Why does l5 incur higher manufacturing

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Learn More. Computer Science. If the chipset supply does not improve or continues to deteriorate several changes must occur to avoid additional delays. Among the processes to improve and implement include the avoidance of single source suppliers. Using more than one source provides Dell the ability to have a backup plan if the primary source develops issues and cannot meet demand. Integrating the supply chain using vendor managed inventory VMI capabilities in conjunction with material resource planning MRP allows suppliers to view the demands Dell has for various components including chipsets for motherboards.

As a result, an even flow of chipsets can be manufactured and shipped economically to meet changes in demand like customer preference changes and NPI. As a result, the integration of the supply chain minimizes the bullwhip effects of too little inventory where it is needed and too much inventory where it is not needed.

The process identified the issues Dell has with providing chipsets when needed. Upon further review several factors contributed to this delay. Whereupon the causes of the delays occurred various alternatives were presented to improve the contributing factors causing the delays in providing chipsets.

The use of a completely numeric table is beneficial because of the ease in which individuals can locate important information like the modified cost per box figure instead of using strictly a text format that is cumbersome and confusing. The data outline makes comparisons between each manufacturing option easy to read and to identify large discrepancies. The ability to compare quickly and contrast variables assists in eliminating options that do not offer the solutions that Dell is seeking.

Vital and important information can quickly be found without reading several pages of text and numeric values. The use of process charting to improve understanding processes leads to improvements in performance. Balanced score cards and measuring key performance indicators also contribute to more effective BPI. In conjunction with these activities Dell gathered information from those that dealt with the issues causing the problems with providing and receiving chipsets and motherboards in a timely fashion.

Therefore, issues and solutions were identified and measured by those that would need to make the necessary changes. Employee and department input generated support that permits realistic transition improvement alternatives.

Supply changes will be necessary for Dell to address effectively the root causes contributing to the increase in L5 manufacturing.

Dell will find it necessary to modify its supply chain configure to order business to maintain a competitive advantage. Dell will have its own factory associates assemble motherboards into L5 Chassis in a supplier logistics center SLC. As a result, Dell will be required to install new equipment at the SLC. Affects will occur because of the changes in the supply chain. Chassis supply disruption will be minimized. Increased complexity in internal cost accounting.

Are there more effective approaches? Cost per box 3. Product quality 4. Capital investment 5. Material handling 6. Logistics Some other effective approaches can be, 1. Push-Pull strategy 2. Geographical location of suppliers.