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Essay / Operational Management
In today's society, most people cannot be separated from an electronic product. Without electronics, our life would be at a dead end and nothing could be achieved quickly. In 1984, the Dell legend began in the United States. There was a student Michael Dell at the University of Texas at Austin who would like to establish direct relationships with customers. In order to devote himself full time to his young business, he dropped out of university. In a decade, Dell became the largest technology company employing more than 103,300 people worldwide thanks to his family's $1,000 expansion capital. One of the main factors that make Dell successful is operations management. Nowadays, operations management plays a pivotal role in any organization as it manages the entire operational system of the organization. This leads to positive results and helps companies achieve high profits, for example by reducing labor costs. Since operations management makes business practices more efficient, Dell continually strives to shift its focus from operations management to maximizing profits and strategy. Say no to plagiarism. Get a tailor-made essay on “Why Violent Video Games Should Not Be Banned”? Get the original essay Nowadays, operations management plays a crucial role in establishing foundations, budgeting and cost control. As a global company, Dell has enough skills and knowledge to successfully execute its global strategy and bring great competitive advantage to the company. One element of Dell's competitive advantage can be attributed to its strong SCM process, which gives it superiority over the competition. In order to gain an advantage over its competitors, Dell locates its factories near its regional market like Ford, Boeing and Texaco to reduce the time between purchase and delivery. Thus, an assembly, testing and packaging process can be completed in just eight hours from receipt of an order. To create a competitive advantage, Dell adopts the direct sales model in its manufacturing process, which has extremely low transfer time and produces goods and services quickly and with high quality. In such a rapidly growing society, people's living standards continue to advance and people's demands become more diversified. To satisfy a variety of customer requirements, tailor-made production is becoming and widely used by a company as it can achieve variety and high customer satisfaction. In the IT industry, the key factor for business survival lies in maintaining a good and strong connection with customers. Unlike other competitors, Dell devotes a lot of resources to efficiently installing and configuring PCs. It uses the web-based information system which increases the relationship with its customers as well as its suppliers. Based on modules, the product can respond quickly to solve various problems or provide help if necessary or know the needs of different customers. A successful mass customization strategy delivers high customer satisfaction, which leads to improving Dell's reputation and sales and has even attracted diversified interest from competition across industries. Additionally, through custom and made-to-order assembly, Dell benefits from lower-cost production of goods and sustainable low prices. With a core mission of achieving excellent quality, competitive pricing and warranties, Dell enjoys strong customer demand and strong sales growth.walk. Electronic waste is a type of solid waste, the number of which is increasing significantly due to the rapid development of information technology. At the same time, as a global producer of IT products, Dell aims to make a positive impact by creating a favorable environment for its customers and the planet. She designs a product with closed-loop plastics technology. Dell uses plastics from old computers salvaged through technology collected through its recycling efforts. Turning this into new plastic parts extends the life of these plastics. Using recycled materials rather than virgin content results in a lower carbon footprint and even helps reduce costs or improve service and customer loyalty. In recent years, like other companies, Dell is facing the biggest challenges of improving the product with high quality but low price. . By the late 2000s, the desktop, which was Dell's priority, was being overtaken by the laptop and the smartphone. Although technology is evolving rapidly over time, it is causing many new competitors to enter the market, such as Apple and Acer, to focus extremely on global innovation. Nevertheless, Dell remained consistent with its own perspective and refused to follow technological change. Dell drops out of its ranking as the world's leading computer manufacturer. Like any start-up, Dell fails to achieve its goals due to poor strategic planning. As we can see, the market is unstable and the economy is faltering. Over the past month, the exchange value of the dollar has weakened and Dell has had to pay more to its foreign counterparts. Dell shareholders suffer from the fact that investment interests are not assured, which in turn affects the fall in Dell's stock price and their inability to generate strong cash reserves as well as maintain a cash balance. significant cash flow. As the old saying goes, there are two sides to every coin, especially inventory levels. Due to the success of its direct sales model, this leads to an inability to scale and meet demand because order processing is time consuming and expensive. In some stores, this causes a long delay in receiving their order and turns away some regular customers without an appointment. Sometimes customers change their minds at the last minute, which also consumes an increasing share of resources. As a result, this could have a material impact on Dell's net sales and revenue. Traditional strategic planning often relied on previous data and created huge blind spots in the final strategic plan. So that's why Dell has such a hard time understanding their customers' needs, except for low prices. In the high-tech field, most companies are moving toward a make-to-order process. and Dell is no exception. At Dell, a build-to-order process is called pull to order, which is similar to total quality management. This is just part of Dell's approach to efficiency, as they can eliminate their factory warehouses and cut the need for human intervention in half. Using the on-demand ordering system, Dell is able to achieve a four-hour production cycle. Therefore, Dell typically responds to customer requirements within five days. In its relationships with suppliers, Dell is able to perfectly maintain the balance between demand and supply and its inventories are reduced to just three days using its Internet ordering system which updates the.