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Technology Stocks : Dell Technologies Inc. -- Ignore unavailable to you. Want to Upgrade?


To: freeus who wrote (39719)4/30/1998 2:12:00 PM
From: Chuzzlewit  Read Replies (1) | Respond to of 176388
 
Freeus, Cant imagine why they [BA] keep having losses when they have soooooo much dominance in the market.

They've been trying to install a JIT manufacturing model but their logistical system failed and they simply ran out of parts from subcontractors. Very heavy fixed costs pushed the company into the red.

JIT is not as simple as it seems to many Dell naysayers who post on this thread.

TTFN,
CTC



To: freeus who wrote (39719)4/30/1998 11:19:00 PM
From: K. M. Strickler  Read Replies (1) | Respond to of 176388
 
f,

** OT **

Boeing - more complicated than that!

When Boeing increased their production line speed to get more aircraft out due to the tremendous back log of orders, Boeing needed to hire more employees, and consequently went scouting the market place for those employees, concentrating on those that might already be involved in aircraft manufacture, or that could be trained in the shortest period of time.

Well, what happened was that (so I am lead to believe) many of the employees that made themselves available to Boeing were working for the sub-contractors who made the parts for Boeing. As the experienced employees were hired away from the sub-contractors by Boeing, all of a sudden, the sub-contractors couldn't meet their obligations on parts delivery.

Next, the production schedule had to slip due to lack of parts from the sub-contractors. Some of the orders had penalty clauses attached to the delivery time. Soon the problem compounds, lack of enough parts from sub-contractors, and a penalty payment to the ordering airline.

This is a very difficult problem brought about by the tremendous success of their product. IMHO, the addition of a complete DELL network will help to eliminate some of the problems with information flow.

"When you fly the BEST, You fly Boeing!"

Regards,

Ken