A Comparison of the Operations Management of Two Companies: Dell (Mpo) & Tesco (Cpo & Ipo)

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MANM098 OPERATIONS MANAGEMENT|
Operations Management Assignment|
A group report assessing the Operational Strategies of Dell and Tesco| GROUP 9:Miss Sirada Udomsak (6225345)Mr Farhan Khan (6243110)Mr Mohamad Basil Abutaha (6067107)Mr Francesco Tenero (6241237)Mr Zohair Ashfaq (6238307)Mr Iker Santos (6238488)Mr Matthias Gerz (6199999)Mr Zach Willis (6080774)| 12/17/2012|

Table of Contents
INTRODUCTION2
COMPANY PROFILES2
2.1 Dell2
2.2 Tesco2
COMPETITIVE ADVANTAGE ANALYSIS3
3.1 Definition3
3.2 Dell3
3.3 Tesco6
ORDER WINNERS ACHIEVEMENT8
4.1 Cost8
4.1.1 Dell8
4.1.2 Tesco10
4.2 Flexibility12
4.2.1 Dell12
4.2.2 Tesco13
ORDER QUALIFIERS ACHIEVEMENT15
5.0.1 Definitions15
5.1 Dell15
5.2 Tesco17
COMPARISON18
CONCLUSION19
APPENDICES20
REFERENCES24

INTRODUCTION
The aim of this assignment is to compare and contrast the competitive advantages between a material processing operation and a customer processing operation, namely Dell and Tesco through the Neely criteria (2008). Both of these companies use a mix of customer (CPO), materials (MPO) and information (IPO) processing. The transformation of all of these resources is considered, usually with one holding quintessential importance in the entire operations (Slack et al., 2010). COMPANY PROFILES

2.1 Dell
Dell currently is the fourth largest PC vendor in the world by market shares (see Appendix A) and is mainly a material processing operation (MPO). It primarily sells computers through its online store, however recently they have moved to retail selling (Hachman, 2006) this contrasts with their biggest competitors such as HP who have a big retail presence. 2.2 Tesco

Tesco is currently the third largest supermarket retailer in the world (National Retail Federation Store, 2011) and first in the UK (see Appendix B) which focuses on customer processing operations (CPO).

COMPETITIVE ADVANTAGE ANALYSIS
3.1 Definition
Competitive advantage is a strategic gain firms have over their competitors through order winners and order qualifiers. Order winners are factors that differentiate products and services from rivals, which in turn retain customers and gain new ones. Order qualifiers are factors that are essential for a product or service to be considered by a customer (Jones and Robinson, 2012). 3.2 Dell

Diagram 1: Order winners for Dell

Diagram 1: Order winners for Dell

COST
MANUFACTURING COST: High performance production system aiming at cutting off waste form every single operation (Dell, 2007)

VALUE ADDED: Offering higher technology specifications than competitors for the same price (Dell, n.d.) FLEXIBILITY
MIX: The “build your own computer” concept lets customers shape their computers, selecting from a wide range of components in order to create a final product which meets close enough to their individual needs (Dell, n.d.) OUTPUT QUALITY: Offering different standards of technology from premium to lower segment products COST

MANUFACTURING COST: High performance production system aiming at cutting off waste form every single operation (Dell, 2007)

VALUE ADDED: Offering higher technology specifications than competitors for the same price (Dell, n.d.) FLEXIBILITY
MIX: The “build your own computer” concept lets customers shape their computers, selecting from a wide range of components in order to create a final product which meets close enough to their individual needs (Dell, n.d.) OUTPUT QUALITY: Offering different standards of technology from premium to lower segment products The order winners for Dell are cost and flexibility. Considering the computer manufacturing industry, the minimum features required are up-to-date durable technology standards, affordable price, consistent on-time delivery and good flexibility in terms of volume and deliverability (Key Note, 2012). Dell’s order winners can be shown through the application of the Neely criteria (2008) in the graph below....
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