Quality Function Deployment of Dell Company - Coursework Example

QUALITY FUCTION DEPLOYMENT WORK Introduction: This paper examines Quality Function Deployment with Dell, UK. Dell UK is a subsidiary of the inDell Inc, located in the USA. Dell manufactures computers and accessories. In recent times, Dell has specialised in the production of desktops, laptops and other accessories. The elements of Dell’s strategy include, mass customisation, partnership with suppliers, just-in-time component delivery, mass segmentation, direct sales and extensive data share between customers and suppliers(Ignatiuk, 2008). Dell has major departments and units that help with its operations. The E-Business unit is in charge of running the company’s website, which is the primary source of order information. The Manufacturing department is also integrated into the production system and takes orders from clients through the primary website. Also, Suppliers have strong partnership with Dell and this enables them to keep various stock levels of Dell products at different time intervals. There is the Customer Service unit that is outsourced and tries to ensure that customer satisfaction is at its maximum(Spulber, 2007). In the UK, like other parts of the world, Dell operates through online sales. Normally, Dell takes orders from its websites. Through these sites, Dell customers give them specifications of what kind of computer they actually want. For orders that are already in stock, the nearest available supplier ships it to the customer and it should arrive in less than 2 weeks. For customised orders that are not already in stock, the details are sent to the nearest manufacturing department, which assembles it and ships it directly to the client in about two weeks. When the customer receives an order, and s/he has some issues with it, the next point of call is to get in touch with the customer care department and present a complaint. This complaint is transferred to the technical and after-sales unit which gets in touch with the customer either directly or through the customer care and makes the necessary move to rectify the problem(Khosrow-Pour, 2004). This process is illustrated in the diagram below: Product and Service Delivery System of Dell UK The main competitors of Dell UK are HP and Acer. These two companies also provide similar products and specialise in the same activities that Dell handles. Although this is done with some differences, they are neck-to-neck with Dell in terms of market share and service delivery. Issues with Dell UK However, in spite of all the quality control efforts of Dell UK, there are several matters that are some popular issues and problems that many customers are reporting. They are documented by some customers including a former employee and they include amongst other things: 1. Premier order and customer support sites are extremely slow 2. Production times are slower 3. Motherboard of the computers is not durable 4. Processing speed of the computers are low and 5. Computers break down too quickly(Smith, 2010) There is therefore the need for some action on quality function deployment to be taken to ensure that all the relevant departments of the company work together to ensure that the company meets major customer requirements. Quality function deployment is “a method of developing a design quality aimed at translating the consumer’s demand into design targets and major quality assurance points to be used throughout the production process”(Akao, 1990). It is defined simply by the American Supplier Institute as a method of using cross-functional contributions to translate consumer requirements to company requirements at every stage of production the production process(American Supplier Institute, 1989). Quality function deployment therefore has its root in the system used by organisations to ensure that all consumer needs are identified and incorporated into the production system to ensure that customer expectations are attained on a continuous basis. The aim of this paper is to use this model of business quality assurance to set targets and make recommendations for Dell to incorporate in its system and remain a preferred option ahead of its two major competitors, HP and Acer. Quality function deployment uses a method of brainstorming which utilises the hishitsu or features and then try to put it into the kino or functional areas of the business’ operations(Cohen, 1995). This paper will be written based on the issues I identified in my study of Dell and how they can be merged into the QDF system of Dell. Analysis & Brainstorming of the Whats ‘Whats’ are the primary objectives and expectations of the customers from the supplier(Madu, 2006). The basic needs of consumers as and when they buy from Dell is to get a computer or electronic gadget that functions well, is created according to the best technology on the market, affordable, and has durable components which is delivered in a timely manner and also gets access to customer care and after-sales services when the gadget is being used. Achieving this is the duty of all the departments of Dell and they therefore have to work hand-in-hand with all the units and departments to attain this end. The following matters are included in the necessary steps for a good QDF