Dell Company 1

1. Introduction- Company Overview

Dell Corporation is an establishment that designs, develops, manufactures, markets, and

supports information technology structures. The corporation's product portfolio comprises
laptops, desktops, workstations, storing devices and printers. Dell offers a variety of
consulting and referral services to augment the vitality efficacy of data centres such as
capacity planning, data centre optimization valuations, virtualization and energy efficacy
exploration for exploiting the full value. Dell sells its merchandises and services all over the
globe through a wide linkage grid of sales representatives, subsidiary sales stations,
telephone-based sales and online transactions. Moreover, it trades its range directly to
customers through mobile orders and website. The corporation caters to healthcare,
education, large corporate, government, individual consumers and small businesses. The firm
has advanced innovative manufacturing facilities across the world, which delivers assembly,
software installation, functional analysis and quality control processes. The company serves
its products to customers across 195 countries. Dell is recognized worldwide as a top PC
manufacturer and one of the most efficacious establishments in the world. Dell Corporation
realized that its products denigrate in time by keeping them in storerooms causing them great
loses. In order to avoid this, the company established a revolutionary supply chain strategy
which targets very minimal (almost close to zero) inventory.

The Key competencies of Dell are on its customer attentions, production process, supply
chain and inventory management, customer service and human resource management.
Increased worldwide competition leading to less differentiation among competitors has seen
Dell’s market Lead dwindles as it loses its competitive edge in key business segments. There
is need for the company to specifically improve its customer service, customization, tailored
retail solutions, and increased global market environment.

The problems associated with long inventory have been replaced by Lean management
systems of Just-In-Time manufacturing. However, Dell’s competitors have adapted lean
management strategies and the position of Dell as a leading computer manufacturer has been
under threat. New adaptations to the JIT management system that is employed by Dell have
to be done to the system. This paper suggests new ways in which Dell can improve its OM
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systems to ensure that the company fends off the stiff competition from the increased number
of computer manufacturers both at the local and global levels.

1.1 Synopsis

The problem with Dell’s OM is that though its superior compared to most big companies,
smaller companies have emerged that have other advantages such as being local and more
efficient when it comes to processing and distribution to the local markets. The Computer
industry has evolved rapidly and traditional manufacturing structures and strategies have
been replaced with newer and more efficient strategies.

The recommended option for dell is to reinvigorate its competitive and differentiation
advantage. The paper offers recommendations on the performance of Dell Corporation in
terms of analysis and approaches to capacity planning, lean management and its contextual
implications, including how JIT and TQM constructively and positively impacts its business.
Besides, suggestions and advice on aspects like inventory management, Quality management,
Risk Management, Project Management, Information Systems also needs to be considered.
Further, role of the operations manager as a vital link in the smooth functioning of both
internal and external accountability of Dell Corporation needs to be highlighted and how
strategic issues could be tackled through group efforts and cause investigations. The final
segment offers a summery regarding the Operation Management factors in Dell Corporation
discussed in the main body of the essay while suggesting remedial measures and
recommendations on issues of Operation Management like quality, risks, information systems
and others could be firmly tackled. Each aspect is needed to separately deal with and
informed.

2. Literature Reviews:

2.1 Capacity planning at Dell Corporation

According to Vonderembse & White (2004), Capacity planning involves harmonizing the
firm’s combined resources with that of demand for its merchandises and services in a timely
manner. Capacity planning is a strategic function which sometimes demands that for the
capacity of a process to be increased or decreased a firm or corporation will be required to
increase the number of facilities or change the manufacturing process. According to Heizer
 Dell Company 3

and Render (2004) the aim of capacity planning is to equal the obtainable capacity to project
demand over the Short, medium and long periods.

Hill (2000) suggests that to handle demand at peak times, capacity alteration can be done by
either appointing temporary labour or by modifying the present staff to work overtime.
Additionally, flexible capacity aids in changing capacity in the limits of the design or to alter
the competence to reflect the needs of both a corporation and its clients, (Heizer and Render,
2004). The main aim of capacity development is to equal the level of processes to the level of
the demand. The advantage of capacity development is that it provides efficient adjustment or
variation of system capacity usually system capacity can be changed with in certain limit
(Samuel, 1999).

