Operations Management

Operations management
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Operations Management
Operations management (OM) usually centers on carefully managing the processes to generate and distribute services/products. On the whole, the main activities consist of creation of product, development of product, production of product, as well as distribution of product. Much focus is on effectiveness and efficiency of processes. As such, OM typically comprises significant measurement as well as analysis of internal processes (Stevenson, 2007). This research paper is conducted on Dell company and includes a description of Dell Corporation and the industry the company operates in, a detailed description of 4 aspects of Dell’s Operations Management, an explanation of how these elements directly relate to Operations Management, and how these concepts work together to resolve business problems. Moreover, this research paper provides an analysis of how these 4 concepts reflect effective management and efficiency, an assessment of the operations concerns within the international markets, as well as an assessment of the corporate social responsibility (CSR) issues regarding quality and industry standards.
Dell Inc. (Dell)
Dell Inc. is an international information technology (IT) corporation which provides its customers with various services and solutions that are delivered directly by this company and through other channels of distribution (Dell, 2014a). Dell – the third largest personal computer (PC) maker worldwide just behind Lenovo which is first and HP second – operates in 4 segments: (i) Large Enterprise segment: customers in this segment include national and international corporate businesses. (ii) Public segment: Dell’s public customers include health care, government, police agencies, and educational institutions. These customers operate within their own communities (Dell, 2014a). (iii) Consumer segment: this segment focuses on delivering technology experience of mobility, design, gaming, and entertainment. (iv) Small and Medium Business segment: this segment focuses on assisting small and medium-sized companies by providing services, products, and solutions (Dell, 2014a). Four aspects of Dell’s Operations Management (OM) include inventory management; logistics; quality standards; and facility layout.
How the 4 aspects of Dell’s Operations Management directly relate to OM
OM is the strategic administration of production processes as well as human resources to minimize faults, maximize productivity, and continually improve quality of the product (Ingram, 2009). Inventory management: Ingram (2009) pointed that inventory is a highly valuable asset of many businesses and represents in so far as 50 per cent of total invested capital. Operations managers need to balance between customer service and inventory management. Inventory management commonly entails managing the material resources of a company that may assist the company to earn revenue in future; the operations manager is in charge of the managing part (Romeri, 2012). Inventories are vital for an organization to operate in an efficient manner and virtually every business transaction involves the delivery of a service or a product in exchange for money and because of this, inventory management is a crucial element of core operations activities. Wholesale organizations and retail businesses normally obtain most of their revenue by selling merchandise, which is inventory (Stevenson, 2007). For businesses and supply chains to run in an effectual way, they need to meet each of the listed requirements for efficient management of inventory. Some of the major concerns include the extent of customer service, as well as the cost incurred to order, store, and carry inventory. As such, to be a profitable and successful firm, inventory management should be managed prudently (Ingram, 2009).
Logistics: a logistics operations manager has the task of running a distribution plant and deals with freight brokers and delivery companies to make sure that distribution operations run smoothly. Logistics operators are in charge of ensuring that the right goods depart the distribution plant punctually, in the right amount, and bound for the correct destination using the most cost-effective mode of transport (Stevenson, 2007). Logistics operations manager makes sure that incoming materials from the suppliers are actually in good order and stored properly, and that the outgoing materials and parts for clients leave in good condition and in the appropriate amounts. They also look into and solve problems with staffs, shipping firms, customers, and suppliers (Ingram, 2009).
Quality standards: the process of quality control assesses output relative to a quality standard and takes corrective action whenever output does not satisfy these preset standards. As such, quality control with regard to consumers would be the constant act of ensuring that products, designed and produced, are made to satisfy and surpass the customers’ needs (Rajandran, 2013). Quality control ensures that particular processes are actually performing up to the company’s set quality standards. Given that the key activities of OM are creation, development, production as well as distribution of product, quality standards must be met in these activities. Products must be of right quality before they are dispatched to customers (Romeri, 2012).
Facility Layout: this is understood as how equipment, workstations, workers, and machinery are positioned in a work facility. Facility layout is a crucial aspect of operations management. Business owners have many options to select from when it comes to designing the layouts of their facilities, depending on the buildings’ size, the size of the yards, as well as other spaces which they have to work with (Ingram, 2009). Operations managers put up manufacturing facilities in such a manner as to reduce the holding or travel time of semi-finished goods between various stations. Air and noise pollution could be a major factor in some businesses. Even though it might be convenient to position many work stations within a small area, the operations manager may need to spread things out in order to maintain both a healthy and safe work environment (Ingram, 2009). Choosing the appropriate layout processes in a manner that is most efficient can lower operational costs, increase productivity, and enhance quality of the product – the main goals of OM. Operations managers constantly reassess their production setups to find opportunities to boost manufacturing effectiveness or save money (Romeri, 2012).
The four aspects work together to resolve business problems at Dell Inc.
Operations management entails managing people, systems and processes to deliver a service or product with the collaboration between different departments in the company. The 4 aspects – inventory management, logistics, quality standards, and facility layout – work together to resolve business problems at Dell in that they all collaborate to make critical contribution to the company. For instance, the facility layouts include features that enhance the company’s speed, quality, as well as efficiency. Layouts of Dell’s facilities allow a computer to be tested as its software and parts are installed and this ensures that the output, which is the finished product, attains the quality standards and is actually of the highest possible quality before being shipped to the end-user (Dell, 2014b).
The facility layouts also enable efficient inventory management; the inventory management at Dell uses Just-In-Time system whereby inventories arrive or are produced just in time for the next process or for dispatch. Dell has zero inventory since it has removed the resellers and it sells directly to consumers (Dell, 2014b). To ensure Just-In-Time inventory management and zero inventory, Dell’s logistics division, upon receiving the finished goods, segregates them to their respective destinations by country, and then by state or province, and then by district, county or city before shipping them. In this fashion, the four aspects work together effectively to resolve business problems at Dell to facilitate efficient product of goods, minimize errors, maximize output, and continually improve quality of the product.
How the 4 concepts reflect effective management and efficiency
The 4 elements reflect effective management and efficiency. (i) Inventory management: Dell implements Just-In-Time (JIT) as an inventory management system to maintain low inventory. JIT was essentially a production model that was applied by Toyota in the ‘60s. In a JIT...