Topic > Operational Management

In today's society, most people cannot be separated from an electronic product. Without electronics, our life would be at a standstill and nothing would be completed quickly. In 1984, in America, the legend of Dell began. There was a student Michael Dell from the University of Texas at Austin who would like to build relationships directly with customers. In order to focus full time on his nascent business, he dropped out of college. After a decade, Dell has become the largest technology company employing more than 103,300 people worldwide, starting with his family's $1,000 expansion capital. One of the main factors determining Dell's success is operational management. Nowadays, operations management plays a central role of any organization as it supports the entire operational system of the organization. It leads to positive results and helps companies achieve high profits such as reducing labor costs. Because operations management makes business practices more efficient, Dell continually attempts to shift from a focus on operations management to maximizing profit and strategy. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an Original Essay Nowadays, operations management plays a crucial role in grounding, budgeting, and cost control. As an international company, Dell has sufficient skills and knowledge to advance its global strategy and bring a great competitive advantage to the company. One of the elements of Dell's competitive advantage can be attributed to their strong SCM process which gives them superiority over the competition. To gain an advantage over its competitors, Dell locates its factories near its regional market such as Ford, Boeing, and Texaco to reduce delays between purchase and delivery. Therefore, the assembly, testing and packaging process can be completed in just eight hours from the time the order is received. To create a competitive advantage, Dell adopts the direct sales model in its manufacturing process which has extremely low lead times and produces goods and services quickly and with high quality. In such a rapidly growing society, people's living standards continue to take a step forward, and people's demand is becoming more and more diversified. To meet a variety of customer needs, customized manufacturing is becoming and is 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 invests a lot of resources in efficiently installing and configuring PCs. It uses the web-based information system which increases the relationship with its customers and suppliers. Module-based, the product can react quickly to address various problems or provide help when needed or know the needs of different customers. A successful mass customization strategy delivers high customer satisfaction which leads to improved Dell's reputation and sales and has even attracted diverse interest from competitors across industries. Additionally, with custom and made-to-order assembly, Dell benefits from lower cost production of goods and consistent low prices. With the main mission of achieving excellent quality, competitive prices and warranties, Dell achieves great customer demand and market growth. E-waste is atype of solid waste, the number of which is increasing dramatically as a result of the rapid development of information technologies. At the same time, as a global manufacturer of information technology products, Dell aims to achieve the positive impact of creating an enabling environment for its customers and the planet. Design a product with closed-loop plastics technology. Dell uses plastic from old computers recovered by technology collected through its recycling commitment, turning it back into new plastic parts extends the life of these plastics. Using recycled materials instead of virgin content results in a smaller carbon footprint and even reduces costs or improves service and increases customer loyalty. In recent years, like other companies, Dell faces the biggest challenges to improve the product which is high quality but low price. By the late 2000s, the desktop computer, which was Dell's main focus, was being overtaken by laptops and smartphones. Although technology is changing rapidly as time passes, it pushes many new competitors to enter the market such as Apple and Acer who have adopted extreme focus on global innovation. However, Dell was still consistent with its outlook and refused to realize and keep pace with technological change. Dell drops out of the ranking of the world's leading computer manufacturers. Like any start-up, Dell fails to achieve its goals due to poor strategic planning. As we can see, the market is difficult and the economy is shaky, in the last month the value of the dollar exchange rate has weakened and Dell has had to pay more to its foreign counterparts. Dell shareholders suffer from the fact that the interest on the investment is not guaranteed and this in return affects the decline in Dell's share prices and the inability to generate strong liquidity cushions and maintain a consistent cash balance. As the old saying goes, every coin has two sides, especially the stock level. Due to the success of its direct sales model, this leads to an inability to scale and meet demand as order processing is time consuming and costly. In some stores, this causes a long delay in receiving the order and turns away some regular customers. Sometimes, customers change their minds at the last minute, which also takes up an increasing share of resources. As a result, this could cause a severe impact on Dell's net sales and revenues. Traditional strategic planning was often based on previous data and created huge blind spots in the final strategic plan. Therefore, this is why Dell is struggling so hard because it fails to understand the needs of its customers except for low prices. In the high-tech area, most companies are moving towards a build-to-order process. and Dell is no exception. At Dell, the build-to-order process is called "pull to order", which is similar to total quality management. It's just part of Dell's approach to efficiency as it can eliminate warehouses in factories and reduce the need for human intervention by half. With the pull-to-order system, Dell is able to achieve a four-hour production cycle. Therefore, Dell generally fulfills customer requests within five days. In dealing with suppliers, Dell is able to maintain a perfect balance between supply and demand and its inventories are reduced to just three days' worth using its Internet-based ordering system that updates suppliers with the latest demand trends . It also improves cash flow or shores up the balance sheet by paying suppliers after customers pay off their credit..