2.2 Application of Capacity planning on Dell

Dell Computer's capacity planning strategy is built on a number of core fundamentals which
are build-to-order production, mass customization, partnerships with dealers and suppliers,
just-in-time mechanisms in its inventories management, direct sales, market dissection,
customer service, and extensive data and information sharing with supply associates and
clienteles. Through this capacity planning strategy, the company has managed to attain what
Michael Dell’s “virtual integration philosophy of bringing together Dell's corporate arms with
its supply partners and clienteles in real time such that all three are part of the same structural
team.

 Virtual Integration and Information-Sharing

Dell's latest manifestation of its approach is the use of technology and information sharing
platforms with both its supply partners and customers. These has been imported in breeching
the traditional, supply, manufacturing and purchaser value chain that was at the heart of dell
when it embarked on direct selling. The company has regional forums that help provide
information between the customer and company and vice-versa. A good example is the
platinum council in the US, Europe, Japan and Asian region. These councils hold meetings
after every 6 months that provide an opportunity for customers and the corporation to share
and learn from each other. The information through this method has been critical in helping
the company to forecast the demands while at the same time the company has the ability to
help customers (Margretta 1998, p.70).
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An intranet system dubbed premier pages helps Dell to virtually interact with more than 3000
of its corporate customers. Customers have a direct and immediate access to purchasing and
other forms of technical information from Dell. Elements that are key to Dell’s relationship
are observed by the administrators of these premier pages to ensure that the company handles
them in a professional and efficient manner. Customers have a chance to order and specify
their requirements online, view the company’s new products and also get news on the current
developments and improvements (Margretta 1998, p. 74).

 Partnerships with suppliers

Dell management has always believed in long-term partnerships with trustworthy suppliers
because it yields several benefits. First, by employing name-brand processors, disk drives,
modems, speakers, and multimedia components, this is key in enhancing the quality and
performance of Dell's PCs. Because of the wavering performance of diverse brands of
constituents, the brand of the gears is as important to buyers as the brand of the overall
system.

 Customer Care

In trying to manage its market and clients, dell has set up one of the most efficient customer
care service that acts as a link of information between the customers and the company. This
has been in line with the corporation’s goal of ensuring guarantee free on-site service for a
year for its PC clients (Chase, Jacobs& Aqualino 2006, p.220).

Dell has contracted local service providers to manage and handle customer needs for repairs.
On-site service is provided on a next-day foundation. Dell also offers its clients with its
technical support via a toll-free numbers, fax and e-mail. Bundled service policies have
become a major selling point for bringing in corporate clients.

Dell's strategy has been to manage the flow of information garnered from customer services
which has been instrumental in improving product quality and also to speed execution of
serving its clients. Dell has also created a capital services group to support customers with
funding their PC systems.

 Recommendations
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There is need for dell to strengthen its relationship with developers and end users. This can be
done through identifying and meeting key users to discuss projected workloads usually
strengthens the relationships between IT infrastructure staff and customers. Communication,
negotiation, and a sense of joint ownership can all combine to nurture a healthy, professional
relationship between IT and its customers.

Dell has a good communication system with its suppliers but due to the competitiveness in
the modern IT world, there is need for improved communications with suppliers. The
company needs to avoid last-minute surprises to its suppliers. This can be done by involving
all suppliers and support staffs with capacity plans to promote regular and effective
communications among these groups. This will help the key players to have an easier time
when meeting deadlines, reducing costs, and also to offer extra alternatives for capacity
upgrades.

Dell should consider a comprehensive capacity plan that will increase cooperation with the
rest of the infrastructure groups. This infrastructure includes, operations, Network services,
technical support, desktop support, database administration, which play a role in capacity
planning. These groups should support and cooperate with each other so as to ensure a strong
and effective capacity plan.

Like any other organisational change, it is important to promote a culture of strategic

planning as divergent to tactical bombardment. Capacity planning is strategic and hence it
must focus on future plans and not the present ones. Hence it is important to institutionalize
capacity planning as a strategic planning culture.

