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

To: Chuzzlewit who wrote (46153)	6/3/1998 3:32:00 PM
From: jbn3	Respond to of 176387

re DELL's current capacity Cat, No, I do not know DELL's current production capacity, either in terms of maximum possible, or actual percentage thereof. When we took the Metric 12 tour last November, I think I recall the guide told us that they normally ran two shifts, five days a week; they added shifts on weekends to meet exceptional demand. (perhaps Judith, Rosemary, Sig, or Klaus can verify that). The guide also told us that the production lines were 'pushed' to keep a steady, but realistic flow for the workers. Donnie, Annette, or others who live near Round Rock and DELL operations could better tell you whether DELL has moved to a 3-shift production. I think that one reason for DELL's negative growth in inventory turns this past quarter was due to increased production at the older, less efficient facilities. As I recall, DELL has increased personnel by about 50% over the past year. This could be due to a number of factors: 1) Increased production requirements 2) Increased service 3) Preparation and training for the new facilities. 4) Poor planning Considering past management performance, I think we can exclude #4. DELL management has a proven record showing they are thinking and planning ahead about what the company and their customers will need tomorrow. If you remember, I posted an article about how DELL worked extremely well and smoothly to line up all the Austin city zoning requirements and neighborhood committees to get approval of its new facilities. The efficiency of the operation reflects DELLs overall execution. An immediate need for additional production capacity may or may not have been a factor. Bottom line is: I don't know. I do know that DELL continues to exhibit rapid unit sales and earnings growth. I suspect <vbg> that management would dislike losing sales and potential customers due to an inability to provide them with desired product. I'm sure that growth and production capacity are closely monitored and planned. Therefore, increases in production capacity would be closely coordinated with anticipated product requirements, but with a built in 'safety factor' to account for possible glitches or stronger than anticipated sales. Further, judging by the increases in server and notebook sales, I would hazard a guess that maybe management may not have foreseen quite such strong demand. Sorry, there is lots of conjecture in this post. Anyone who lives in Austin area and sees the production facilities on daily basis care to comment? DELLish, 3.