deployment: Hardware Quality The kind of gadget that customers get access to is very important. The computer needs to be in compliance with standards features of average gadgets. Software Quality The kind of software that is readily available to the customers is important. A popular software needs to be already installed when it is purchased. Affordable Price With the current economic crises that have hit the UK, it is important for the prices of computers sold by Dell to be at reasonable levels. This will enable consumers to afford them and be able to get them Flexible Payment Terms Payment terms must be flexible enough to allow people of all backgrounds to afford these computers. Assembling Quality The way the computer is assembled is also necessary. It must be held firmly together and not disintegrate easily. Components Quality Since Dell acquires most of its parts from third parties, it is necessary for them to get the best quality components to ensure that it works efficiently and effectively. Acquiring motherboards from cheap sources is what led to the popular complaint online. High Durability The sum total of units acquired and assembled must bring forth a gadget that will last long and can be used effectively and efficiently by a consumer for a long time. Low Security Risk A computer should not be easy to be hacked by third parties. It must have in-built systems that make it difficult for intrusion and interruptions by people who want to disturb the privacy of the owner. User friendliness User-friendliness refers to the ease with which an ordinary person can use the Dell computers Environmental Responsibility Customers want to have computers that do not harm the natural environment. The battery and other usage should not harm the environment. Wide Diversity The ability to customise and the existence of a large range of products makes Dell a preferred manufacturer. They therefore need to work hard to maintain and promote this. Good Sales Outlets Customers expect regular outlets to buy their products. They expect the suppliers to be hospitable and reliable in their sales service. E-Commerce Compliance Online sales should be backed by a good e-commerce system that enables quick and efficient purchases and secured credit card services. Short Delivery Time Orders should be delivered in the shortest possible time. They should be within the timeframe specified and promised by Dell. Long Warranty This is about the guarantee that Dell offers to its customers. There should be a guarantee for future repairs and maintenance services that will assure the customer that the Dell computer can be used for a long time with some kind of security. Good Customer Care This refers to the kind of reception that will be given to Dell product owners as and when they need them. Customer care counts a lot in the computer industry. Reliable After-Sales Service This refers to the kind of maintenance and repair services supported by Dell in areas close to customers around the country. This is important because it gives customer satisfaction and enables customers to remain loyal with Dell. Analysis & Brainstorming of the How’s The ‘hows’ refers to the functions and activities within an organisation that can be used to attain he customer requirements for the business (Tague, 2004). This refers to the various activities and processes that Dell can use to attain these results. I conducted in in-depth study of Dell UK to find out the various units and processes that are relevant to the ‘whats’ identified above. The study included a visit to their premises and interviews with some of their staff members to find out which units and departments of Dell handle the relevant areas identified in my ‘whats’. I also studied the website and operations of HP and Acer and made findings in similar and comparative areas about how they value and try to satisfy their customers in the ‘hows’ I identified for Dell. I made the following discovery: Ordering Website Management Process This process is responsible for the management of the primary website for customer orders. Order Sorting Process This unit is charged with the sorting of various orders in the premises of the order website and they send further information to the suppliers and manufacturers when necessary. Customised Manufacturing Process Process includes the analysis and further action on customised orders Suppliers’ Order Process This includes the various suppliers that take orders from customers and ship them. Mass Assembling Process This process in turn takes orders from suppliers on the stocks required and then assembles them and ship to customers. Goods Delivery System This unit liaises with the suppliers and customised manufacturers to ship goods to customers. Online Tracking Website Management Process This team is distinct from the ordering site. It gives customers information on the current status of their orders. Business Development Process This process is responsible for market research and gauging customer satisfaction and recommends changes where necessary Accounting Process It is responsible for the analysis of costs and revenues and then recommends new pricing systems. Component Supply Monitoring Process This unit liaises with the business development unit and component suppliers and make