Organisational Change in Dell Incorporated Research Paper

Organisational Change in Dell Incorporated - Research Paper Example Its main feature is the utilization of total quality management (TQM) approach, highly flexible and motivated workforce, Just-in-Time (JIT) manufacturing philosophy, and the pursuit of satisfying customers at a global level. The introduction of the WCM system in Dell represents one of the major organizational changes in the history of the company. Currently, Dell is recognized for this unique business model which is very much different from the ones used by our competitors. This organizational change can be best described by the Total Quality Management and Lean Manufacturing Models. Consistent with the goal of a world-class manufacturer, TQM denotes a set of management practices within the organization which is implemented to ensure the quality of products and services offered. The primary goal of TQM is the production of commodities which consistently meets or even exceeds customer requirements. With Dell, this means the emphasis on process measurement and controls to pursue continuous improvement. However, TQM does not just involve the production system or processes of the company but embraces the whole operation of a manufacturing business. Implementing TQM involves modifying the whole organization as it has a strong bearing on the culture, attitude, and organization of the company. TQM culture requires the unmatched quality in all aspects of the company's operations with things being done right the first time, and defects and waste eradicated from operations. Important aspects of TQM include customer-driven quality, top management leadership and commitment, continuous improvement, fast response, actions based on facts, employee participation, and a TQM culture. On the other hand, Dell also put in place the Just-in-Time (JIT) manufacturing philosophy from Japan. This concept is attributed to automaker Toyota. JIT is consistent with the lean manufacturing philosophy of producing the necessary units, in the necessary quantities at the necessary time with the required quality. JIT is a lean manufacturing system which became an innovative approach for Dell to achieve excellence in the reduction or the total elimination of "wastes" which includes overproduction, unneeded inventory, defective products, and transport and waiting time. Thus, the JIT philosophy is an elimination of non-value adding activities in the company's supply chain to boost manufacturing efficiency, driving down cost, and ensuring maximum customer satisfaction by driving down prices of commodities. The shift to a leaner manufacturing system which prioritizes the elimination of the "wastes" in production necessitated the installation of the following essential elements and features to the manufacturing system: regular meetings of the workforce to discuss the company's practices, confront and solve problems; emphasis on consultation and cooperation (i.e. involving the workforce) rather than confrontation; modification of machinery to reduce setup time; reduction of buffer stock, exposition of problems, reveal bad practices; and elimination of the security blanket of stock. In order to show how the new manufacturing system supported by the principled of TQM and lean manufacturing works, we will look at the supply chain of Dell. Â  

Apc 308 financial management Dissertation Example | Topics and Well Written Essays - 2250 words

Apc 308 financial management - Dissertation Example .. The secret of success in financial management is to increase value." (Aswath) According to Copeland & Weston: â€Å"The most important theme is that the objective of the firm is to maximize the wealth of its stockholders.† (Aswath) Thus, it has been very aptly defined that the main objective of an organization is to maximize the wealth of its shareholders and thus, capital structure is an important factor constituting towards this development. Objectives of Capital Structure Planning The importance of the capital structure planning can be summarized in the following diagram. Source: http://www.svtuition.org/2010/05/importance-of-capital-structure.html To reduce the overall risk of the organization The capital structure of an organization needs to be devised in such a manner that the overall risk is minimized. The acquisition of debt in the capital structure sets up an added liability of interest payments. Contrarily, equity financing means a rate of return in the form of di vidends to be paid to the shareholders. Thus, debt raises the â€Å"risk† for the shareholders. Adjustment according to business environment The concept of â€Å"maneuverability† is applicable in this regards. ... Thus, they need to raise capital either through external or internal finance. Therefore, a risk lowering and a profit maximizing capital structure would help finance manager to raise capital easily and efficiently (Capital Structure Planning, 2010). Capital Budgeting Capital budgeting refers to investment in projects that pay a rate of return in the long-run. The asset acquired is evaluated by various techniques so as to reach the decision of whether or not to purchase them. This is of utmost importance in financial management and thus, the technique was used by General Motors to overcome their losses in 2002. There are five techniques to rank whether a project should be included in the capital budget or not. Source: http://assets.cambridge.org/97805218/17820/excerpt/9780521817820_excerpt.pdf Payback Period This technique is simple and shows the time frame for the investment’s net revenues to cover its costs. Discounted Payback Period This methodology also provides the time fr ame but the calculation procedure is different. The cash flows are discounted at the rate of the investment’s cost of capital to achieve the length of time that would cover the cost of investment. Net Present Value (NPV) Future values of the cash flows are discounted at the cost of capital to obtain the NPV of the cash flows (Brigham & Houston, 2003). The investment venture is than ranked according to the NPV of the cash flows. This technique makes the use of discounted cash flows and is quite advantageous. A positive NPV demonstrates that the investment not only covers the cost of investment but also earns a profit. Whereas, a 0 NPV means that cash flows generate an enough amount only to cover the cost of the capital. Internal Rate of Return