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

To: Mike Van Winkle who wrote (112952)	3/28/1999 3:07:00 PM
From: jim kelley	Read Replies (1) \| Respond to of 176387

Mike, I am not the person to ask about "continuous flow" manufacturing. Strictly speaking, the manufacturing of PC's is at best discrete flow. DELL's manufacturing process begins with each order that is booked. DELL's cogs is higher than CPQ at this time due to royalty payments and possibly licensing fees as well as volume procurement discounts. It seems that this is about 3.5% difference in favor of CPQ. DELL has an even larger advantage over CPQ in operating costs. Overall, DELL has the lowest cost of manufacturing. Royalty and licensing fees are included in the "cost of Sales". There is a lot of room for improvement in DELL's cost structure and it looks like DELL is well aware of this and acting expeditiously to capture these improvements. JK