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How can Dell effectively address the root cause contributing to the increase of L5 manufacturing?

How can Dell effectively address the root cause contributing to the increase of L5 manufacturing?

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Answer #1

Methods through which Dell can effectively address the root cause contributing to the increase of L5 manufacturing:

  • Improving the forecast accuracy so as to avoid demand fluctuations
  • Providing motherboards in a timely fashion to CMs.
  • Ensuring that chipset suppliers do not decommit or have other supply issues by having multiple suppliers and adequate safety stock.
  • Reducing engineering/quality issues through TQM and benchmarking Standard operating procedures
  • Planning demand in a better way before introducing new products
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