Dell Redefines the Manufacturing Model

Technology today is changing and developing at a rapid pace. Back fifty years ago, no one would have even imagined a computer that would almost fit into the palm of your hand. From the first generation of the computer age in the nineteen fifties to the fifth generation, which is now and beyond, numerous people and companies have contributed to the development of this great technological foundation. There are a few common names recognized with great achievements that have broadened the horizon on the computer age. Some of these well-known company names are: IBM Corporation, Apple Computers and Dell Computer Corporation. Dell Computer Corporation is one of the leaders in advancing technology as we now know it, taking us into the modern-day digital age with great technological achievements and advancements.

Build-to-order Manufacturing

In this day and age a revolutionary development has occurred, build-to-order manufacturing, which allows a customer to have the most customized product to date. When a company uses this method for business it has no inventory expense due to supply and demand. There is no in-house stock of finished goods, so a company does not have to wait for stock to be cleared from its inventories before new inventory is put into place. By selling direct to customers a company can learn firsthand about customer preferences and needs, plus get immediate feedback on any problems that may occur. This increases customer satisfaction. In using this method of manufacturing a company can go from manufacturer to end-user totally avoiding the middle-man, which will keep bottom line cost to the customer low. When a company utilizes this method of manufacturing the customer receives the latest technology faster than the normal production company method. This also will reduce the time a customer waits for the customized product to be finished. When components may be time sensitive due to rising costs and components changing very rapidly, this type of manufacturing could save thousands of dollars for a company, plus the company is always up-to-date with the latest technology. With not having the inventory always in stock a company increases their operating margins, due to low cost of inventory. When a company takes this method of manufacturing and teams it up with the Internet a whole new world opens up to that company. Now not only does this company have a rapid manufacturing process, but also a rapid order process. This again comes back to the customer being totally satisfied by not only receiving the latest technology, but by receiving this technology rapidly.

Dell Computer Corporation's Method of Build-to-Order Manufacturing

Dell Computer Corporation began as a normal manufacturing company with traditional assembly lines to produce their computers by each worker performing a single operation to match customer specifications. In 1997, Dell reorganized all of its factories and shifted its manufacturing over to build-to-order manufacturing. This process reduced the assembly lines by seventy-five percent and doubled production per square foot of assembly space. It also increased delivery time to the customer to five to