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Just In Time Manufacturing At Dell Essay

1302 words - 5 pages

Traditional manufacturing is described just as it is stated, “traditional”. The process starts when a product is to be produced and needs the manufacturing process to create the product for the customer that is, or will, order(ing) the product. Manufacturing processes are the steps through which raw materials are transformed into a final product. The manufacturing process begins with the creation of the materials from which the design is made. These materials are then modified through manufacturing processes to become the required part. Manufacturing processes can include treating (such as heat treating or coating), machining, or reshaping the material. The manufacturing process also includes tests and checks for quality assurance during or after the manufacturing, and planning the production process prior to manufacturing (Chegg, 2013). The inventory of raw materials will need to be kept on hand in order for the product to be assembled when it is needed for inventory refill. The main problem it inherently possesses is that of raw material overstock and that of finished product overstock that needs to be sold. If a product has completed its journey through the raw-to-finished material process and the products sales go down, the product will take up precious space in storage that could be filled up with other newer and/or more popular products that will move more quickly. This is the reason Dell has adapted to include just-in-time manufacturing in its product assembly.
Dell computers had the reputation for being reliable and affordable, depending on the models, but what really set it apart was the just-in-time ordering system Michael Dell built. It steered buyers to an online site that let them customize PC to their preferences, shaving overhead costs and allowing Dell to better compete on both price and service (Kelleher, 2013). This brings the ability to streamline the customer ordering process by keeping the parts back stock at an extreme minimal. When the customer orders their product, they are directed to the custom experience in creating their own system. When you order your product, you can choose every aspect of your purchase so the manufacturer can assemble a custom machine based upon the usage needed for the product. As soon as you order it and pay for it, the order is placed and the raw material is then processed and sent to the manufacturer. They then get the raw materials and then proceed to build your specific order. This keeps the precious materials constantly rotating and away from an expired shelf-life. When a new technology is available, the Just-in-time process keeps outdated and/or inferior raw materials off the manufacturing floor. No back stock means much less waste and much higher profit.

Sometimes the just-in-time manufacturing process has major flaws. "Instead of months' worth of inventory, there are now days and even hours of inventory," says Jim Lawton, head of supply management solutions at consultant Dun &...

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