Assignment Submission Cover Sheet

Program Title: MSc “Operations and Supply Chain

Management”
Module Code and Title: BU7701-2023/24 Operations
Management
Assessment Title:
Group Number: 5

Student Name and % %

Contribution

1. Kevin Albert 2. Javier Pla Almedros

3. Tori Nardoni 4. Juan Beukes

5. Robin Smeds 6. Jehan-Guillaume

Desénépart
For group work – individual % contributions need to be stated only where they are not equal.

Please read the plagiarism provisions in the General Regulations of the University Calendar for
the current year, found at: http://www.tcd.ie/calendar

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Table of Contents

Introduction.............................................................................................................................. 2
Dell Description Using Process Typology............................................................................... 2
Figure 1. Process Typology (Brandon-Jones & Slack, 2019)........................................ 3
Performance Measurements....................................................................................................3
Triple Bottom Line................................................................................................................... 3
The social layer (People)......................................................................................................4
Dell Human Rights case study:............................................................................................ 5
The environmental layer (Planet)......................................................................................... 5
Table 1. Sustainability goals and progress from ESG report (Dell Technologies, n.d.).6
The economic bottom line (Profit)....................................................................................... 6
Strategic Measurements...........................................................................................................6
Operational Measurements..................................................................................................... 7
Figure 2. Polar Diagram of Dell’s Operational Measurements...................................... 8
Four-Stage Model for Strategy................................................................................................9
Figure 3. Four-stage model (Hayes and Wheelwright, 1984)...................................... 10
Conclusion...............................................................................................................................10
References............................................................................................................................... 12
Appendix A............................................................................................................................. 15
Personal Statements:..............................................................................................................16
Video Presentation Link........................................................................................................ 18
Operations Management Group Assignment (Dell)

Introduction

Operations Management can make or break a company; aside from Marketing/Sales and
Product/Service Development, it is one of three core functions of a business. It is sitting at the
core and is responsible for providing products and services a business offers. In other words:
"Operations is the activity of managing the resources which are devoted to the creation and
delivery of products and services" (Brandon-Jones & Slack, 2019, p.6).

This report aims to expand upon three concepts and frameworks of operations management,
specifically, the four dimensions of operations management, the three performance
measurements and the Four-Stage Model for Operations Strategy. These concepts will then be
applied practically to the company Dell. By covering operational, strategic, environmental,
and social topics, this report aims to offer a balanced perspective on the operations
management at Dell.

Dell provides integrated solutions to modernise information technology and infrastructure

through its technologies, manage online clouds, and keep people and organisations
connected. Dell operates in 180 countries, has over 20 manufacturing plants, and has over
700 distribution centres (Dell, n.a.). Considering Dell's extensive product portfolio, this
report focuses on the computer division.

Dell Description Using Process Typology

To understand the operations of Dell, first applying the process typology by Brandon-Jones
and Slack (2019, p.26) is necessary. This model looks at processes' characteristics regarding
their implications for volume, variety, variation in demand, and visibility. Figure 1 shows the
main implications and how Dell sets up their operations within those metrics.

Dell produces over 50 million computers annually across over 20 manufacturing plants
(Torska, 2023). In order to produce those high volumes, they need to focus on highly
specialised manufacturing. Dell's operations are low in variety because of the few variations
in their product offerings. In the computer division, there are limited options for
customisation. Consequently, this promotes more standardised routines and low variation in
demand. The computer market is moving towards saturation (Tung, 2022), which means that
the best way to generate more sales is to compete with established players for customers,
leading to an increased focus on achieving brand preferences through promotion efforts
(Levitt, 1965). Therefore, the company itself controls the internal efforts that influence
demand. Because they distribute directly to customers through online channels, the visibility
of Dell's operations is low. This channel involves little visibility. Furthermore, order
placement and production are uncoupled (Donnar, 2016).

Figure 1. Process Typology (Brandon-Jones & Slack, 2019)

Performance Measurements

Measuring performance is more complex than applying one metric. Performance

measurement is a more multidimensional concept. Consequently, this report focuses on the
three dimensions of performance measurement: triple bottom line and strategic and
operational performance (Brandon-Jones & Slack, 2019, p.40).

