Solectron Case Study 2
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Running head: SOLECTRON CASE STUDY
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Solectron: From Contract Manufacturing to Global Supply Chain Integrator
Lakeisha Boston
Liberty University
SOLECTRON CASE STUDY
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Dell Inc.: Improving Flexibility in Supply Chain
Why does L5 incur higher manufacturing and logistics cost than L6? What are some of the
costs that are incurred in L5 but not in L6? Are there any costs that apply to only L6 but
not L5?
“L5 includes the assembly of desktop PC chassis, floppy disk drive, and fan. L6 includes L5 and
a motherboard[ CITATION Sim08 \l 1033 ].” This explains the cost difference between L5 vs.
L6.
The motherboard is one of the most critical components of a PC and it is not a cost
applicable to L5. The reason for the different assembly methods is to allow and meet customer
expectations or customizations. Additionally, the demand is greater for L5, which leads one to
assume that customizations are more popular. According to the text, L5’s cost are higher than L6
because Dell is not able to provide motherboards in a timely fashion to their
manufacturers[ CITATION Sim08 \l 1033 ].
Which of the six proposed manufacturing solutions should Dell implement, based on the
survey result and why? What are the pros and cons of this recommendation?
Of the six proposed solutions, the best choice would seem to be one that is least to
moderately complex. The manufacturing process should be clean and straight forward.
Manufacturing costs should be comparably lower. Dell should implement option 3A. This option
involves integration with a supplier logistics center and would keep the latter processes
unchanged. It would allow the motherboard-chassis
shipping situation to be alleviated.
The
downside is losing control and having to increase capital to purchase new equipment.
SOLECTRON CASE STUDY
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How easily sustainable is your recommendation for the previous question if the chipset
supply shortage further deteriorates?
Chipsets are a critical component of the motherboard. It allows for communication in a
computer system. If there is a greater shortage, option 3A would not be sustainable. I would
recommend diverting to option 6. This option could create more resources. However, this option
would also require a ton of coordination and complexity, because of the location; Mexico.
How good is the methodology employed by the BPI team to determine the optimal
manufacturing option for Dell? Are there more effective approaches?
The BPI team makeup
of various employees from different organizations of Dell is great. It allows the team to benefit
from different perspectives and better strategize. The methodology is good because it allows for
one to consider different scenarios with rates or potential outcomes of both.
How can Dell effectively address the root causes contributing to an increase in
Manufacturing?
According to the text, the main root causes are creating higher cost in both
logistics and manufacturing. The causes are timeliness, supply, quality , forecasting and
innovation of new products. Dell could address the issues by introducing a new manufacturing
plan or meeting with those heavily involved in their supply chain to determine ways to
overcome.
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SOLECTRON CASE STUDY
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References
Simchi-Levi, D., Kaminsky, P., & Simchi-Levi, E. (2008).
Designing and Managing the Supply
Chain.
New York: McGraw-Hill.