUST IN TIME” Just-in-time (or JIT) manufacturing is a way of managing manufacturing systems that could reduce waste, and lower cost, thus increasing profit. Just-in-time can also be defined as a philosophy of manufacturing based on planned elimination of all waste and on continuous improvement of productivity. It has been described as an approach with the objective of producing the right part in the right place at the right time, hence the phrase Just-in-time. JIT should improve profits and return on investment by reducing inventory levels, reducing variability, improving product quality, reducing production and delivery lead times, and reducing other costs, such as those associated with machine setup and equipment breakdown. Just-in-time applies to repetitive manufacturing processes in which the same products and components are produced over and over again. The general idea is to establish flow processes by linking work centers so that there is an even, balanced flow of materials throughout the entire production process, similar to that of an assembly line. JIT can be traced back to the late 1700’s. Eli Whitney contributed his concept of interchangeable parts to the idea of JIT manufacturing in 1799. The basic elements of JIT were developed by a Toyota motor company in Japan in the 1950’s. In order to begin use of JIT manufacturing in Japan, they first researched American production methods focusing on Ford’s practices. In Japan...
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...standard supply chain cycle and deliver goods directly from the manufacturer to the customer. • turn its inventory over 60 times a year • introduced new products without having to clear out old inventory in the channel • minimize the rapid depreciation costs that mark the PC industry • operated on a negative cash conversion cycle – by receiving payment from its customers before it paid its suppliers for components • build strong, stable relationships with the large corporations and other organizations who are its core customers Issue Identification Ford continues to face increased completion from foreign competitors while operating in an industry that is experiencing significant over-capacity. In the face of the challenges presented to us, we must determine if Ford should embrace the direct business model which utilizes “virtual integration” that has driven Dell to become a clear leader in their industry. Further, if we chose to utilize “virtual integration” based on the Dell model, we will need to develop and implement significant changes in the some of our most fundamental supply chain operations. In addition, we must determine how Ford should utilize emerging information technology to transform the way we interact with supply chain members. While progress in this area will be integral should Ford choose to pursue “virtual integration”, it is also a stand-alone issue even if Ford does not choose to pursue the “virtual integration” approach to supply chain management...
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...JIT Inventory Helping manufactures | Smiley II, Reginald Keith Jerome Bus 255 | JIT Inventory Helping manufactures | Smiley II, Reginald Keith Jerome Bus 255 | Reginald Smiley II Professor Thomasson Bus 255 November 24, 2014 JIT Inventory Helping Manufactures The globalization is forcing firms to be more careful about customer satisfaction and profit maximization. Logistics is one of the key tools that builds cost and service advantages to the firms. On the other hand, Just-in-Time (JIT) management approach, which is effective in the manufacturing sector in particular might be applied to the firms as a chance to achieve cost and service advantages through logistics. When the firms focus on the JIT for business processes but not products, the management principles of the JIT can be applied to logistics. JIT is an inventory management system based on placing smaller, more frequent, inventory orders. JIT can quickly reveal areas that need improvement, improve efficiency and productivity, free up additional workspace and free up more working capital. JIT inventory has helped manufactures be able to preserve parts flow so that inventories do not build up at any phase of the manufacturing process, allowing expeditious development and requiring active management of the production procedure. Just-in-time (JIT) inventory refers to an inventory management system with objectives of having inventory readily available to meet demand, but not to a point of excess where you...
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...director of Supply Chain Systems, I have decided to implement portions of the new supply chain strategy of Virtual Integration and strategies from companies like Dell. Although there are several key differences between the companies, Dell’s virtual integration strategy can be applied to Ford’s supply chain operation. A modification of the virtual integration system currently used by Dell could be applied to Ford’s dependent supplier base, distribution system, dealerships and divisions. Special care will need to be taken to address the unique dependency of our custom Tier 1 supplier. The management of lower tier suppliers of general or generic components would be more effectively suited by the standard procedures used by Dell. If we at Ford could find a solution to the obstacles of virtual integration, it could make our supply chain run smoothly with less bottlenecking, inventory, and better overall performance. Managers could overcome the complex and error-prone manual process of forecasting and procuring parts which would result in reduced OTD lessen costs and enhance customer satisfaction. ISSUE IDENTIFICATION Senior Executives have asked how Ford should use the emerging information technologies and ideas from new high-tech industries to change the way we interact with Suppliers. We must find ways to improve the Supply Chain management and to increase shareholder value and Supply Chain responsiveness. Specifically we are looking at how Dell manages their Supply Chain...