Triple Bottom Line

A firm is sustainable when it can maximise profit while reducing environmental impact and
improving the lives of those who interact with it. The Triple Bottom Line (TBL) framework
is used to measure a company's progress by looking at the firm's economic success and the
impact on the planet and its people. A firm can only genuinely account for operating costs if
it generates a balanced TBL (Slack & Brandon-Jones, 2019, p.42).

Dell releases a yearly Environmental, Social and Governance (ESG) report. ESG metrics are
used to know how ethical and sustainable a company is. The report helps stakeholders make
decisions in terms of sustainability rather than just focusing on profit, allowing for long-term
investment (Dell Technologies, n.d.). We are going to analyse the effects of each layer on the
operations.

The social layer (People)

Businesses are responsible for their impact on society and should try to balance it with their
economic goals. Dell has responsibilities internally to their employees and externally to the
communities affected by their business. Among many things, they should engage in helping
local communities, have safe working conditions, promote a diverse workforce and conduct
training to increase efficiency. Dell has won the award for being one of the most ethical
companies 11 years consecutively (World's Most Ethical Companies, 2023). This section of
the report will now analyse how this layer practically affects the operations:

Dell provides opportunities not only to underserved and underrepresented groups but also to
people from different communities (Dell Technologies, n.d.). This diverse workforce drives
idea generation, innovation, creates a sense of belongingness, and inspires creativity.

Yearly future-ready skills development for their employees in their supply chain helps bridge
the talent gap due to digital transformation, ensuring workers are future-proofed and feel
confident (Dell Technologies, n.d., 30).

Dell is a founding member of the Responsible Business Alliance, of which the code of
conduct ensures that workers are treated with dignity and that business operations are
conducted sustainably (Dell Technologies, 2023).

In 2023, Dell spent more than $ 3 billion on small businesses and creating supply chain
accountability. Dell also monitors how these critical supplies are spent (Dell Technologies,
n.d.). Monitoring helps operations by mitigating risk, increasing supply chain stability, better
cost efficiency and community engagement.
Dell Human Rights case study:

In 2015, undercover audits in China exposed human rights violations. Audits at Factory A
and Factory B revealed issues, including coached interviews, PPE problems and human rights
violations (Göthberg, 2016).
Worker unions were excluded from the audit process, raising questions about stakeholder
engagement. EY recommended Dell enhance supply chain due diligence.
Overall, Dell's transparent reporting reflects a commitment to addressing social impact. For
details, refer to the appendix.

The environmental layer (Planet)

Recently, topics such as climate change and environmental pollution have gained attention.
Since operational failures are one of the most significant contributors, firms are responsible
for the planet (Slack et al., 2013, 39). Implementing this layer into the operations will help
measure sustainability more easily.

To fully understand a company's sustainability plan, one must first look at the goals they have
set for themselves, how this is being monitored over the years and ways in which operations
are being affected:

Goals Progress Implications on Operations

Net zero GHG 31.5% reduction Drives innovation

emission over from 2020 baseline Higher investment
scope 1-3 by 2050

100% of electricity 59% of electricity Cost Efficiency

from renewable used across all More reliable energy
sources by 2040 facilities is from Change in suppliers
renewable sources. Some resources may be unavailable based on
geography
Initial investment required
 1 ton of products 155.5 million Kg of Additional operations to ensure a steady
sold = ton of sustainable material stream of recyclable material
material reused used in products Education of customers to ensure material is
and recycled by and packaging. recycled
2030

100% of all 94.5% in 2023 Government Subsidies

packaging made Reduce environmental impact
from recycled or Change of packaging suppliers and redesign
sustainable of packaging
material by 2030

Table 1. Sustainability goals and progress from ESG report (Dell Technologies, n.d.)

The economic bottom line (Profit)

The top management represents the interests of the stakeholders and, therefore, is responsible
for the organisation’s economic performance, and there are many ways of measuring this
economic bottom line (Brandon-Jones & Slack, 2019, p.44).