recommendations to management Research & Development Process Responsible for the research into new products and technology Environmental Affairs Process Studies environmental matters and refer them to R&D for further incorporation to new products. E-Commerce Process Monitors and ensure security, privacy and compliance with the various online sales by customers. Customer Care Unit Deals with customer concerns about the various products and they acquire from Dell After-Sales Service Process Does care and maintenance and ensures that customers get the right support they need with their problems Human Resource Process Recruits and trains customer care staff and other staff members who ensure customer satisfaction Outcomes It was observed from the house of quality analysis that the main areas of Dell that are most important to its customers are the times they wait for an order to arrive, getting lower security risk in terms of privacy of computers, assembling quality, customer care and the durability of the computers sold to them. The most important departments and processes in attaining these customer expectations are business development, accounting, research and development, customer care, after-sales service and goods delivery service. These are areas that demand serious attention by the management of Dell. In terms of competition, Dell is above average in the industry. However, there are some areas that it lags behind when compared to the major competitors, HP and Acer. These areas include: hardware quality, assembling quality, security risks, environmental sensitivity, e-commerce, delivery time, customer care and after-sales service. There is therefore the need for Dell to improve these sectors of its operations to remain a leader in the market. Recommendations From the house of quality document, the following recommendations are suggested to the management of Dell: 1. Improve delivery time by 30%. However, considering the strain and other difficulties, there is a difficulty in that it will require getting workers to work for more hours for lower salaries and also, there will be the need to spend more money to pay the delivery service providers. 2. There is the need to increase the business development department’s capacity by 75%. This is because the department has a positive correlation with all other aspects of the house of quality. This confirms the central role that it plays in satisfying customers. There is therefore the need to almost double its capacity so that they can be more efficient in gathering customer demands from all units and incorporate it in the operations of Dell. 3. Flexibility in payment must be increased by 20%. This will require the accounting departments to make concessions, no matter how painful it might be to ensure that customers pay by instalments and hire purchase. They will therefore need to cooperate with the business development team and come up with good systems and strategies to accommodate different customer payment plans. 4. The customer care department should be increased by 25%. This should be done with the view of getting relationship officer to respond promptly to customer needs and accommodate all customer needs and requirements. 5. After-sales department will also be increased by 15%. This will be done by providing extended warranties and programmes that will give customers good care and maintenance service. Conclusions Dell needs to do a critical QFD work by matching its customer needs and its internal processes. This way, it can provide good and realistic services that will meet customer needs and also stay ahead of its Acer and HP on the markets. The QFD work done reveals that Dell has to concentrate on its delivery time, business development systems, payment terms, customer-care and after-sales services. Dell also needs to meet the competition rendered by Acer and HP by investing resources in the areas of product quality, quality, sales service and delivery. This is because the competitors seem to be ahead of Dell in this regards and this is impeding Dell’s effort to increase its market share. Dell needs to also strengthen its business development sector to ensure that customer needs are continuously monitored and appropriate changes are done to the QFD system of the company. This is because of the link between the business development sector and all other departments. References Akao, Y. (1990). Quality Function Deployment. Massachussets: Productivity Press. American Supplier Institute. (1989). Quality Function Deployment: Implementation Manual. Dearbon; MI: American Supplier Institute. Cohen, L. (1995). Quality Function Deployment: How to Make QFD Work for You. Massachusetts: Addison Wesley. Ignatiuk, A. (2008). Analysis of Dells Business Strategy. Norderstedt: GRIN Verlag. Khosrow-Pour, M. (2004). Innovations Through IT. London: Idea Group Publishing. Madu, C. (2006). House of Quality in a Minute. Fairfield, CT: Chi Publishers. Smith, J. (2010, April 12). What Happened to Dell. Retrieved May 26, 2011, from http://www.zdnet.co.uk/blogs/the-open-source-revolution-10014902/what-happened-to-dell-10015262/ Spulber, D. F. (2007). Global Competitive Strategy. Cambridge: Cambridge University Press. Tague, N. (2004). The Quality Toolbox. New York: ASQ Quality Press. Read More