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3) Two of the critical components of Dell's business model in the US were (i) direct sales to customers (rather than through retailers or value-added
3) Two of the critical components of Dell's business model in the US were (i) direct sales to customers (rather than through retailers or value-added resellers) and (ii) masscustomization capability in a build-to-order manufacturing environment. Dell captures product requirements directly from the end customer (through a web site) and then builds its computers to those specifications, including software downloads. Custom-built products are typically shipped to customers within five days after receipt of an order. The heart of the plant is populated by one-person build cells. Assisted by web-based online work instructions, an experienced operator in a standard cell can assemble any of the 10 basic server platforms - in various configurations. The production control manager Mark Lozano said "With the old-style progressive-build approach, you pretty much batched your build every day. You could not change what was going down the line. But here, you can build whatever you want when you want. In one cell we can have a highend machine following a low-end machine." Server components begin their journey through the plant at one of the two locations. In one area, motherboards are prepared and installed into the computer chassis. In the second, a kitting area, other components are pulled from storage racks with the aid of a computerized "pick to light" system and placed into totes (plastic boxes). From there, intelligent conveyors deliver the materials to an open build cell. In the cell, the operator does the rest - including putting in the screws. Under a "buddy" system, a builder will ask another operator to make a visual inspection before he/she screws the cover onto the box. Next stop is the extended-test rack where detailed diagnostics are conducted prior to downloading and testing the operating system and application software - all based on the specs ordered by the customer. a) What does Mark Lozano mean by progressive build? What does he mean by "batching your build every day"? M301 Fall 2022 b) Give three advantages of having a cellular (cell-based) production as opposed to the old system at Dell. Make use of our discussion in the class, and do not limit your answer to the information from the Information Week article given above. 3) Two of the critical components of Dell's business model in the US were (i) direct sales to customers (rather than through retailers or value-added resellers) and (ii) masscustomization capability in a build-to-order manufacturing environment. Dell captures product requirements directly from the end customer (through a web site) and then builds its computers to those specifications, including software downloads. Custom-built products are typically shipped to customers within five days after receipt of an order. The heart of the plant is populated by one-person build cells. Assisted by web-based online work instructions, an experienced operator in a standard cell can assemble any of the 10 basic server platforms - in various configurations. The production control manager Mark Lozano said "With the old-style progressive-build approach, you pretty much batched your build every day. You could not change what was going down the line. But here, you can build whatever you want when you want. In one cell we can have a highend machine following a low-end machine." Server components begin their journey through the plant at one of the two locations. In one area, motherboards are prepared and installed into the computer chassis. In the second, a kitting area, other components are pulled from storage racks with the aid of a computerized "pick to light" system and placed into totes (plastic boxes). From there, intelligent conveyors deliver the materials to an open build cell. In the cell, the operator does the rest - including putting in the screws. Under a "buddy" system, a builder will ask another operator to make a visual inspection before he/she screws the cover onto the box. Next stop is the extended-test rack where detailed diagnostics are conducted prior to downloading and testing the operating system and application software - all based on the specs ordered by the customer. a) What does Mark Lozano mean by progressive build? What does he mean by "batching your build every day"? M301 Fall 2022 b) Give three advantages of having a cellular (cell-based) production as opposed to the old system at Dell. Make use of our discussion in the class, and do not limit your answer to the information from the Information Week article given above
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