Dell Case Study: Performance Measurement At Dell

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Performance Measurement at DELL:
Performance measurement is an important parameter which quantitatively gives information about our process, product and services. This helps us to know whether we are moving towards mission and vision or deviating from our core goals.
At present big corporations don’t want to indulge into performance measurement system, instead they put their whole focus on achieving operational excellence. But Dell is very focus on measuring its supply chain efficiency on yearly basis. Dell organizes various award functions and summits to recognise and facilitate outstanding performance awards to suppliers globally. Dell provides awards for various categories i.e. global citizenship, service, and continuity of supply, cost
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In order to sustain these tight links, Dell reduced the number of suppliers from 204 in 1992 to 47 in 1997. The usage of name brand component enhanced the performance and quality of Dell Computers. Whenever there was a sudden surge in demand, its suppliers were ready to supply the parts and components. Suppliers used to keep the inventory in the warehouses which were located just 20 minutes away from Dell manufacturing site. So, the lead time in the delivery of raw materials was extremely less, on an average 1 hour. Dell treats the suppliers as the part of Dell family. Supplier assign some engineers form their side to be the part of Dell Product Design Team as they provide some valuable insights to the team. This long-run commitment with suppliers helped Dell laid the basis of JIT delivery. Due to this JIT, Dell was able to reduce the time it took to get new generation PCs on the market shelf before any of its competitor does. Also, the industry is such that new advances in parts and components of computer can come any time and here again Dell wins the game. Also, the cost of these components reduces very drastically. By turning their inventory every 10 days, with the help of its suppliers, Dell was able to reduce the cost of obsoleting …show more content…
Also, Dell was the first company which came up with on-site service for PCs. Dell has always placed a strong emphasis on service and support. So, this whole system allowed Dell to respond quickly to its customer needs and gave it a competitive advantage over other players in the market. Dell employed more than 1300 technical support personnel who are accessible 24x7. Most of the time, these technical personnel will solve your problem online. Dell employs third-party maintenance providers for on-site support services but Dell maintains the accountability for the customer service.
“Direct model has been a revolution but it is not a religion” Michael Dell wrote in a memorandum which was sent to Dell employees in April 2007. And in 2008, Dell undertook a deep transformation of its supply chain which included shifts from a regional to global structure and from the direct only model to multiple channels model. Also, there was a corporate shift to solution focus business. Dell broke their supply chains into a few simple

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