Kevin Costello

1
PSZK Presentation March 7th, 2007
Kevin Costello HR Manager, Dell EMFP
Limerick Ireland
Lodz Poland
2
Agenda

• Dell Corporation
• World-wide Manufacturing
• Dell in Lodz
• Human Resources Strategy
• Human Resources Structure
• Q A

3
WHERE OUR TEAMS ARE LOCATED - Direct Around the
Globe
Morocco Netherlands Norway Poland Russia
Portugal
EMEA Regional offices  Austria Belgium Czech
Republic Denmark Finland France
Germany Greece Hungary Ireland Italy
Limerick, Ireland
Scotland Slovakia South Africa Spain Sweden
Switzerland United Arab Emirates
Manufacturing Facility
Headquarters
Bracknell, UK
Xiamen, China
Austin
Winston-Salem
APJ Regional offices  Australia China Hong
Kong India Indonesia Japan Korea Malaysia
New Zealand Singapore Taiwan Thailand
Singapore
Nashville
Americas Regional offices  Argentina Brazil
Canada Chile Colombia El Salvador Mexico
Panama Puerto Rico
Penang, Malaysia
Eldorado Do Sul, Brazil

• 73,000 Dell employees

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Dell Hardware Product Range

• Our best product lineup ever, including
• 9G PowerEdge Servers with Intel Dual Core or AMD
  processors
• OptiPlex Desktops with innovative BTX design and
  HyperCoolTM thermal management
• Latitude with RoadReadyTM quality and
  HyperConnectTM wireless
• Next Generation Enterprise Support

Laser Printers
PowerEdge Servers
IT Infrastructure Services
Inspiron / XPS Notebooks
DellEMC Storage
Optiplex Desktops
Latitude Notebooks
Dimension / XPS Desktops
Precision Workstations
Software
System Consolidation Services
Dell earned more than 200 product and service
awards in fiscal 2006.
LCD Televisions
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Lean Manufacturing
Dells Lean Manufacturing Process!

• Focusing on
• Speed
• Elimination of Waste
• Flexibility
• People
• Quality
• And incorporating
• BPI (Six-Sigma)
• JIT / Zero Inventory
• Lean Manufacturing principles
• Total Quality Control
• Total Cycle-Time Reduction
• Theory of Constraints
• Supply Chain Management
• Total Productive Maintenance

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DELL MANUFACTURING FACILITIES Manufacturing Close
to the Customer
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Direct Build-to-Customer Order
Materials
Custom Order Download
Kitting
EMF
dell.com
BTO/Cell
Testing SI
Direct Order
Voice to Voice
Rapid Ship/Delivery
Staging Boxing Shipping
Face to Face
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In Summary for the Customer.

• Quality
• Flexibility
• Short Lead times
• Lower Costs/Prices
• Faster Time To Market
• BTO/Customization
• New Technologies First
• High Customer Satisfaction

9
DELL in Ireland

• Dell No.1 PC Supplier in Ireland
• Approx 4,750 employees
• One of the largest companies in Ireland
• Leading Exporter
• Dells most productive Mfg. facility
• Favourable Climate
• Ongoing Government support (IDA)
• Favourable taxation regime
• Technology-educated young workforce
• Good Telecomms infrastructure
• Proximity to Tech industry suppliers
• Diverse Workforce (15-20 non-Irish)

10
EMF Performance Transformational Change

• Factory Backlog Days Q407 lt 2.0 Days
• Factory DSI Q407 lt 2.0 Days.
• EMEA BPI - FY07 Belts gt 300 (10 Blacks)
• - FY07 Savings - 312M

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European Manufacturing Facility Ireland A
Multi-Function Site
Focalpoint EMEA Customer Centre
Internet Direct/Online Transactions
EMEA Command Centre
Product Support
Value Added Services CFI/FS/ DellWare
EMEA Product Development, RD
Sales Configuration Management
Asset Recovery Business
EMF Customer Support and Operations Centre
for EMEA
EMEA IT Data-Centre Internet Hub
World Class Manufacturing CFM/Cell
European Accounting Service Centre
EMEA Field Quality
Enterprise Solutions Centre
Trade Compliance
Customisation Build To Order Flexibility
EMEA IT Systems Analysis Design
World Class Supply Chain JIT/Hubs
World Class Distribution Speed/direct
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Why a New Manufacturing Facility in Lódz?
EMEA Growth The new facility in Poland our
second in Europe will provide additional
capacity to meet increased demand and support
Dells growth across a booming Central and
Eastern European market Central Location Lódz
is located in a pivotal location close to these
growing markets in Central and Eastern Europe.
The location has excellent logistics, enabling
Dell to drive superior customer experience
through timely and efficient production and
delivery of custom-built products A young,
well-educated workforce Poland has a national
population of 40 million people and a high
student population. We have great experience of
our existing Polish employees in Warsaw, Dublin
and Limerick. They are well-educated, flexible
and have a great work ethic.
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EMFP Lódz Program Overview
Aug-Oct 2007 Training of DLs in Limerick
Oct 2007 Production Lines are fully tested
July-Sept 2007 Production Lines installed and
commissioned
End Oct 2007 First Dell products are built and
shipped from Dell Lódz!
End-June All ILs hired
Mid-June start installations within building
Data Centre prodn lines
We are here!
Nov 21st 2006 Official Ground-breaking ceremony
held on-site in Lódz
Nov 23rd 2006 Dell hold Open Recruitment Day in
Lódz
Nov 16th Construction Start
April 2007 IT testing starts (SIT)
Nov 2006 LOI for construction of the Dell Lódz
facility is awarded.
March-April 2007 Main building steel erection
March 2007 Recruitment begins for DL roles
March 2007 Building Foundations completed
87 of Building Foundation Complete
Oct 2006 Recruitment for management and
technical roles begins
The Dell Lódz story starts here
Sept 18th 2006 Dell announces Lódz, Poland as
the location for the new European facility.
Aug 2006 high-level design of the new facility
is completed. Begin search for a construction
partner.
Q1 2006 Dell decides to build a new
manufacturing facility in Europe. Program team
mobilised site selection begins
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EMFP Program Phases and Timeline
1 May 07
1 Jan 2007
3 Sept 07
31 Oct 07
Design Phase
Build Phase
Implementation Phase
Pilot Phase
Production Ramp Phase
Phase Exit
Exit
Exit
Exit
First Revenue Shipment 31 October
2007
Phase Entry
Entry
Entry
Entry
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EMEA Transit Times - Post EMFP
Pre EMFP Post EMFP of
Orders delivered lt3days 76 93
of Orders delivered lt2days 39 57
of Orders delivered lt1day 4
4
FI
NO
SE
DK
IE
GB
PL
NL
Lodz
DE
DE
BE
CZ
Prague
AT
FR
CH
FR
BE
IT
NL
GB
PT
ES
GR
Athens
GEO 1 GEO 2
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Our Site When we Started
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Our Site to-day .
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When we complete the Building
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Lodz Project The People

