Operations Management Dell Inc

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Hanze University International business School
Daniel Prieto MBA 2008/09

Operation Management: Dell
1 Introduction
Dell is a technological sales company which performs their business in the whole world as is possible to see in the following diagram.

With a net revenue of $61,133,000,000 is the second largest computer manufacturer company in the word and the number one in United States. Dell focuses on Business to Business(B2B) and Business to Consumer(B2C) commerce to satisfy their business and individual customers. 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 present document is oriented to analyze Dell just since the point of view of operations management starting with a review of the company, after a look over Product design process, the internal process and the technology associated, 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.

2 Dell Company
2.1 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”

2.2 Mission
“Create a company culture where environmental excellence is second nature”

2.3 Operations Strategy
Identify the operations strategy of Dell is go almost in all the main activities of the company where operations is 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

3 Product design process
For Dell, Globalization has impacted directly in the management of the product life cycle involving more stakeholders during the process of product development; thereby the complexity of this process has become more complex as well. The most important factor introduced in the product life cycle is the environmental issue. For Dell, 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 (Dell, 2008):  Energy Efficiency: Dell delivers optimized performance per watt, and help customers deploy systems efficiently. In this way, IT is an important avenue to decreasing cost of ownership and enhancing productivity while reducing a customer’s carbon footprint. 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...
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