Sample Paper on Benefits of Implementing Lean Six Sigma In a Company

How Dell Inc. has Benefited Implementing Lean Six Sigma In Its Company

Introduction

The success of every company lies on better performance, and with the changes in business environments, the need to improve customers’ satisfaction, enhance gains in product quality, break through the bottom-line profitability, decrease the product time cycle and increase product shifting becomes the major concern for most organizations. Globalization and technological changes are some of the key factors determining the response companies give when faced with operational issues to solve. Important to note is the role managers play in reducing the cost and time of production, which at its basic level have significant impacts on the company’s sales and revenues (Bolman, Lee and Terrence 313).

According to Dell Michael (16), the founder and the CEO of Dell Company, supply chain and operation leaderships are two important areas that a company must consider if the much needed value is to be retained. As much as companies are driven by the desires to meet their profit objectives, certain decisions like taking into account the needs of customers through efficient and sufficient delivery are very important (Bolman, Lee and Terrence 313). Dell Michael believes that a company can set its own operational standards and make certain improvements in areas of leadership, product quality and the supply chain. As the case stands, Dell Company is recognized for highly quality computer products that sell across international markets. This means that the company’s operational strategy is to meet the taste of consumers across the world in a more consolidated way; designing, producing and delivering a product that gives consumers the highest taste of satisfaction.

Based on the specifications made by Dell Michael, the interest of this discussion is to understand how Dell Company uses Lean Six Sigma concepts of management in ensuring growth and stability in production as part of the company’s innovation plan (Bolman, Lee and Terrence 117). The study will be specific to the benefits the company gets from the use of Lean Six Sigma and how best Dell can maintain or improve its market share.

Applying Lean Six Sigma in the company’s operations

Introducing a formal process into an organization is normally time consuming, expensive and exposes the company to risks of exhaustive tasks. In most cases, organizations engage in designing implementation strategies for various projects and assume that the same strategies will be applicable for all systems (Stralser 51). However, this is not the case, and without giving continuous attention to the designed processes, there is always an assurance that employees will not stay abreast to the changing needs of the company especially in meeting the demands of consumers. As a way of addressing the practical and operational issues, which may create a negative growth to the company’s operations, Dell works on its current version of Lean Six Sigma framework; a process framework that defines continual service improvements (Stralser 51). The New Lean Six Sigma framework and its application in service lifecycle stage would help Dell Company to improve processes and services in a way that meet global production standards.   

Before moving to Lenovo Company in Singapore, Gerry Smith also made important remarks concerning Dell Company during the time he served as the vice president and company’s general manger. Gerry’s observations on the success of Dell Company had to do with responsible product development, strategic procurement and extended operations across the world. During his tenure at Dell Company, Gerry Smith participated in designing an integrated global supply chain in order to reduce the time of production, give an instant response to market demands and reduce the cost of production and supply.

The extent to which Dell Company gives global supply an integrated approach remains technologically dependent (Bolman, Lee and Terrence 320). The company must give a quick response to the rising needs of customers, create a good work relationship with suppliers as well as ensuring that operations within the company are properly coordinated (Stralser 39). The study conducted on the company’s internal operations reveal instances of teamwork and proper coordination within departments. Employees and managers in the company understand the need to work as a team towards fulfilling the needs of the company. As already stated, efficiency in production retails around proper coordination of activities, taking into consideration the interest of industrial stakeholders and remaining pivotal towards skill impartment. The company’s operations retail around improved quality, efficient production and lower costs of operation, which are important concepts found in Lead Six Sigma.