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...Executive Summary Barilla SpA, an Italian pasta manufacturer is experiencing problems in manufacturing and distribution systems caused by fluctuations in demand. To eliminate these difficulties Giorgio Maggiali, the Chief of Barilla’s Logistics Department, has been trying to implement the Just-In-Time-Distribution, further referred as JITD, system proposed by his predecessor Brando Vitali. JITD can be called a remake of popular “Just-In-Time” manufacturing concept. Although Maggiali has been trying to convince his consumers that the JITD would definitely work, he has not made much progress. The program was met with significant resistance by the distributors and Barilla’s own Sales and Marketing organizations. Now Maggiali is looking for possible solutions of the problem. In the following analysis we will provide recommendations, which will help Barilla to successfully implement the JITD system and thus decrease its costs, increase efficiencies and its profits. Introduction Barilla SpA was founded in 1975 by Pietro Barilla. From a small shop in Palma, Italy, it became a large, vertically integrated corporation with mills, plants and factories located throughout the Italy. Barilla’s success highly depended on its’ quality of product and innovative marketing programs, which created strong brand name. The company was sold to Grace Inc. in 1971, because the building of a huge plant in Perdignano drove the owners “deeply into debt”. Grace brought additional capital investment...
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...1. Explain the different concepts of Job Design. Job Design specifies the tasks that constitute a job for an individual or a group. There are five components of job design, namely: • Job specialization-it suggested division of labor which can be done in several ways such as development of dexterity and faster learning by the employee because of repetition, less loss of time because employees would not be changing jobs or tools and development of specialized tools and the reduction of investment because employee has only a few tools needed for a particular task. A classic example of job specialization is assembly time. • Job expansion-the theory is that variety makes the “better” and that the employees therefore enjoy a higher quality of life. We modify jobs in a variety of ways such as job enlargement (a horizontal restructuring method in that the job is enlarged by adding related tasks), job rotation(employee is allowed to move from one specified job to another) and job enrichment/ employee empowerment. • Psychological components- it suggested that jobs should include the following characteristics, to wit: skill variety, job identity, job significance, an autonomy and feedback. • Self directed teams- a group of empowered individuals working together to reach a common goal. • Motivation and Incentive System-Money often serves as a psychological as financial motivator. It can be in the form of bonuses, profit and gain sharing and incentive systems. 2. Enumerate and discuss...
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...Supply chain management is the management and coordination of a product’s supply chain for the purpose of increasing efficiency and profitability. The term supply chain management was coined by a consultant named Keith Oliver of the strategy consulting firm Booz Allen Hamilton in 1982. It combines processes of planning, implementing, and controlling the operations of the supply chain with the purpose of satisfying the customer requirements as efficiently as possible. It attempts to control or link the production, shipment and distribution of a product. This is done by keeping tighter control of internal inventories, internal production, distribution, sales and the inventories of the company’s product purchasers. It integrates supply and demand management within and across companies. The inventory contains the raw materials, work-in-process goods and completely finished goods that are considered to be the portion of a business’s assets that are ready or will be ready for selling. Inventory represents one of the most important assets that most businesses possess because the turnover of inventory represents a primary source of revenue generation and subsequent earnings for the companies’ shareholders/owners. However, possessing a high amount of inventory for long periods of time is not usually good because there are inventory storage, obsolescence and spoilage costs. On the other hand, possessing not enough inventory isn’t good either, because the business runs the risk of losing...
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...------------------------------------------------- ------------------------------------------------- Ford Motor Company Case Report ------------------------------------------------- Executive Summary Ford Motor Company has a long history, starting in Michigan in 1903. They have focused on designing and manufacturing and have been very successful, however with increasing competition, global markets and over-capacity the company needs to look at ways to improve profitability. The company has implemented various programs and processes to create a lean, responsive system with better consumer forecasting. Their challenge is to continue to research ways to stay viable in current market and industry conditions. Dell Computers has been very successful with a direct model and virtual integration that may or not work well for Ford. CONTENTS * ISSUE 3 * ANALYSIS 4 * ALTERNATIVES 6 * RECOMMENDATIONS 7 * IMPLEMENTATION 8 * CONCLUSION 8 * REFERENCES 9 * ISSUE: The Ford Motor Company is facing a number of challenges including the direction of CEO Jac Nasser to focus on customer responsiveness and shareholder value to deal with increasing competitiveness, an industry with potential over-capacity and the expansion into globalized markets. Ford had begun to implement systems to reduce cycle-time, improve quality and to lower costs. Programs included consolidating product development into five Vehicle Centres (VCs), reeingineered...
