Group Number/Name: The A-team
Student Names: Paul Tran, Sukumar Pant, Vaibhav Choudhary
Criteria Score and Comments
Identifying Problems & Issues [15 points]
• Use of case facts to diagnose core problems and issues
• Effectiveness in framing the problem & issues
Analysis of Issues [50 points]
• Meaningful criteria identified for the analysis of problems and issues
• Effective use of case data
• Application of concepts and theories
• Insightful & creative analysis of issues Recommendation [20 points]
• Specific course of action
• Logically deduced (as opposed to opining)
Style and Presentation [15 points]
• Succinctness & definitional clarity
• Expression
• Coherent linkage …show more content…
However, in spite of all the sunshine, Dell was facing the following problems 1) Manufacturing costs in the desktop PC division continued to surge with Level 5 being critical. This was leading to an overall increase in the manufacturing costs & thus negating the benefits of the contract manufacturing arrangement 2) Dell had to increase reliance on 3rd Party integrators (3PIs) resulting in lower quality products in addition to forecasting errors in capacity planning at …show more content…
Upstream however is where problems are showing up and where L5 manufacturing has been increasing in usage. Core reason that was contributing to the problems faced by Dell is the shortage in motherboard arriving on time for assembly onto to the chassis. Instead of integration occurring say in China, the integration was done in the domestic market in order to make up for lost time. Empty chassis were shipped by ocean to Dell US & Europe first followed by air freighting of motherboards to the same locations. The result was incurring expedited & air freight costs as well as 3rd party integration costs. Additionally, CMs were incurring costs for idle labor that was originally dedicated for motherboard chassis integration. The question to be asked here is why Dell is using L5 manufacturing instead of holding more safety stocks for motherboards. Holding more inventories of motherboards would seem like the easiest fix to eliminating the 3rd party integrator and retaining integration in an offshore location. There are two reasons for this setup. The first reason is the speed that L5 has over L6. Take for