3. Lean management at Dell Corporation

Lean management is also known as lean manufacturing or production. Lean management

simply refers to doing more with less. Lean enterprises requires that employees work harder
hence achieving more while using a very small workforce. The whole organization is termed
to be lean not just in manufacturing but in all other aspects in the company. People who work
in lean organizations have more control over their workplace as it is believed that those who
are nearest a problem are in the best position to make decisions to solve the problem. Lean
management considers several aspects that are key to ensuring that the company attains its
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goals while at the same time the workforce is contented and happy with their work (Kumar &
Yin 2004, p.12).

These aspects are, that the workplace is safe, and orderly and products are produced on a just-
in-time rationale by the customers demand. Hence this method does not allow market and
consumer forecasting which a common aspect with many traditional businesses. The second
aspect is that the manufacturing program uses programmable equipment’s that are crucial in
detecting defects. Mistake proofing is a key element of the manufacturing process. Another
key aspect of this method is that visual management methods are highly employed hence not
only are computers used for inspection but the real human eyes and videos are employed.
Lean enterprises also ensure that all departments from the raw material, through the
management, manufacturing and even the supply chain, there is utter pursuit of waste
reduction. There is also a pursuit in continuous improvement in everything. Elimination of
inventory is critical in most lean enterprises (Huh, Roundy & Akanyirdlim 2006, p. 144).

To comprehend the JIT mechanism as previously stated, key components of JIT is to lessen
waste and enhance value. There are numerous accomplishments that a corporation must
monitor as objectives for decreasing waste. Among these are, unnecessary waste times,
exaggerated inventories, superfluous people or material movement, pointless dispensation
steps, copious variability’s during a firm's actions and any other non-value toting activity
(Greenberg 2002 p.108).

3.1 Application of Lean Management in Dell Corporation

Dell Corporation is one of the companies that apply lean management tactics in its
manufacturing. Dell uses Just-In-Time strategies and also Total Quality Management to
ensure that the process of manufacturing is clear, simple and efficient. Just-in-time is a
concept that has gained wide reception in the commercial society over the past decade. The
notion behind JIT is to have the provisions a company needs at the exact instant that they are
required. In order to achieve this objective a firm must continually seek ways to decrease
waste and augment value (Chikara 1995, p.33).

Dell is the only computer company that utilizes effectively JIT management principles of lean
management within its industry. Using JIT management, Dell Corporation managed to
revolutionize the purchase of personal computers, by employing this direct direct-business
model whose central tenets include attracting custom orders straight from consumers, thereby
 Dell Company 7

dropping inventory and streamlining distribution (DI D RECT, 2001). In the JIT realm, After
Dell receives a customer edict; they then instigate fabrication of the merchandise that the
customer requests. This demonstrates a pull arrangement within the supply chain. A pull
system is reactive whereby manufacturing is implemented upon the buyer’s request of a
product. This exclusive supply chain offers Dell with a competitive gain within its industry
permitting them to be the market frontrunner over other companies (DI D RECT, 2001).

By using Just-In-Time dell has managed to improve its cost savings, enhance superior
customer satisfaction, reduce wastes and also managed to provide their suppliers with more
information. Because dell holds fewer inventories, they do not need to fund raw materials, or
work in process or even finished inventory. This has led to Dell increasing its revenue while
at the same time the company enjoys higher cost sharing initiatives (Pragman 1996, p.35).

Recommendations

In employing a strong JIT mechanism, there is need for Dell to involve more of its partners in
the mechanism from the raw materials partners to the supply chain partners. Because the
production of Dell products involves a lot of partners, JIT should not be limited to the
manufacturing and assembly points only. If these is done, there will be more revenue and
more addition of value to the products and the all the people involved. A good example is for
Dell to allow the storage of raw materials by its suppliers directly at the manufacturing plants.
This will help reduce the cost of ferrying cost materials from the supply centres to the
manufacturing areas. This is also key in helping ensure that the company does not waste time
when a customer puts an order (Krazit 2005, p.108).