 

The Lean Six Sigma and its benefits to the Dell Company

From the forgoing discussions, the lifecycle of a product or service and the interaction of the company’s service assets with customers become important in ensuring constant control and retained earnings on the side of the company (Dell and Catherine 43). Although the processes entailed in value creation for the company may at times be expensive, Apple Company through extensive use of Lean Six Sigma is able to create value from multiple resources. The company uses multiple resources in production and through this approach, the quality of products released into the market corresponds to the demands of consumers and other market participants (Bowersox, David and M B. Cooper 320). Dell Company has designed and marked its operations in stations, which the production manager refused to reveal to any third party. However, during the interaction session, the operation manager was able to give these stations arbitrary numbers from 1 to 3 (Dell and Catherine 43).

In station 1, the company measures the value of products and services to be delivered to customers, and this must always remain visible to specific demands of customers. The company’s operations are based on the choice customers have and the varying decisions to purchase the company’s products. However, Dell Company is able to respond to the customers’ demands and through instant and effective deliveries, the company has made its customers to believe that Dell products are worth demanding. Therefore, the changing trends in customers’ demands offer important metrics for prediction, and the various processes happening in station 1 are only meant to ensure that the products have the customer’s perceived value.  In this case, the company through proper application of Lean Six Sigma is able to offer products and services relative to the intrinsic values desired by customers.

At station 2, the company ensures that the value measurements given to the product in station 1 remain consistent throughout the production period. Consistency in Dell products and services is a factor directly influencing growth and the amount of sales the company is able to generate from the market (Bowersox, David and M B. Cooper 327). Through the use of Lean Six Sigma, Dell Company has always remained effective and efficient on how it bring together its resources and capabilities in order to ensure the range of product delivered into the market are consistent in value and prices. Any factor that may suggest that a product will face value deterioration over time because of inefficiency and ineffectiveness of the company processes will tend to keep customers away from the company’s products (Bowersox, David and M B. Cooper 310).

Dell Company works towards eliminating value deterioration while enhancing value and price consistency in new set of products, which the company releases in the market. In various occasions, organizations fail to meet their goals because of the problems associated with the nature of resources and company’s capabilities (Bowersox, David and M B. Cooper 329). Through fact gathering and proper analysis, Dell presents constructive ideas to the production system and also combine available resources and limited capabilities as a way of providing solutions to the rising challenges (Bowersox, David and M B. Cooper 340). The Lean process and Six Sigma approach of management are the basic tools Dell us to provide solutions in case the company faces problems with its resource supplies as well as controlling anomalies in delivery channels.

In station 3, the company ensures that service unit meets the demands of customers while maintaining growth in asset holdings. Dell company experiences growth in supply and consumption since there is improvement in economic exchange within the service department (Dell and Catherine 47). Dell Company understands that even if the value exchange may not result from the profit the company makes, the exchange process should be able to recover both production and delivery costs and at the same time keep customers aware of the new changes (Cascio 44). Through proper application of Sigma Six and the elements of Lean, Dell Company has the ability to design a service delivery unit that responds to the needs of customers.

While designing such a unit, the company is compelled to ensure that its production capacity is sufficient to meet the rising customers’ demands on a global context through improved quality production and efficient deliveries (Cascio 44). Without considering some of the factors that may arise during production, the company may not meet the major production goals. Therefore, Dell Company stands on the right track according the production manager by using Lean Six Sigma to identify, respond and solve some of the problems that may act as barriers towards the company’s production processes.

Apart from the mentioning of the three stations and how they benefit Dell Company, it is also becomes important to understand the relationships between managers, employees and potential customers. The company’s operations, growth and stability are solely dependent on the active roles each of the stakeholders play within and outside the organization (Hill, Charles and Gareth 56). Therefore, the company’s management through appropriate approaches take a central role in ensuring that the relationships exhibited by these individuals correspond to the major objectives of the company. Through Lean Six Sigma, the managers of the company are able to understand not only the needs of customers bust also the role employees play in bringing the whole production processes in proper control (Hill, Charles and Gareth 58). From the basic understanding of the various production processes elliptical to the company’s continued performances, the position of employees can only be improved if the company creates an environment facilitates innovation. Employees’ involvement in production can also be enhanced through training and skill impartment, which are some of the major elements contained in Lean Six Sigma (Hill, Charles and Gareth 56).

