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Organisational Change in Dell Incorporated - Research Paper Example

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This paper discusses the change models to explain a major change in the organization. With this goal, it becomes apparent to the organization that we needed to change the way we conduct our business. The paper considers the training employees in order to instill them with more skills. …
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Organisational Change in Dell Incorporated
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Download file to see previous pages Its main feature is the utilization of total quality management (TQM) approach, highly flexible and motivated workforce, Just-in-Time (JIT) manufacturing philosophy, and the pursuit of satisfying customers at a global level.
The introduction of the WCM system in Dell represents one of the major organizational changes in the history of the company. Currently, Dell is recognized for this unique business model which is very much different from the ones used by our competitors. This organizational change can be best described by the Total Quality Management and Lean Manufacturing Models.
Consistent with the goal of a world-class manufacturer, TQM denotes a set of management practices within the organization which is implemented to ensure the quality of products and services offered. The primary goal of TQM is the production of commodities which consistently meets or even exceeds customer requirements. With Dell, this means the emphasis on process measurement and controls to pursue continuous improvement. However, TQM does not just involve the production system or processes of the company but embraces the whole operation of a manufacturing business. Implementing TQM involves modifying the whole organization as it has a strong bearing on the culture, attitude, and organization of the company. TQM culture requires the unmatched quality in all aspects of the company's operations with things being done right the first time, and defects and waste eradicated from operations. Important aspects of TQM include customer-driven quality, top management leadership and commitment, continuous improvement, fast response, actions based on facts, employee participation, and a TQM culture.
On the other hand, Dell also put in place the Just-in-Time (JIT) manufacturing philosophy from Japan. This concept is attributed to automaker Toyota. JIT is consistent with the lean manufacturing philosophy of producing the necessary units, in the necessary quantities at the necessary time with the required quality. JIT is a lean manufacturing system which became an innovative approach for Dell to achieve excellence in the reduction or the total elimination of "wastes" which includes overproduction, unneeded inventory, defective products, and transport and waiting time. Thus, the JIT philosophy is an elimination of non-value adding activities in the company's supply chain to boost manufacturing efficiency, driving down cost, and ensuring maximum customer satisfaction by driving down prices of commodities.
The shift to a leaner manufacturing system which prioritizes the elimination of the "wastes" in production necessitated the installation of the following essential elements and features to the manufacturing system: regular meetings of the workforce to discuss the company's practices, confront and solve problems; emphasis on consultation and cooperation (i.e. involving the workforce) rather than confrontation; modification of machinery to reduce setup time; reduction of buffer stock, exposition of problems, reveal bad practices; and elimination of the security blanket of stock. In order to show how the new manufacturing system supported by the principled of TQM and lean manufacturing works, we will look at the supply chain of Dell.
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