In the next section, there will be further expansion on the economic bottom line by judging
operations performance at a strategic level.

Strategic Measurements

Operations management derives from an operational nature, which does not imply one can
disregard the strategic perspective. The strategic perspective will be comprehensively
reviewed by looking into five aspects of how operations management can contribute to
strategic measurements (Brandon-Jones & Slack, 2019).

Costs are affected by multiple factors in an operation, including the efficiency with which it
procures both its transforming and transformed resources and how efficiently it transforms
them into finished products. Many factors also impact revenue, including the error proneness
of an operation, the lead time, or the ability to offer flexible customer solutions. Investment
looks at the efficiency of the input-to-output conversion. The risk of operational failure
should be as low as possible because breakdowns and errors cause excess costs. Experienced
operations managers help develop core business capabilities and promote innovation
(Brandon-Jones & Slack, 2019).

In 2009, Dell transitioned from its direct model, which primarily revolved around
customer-configured, make-to-order products, to a segmented supply chain approach.
Evolving customer preferences towards standardised, commoditised products prompted this
shift. The company redefined its supply chain capabilities by segmenting customer demands
during this transformation period. This restructuring resulted in a diversified portfolio of
supply chain solutions emphasising cost-effectiveness, swift customer delivery, feature
variety, and personalised services (Davis, 2010, p.3).

Dell's standardisation strategy focused on decreasing product variety and tapping into
economies of scale, leading to higher utilisation of production capacity and, therefore, less
investment to provide the capacity. In the end, all those factors impacted cost positively. At
the same time, the reduction in variety could decrease the customers' willingness to pay
higher prices. However, Dell can offer swift customer delivery, which may absorb this
decrease. Dell uses Six Sigma and lean operations principles to effectively reduce costs by
cutting down on waste and turn-around times (6sigma, 2017). Six Sigma strategies can also
be applied to lower the probability of errors and mistakes (Gupta, 2020).

Operational Measurements

Dell's operational performance measurements will be considered in this part of the report. By
evaluating the older and new strategies according to the five operational performance
measures: quality, speed, flexibility, dependability, and cost, the two strategies will be
compared. As discussed in previous sections, the interplay between these operational
performance criteria forms the foundation for further development of strategic performance
objectives.
 Figure 2. Polar Diagram of Dell’s Operational Measurements

Figure 2 above shows how the old and new strategies differ regarding the operation
performance objectives, using a scale from one to hundred to categorise the importance of the
performance objectives.

The first performance objective, quality, is synonymous with meeting customer expectations
and consistently delivering reliable, error-free products. It is a linchpin of customer
satisfaction and business success (Slack, 2023, p.46). Secondly, cost involves managing and
controlling expenses and assessing financial impact to enhance profitability and
competitiveness (Slack, 2023, p.54). Flexibility refers to an organisation's adaptability to
changing conditions and demands, supporting agility and resilience. It plays a significant role
in meeting specific customer requirements (Slack, 2023, p. 51). Speed is crucial for ensuring
timely product availability to customers. Efficiency and minimal delays, especially in order
fulfilment, are paramount for enhancing customer satisfaction. Speed also expedites
decision-making and process optimisation within internal operations (Slack, 2023, p.48).
Lastly, dependability signifies a system's ability to deliver results consistently and reliably,
fostering customer trust and satisfaction. It enhances customer satisfaction and provides a
competitive edge (Slack, 2023, p. 49).

The primary objective of Dell's new strategy was to balance optimal efficiency and
heightened agility by determining the correct number of supply chains. Dell conducted an
extensive analysis to achieve this, resulting in a portfolio that integrated pre-configured
product options and customer-configurable choices, complemented by a spectrum of delivery
cycle times, including "need it now," planned, and flexible (Davis, 2010, p.5).

This strategic pivot marked product standardisation, achieving commonality through

agreed-upon standards (Slack, 2023, p.124). The earlier product options had been overly
intricate, prompting Dell to streamline configurations following customer demands. This
move led to reduced product variability, underpinned by leveraging supplier capabilities.
Additionally, it entailed simplified design processes and a reduction in operational
complexity. This overhaul yielded a remarkable reduction in operational costs, amounting to
$1.5 billion between 2008 and 2010 (Davis, 2010, p.8).

