Upload
dell
View
1.113
Download
1
Embed Size (px)
DESCRIPTION
Franklin Flint (@franklinatdell) and Josh Neland (@joshneland) presented a classroom session at the 2010 ESC Silicon Valley Conference. They are both Technology Evangelist For Dell OEM Solutions. Learn more at www.dell.com/oem.
Citation preview
Designing with TCO in mind
Josh Neland, Franklin Flint
OEM Technology Evangelism
Global MarketingConfidential2
Hidden costs . . .
Missingopportunities
Being surprised by
success
Improving the wheel
Global MarketingConfidential3
Technology opportunities
VirtualizationCloud
computingActivity monitoring
Global MarketingConfidential4
Evaluating opportunities
Your Company
Needs
Investments
Maturity
Trends
Global MarketingConfidential5
Evaluating opportunities
Your Company
Needs
Investments
Maturity
Trends
Customer
Needs
Investments
Maturity
Trends
Global MarketingConfidential6
Evaluating opportunities
Your Company
Needs
Investments
Maturity
Trends
Customer
Needs
Investments
Maturity
Trends
Supplier
Needs
Investments
Maturity
Trends
Global MarketingConfidential7
Evaluating opportunities
Your Company
Needs
Investments
Maturity
Trends
Customer
Needs
Investments
Maturity
Trends
Supplier
Needs
Investments
Maturity
Trends
Global MarketingConfidential8
Virtualization
Server
ClientHDD
ClientHDD
ClientHDD
Global MarketingConfidential9
A fork in the road
Client v1 Client v2Client v3Client v4Client v5
Client
Global MarketingConfidential10
Improving the wheel
Global MarketingConfidential11
Specific needs
Global MarketingConfidential12
Invest wisely . . .
What your supplier does
What you do?
Global MarketingConfidential13
Rebalancing the portfolioValue
Vendor expertise
?
Integrate or
Standardize
Global MarketingConfidential14
Plan for success
Sales
Time
Global MarketingConfidential15
Plan for success
Global MarketingConfidential16
Wrapping up
• Broaden your lens to find new opportunities
• Engage and leverage your suppliers
• Plan for success
Global MarketingConfidential17
Q & A
Global MarketingConfidential18
Let’s continue the discussion
[email protected][email protected]
http://dell.com/oem
Global Marketing19 Confidential
Backup
Global MarketingConfidential20
Every Dell customer receives . . .
• Quality in design and production
• Best costs possible
• Supply when you need it
• Sustainability throughout the entire supply chain
Global MarketingConfidential21
Quality in design and production
• System Integration Test (common development term): Ensure components will work together within spec during development
• X-Build (common development term): After development completes, ensure final version of parts work together to spec.
• Pilot (common term): All aspects of manufacturing are working on a few units, including packaging, peripherals.
• Ramp build (dell term): Slowly start ramping production while closely auditing quality to catch any issues only seen during mass production.
• Buying power to resolve component quality issues immediately, should they arise.
Global MarketingConfidential22
Best costs possible
• Utilize frequent B2B e-auctions for the majority of our components to get the best costs with the best terms
• Strategic purchases of commodities during cost dips
Global MarketingConfidential23
Supply when you need it
• Relationships with Samsung, Intel, Microsoft and ODMs allow us to get priority during industry-wide supply constraints
• Dell’s SC3 facility/control room allows Just-In-Time inventory management and routing between Dell facilities, including the ODMs.
Global MarketingConfidential24
Sustainability throughout entire supply chain
• A dedicated Dell team regularly goes on-site to audit the working conditions and manufacturing processes of our 1st, 2nd and 3rd tier suppliers
• The team ensures ethical and legal labor/environmental practices are being followed.
• Zero-tolerance: If a supplier violates the rules, we discontinue usage immediately.
• Our carbon intensity (CO2/revenue), is less than half that of our closest competitor and we have pledged to reduce it further
Global Marketing25 Confidential
Quality examples
Global Marketing
PC Manufacturers Recall More Sony Batteries
• BusinessWeek, 2008/10
• “Remember the brouhaha a couple of years ago when Sony took the heat for failing to tell consumers immediately about a problem with its notebook pc batteries?”
• “To refresh your memory, Sony ended up taking a charge of about half a billion dollars in 2006 for a massive recall of more than 10 million lithium-ion batteries. As with the previous recall, Sony reported the problem stemmed from a manufacturing problem that caused defects.”
• Dell was the first in the industry to announce and resolve the issue with our customers, despite the bad press it created.
Global Marketing27 Confidential
Supply examples
Global MarketingConfidential28
VRAM shortage impacts second-tier notebook shipments
• DIGITIMES, 2010/4/21
• Video RAM (VRAM) used in graphics cards is in short supply, forcing second-tier notebook makers to delay shipments, according to sources from notebook players, because the three main producers, Samsung Electronics, Hynix and Elpida, do not have enough capacity to meet increasing orders.
• The sources noted that most downstream notebook makers are unable to maintain a secure level of VRAM inventory even if they are willing to pay more; however, the sources expect first-tier notebook makers to see less impact from the shortage.
Global MarketingConfidential29
DRAM shortage impacting PC makers, says Nanya
• DIGITIMES, 2010/4/14
• The ongoing DRAM shortage is causing a panic among PC makers, which now have less than one month of inventory, according to Nanya Technology spokesperson Pei-Lin Pai speaking at the company's recent investors conference. The chip shortage has even affected shipments of some first-tier PC vendors, Pai pointed out.
• Pai said that PC customers are complaining of not getting sufficient supply of DRAM chips, and their stockpiles are falling below safe inventory levels.
Global Marketing30 Confidential
Sustainability examples
Global Marketing
Apple: Foxconn violated code of conduct
• Macnn.com, August 2006
• Apple said its audit team--comprised of members from is human resources, legal, and operations groups--found that Foxconn was in compliance in the majority of the areas audited, but found violations to the company's Supplier Code of Conduct, including overcrowding in some housing provided to workers, a complex and overly incentivized pay structure, an outdated payroll system, over-worked employees, and some instances of harsh treatment.
Global MarketingConfidential32
Apple's Foxconn Problems: What Steve Jobs Doesn't Get At All
• Seekingalpha.com, 2010/04/14
• We all can learn a lot from Apple's Foxconn problems. Executives in charge of supply chain management can no longer concern themselves with low prices and high quality alone. They absolutely must make sure their partners take care of their employees and protect the environment.
• No company should be too beholden to any single partner. If one company controls your entire production, you won't have the influence you need to make them improve when necessary.