Another recommendation is for Dell to ensure that the company has a more efficient lean
management; Dell needs to implement JIT Scheduling in its JIT mechanisms. JIT scheduling
will help the company to reduce inventory to the lowest possible working levels as it helps to
adjust schedules in terms of orders and deliveries. This will improve communication up and
down the supply chain as it will help initiate frequent orders for supplies and small
production runs. In JIT mechanisms, there is a breakneck pace in terms of orders and
production schedules which can only be managed by making small schedule changes to
orders and productions (Ndahi 2006, p. 97).

4. Dell inventory management

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Inventory management can be defined as the control and management of the resources in a
company that lead to products and services at the different sections in the manufacturing
process (Waters, 1999). Inventory is used to protect against cases of uncertainty but it can
also end up as a disadvantage by hiding problems. Due to fluctuating market demands, global
marketing opportunities and advancements in processing technology, firms have been
prompted to change their inventory management methods. The major reason for inventory
management is to provide data to make flow of materials efficient, effective and brilliant
when it comes to human resource and equipment utilization (Samuel, 1999).

Krajewski and Ritzman (2002), Propose the Build to Order philosophy as a more efficient
mode of inventory management. Build to order ensures that the business is built on direct
sales hence capitalizing on the inherent benefits by growing rapidly and at the same time
profitably. Expensive inventory thus is no longer part of the company because the inventory
does not build up in the supply chain channels.

4.1 Application of Inventory management in Dell Corporation

Dell's leading position within the computer manufacturing industry is the outcome of the
company’s strategic emphasis to lessen inventory and simplify, streamline distribution. This
approach has permitted them to retain only five days of inventory on hand (DI D RECT,
2001). This is the least sum of inventory of any corporation within the computer
manufacturing industry. Most corporations within the computer production hold between 20
and 30 days’ worth of inventory (Kanji 2002, p. 24).

Dell’s administration values as well as its supply chain which includes inventory, is founded
in “Build-to-Order” beliefs. This philosophy aligns Dell’s corporate units and people. The
success at Dell is primarily due to the strategy of exchanging inventory for information. This
means that in place of keeping inventory in hand in a warehouse or on hand at a selling
outlet, Dell keeps info about client orders, needs and forecasts at one place. Manufacturing
was used to predict orders that come in, alerted dealers of projected needed parts, and staffed
materials to meet demands. This gave Dell a lead in the marketplace because information is
easier to store, to move, to discard compared and less costly compared to inventory
(Hackman & Wageman 1995, p. 103).

Dell has horned its build-to-order process carefully for years, enabling it to involve involves
the entire manufacturing cycle and supply channel. Human touches in production, supply are
 Dell Company 9

minimized and where applicable they have been integrated to ensure high end products. The
entire system is managed by a combined and sophisticated internal and external mode of
information systems (Kanji 2002, p. 33).

The limited sum of inventory practiced by Dell has produced value for their clienteles. The
value produced for their consumers is a function of assimilating the whole value chain from
innovation, development, plan design, manufacturing, logistics, service provision,
distribution and sales (DI D RECT, 2001). By integrating the whole value chain, this has
created conspicuousness and provided sturdier dealings between Dell, the consumers and
suppliers. This visibility permits them to devote themselves in customer’s needs, rather than
trying to deduct what they might need (DI D RECT, 2001). Dell has a simple philosophy to
"only manufacture what their customers ask them to make, when they ask them" (DI D
RECT, 2001).

This inventory management strategy employed by Dell enables it to gain a time-to-market

benefit. Dell has managed to provide its customers with the latest and best Pentium 4
machines together with the operating systems 85 days earlier compared to their arch rivals
who spend 63 days of inventory and up to 25-30 days in the distribution channel. Hence in
total, HP has up to 90 days spent in inventory while Dell only spends 5 days. This has made
Dell to have a economic advantage while at the same time the company ensures that
customers do not change their requirements in the course of production lessening losses due
to wastes (DI D RECT, 2001).

Recommendations

There is need to increase accuracy, which is an important part of any inventory and this
should be encouraged across all sections of their structure. Having a little more inventory
may be important for Dell to deal and manage large orders accurately. This will impact the
inventory process positively.