However, it is essential to note that this transition also resulted in a reduced capacity for
customer customisation, contributing to a decrease in the company's overall flexibility. In
contrast, Dell escalated its standardisation efforts, which concurrently heightened production
and delivery speed.

Four-Stage Model for Strategy

As explained, Dell's strategy has experienced a significant turnaround in recent years, and
operations must adapt to the new strategy and provide strategic advantages aligned with it
(Brandon-Jones & Slack, 2019, p. 72). So, the question is, to what extent does operations
performance contribute to the company's success? Hayes and Wheelwright's four-stage model
is used to analyse operations contribution, classifying them into four groups depending on
their role in the organisation: internal neutrality, external neutrality, internally supportive or
externally supportive (Brandon-Jones & Slack, 2019, p. 74).

Dell's current strategy focuses on cost efficiency and speed (Cheng, 2022), and lean practices
are vital to achieving it. Dell applies just-in-time manufacturing (Urrutia, 2023), which means
they only produce once they receive a customer order; this, combined with the speed of the
standardised processes, helps keep stock levels low. Thus, the inventory costs and the risk of
obsolescence are drastically reduced (Brandon-Jones & Slack, 2019, p. 50).

Therefore, Dell is at least in stage three since (Figure 3) operations are linked with the
company's cost leadership strategy. However, stage four, in which operations drive the
strategy, has yet to be reached. The quick response to demand and the low prices Dell can
offer are also derived from supply chain advantages such as serving directly to customers,
avoiding distributors, and close collaboration with suppliers (Dynamic Inventory, 2018).

Figure 3. Four-stage model (Hayes and Wheelwright, 1984)

Conclusion

In conclusion, this analysis of Dell's operations management shift highlights the significance
of intelligent operations management. Dell's operations prioritise cost efficiency,
characterised by reduced product variety, minimal demand variation, and low visibility due to
direct distribution.

Dell's commitment to performance measurements is evident through its Triple Bottom Line
(TBL) approach, which balances profit, environmental impact, and social responsibility. The
company's Environmental, Social, and Governance (ESG) reports show its dedication to
sustainability, ethics, diversity, and community engagement. In some supply chain operations,
human rights concerns emphasise the need for ongoing vigilance and improvement.

From a strategic perspective, Dell's transition to a segmented supply chain approach helped to
balance cost efficiency with product customisation. Standardisation and principles like Six
Sigma and lean operations enhanced efficiency, reduced costs, and maintained flexibility for
customer demands.

The Four-Stage Model for Strategy places Dell's operations at stage three, closely aligned
with its cost leadership strategy but with potential for further integration and strategy-driving
capabilities.

In summary, Dell's operations management strategies and performance measurements reflect

its dedication to balancing economic success, environmental responsibility, and social ethics.
While challenges remain, Dell's ongoing efforts to optimise operations position it as an
industry leader, continually adapting to meet changing customer needs and the demands of a
changing business landscape.
References

Chegg (n.d.). An Overview of Dell's Supply Chain Strategy | Dynamic Inventory

Cheng (2022). Sustainable Competitive Advantage Analysis and Recommendations for Dell
Company to Achieve Success. Retrieved 14 October, 2023, from Sustainable
Competitive Advantage Analysis and Recommendations for Dell Company to
Achieve Success (scirp.org)

Davis, M. (2010). Case Study for Supply Chain Leaders: Dell's Transformative Journey
Through Supply Chain Segmentation. Gartner. Available from:
https://www.gattornaalignment.com/documents/Dell_Case_study_for_supply_chain.p
df

Dell (2023). FY 2023 ESG Report. Available from:

https://www.smurfitkappa.com/products-and-services. [accessed 12.10.2023]

Levitt, T. (1965). Exploit the Product Life Cycle. Available from:

https://hbr.org/1965/11/exploit-the-product-life-cycle. [accessed 12.10.2023]

Donnar, R. (2016). Dell’s Distribution Channels. Available from:

https://mpk732t22016clusterb.wordpress.com/2016/09/19/dells-distribution-channels.
[accessed 12.10.2023].