• Recruitment Programme Launched with Site
  Announcement 18th Sept 2006.
• In excess of 6000 Applications Received to-date.
• 5500 People Attended our Recruitment Open Day in
  Lodz Philharmonica.
• Interviews for Management Professional Staff
  commenced on the 20th Nov 06.
• For these positions there are three rounds of
  Interviews.
• We have completed over 500 1st Round Interviews
  since November.
• We are Currently 50 complete on 2nd Round
  Interviews.
• For Management/Professional Positions we target
  60 Job Offers by the End of April.
• For Production Line Operators Selection Process
  will Commence in March.
• Production Line Operators and Majority of
  Professional Staff will complete Training in
  Limerick.
• Training will take place between July and October
  2007.

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Dell HR Strategy Total Value
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Soul of Dell

• Customers
• We believe in creating loyal customers by
  providing a superior experience at a great value
• Direct Relationships
• We believe in being direct in all we do
• Global Citizenship
• We believe in participating responsibly in the
  global marketplace
• Winning
• We have a passion for winning in everything we do
• The Dell Team
• We believe our continued success lies in teamwork
  and the opportunity each team member has to
  learn, develop and grow

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Leadership Imperative The First Years
Developing Champions FY04
Inspiring Champions FY05
Key Theme How do we inspire our team members and
build their capability to reach Dells vision?
Key Theme How do we engage our team members in
reaching our strategic objectives in a Winning
Culture?
Key Theme How must we improve our leadership in
order to reach our strategic goals?
Grow with Dell FY06
Making the Connection FY07
Key Theme How do we engageand empower our
team members in building theircareers and
meetingtheir personal and professionalgoals?
Key Theme How do we effectively use processes
tools to enhance employee engagement?
IDP
Performance Review
Performance Planning
Engagement
11 Meetings
Feedback Coaching
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Tell Dell Employee Survey

• Dells global employee opinion survey
• Administered twice annually (Q2 Q4) to
  full-time, Dell employees
• Survey available in 19 languages
• Contains 24 core questions and up to 10
  supplemental questions selected by
  businesses/functions

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EMEA Ops WC metrics - Trend FY03-FY06
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Tell Dell - Engaging Champions
Average Fav
0
100
50
75
My Manager/ Supervisor
Champion Manager
Dell Overall (N59758 Fav81)
EMEA Overall (N10262 Fav79)
Nicky Hartery (N3413 Fav79)
Nicky Hartery Direct Reports Only (N10 Fav89)
Culture Champion
Dell Culture
Dell Overall (N59758 Fav73)
EMEA Overall (N10262 Fav72)
Nicky Hartery (N3413 Fav74)
Nicky Hartery Direct Reports Only (N10 Fav73)
Fully Engaged Champions
Engagement
Dell Overall (N59758 Fav71)
EMEA Overall (N10262 Fav71)
Nicky Hartery (N3413 Fav67)
Nicky Hartery Direct Reports Only (N10 Fav75)
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Dell Rewards
Dell Philosophy Pay for performance Base pay and
benefits are targeted at market median Variable
compensation is targeted above the market median,
and is based on business and individual
performance Benchmarking Dell participates in a
range of IT and General industry surveys and
formal groups. Processes Pay Promotion Budgets
are based on market affordability Main Annual
review is 1st March. Equity adjustments in
September
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Main components of Dell Rewards

• Base Pay
• Other Fixed Allowances (car)
• Short-term Incentives (STI)
• - Target Commission (OTC) for Sales Employees
  Managers
• - Incentive Bonus Plan (IBP) Professional,
  Managers Execs
• - Incentive Cash Plan (ICP) Operator, Admin
  Technical
• Long-Term Incentives (LTI)
• - Stock plan - Professional, Managers Execs
• Other Benefits
• - Health Insurance Benefits
• - Employee Share Purchase and Product Purchase
  Schemes

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EMEA Headcount
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EMEA HR Organisation
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EMEA Manufacturing HR Structure
Direct Reports in yellow
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Q A

• Thank You for Listening
• Questions?