Direct sales have been strength for Dell by making them customize its products. However,
partnerships with companies such as Intel limit the choices of Chips that customers need. To
strengthen their customization position, Dell needs to establish partnerships with other
suppliers such as AMD so as to give customers more choices in their inventory.

Dell should continue optimizing there supply chain systems so as to lessen the competition by
ensuring that suppliers will keep up with shortages. Suppliers should be updated on a weekly
 Dell Company 10

basis and not monthly basis on the market trend by Dell. The modern business atmosphere
changes rapidly and by ensuring that suppliers are up to date, then it is possible to ensure that
they can also adapt quickly.

5. Quality management and its implications and recommendation

Dell Company has a culture of providing quality and customized products that meet the
customer requirements. The Company has an ISO 9000 1: 2000 certification of quality
management systems. According to Magretta, Joan 1998, pp. 73, the Quality Management
systems are based on meeting the customer requirements and offering products that are
beyond the customer expectations. The Company has created a quality framework that clearly
defines the process controls, processes interaction and verification of activities. The processes
are meant to enhance quality assurance through prevention rather than detection. The
processes are guided by well documented procedures which are supported by training
records, and remarkable products and services compliance.

Quality plans for the Company are tailored in order to meet the customer needs. The quality
control systems of Dell Company are reviewed so as to continually increase effectiveness,
suitability and adequacy. The reviews include internal and external audit results, customer
feedback, product conformity and performance, status of the preventive measures, corrective
actions; follow up on the previous reviews, status improvement and the results from
improvement activities. According to Heidrick and Struggles 1997, pp. 8, the Company
monitors performance closely and values consumer feedback.

The Company also emphasizes on quality control, safety, efficiency and cost. This has helped
them to significantly capture the global market despite the existing competition from other
companies. However, the Company has to address the issues that pose a threat to the
Company. This can be done through ensuring that the employees are adequately trained and
motivated in order to equip them with the necessary skills. Adequate training of the staff will
help to reduce the number of servicing and replacement of faulty products after delivery. This
problem has been notable and can seriously interfere with the Company’s reputation and
lower business volumes. The staff should take specific project management courses that
match with their department in order to acquire the necessary skills. This will help them to
come up with strong teams, which will enhance the quality. Managerial support is an
 Dell Company 11

important element towards achievement of the desired organizational goals and improvement
of performance.

Recommendation

The Company should enhance their quality control systems in order to win the confidence of
the customers. This also applies to the customers who had encountered some problems with
Dell products.

Risk Management

The Company regularly encounters scenarios that pose a challenge to the Company’s logistic
capabilities. Some time, the Company has to deliver their products to some extremely remote
areas, especially military operations which are delivered under extremely challenging
circumstances. The company focuses on meeting the challenges, taking the mission seriously
and acknowledging the possibility of failure (Kirkpatrick, David 1997, pp 103). The
Company faces a global challenge, and this calls for the Company to craft their solutions
creatively. The Company holds meeting with Dell management team from different countries
in order to find get solutions to challenges that affect the Company.

Sometimes the Dell Company receives large and un-forecasted orders from customers and
this can significantly impact the supply management team. The Company has to modify their
plan in order to accommodate the variables. Language, cultural barriers and managing a large
number of staff and clients can be extremely challenging to the Company. The management
strives to build a relationship with the stakeholders and manage the customer experience. The
operations manager influences the main stakeholders within the Company in order to ensure
that a profitable business is maintained.

6. Analysis of project management and Recommendation

Project management entails of a full structured course which the users should undertake. The
Dell Company ensures that the users and support team undertake the project management
course in order to meet the organizational goals. The knowledge that is acquired from the
course will help them to acquire skills which will be in line with the operating manager. In
order for the Company to run effectively, employees require to have some additional skills
which will help them support the operations manager. The courses ensure the smooth running
of the Company’s operations (Heidrick and Struggles 1997, pp. 8). The users and the support
 Dell Company 12

team should be well versed with project management course in order to meet the Company’s
expectations. It is easier for the operations manager to coordinate the staffs that possesses
knowledge in project management since all the characteristics taught in project management
are geared towards high quality services delivery.

