The following are the manufacturing strategies as employed by Dell:- Engineer-To-Order (ETO) – It is a manufacturing philosophy whereby finished goods are built to unique customer specifications. Assemblies and raw materials may be stocked but are not assembled into the finished good until a demand from customer is received. Configure-To-Order (CTO) – It is a method of manufacturing which the customer, to select a base product and configure all the variable parameters associated with that product.
Based on the configurable items on each quote or order, CTO systems typically generate the manufacturing routing and/or bill of materials based on features and options such as colour, size, accessories , etc. * Features:- * Reduce product lead time and cost. * Make order entry more reliable. * Reduce the number of product structures and routings. * Streamlines the order fulfilment process . Flexible manufacturing system (FMS) – Mass customization generates a variety of different products that requires manufacturing system to be highly flexible.
This factor reflects capacity of production in terms of adaptation to high difference of products without lead time, cost of changing the system, and regardless of small volume of ordered products. Often if a company effectively organizes its modular product design, the manufacturing system is flexible, consequently it delivers the variety and lower cost features in a timely manner. METHODS OF PRODUCTION Assembly Line/Flow – It is used when product demand is high. Dell is heavily automated, utilizing special-purpose equipment.
There is usually a fixed set of inputs and outputs, constant throughput time, and a relatively continuous flow of work. Certain requirements to be met are:- * There must be substantial constant demand. * Production tasks are standardised. * Materials used in production must be to the specification and delivered on time. * Output from each stage of flow must conform to quality standards. Mass Customization – It is the ability to provide customers with anything they want profitably, any time they want it, anywhere they want it, any way they want it. Some of the approaches are :- * Collaborative customization :
This approach follows three steps: first to conduct a dialogue with individual customers to help them articulate their needs; second, to identify the precise offering that fulfils those needs; and third, to make customized products for them. * Adaptive customization : Adaptive customizers offer one standard , but customizable, product that is designed so that users can alter it themselves. It enables the customers who want the product to perform in different ways on different occasions, and available technology makes it possible for them to customize the product easily on their own. Transparent customization : This approach is appropriate when customers’ needs are predictable or can easily be deduced, and especially when customers do not want to state their needs repeatedly. Offerings were customized within a standard package for individual customers.
Dell Computer uses the collaborative approach and assembles computers to customer’s exact specifications The six skills that seem to be required for mass customization to be successful are: * identify and satisfy the needs of individual and unique customers. provide suppliers with a stake in their own success. * ability to eliminate inventories and the waste of effort, space, and capital. * organize “competent ”skilled individuals into empowered, self managed work groups. * balance resources across multiple projects to achieve program success. Benefits of Dell Services manufacturing solutions: * Cost savings that increase returns on technology investments and enable redirection of capital to business growth. Greater agility to respond to changing markets. * Greater insight into business operations for more informed decision-making based on objective data . * More efficient management of suppliers . * More effective enterprise resource planning and customer relationship management. * More successful IT initiatives and project/program management through proven methodologies and best practices. * Risk mitigation through business continuity, disaster recovery, and information assurance services.