Operational management-Apple Inc PDF

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One of the document is a research from one of largest mobile companies, that is Apple Inc...

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Surname 2 Summary Apple Inc is among the multinational companies that manufacture computer software, computer peripherals, and personal computers. Steve Wozniak and Steve Jobs established the Company in 1976. Apple Inc is known for producing high-quality products that satisfy consumers globally. It utilizes ten decisions of operation management, enabling it competes with other industries such as Amazon, Google, and Facebook. Some of the decisions include quality management, location strategy, layout, and design, among others. Although the Company has effective supply management, it also faces challenges. The Company does not have an adequate supply chain. It is recommendable that the Company should find more suppliers, to enhance an efficient supply chain. It also needs to have a better patent portfolio and improved innovation, to engage in a competitive advantage. Moreover, it needs to reduce wastage, to prevent pollution.

Surname 3 Operation Management Activities in Apple Inc. Apple Inc is an American company that dealt with the manufacturing of personal computers, computer software, and computer peripherals. Steve Wozniak and Steve Jobs established the Company in 1976 (Ng, Nepal, Schott, and Keathley 2). It is among the largest big tech companies, along with Facebook, Amazon, and Google. It operates in several countries such as Japan, America, Asia Pacific, Europe, and China. It has its headquarters in Cupertino, California. The operation management in Apple Inc involves employment of 10 decisions that enhance effective performance. These decisions relate to location strategy, product design, capacity design, and inventory management. The operation management in this Apple is employed together with a value chain primarily in product design, supply chain, sales, and marketing (Finkle and Mallin 31). Both employees and employers ensure they employ the key operations management, aiming at increasing performance and efficiency of the Company. For instance, when an iPod was launched in 2001, it made Apple among the best electronic industry. The level of revenue determines its success it earns annually. The Company is estimated to have a value of above $741 billion, and on average, it receives about $170 billion (Finkle and Mallin 31). Apple Inc is recognized for having a better supply chain, software ecosystems, innovation branding, product design, as well as a marketing strategy. Designing of services and goods The process of designing their products involves organizational officials and components. For instance, in producing Macs, the Company employed VP for Mac Software Engineering and Senior VP for Mac Hardware Engineering (Hennessy and Najjar 18). The coordination that exists between the Senior VP and VPs reflects how the Company functions. The interactions enhance efficient output, making the Company prosper in the manufacturing sector.

Surname 4 Location strategy The location strategy employed in this Company is selective and involves a few numbers of authorized sellers. A large number of sellers are positioned in urban areas to increase brand exposure and foot traffic. Currently, it has more than 350 retail stores in various countries globally (Gupta and Prinzinger 215). The location strategy has made the company gain profit despite having a limited number of sellers. In most cases, their revenue is higher than that of its competitors. Therefore, the location strategy plays an effective role in operation management of Apple Inc. Layout Design and approach This key operation management focuses on customer's expectations and also positive experiences. The Company has authorized sellers and spacious company stores for better storage of the Company's products. The storage areas have less décor, which improves concentration on their products (Hennessy and Najjar 18). The Company also uses advanced office layouts that promote efficiency and creativity of the work. Both creativity and efficiency enhance the quality production of the products. Quality management The Company focuses on quality products that satisfy consumer's preferences. The Senior VP in this Company works together to enhance acquiescence with the quality standards of the organizations. The high-quality standards used in different areas include online sales, product design, retail, human resource management, marketing, and industrial design (Hennessy and Najjar 19). This has made the Company be known worldwide, due to its quality standards that spread in all business sectors. The approach in quality management has addressed the quality issues in Apple Inc Company, making the Company excel.

