Micheal Dell Essay

961 WordsFeb 22, 20124 Pages
Deep in the heart of Texas lies a Fortune 500 company who exemplifies many of the Principles of a Zero Time organization. Dell Computer Corporation has seen extraordinarily Growth. Much of this success is due to management principles and Philosophies we think make Dell a success Management Principles The Dell Direct Model, highlights how the build-to-order Philosophy was central to the Dell management principles. The direct model was the most visible and important principle of Dell: it aligned all of Dell’s business units and people. Within The Dell organization, the direct model meant that everyone was a customer. In addition to the principals of build to order and direct marketing, Dell Computer Managers spoke of a few key principles that were fundamental to their business. These included: Exchange inventory for information Velocity, value and volume Constant change Criticality of coordination Exchange inventory for information At the heart of the successes at Dell was their strategy of exchanging inventory for Information. This meant that instead of keeping inventory on hand at Dell, or on hand in a Warehouse, or on hand at a retail outlet, Dell kept information about customer orders, needs, and Forecasts. Manufacturing predicted what orders would come in, alerted suppliers of anticipated needed parts, and staffed up to meet demand. This gave Dell an advantage in the marketplace for several reasons. Information was easier to store than inventory. Information was easier to move than inventory. Information was easier to discard than inventory. And information was less expensive to have than inventory. Consequently Dell managers architected a way to minimize inventory, and in its place use information. Focus on velocity, volume and value As Dell exchanged inventory for information, they increased velocity, or the rate at which

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