Dell Company has various departments and the employee can take project management that
suits their area of production. This can substantially improve productivity and performance of
the Company and also help in solving some of the governance problems. These are available
and taught online where users can access the information at the Company’s website in order
for easier access by the Company’s staff (Dell press release, 1996). The course offers detailed
information and is highly helpful to the staff in relation to performance. It is highly
recommended for staff. The following courses are taught: fundamentals, scope, time
management, estimating costs, quality standards, the team, communications, contract and
procurement, coordination and the process.

Note: (Need to explain and show practical new process or changes needed to improve or
maintain the business progress. In your recommendation it looks like you are saying that
attending the Project management course will solve the issues for Dell. You have to explain
the benefits of the course, but how it relates to Dell in a practical sense. It looks like all these
part below in this recommendation is not needed. The above recommendation is good
enough. If you want to keep this part you need help the lecturer see how this fit in with Dell).

The Fundamentals

The users are given the foundation and essentials of project management. They learn how to
initiate projects, differentiation between the project and product and the five groups of the
project management process. They are also taught the basic socio-economic and
environmental issues that can affect a project and how to manage them. The course also
covers the recommended structure of a project, role and challenges of the project manager,
staffing issues of the project and the organizational structure of the project.

Note: (So how does Dell need this part to improve? Need to explain and relate back to Dell).
 Dell Company 13

Scope

The learners are taught the basic components of a project scope, and also the role that scope
management plays in the process of project management. The users are taught how to get
project authorisation, use of the common selection methods in a project, writing of end
delivery description and project chartering. Considerations are made on the project
challenges, and the most viable assumptions are made. The course also teaches the actions
that are related to scope planning like how to write scope statements, drafting work
statements and the development of scope management strategies and ways to avoid scope
creep. The course also covers other notable aspects of project decomposition, benefits of
work breakdown structure and the elements of scope change management.

Note: (So how does Dell need this part to improve? Need to explain and relate back to Dell).

Time Management

The learners are taught the difference between activities, tasks and events. They are also
shown how to identify concurrent, predecessor and the successor activities. The learners are
taught on identification of dependency relationships, converting an activities list to a diagram
network and estimation of activity duration. The course also covers the different types of
floats, the use of Critical Path Method (CPM), GERT and PERT charting in a project and how
to calculate the appropriate time frame to be used in a project. Learners are also taught the
various methods of resource and schedule control.

Note: (So how does Dell need this part to improve? Need to explain and relate back to Dell).

Estimating costs

Learners are taught resource identification methods and tools for identifying the required
project resources. They are also taught on how to assign available resources to the activities
involved. The course offers instructions on using the work breakdown structure cost
effectively, estimating publications, and use of resource rates, using an accounts chart and
costs approximation and historical information. Users will also learn cost estimates and
budgeting, and correct identification of S- Curve in a project. The course covers depreciation
methods, cost control techniques, variance determination and capital budgeting.

Note:(So how does Dell need this part to improve? Need to explain and relate back to Dell).
 Dell Company 14

Quality standards

Learners will cover quality characteristics, issues related to quality management, history,
contributions of quality pioneers, and quality planning techniques. The users will learn the
techniques of using checklists and performing specific activities that are involved in
planning. Specific conditions used in the creation of a credible audit, proper requirements of
an auditor and the information that is contained in an audit are also discussed. The course also
equips the learners with knowledge on the maintenance of quality through the formation of a
system of quality control in a project.

Note: (So how does Dell need this part to improve.? Need to explain and relate back to Dell).

Risk management

The program analyses the types of risks that are involved in the project differences between
business risks and insurable risks, risk taking and actions to be taken during risk management
(Lawton, C. 2006, pp. 15). The learners are equipped with knowledge on identifying risks
and classifying them in accordance to their respective levels and impacts as well as the tools
of risk identification. Learners are taught the various methods used in risk assessment,
decision tress, and qualitative analysis and quantitative analysis methods that are used. The
response for effective risk management, various categories of risk response strategies and risk
management development strategies are also provided.

Note: (So how does Dell need this part to improve? Need to explain and relate back to Dell).