Surname 5 Capacity and process design One strategy of human resource management is to capitalize on workforce capital for design and product development. Besides, the Company Company makes use of its suppliers in enhancing the efficient process as well as enough capacity in the operation management (Hennessy and Najjar 19). Sometimes, they are provided with directives to use in process design as well as the Apple Supplier Code of Conduct to improve their human resource management. In addition, the Company encourages innovation to increase process efficiency. Human resources and Job design Both Job design and Human resource management contribute to making Apple Inc successful in the world. This operation management requires application of strategies that are relevant to the HR management requirements. In Apple Inc, the HR strategies and job design strategies are guided by Steve Job's focus on excellence (Hennessy and Najjar 20). Nonetheless, the Company keeps on changing HR strategies. At a specific time, they had to focus on a conducive environment that would improve employee's morale. When Tim Cook served as the CEO, he focuses on creating a sociable workplace that would increase employee satisfaction, engagement, and also commitment. Both the human resource and job design strategies enabled the Company to improve its performance. Inventory management Apple values innovation since it aims at producing unique products. It has applied an idea about innovation in the firm culture. Apple Inc uses distinguished approaches of inventory management (Hennessy and Najjar 18). The App sores managers handle management tasks globally. These approaches include a serialized method to control and track its products. It also uses the first in and first-out (FIFO) approaches that ensure that all the old-model are out of the

Surname 6 market before release of the new model. Utilization of the methods has helped the Company to know the consumer's tastes and preferences. Similarly, they make the production of the products luxurious since it has all the requirements that make it fashionable. The distinguishing features make the customers purchase their products and ignore that of its competitors. Supply chain management Apple Inc has an effective supply chain globally. Apple Inc has computerized its processes and works jointly with its suppliers. 2010 report shows that the suppliers of Apple Inc are ranked at the top. The firm had scored 8.21, higher than Proctor and Gamle, who attained 5.91 (Bozarth and Handfield 22). Effectiveness has been the leading cause of high achievement. The Company make use of process automation and monitor its supplier regularly. It assesses productivity of every supplier, meets the requirements, and also a demanding schedule. The automation process strengthens the supply chain management. The monitoring process assesses ensures that suppliers comply with the Apple Supplier Code of Conduct. Supply chain management (SCM) ensures that the firm meets global demand without difficulties (Bozarth and Handfield 22). In this case, the Company promotes efficient operation by entering into a specific agreement with its suppliers. In the agreement, the Company involves committed suppliers who can make to the deadline. These suppliers can share the cost of savings received by selling the product. Besides, the international structure encourages a positive workflow through the implementation of consistent Research and Development effort, which consists of all the products manufactured. The success obtained in one single unit, reflect in the entire organization. Factors such as halo effects, product differentiation, innovative advertising, and brand loyalty, enhance a continuous market demand (Heizer, Render, and Munson 34). In addition, the minimum advertised price (MAP) functions as the retail strategy that prevents resellers and

Surname 7 dealers from marketing a product below the minimum cost. The adverting approach makes use of marketing subsidies, provided to the suppliers by the organization. Maintenance The Company ensures that it addresses the maintenance issue to relevant teams. For instance, the IT team maintains the servers of the Company and also the IT assets (Hennessy and Najjar 18). In addition, the VP maintains the required number of personnel to maintain the highest performance. Scheduling This operation utilizes both manual and automation processes. The firm focuses on the market demand keenly and comes up with a guide to improve the programming activities. The automation process is used in the production process and scheduling activities, especially in supply chain processes (Mohamad Yusoff 34). Manual scheduling is utilized in individual Apple stores and some department in the Company's office. The schedule is essential in capitalizing on the size of the equipment, human resources, and facilities. Quality William Deming developed the idea of Total Quality Management. TQM detects and also minimizes the errors during manufacturing processes (Olson 2). TQM ensures that employees are working diligently, and the Company has efficient supply chain management, to increase the quality of the products. Over the past decades, Apple Inc has high reputation since the Company produces high-quality products, identify a target market, and ensure their products satisfy their consumers (Olson, 2018 2). They ensure that they manufacture better iOS when compared to that of its competitors.