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...Managing Internal Cost & Controlling – Developing & Maintaining Quality – Managing Operations JCT2 Supply Chain Task 1 Western Governor’s University Introduction My company name was Arete Sytems. Arete is an ancient Greek term meaning “excellence of any kind”. The choice of name was intended to represent the quality, high-end systems that we would produce. B1. Using Budgets and Pro-Forma Statements to Plan Production Capacity One of my key lessons from this simulation was the importance of working in teams and openly discussing decisions that need to be made before making them. I approached the simulation as the only team member because the simulation didn’t include other participants. In retrospect, I would have assigned other members, at least in my mind, to gain additional team insights. I was not careful enough in setting pricing for my two products correctly in the second quarter when we actually began sales. I priced my high end Mercedes line accidentally at the price I had planned for my mainstream Workhorse line and vice-versa. I did not look closely enough at my pro forma cash flow or income statements to recognize the forecasted loss and as a result did not dig deep enough to see the reasons and to make the adjustments in pricing. I was overly focused on cash at that point to fund production capacity. I discovered the error when evaluating second quarter actuals. Going into third quarter planning, I looked at the pro forma cash flow...
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...methods depends upon the nature and amount of inventories. Businesses utilize inventory management strategies to create invoices and purchase orders, generate receipts and control inventory-related accounting. Just in time is a popular method of inventory control and management for a manufacturing concern. The concept behind this type of inventory control is that, the delivery of the inventory happens at the time of production and not earlier. It also delivers the exact amount of inventory that can be used for production, not more. JIT very much depend on the supply chain of a company because non availability of inventory will affect the process of production very badly. Some of the advantages of using just in time delivery are the following * Low warehousing costs. Since the inventory is not stored in Just in Time method, the expenditures on maintaining the inventory in the warehouse of the company can be eliminated. * Effective and efficient Supply Chain Management This method will make sure that the company has an efficient and effective supply chain management. Without a robust supply chain just in time delivery would not be possible. An efficient supply chain can reduce the cost of manufacturing to a certain level. This will help the company to attain competitive advantage against rivals companies. * Increased customer satisfaction. Implementing the just-in-time inventory...
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...CASE STUDY ANALYSIS REPORT ON SUPPLY CHAIN MANAGEMENT OF DELL COMPUTER CORPORATION Submitted By: Asmita Baz ACKNOWLEDGEMENT On the successful completion of the project, first and foremost I thank God, the Almighty without whose blessings the project would not have been a success. I take this opportunity to express my sincere gratitude towards Mr. Subrata Kar (faculty of SCM,Globsyn Business School) under whose guidance I completed this project report. I wholeheartedly thank him for giving his valuable time & attention & for providing me a systematic way for completing our project report in time. THANK YOU. CONTENTS Index | Page No. | Introduction | 4 | Supply Chain | 8 | Channel Strategy | 10 | Market Perspective | 11 | Cycle of Order | 12 | Information | 13 | Conclusion | 14 | INTRODUCTION DELL Computers, a leading PC supplier to corporate and government customers, today is now among the first companies to provide its customers with the next level of industry-standard Pentium processor power, while many vendors are still struggling to broaden their processor-based product lines. Dell's unique ability to take a market strategy position during important technology transitions because of its build-to-order manufacturing process. This build-to-order approach allows the company to maintain low inventory levels and integrate emerging technologies into systems. Today's customers are reducing their supplier bases, providing the opportunity...
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...INSTITUTE OF PROFESSIONAL EDUCATION & RESEARCH, BHOPAL Trim -III, 2012-2014 Operations Management Assignment On “DELL” Submitted To: Submitted By: Prof. Hersh Sharma Anukriti Chaturvedi Dell Computer Corporation, with annual revenue of $52.9 billion is a premier provider of computing products and services. As a result of its direct business model, dell is a leading seller of computer systems worldwide and the number one seller in all computer segments in the United States. Dell was founded in 1984 by Michael Dell on a simple concept: by selling computer systems directly to customers, it could best understand customer needs and efficiently provide the most effective computing solutions to meet those needs. Dell’s climb to market leadership is the result of a relentless focus on delivering the best customer experience by selling computer systems and services directly to customers. Dell operates principally in one industry segment. Dell is based in Round Rock, Texas and conducts operations worldwide through wholly owned subsidiaries. Geographic areas of operations: Dell conducts operations worldwide and is managed generally on a geographic basis. The three geographic regions are the Americas, Europe and Asia Pacific- Japan regions. The Americas region is based in Round rock, Texas, and covers the US,...
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