Operation Management

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|Content |Page no | |Introduction |2 | |Design of goods and services |3 | |Quality |3 | |Process and capacity design |4 | |Location |5 | |Layout |6 | |Human resource and job design |6 | |Supply chain management |6 | |Inventory |6 | |Scheduling |7 | |Maintenance |7 |

Table of Contents

Introduction

The organization that I have chosen for study of their operations management is Dell Inc., which is the second largest PC Company in the world headquartered in Round Rock, Texas. Dell Inc. offers a broad range of product categories, including desktop PCs, servers and networking products, storage, mobility products, software and peripherals, and services. Dell sells its products and services directly to customers through dedicated sales representatives, telephone-based sales, and online at www.dell.com, and through a variety of indirect sales channels. Dell’s customers include large corporate, government, healthcare, and education accounts, as well as small-to-medium businesses and individual consumers. IT Hardware Industry Overview – The IT hardware industry that Dell operates in is made up of a few global corporations like Dell, HP, IBM, Acer, Lenovo, Apple etc and all these players compete among themselves at a global scale and almost offer a similar et of product portfolio’s. All these companies source various components that go into the manufacture of a PC from suppliers spread all over the world (but mostly concentrated in Asian countries like China, Malaysia and Taiwan) and assemble them into computer products and services. The defining characteristics of this industry from an operation standpoint are the ultra short product life cycles which means the players have to keep introducing new products at a fast pace, prices of components constantly coming down as technology becomes standardized and better technology is introduced, and the constantly changing preferences of computers. This means that companies must have very lean and efficient and at the same time responsive operations and supply chain strategies in order to be competitive at a global level. Industry can be said to be at a mature stage with price competition being common with the basic products becoming completely undifferentiated and commoditized among all the players. This presents many operational challenges that the companies must overcome with their operations planning and strategies.

Application of the 10 decisions of operations management –

Below we see how the ten decisions of operations management is applied at Dell computers

1. Design of goods and services – As discussed above,...
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