Surname 8 The main objective of the Company is to provide high-quality products that satisfy the customer's needs. Managers in this Company define the product quality depending on the features, durability, reliability, conformance, and serviceability. Managers need to abide by management principles by ensuring that the business activities are principled and fulfill organization rules. Operation managers are also expected to make policies and implementing them to follow the Company's mission and vision (Olson 2). Implemented policies need to be effective and need to be adequately utilized. Some of the policies employed include employee performance, employee safety, and regulation, as well as employee retention. Another task is ensuring that they abide by government legalities and rules set by the Company. The Company makes use of Total Quality Management (TQM), to inspire its employees and increase job satisfaction. Motivation in Apple Inc is enhanced by allowing team members to communicate in public forums and also meet employees regularly (Olson 2). When workers realize that the Company is recognizing their services, they tend to be more productive. Employees in Apple Inc work diligently to give quality products. In its operation, it uses the four tools of TQM, which include Pareto chart, control chart, Histogram as well as cause and effect diagram. Products manufactured by Apple Inc are obtained from finest materials; hence the final products are of best quality. Besides, the hardware and software are well integrated. This can be observed in iTunes and iPod, and it makes it easy for the users to operate. Apple Inc set premium prices that depend on the quality of the products (Heracleous 93). This makes the Company gain a huge margin compared to its competitors. The brand image enables the Company to get into global market with ease. Its customers highly trust the Company in that by 2009, it had more than 100 million customers who used the iTunes platform to transact. In

Surname 9 addition, the retailing strategy aims at creating the best retail experiences as well as customer services. Creation of the relationship between customers and the Company enhances the provision of support and assistance on an everyday basis. Productivity Apple Inc can monitor and also gauge its productivity using several criteria. The central productivity criteria include evaluation using revenue per square foot, measuring employee's productivity in terms of milestones per time, and assessing suppliers using product units per time (Hennessy and Najjar 18). Due to its market size, the Company goes for benchmarking and ensure different standards are utilized to improve a firm's productivity. Production, lean manufacturing, and Technology The Company utilizes inputs and state-of-the-art Technology to produce quality products. For example, it uses production inputs such as batteries, accelerometer, processors, audio chipsets plus codec, display, camera, controller chips, among others. These inputs are utilized in countries such as China, Japan, USA, Italy, and France (Heracleous 93). In addition, the development process provides designers the self-governing, with minimal supervision. They operate their budget and ignore the manufacturing feasibilities. The design studio in Apple Inc is highly protected and ensures the production of incredible products. Only a certain number of employees are allowed in this sector. The department is also separated from other departments in the organization. Since these employees report directly to the executive team, this certifies delivery of the products. Apple Inc tends to reduce its operation cost by doing its manufacturing process in china via other companies such as Foxconn. The senior managers are known as EPM Mafias, ensure that the manufactured product reaches customers at the right time (Heracleous 93).

Surname 10 Product design is also evaluated to ensure that the final product is of best quality. The final evaluation of the product is performed at Cupertino, California. High security is usually maintained in a packaging room, to prevent leakages. Apple company has an improved introduction plan, that make use of ‘The Rules of the Road.' The body demonstrates all the responsibilities and actions that need to be considered before the product gets launched in the market. Besides, Apple employs a Just-in-time approach to correspond to the unwarranted steps concerning product delivery (Mohamad Yusoff 35). This technique makes use of supply chain management and lean manufacturing strategies. Apple Inc always focuses on providing on exploring new opportunities and producing high-quality products by utilizing lean manufacturing strategy. Lean operations used in this market have led to minimal cycle times, Conducive working environment, information flow, and improved quality levels (Mohamad Yusoff 35). This has made the Company meet the target in efficiency and cost reduction. Besides, it has enabled the Company to minimize defective products and waste products. Apple has been using raw materials that are economically friendly. It eliminated metals such as PVC, Beryllium, Lead, Mercury, and Arsenic in the production sector Gupta and Prinzinger 215). It also uses aluminum, recyclable material in iPhones, and MacBook instead of fiberglass and polycarbonate. It also shifted from fossil fuel to hydroelectric fuel when processing aluminum. The process minimizes carbon emission and also improve manufacturing process. In the year 2015, the Company was able to reduce the rate of carbon emission to 50%. The usage of aluminum material comply with the company value, and it is light when used in the manufacture of iPhone. Since the material can be recycled, it enhances cost saving. Challenges