The global production strategies especially in the computer industry requires that employees remain relevant to the time changes, understand the impact of delayed production and delivery to the company’s growth as well as exhibiting appropriate measures when it comes to decision making. Any production process retails around proper decision making, and the Lean Six Sigma as an approach in manage offers equips employees with better skills to be used in decision making. Relevant to the company’s performance is the possibility of employees and organization managers to work as a team towards achieving a common goal. The objective of teamwork according to the Dell’s operations is to improve product quality, design short and cost effective means of delivery by conducting extensive market research, collecting data and analyzing every information in light of market demands (Hill, Charles and Gareth 59). The company’s market position has improved significantly because of the extensive research the company conducts before releasing any product into the market. Also related to the participatory roles is the company’s ability to influence Employees through proper motivation without putting pressure on the company’s resources (Hill, Charles and Gareth 61). Through the various motivation approaches, employees find reasons improve their performance, deign products that meet the needs of current markets, deliver these product in times and help the company built a long term reputation within major markets.

Profitability is the final goal of every production process and any method design by Dell company gears towards improving sale for the company and finally the amount of profit the company makes. The Lean Six Sigma provides the company with the basic analytical tools on how the company can engage all its systems in ensuring constant flow of revenues (Hill, Charles and Gareth 61). Applying Lean Six Sigma in different areas of management within the company is the only sure way Dell can pool all its resources together and channel those resources to ensure release of quality products. Some of these resource only becomes useful to the company if there is value created at the final stage of development.

Conclusion

The organizational structure is one of the functional units of any company, and through the combined efforts of the whole production system, Dell decided to design a decentralized organizational structure (Martin 11). The main intention of this design is to boost the company’s market research processes while encouraging the different departments and functional components to present ideas that may improve the strength of the organization. Precisely, Dell Company works on a hierarchical structure that advocates for business development, education and global integration through proper research and analysis of current business situations for predicting future fall or rise in market operations. The collaborated ideas contributed by various departmental heads improves the company’s decision making processes and becomes the first approach in meeting the goals of consumers (Martin 13). In general, Dell Company operations are responsive to market predictions, good production strategies and ability to meet market demands through timely distribution of products and services. Without proper understanding of the elements of Lean Six Sigma, the company would not be able to withstand pressure created by competitors like Apple and other computer manufacturing companies.

Work cited

Bolman, Lee G, and Terrence E. Deal. Reframing Organizations: Artistry, Choice, and Leadership. , 2013. Internet resource.

Bowersox, Donald J, David J. Closs, and M B. Cooper. Supply Chain Logistics Management. New York: McGraw-Hill Higher Education, 2009. Print.

Cascio, Wayne F. Responsible Restructuring: Creative and Profitable Alternatives to Layoffs. San Francisco: Berrett-Koehler Publishers, 2002. Internet resource.

Dell, Michael, and Catherine Fredman. Direct from Dell: Strategies That Revolutionized an Industry. , 2006.http://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=1&cad=rja&uact=8&ved=0CB8QFjAA&url=http%3A%2F%2Fmunupawavy.jimdo.com%2F2014%2F05%2F04%2Fdirect-from-dell-strategies-that-revolutionized-an-industry-pdf-download

Hill, Charles W. L, and Gareth R. Jones. Strategic Management. Cengage Learning, 2012. Print.

Martin, James W. Lean Six Sigma for Supply Chain Management: The 10-Step Solution Process. New York: McGraw-Hill, 2007. Print.

Stralser, Steven. Mba in a Daya: What You Would Learn at Top-Tier Business Schools (if You Only Had the Time!). Hoboken: John Wiley & Sons, 2004. http://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=2&cad=rja&uact=8&ved=0CCYQFjAB&url=http%3A%2F%2Fwww.monash.edu.au%2Fmba%2Fassets