Dynamic Inventory (2018). An overview of Dell’s Supply Chain Strategy. Retrieved 14

October, 2023, from An Overview of Dell's Supply Chain Strategy | Dynamic
Inventory

Gupta, A. (2020). Innovating with lean Six Sigma. Available from:

https://education.dell.com/content/dam/dell-emc/documents/en-us/2020KS_Gupta-Inn
ovating_with_Lean_Six_Sigma.pdf. [accessed 18.10.2023]

Slack, N., Brandon-Jones, A. (2019). Operations Management. Harlow: Pearson

6sigma (2017.). Dell Is Still on Top with Lean Six Sigma. Available from:
https://6sigma.com/dell-still-top-lean-six-sigma/ [accessed 18.10.2023].

Torska, N. (2023). 60+ Dell Statistics: Employees, Customers & More. Available from:
https://marketsplash.com/dell-statistics/#:~:text=This%20translates%20to%20Dell%2
 0having,computer%20unit%20sales%20in%202022.&text=Dell%20employs%20over
%20130%2C000%20people,go%2Dto%2Dmarket%20teams. [accessed 12.10.2023].

Tung, L. (2022). Apple and Dell shipments grow but overall PC market shrinks. Available
from:
https://www.zdnet.com/article/apple-and-dell-shipments-grow-but-overall-pc-market-
shrinks/.[accessed 12.10.2023].

Alonso, T. (2023, January 23). Strategy Study: How Dell's strategy transformed it from a
doomed player to leading the data revolution. Cascade Strategy. Retrieved October
20, 2023, from
https://www.cascade.app/studies/how-dell-strategy-transformed-it-to-industry-leader

Dell. (n.d.). Advancing Sustainability. Dell. Retrieved October 11, 2023, from
https://www.dell.com/en-ie/dt/corporate/social-impact/advancing-sustainability.htm

Dell Technologies. (n.d.). Building a diverse and inclusive workforce. REPRESENTATION.

Retrieved October 20, 2023, from
https://www.dell.com/en-ie/dt/corporate/social-impact/cultivating-inclusion/representa
tion.htm?hve=explore

Dell Technologies. (n.d.). FY23 Environmental, Social and Governance Report. Retrieved
October 20, 2023, from
https://www.delltechnologies.com/asset/en-ie/solutions/business-solutions/briefs-sum
maries/delltechnologies-fy23-esg-report.pdf

Dell Technologies. (n.d.). FY23 Environmental, Social and Governance - Supply Chain
Sustainability. Retrieved October 20, 2023, from
https://www.delltechnologies.com/asset/en-ie/solutions/business-solutions/briefs-sum
maries/delltechnologies-fy23-supply-chain-sustainability-summary.pdf

Dell Technologies. (n.d.). Seeking opportunities for diversity and inclusion. SUPPLIER
DIVERSITY. Retrieved October 20, 2023, from
https://www.dell.com/en-ie/dt/corporate/social-impact/advancing-sustainability/suppl
y-chain/supplier-diversity.htm?hve=learn+about+supplier+diversity

Göthberg, P. (2016, February 1). Public Procurement and Human Rights Due Diligence to
Achieve Respect for Labour Rights Standards in Electronics Factories: A Cas.
 Electronics Watch. Retrieved October 20, 2023, from
https://electronicswatch.org/en/public-procurement-human-rights-due-diligence-a-cas
e-study-of-the-swedish-county-councils-and-the-dell-computer-corporation-february-
2016_2456642.pdf

Slack, N., & Brandon-Jones, A. (2019). Operations Management. Pearson.

Slack, N., Brandon-Jones, A., & Johnston, R. (2013). Operations Management. Pearson.