Surname 11 Despite the Company having the best effective Supply chain, it faces challenges resulting from a high-tech company system. The working condition has been an issue for the firm supply chain. Foxconn, the assembling partners of Apple Inc, report to be working in poor working condition. The 2010 report states that about 900,000 workers were forced to work on the same line up for approximately two years (Apple Inc, 2010). Besides, several employees in China are forced to work even overtime hours. Approximately 73.3% of the workers are forced to work over 10 hours. Another issue involves connection between suppliers and the Company. A survey shows that Apple Inc. Company fails to hit target due to inadequate supply chain (Apple Inc, 2010). Even though the Company has several suppliers all over the world, when supply chain are evaluated in portions, some critical component essential for the product will not be examined effectively. Recommendation In solving the issue of supply chain, it is recommendable for the Company to improve on working conditions. They also need to have a working schedule to avoid overworking its workers. When the Company observes employee's rights, they are likely to achieve its objectives due to the increase in productivity. Besides, it should look for more suppliers to help in improving the supply chain. Since Apple faces a more significant challenge with its competitors, it needs to have a stronger patent portfolio and constant innovation. This will help the Company have a completive advantage, especially when imitated by other companies.

Surname 12 The Company has played a vital role in enhancing sustainability. It has used shifted from using fossil fuel to renewable powers. However, the Company needs to minimize wastage, to prevent pollution. Conclusion Apple has been known globally for producing quality products such as computer peripheral, personal computers, and computer software. The operation management in Apple involves the application of 10 decisions of operation management. The ten decisions include quality management, product design, and location strategy, among others. Operation management is employed through synchronized effort in marketing, sales, and product design. Since the Company has utilized advanced Technology, it has been among successful companies worldwide.

Surname 13 Bibliography Apple Inc. (2010). FORM 10-K (Annual Report). Retrieved from http://www.annualreports.com/HostedData/AnnualReportArchive/a/NASDAQ_AAPL_2 010.pdf Bozarth, Cecil C., and Robert B. Handfield. "Operations and supply chain management." Strategies 21 (2008): 22. Finkle, Todd A., and Michael L. Mallin. "Steve Jobs and Apple, Inc." Journal of the International Academy for Case Studies 16.7 (2010): 31. Gupta, Atul, and Joe Prinzinger. "Apple, Inc.: Where Is It Going From Here?." Journal of Business Case Studies (Online) 9.3 (2013): 215. Heizer, Jay, Barry Render, and Chuck Munson. "Operations management." Sustainability and Supply Chain Management, 12th Ed., USA (2017). 34-65 Heracleous, Loizos. "Quantum strategy at apple inc." Organizational Dynamics 42.2 (2013): 9299. Hennessy, Julie, and Andrei Najjar. "Apple Computer, Inc.: Think Different, Think Online Music." Kellogg School of Management Cases (2017): 1-24. Olson, Eric W. "TOTAL QUALITY MANAGEMENT & APPLE SUCCESS." Proceedings of the International Annual Conference of the American Society for Engineering Management.. American Society for Engineering Management (ASEM), 2018. Mohamad Yusoff, Nur Husnina. "Determinants Of Risks And Performance In Apple Inc.". SSRN Electronic Journal, 2018. Elsevier BV, doi:10.2139/ssrn.3181705:p.34-84 Ng, E. H., et al. "TOTAL QUALITY MANAGEMENT & APPLE SUCCESS." (2018). p. 2

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