The team

The course covers factors such as the human resource roles of the project managers. The
learners acquire fundamentals of the planning, team building guidelines and other essentials
of project staffing. It also covers staff acquisition techniques, characteristics of a viable team
and the issues that arise in managing of personnel. The learners undertaking the course are
expected to acquire knowledge on team work and creating a conducive work environment in
order to enhance quality performance. This is achieved through overcoming barriers to
effective team development and applying motivation theories in team development.
 Dell Company 15

Note: (So how does Dell need this part to improve? Need to explain and relate back to Dell).

Communication

This covers the various steps that are involved when planning a project communications
strategy as well as guidelines on how to provide the support needed to the employees in order
to help them fulfil their various responsibilities. The learners are taught the various methods
of communication and their appropriateness in information distribution. This is meant to help
them to communicate actively in informal team setting. At the end of the course, learners
should be able to distribute information effectively, have an understanding of project
classification, reporting and the conclusion.

Note: (So how does Dell need this part to improve? Need to explain and relate back to Dell).

Contracts and Procurement

The program is meant to help learners to identify the various contract types, plan
procurement, solicit and negotiate with contractors, contract administration and closing of
contracts.

Note: (So how does Dell need this part to improve? Need to explain and relate back to Dell).

Coordination

The course covers the various activities involved in project integration, the management
plans that are used during the process of project implementation, plan development and
implementation, and control change. According to K.M Eisenhardt and S.L Brown 1998, pp
59, coordination is an essential ingredient towards prevention of sub optimization.
Coordination between business units, individuals and geographical location is necessary.

Note: (So how does Dell need this part to improve? Need to explain and relate back to Dell).

The Process

This course is meant to equip the learners with knowledge on understanding the process of
project management, initiating and planning projects, executing and controlling a project and
finally they should be able to close or conclude a project.
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Note: (So how does Dell need this part to improve? Need to explain and relate back to Dell).

9. Analysis of Information systems and Recommendation

According to Forbes, 1992, pp. 82, Dell Company has continually revised its information
system strategies. Information systems are critical at the Dell Company. According to
Kraemer et al, the Company has continuously refined its business model with precision and
complexity. The information systems help to support the Company’s direct business model
through providing a variety of options at the order entry level up to the product integration
level (Di Carlo, Lisa 1997, pp. 18). The information systems also help to provide effective
communication channels that deliver instant messages to the employees. The information
systems are designed in a manner that connect the suppliers to the Company and also help to
gather feedback from the market as well as support product development (Langlois, Richard
N. 1992, pp. 3). The Dell Company model is divided into small units and is locally controlled
but possesses a global view of business. The direct business model implies that each of the
Company’s products is uniquely designed according to the specific needs of the customer.
Due to this reason, it is difficult for the Company to have only a single standard information
system model.

According to Kreimal et al, Dell Company IT architecture uses a G-2 blue print on architect
systems, executing development and implementing rollouts in order to deliver the failed
client servers. The model design is flexible and this ensures convenient making of changes
without disrupting the whole system. The G-2 architecture has a web browser, message
broker and database. This enables the Company in running the best applications instead of
operating an only one enterprise system. This flexibility allows Dell Company to make
expansions on its information systems capabilities and meet customer's demands without
interfering with other normal business functions (Kraemer, Kenneth L, and Dedrick, Jason
1998, pp. 303). Dell’s IT is integrated within the Company’s regional operations and it is
decentralized. The IT systems provide support to the business as a whole. The IT services
include network services, help desk, data centre and database administration. The IT systems
are used to coordinate other activities such as production, procurement, logistics, support and
service. The Company has used its IT in achieving virtual integration between strategic
partners and suppliers through speedy and efficient information sharing.

Recommendation
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The IT systems should be constantly updated since they play a critical role in ensuring the
success of the operation manager and that of the Company as a whole. Updating the systems
will help the Company to detect, analyze and solve problems before they become serious.

