The following are the manufacturing strategies as employed by Dell:- Engineer-To-Order (ETO) –
It is a manufacturing philosophy whereby finished goods are built to unique customer specifications. Assemblies and raw materials may be stocked but are not assembled into the finished good until a demand from customer is received.
Configure-To-Order (CTO) –
It is a method of manufacturing which the customer, to select a base product and configure all the variable parameters associated with that product. Based on the configurable items on each quote or order, CTO systems typically generate the manufacturing routing and/or bill of materials based on features and options such as colour, size, accessories , etc. * Features:-
* Reduce product lead time and cost.
* Make order entry more reliable.
* Reduce the number of product structures and routings.
* Streamlines the order fulfilment process .
Flexible manufacturing system (FMS) –
Mass customization generates a variety of different products that requires manufacturing system to be highly flexible. This factor reflects capacity of production in terms of adaptation to high difference of products without lead time, cost of changing the system, and regardless of small volume of ordered products. Often if a company effectively organizes its modular product design, the manufacturing system is flexible, consequently it delivers the variety and lower cost features in a timely manner.
METHODS OF PRODUCTION
Assembly Line/Flow –
It is used when product demand is high. Dell is heavily automated, utilizing special-purpose equipment. There is usually a fixed set of inputs and outputs, constant throughput time, and a relatively continuous flow of work. Certain requirements to be met are:- * There must be substantial constant demand.
* Production tasks are standardised.
* Materials used in production must be to the specification and delivered on time. * Output...