INTRODUCTION

Dell is the largest computer-systems company based on estimates of global

market share. It is also the fastest growing of the major computer-systems companies
competing in the business, education, government, and consumer markets. Dell’s product
line includes desktop computers, notebook computers,network servers, workstations, and
storage products.Michael Dell founded the company based on the concept of bypassing
retailers and selling personal com-puter systems directly to customers, thereby avoiding
the delays and costs of an additional stage in the supply chain. Much of Dell’s superior
financial per-formance can be attributed to its successful imple-mentation of this direct-
sales model.
Through the years Dell went from producing PC’s to software, hardware,
workstations, electronics, printers, tablets, mobile devices, networking, storage devices,
servers,security products and other electronic devices and information technology syste
ms but it all started with just building computer systems. Dell doesn’t just sell products to
personal consumers. Dell also targets government, healthcare, education and small and
large corporations.

POINT OF VIEW
In this case analysis, the perspective the COO’s point of view. The chief operating
officer (COO) will oversee the design, enhancement, implementation, reporting, and
oversight of financials, operations, human resources and compliance. Reporting to the
Managing Director and working as a key member of the management team, the COO will
take a leadership role in building, implementing, and overseeing all of the Bank’s systems,
processes, workflows, and procedures. The COO will also pay a critical role in helping to
shape and guide the future growth and development of the company. The COO will
develop, refine and implement operations strategy including aspects such as area
selection, product design and delivery, total quality management, client relations and
communications. S/he will be responsible for the management of the overall quality and
efficiency of operations. S/he will ensure that the company delivers an outstanding service
that is client focused and efficient at all times.
PROBLEM
Dell has huge varieties of products and components made by different suppliers
and different countries. So sometimes it faces unexpected problems caused by different
component which is used for the products. It is a minor case which happened in 2004.
Dell had to recall 4.4 million laptop adaptors because of a fear that they could overheat,
causing fires or electric shocks.
The main weak point of Dell is that it doesn’t manufactures product. It depends
upon other manufacturer and it buys assemblies from supplier and produce products as
per customer’s choice and desires. So dependability may hamper the competitive market
of Dell. Dell buys its component from selected high-tech component manufacturer. So
sometimes manufacturer or supplier who stop manufacturing supplies for Dell, Dell has
to bear huge loss on its overall sales.
In this case study a problem that is observable in this regard is that it would require
to re-analysis of the present inventory whereby the company relies on the supplier.
Having a supplier is crucial because if you pass poor quality products onto your
customers, or compromise on service because of your supplier, you’ll run the risk of
damaging your business’ reputation. TQM (total quality management) is critical in JIT
since poor quality would cause us to not deliver the right products at the right time in the
right quantities. Poor quality would cause us to have to either spend time fixing the
product or to scrap it if it can not be fixed.

OBJECTIVES FOR ANALYZING THE CASE

This paper aims to
● identify the factor/s that affects the inventory management,
● address the factors by giving alternatives, and
● discuss the alternatives’ significance to the said company
Alternative Courses of action
A. Supply Chain Management
Supply chain management is the act of overseeing and managing the supply chain
to ensure it is operating as efficiently as possible. That means, amongst other things,
ensuring all suppliers and manufacturers are maintaining the desired quality of production
and that both camps are engaged in ethical business practices. Supply chain
management synchronizes a firm's processes with its suppliers and customers with the
goal of matching the materials, services and information with customer demand.
The relationship between the supplier and buyer is critical. Quality and efficiency are the
most important factors for companies in their relationship between suppliers and
customers (Sila et al., 2006). Therefore, supplier and customer relationship management
processes can enhance or inhibit competition. Critical processes to this relationship
include communication, mutual assistance on new product development, and training.
Strong relationships develop win-win relationships, trust, openness and honesty.
The supplier certification program acts as a part of a larger strategy of the supplier
quality management. It essentially is a process by which the organization can manage its
relationship with its suppliers to coordinate as a single entity for creating value for all
stakeholders. The supplier certification specifies a minimum requirement expected from
the supplier to be eligible for working. This process aims at a continuous improvement.
For Dell company, a world head in PCs and related items production, an extensive
supplier certification program may improve quality and decrease costs for Dell and their
suppliers. As a follow-up to supplier choice, supplier performance rating systems help
with building up a more grounded linkage among provider and purchaser through building
up a success win relationship for the two partners, and assist with standardizing and
homogenizing quality goals throughout the supply chain. Process improvements likewise
help with communication improvements to discuss quality requirements with suppliers,
and using performance measurement systems, supplier improvement programs can be
developed.

B. Labor Efficiency
Companies use labour efficiency to measure the performance of their
manufacturing operations. Ideally, workshop managers for Dell company should be
looking for expert manpower to achieve efficiency in production. Laborers with limited
skills are likely to be less productive than workers with specific skill sets and experience.
They may not have the knowledge or ability to highly productive, or they may not feel the
need to perform beyond basic job requirements due to their lower position on most pay
scales. These circumstances can cost the company money in terms of lower output,
missed deadlines, slow order fulfillment or slow job completion.
The labor efficiency variance measures the ability to utilize labor in accordance
with expectations. The variance is useful for spotlighting those areas in the production
process that are using more labor hours than anticipated. An unfavorable variance means
that labor efficiency has worsened, and a favorable variance means that labor efficiency
has increased. Dell company must hire high-skilled workers to improve its efficiency and
effectiveness. Also, to minimize the number of workers without affecting the quality of the
product.

Conclusion
Dell is a very successful company because it gives customer the option of
customization and also it has direct interaction with customers. Dell is very successful
towards its basic mission of direct sale to customers. Amongst the advantages and
success that Dell has, there are also difficulties that the company is facing as mentioned
above. Dell has to look into other alternatives to improve its product quality and suppliers
and labor efficiency. There are alternatives provided and by implementing those, Dell
company can manage its inventory and their product’s quality efficiently. Dell try to apply
these suggestions then it would be beneficial.

On the other hand, the basis of these alternatives is the control chart, which is a
graph used to study how a process changes over time. Data are plotted in time order. A
control chart always has a central line for the average, an upper line for the upper control
limit, and a lower line for the lower control limit. These lines are determined from historical
data. By comparing current data to these lines, you can draw conclusions about whether
the process variation is consistent (in control) or is unpredictable (out of control, affected
by special causes of variation). This versatile data collection and analysis tool can be
used by a variety of industries and is considered one of the seven basic quality tools.
Above all, It gives the company the ability to monitor, plan and control inventory for their
customers.
 Formatted: Indent: First line: 0"

Exhibits Formatted: Font: (Default) Arial, Highlight

Fig 1.0 Quality Control Chart

Fig 2.0 Labor Efficiency

Fig 3.0 Control Chart

References:
American Society for Qualit (2019). Control chart. Retrieved on September
29,2019 from https://asq.org/quality-resources/control-
chart?fbclid=IwAR267Fp1_5D54oQU_gIZdLdn9nHkuj_nNhmfSBRKhtgtgkgsEyO
4sBJsPmo
Mainstay Manufacturing (2015). What is just-in-time manufacturing? Retrieved on
September 29, 2019 from https://mainstaymfg.com/just-time-manufacturing-
eliminate-waste-improve-productivity/
Masudin,I., Kamara, M (2018). Impact of just-in-time, total quality management
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https://www.researchgate.net/publication/323577357_Impact_Of_Just-In-
 Time_Total_Quality_Management_And_Supply_Chain_Management_On_Organ
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