Urrutia (2023). Dell’s marketing strategy. Retrieved October 13, 2023, from Dell’s Marketing
Strategy (voymedia.com)

World's Most Ethical Companies. (n.d.). Ethisphere. Retrieved October 20, 2023, from
https://ethisphere.com/worlds-most-ethical-companies/
 Appendix A

Undercover audits done by EY and Stockholm County Council were done after audits were
done to expose human rights violations in Jiangsu Province, China. Multiple news outlets
published these findings, which resulted in August 2015 audits. Findings from Factory A saw
that the employees and managers were "coached" on what to say during the interviews. Other
issues in Factory A included a boisterous work environment, a pack of PPE, and a lack of
PPE rules and regulations, as many workers were not wearing them. Factory B's audit was a
follow-up after the exposure of human rights violations (Göthberg, 2016).

Audit Findings

Workers unions were absent from noting the final findings of the audit, which prevented them
from giving input, showing low shareholder deliberative capacity as the workers are not
included in the information chain. EY advised DELL to improve Atea's due diligence to
ensure the corporate social responsibility of the supply chain from the supplier (Göthberg,
2016).

Considering that only a few cases of human rights issues had been identified, the various
awards that Dell has won regarding business ethics and that Dell is releasing multiple
transparent reports on the demographics of the working environment and inclusivity, a
conclusion can be made that Dell is sufficiently addressing the social impact as a triple
bottom line category.
Personal Statements:

Student Name Statement

Nr.

23341816 Robin Smeds I personally learned from this assignment, how

performance measurement can be applied in a practical
scenario. Before this course I was not aware that there are
three levels, which are interconnected and optimally have
coherence. This valuable lesson will help in my future
work environment to understand the connections between
certain performance layers.
I would see myself as a person who contributes to the
group with good ideas and new perspectives on topics.
Additionally, I have no problems coming up with ideas on
what to write about and actually writing first drafts of
reports. Other group members can use this as a base for
their research.

23339860 Kevin Albert This assignment served as a learning experience for me. It
introduced me to the concepts of operations management
that I was previously unaware of. Throughout the
assignment, I not only learned about the concepts but also
gained practical experience in applying them. These
concepts made it easier to analyse operations effectively.
I'm confident that these skills will significantly benefit me
in my upcoming assignments and future career.
I contributed by generating ideas and collaborating with
my team in structuring the project.

23339956 Jehan-Guillame During my Operations Management course I've learned

Desénépart how complex operations can be within an organisation.
This course introduced me to essential concepts and, more
importantly, showed me how to apply them practically. It's
given me a holistic view of organisational operations,
equipped me with valuable tools, and allowed me to gain
hands-on experience through both assignments. This
knowledge and practical insight will undoubtedly benefit
my future endeavours in the field of operations
management.

23350896 Tori Nardoni Through this course, I have gained a deeper understanding
of the sheer complexity of Operations Management. Many
factors within the area are not visible at first glance but are
vital nonetheless. This assignment allowed me to put the
concepts learned in class into a practical case, I plan to use
this in my own assignment as well. These realistic looks at
concepts are important because they will allow me to
understand operations management in my future career.
I aided in this group project in a multitude of ways, from
 assisting in report content and research to editing the
report, as well as filming and editing our group video. I
offer constructive criticism to my group members and
provide ideas so that our assignment as a whole can be
improved.

23363073 Javier Pla In this course I have learned all the work behind the
Almendros decisions that are made in a company and the important
role that operations play in it. I have found particularly
interesting the tools used to try to quantify the
performance of operations, essential to formulate a good
strategy that allows the company to improve and continue
growing. I have contributed to the work by sharing ideas,
helping to make the structure coherent, and giving
feedback on topics such as the video editing.

23366058 Juan Beukes During the period of operations management as a module,

it allowed me to start thinking differently on how the
success of an operation is highly dependent on its
operational capabilities and how external sources such as
sustainability goals and market drive can influence the
management of operations. I have also gained experience
in researching a company through case studies and this has
taught me how to critically evaluate a company based on
multiple sources and draw a general conclusion.
Video Presentation Link

https://drive.google.com/file/d/1AM6IyJZp5fOU7o12CLrlBvJlGv_K1_F2/view?usp=sharing