10. Role of operations manager

The Dell management pack is designed in a way that it can easily be customized in order to
suit managed environment. This helps in extending the capabilities of Microsoft Operations
manager 2005 (MOM). MOM helps in enhanced management and monitoring of the Dell
systems. Dell Company has Remote Access Controller which is designed to help in
management capabilities, control functions and recovery of crashed systems. The Remote
Controller has been integrated with MOM in order to enhance remote management. Dell
management pack offers a number of public opinions which helps the administrators in
monitoring and managing the Company’s network systems. The MOM Operator console
provides the Company’s state view such as the monitor’s health, problems and the
recommended solutions.

The operational manager is responsible for all day to day operation processes of the company
such as setting up of orders, entering and ensuring that the orders are delivered on the
indicated date to the retailers (Ramstad, Ewan 1997, pp 18). The manager ensures that all the
external activities of the Company are well coordinated.

The operations manager is integrated with other departments such as planning, finance
department, Life Cycle, Order Entry, E2E with the Sales Account Manager, Global
Fulfilment, and Logistics both internal, and the third parties in order to scope, plan new
opportunities, and allow for Dell capability assessment (Magretta, Joan 1998, pp. 73). This
helps in matching the needs of each opportunity with available resources and ensures that the
Company’s financial goals are met.

The operations manager also communicates the Company’s expectations, challenges and
timescales to the Company’s Operations team in order to help them manage the E2E process
of ordering and fulfilment effectively. This includes communicating non sales notifications to
the non-buying people within partners. The manager also documents and governs the internal
and external challenges of the customers. The manager provides support for the fulfilment
programs in order to meet the customer needs. The manager coordinates all the support teams
and this ensures efficiency in delivery of products to customers. The operations manager is
 Dell Company 18

designed to be the single customer’s point of contact and manages the customer escalations
until closure (Stafford 1999, pp 5).

The operations manager is responsible for monitoring the company’s numerous enterprise
systems such as the software and hardware. This helps Dell Company in meeting the
demands of the supply chain as well as the manufacturing solutions in order to stay ahead of
the competition. The operation manager liaises with the IT department in order to ensure that
the IT management solutions are scalable in order to help the company’s operations run
smoothly globally. This assists the company to manage its extensive IT systems with minimal
cost and time. The operations manager helps the company in keeping a close watch to the
systems and alerting the IT staff in case of a threat or potential problems. This includes
potential hardware problems like memory loss, fan and drive failure, and other temporal
issues.

The operations manager works closely with the Systems management Server in ensuring
quality and speedy services delivery to the clients (Mendelson, Haim, and Pillai, Ravindran R
1998, pp 415). The manager ensures timely updates for all the meetings and also avail the
quarterly metric updates to the retailers.

Note: (This is describing and I can’t see your practical recommendation to improve or
remove the operation manager role in Dell’s company. This not connected to any parts of
your write up for this assignment. Have to show how this role is beneficial to Dell).

11. Conclusion

Dell has applied theory and philosophy in its strategies to ensure that the company becomes a
market leader in its manufacturing activities. The capacity planning employed by Dell is seen
to be revolutionary as it has enabled the corporate part to link itself with the both the
suppliers and clients into a better and value adding relationship. Lean management has been
strength in the corporation’s activities by helping the company to provide Just-In-Time, by
order production of its products. By doing this, the company has minimized its inventory and
thus reducing the cost and increasing its revenue. Minimal Inventory is a philosophy that
helps to speed up the acquisition of materials by the company and also the delivery of
products to its consumers. This has been critical in ensuring that Dell overtakes its main
rivals such as Hp. Dell through its structured strategy based on this philosophy has become a
 Dell Company 19

market leader in the computing world while at the same time the company is more adapted to
the global market compared to any other company in the computer manufacturing industry.

Dell has continued to thrive in the PC industry. The key element towards the success of Dell
Company has been the direct sales and its business model. Dell IT systems play a crucial role
towards the overall success of the Company. Dell has an advantage over other companies
since it majors on providing information systems solutions instead of vending hardware. Dell
is a global company producing renowned brands and high quality products. The company’s
culture has helped it stay ahead of competition from other computer manufacturing
companies. Dell Company deals directly with the clients hence it has been able to configure
quickly and customize their products to meet the consumer expectations without comprising
the quality of their products.

Note: (Please make sure that your conclusion is a summary that relates to all the above points
that you mention about Dell.)

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 Dell Company 22

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