This report highlights the operations management strategies of “Apple Inc.”, a well-known organization in the computer industry. It includes modular design, robust design, internal and external failures, process strategy and manufacturing process.
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OPERATION MANAGEMENT1 Table of Contents Manufacturer and Competitive Strategies..................................................................................2 Modular Design and Robust Design..........................................................................................2 Modular Design......................................................................................................................2 Robust Design........................................................................................................................2 Internal and external failures......................................................................................................3 Internal Failures......................................................................................................................3 Failure to Automate............................................................................................................3 Failure to Analyse...............................................................................................................3 External Failures.....................................................................................................................3 Changes in Quality Standards.............................................................................................3 Increasing cost of Raw Material.........................................................................................3 Process Strategy and Manufacturing Process............................................................................3 Process Strategy......................................................................................................................3 Product Innovation..............................................................................................................4 Technological Advancements.............................................................................................4 Outsourcing.........................................................................................................................4 Manufacturing process...........................................................................................................4 References..................................................................................................................................6
OPERATION MANAGEMENT2 Manufacturer and Competitive Strategies Operations management focuses on management of all activities and processes related to the creation of goods and services by the transformation of inputs into output. It includes capacity planning, inventory management, forecasting, purchasing and maintenance of material, the motivation of employees, quality assurance and making decisions related to the allocated facilities. This report highlights the operations management strategies of “Apple Inc.”, a well-known organization in the computer industry. It was founded by Steve Jobs, Ronald Wayne and Steve Wozniak in 1976 and was incorporated in January 1977, as “Apple Inc.”, to sell the computers including Apple I, Apple II. The company aims to lead the tech industry by fulfilling the demands of its customers with the help of its new, innovative and improvised products(Aljafari, 2016).The operations strategy of the organization mainly includes expanding the distribution network all over the world with the help of its institutions. These institutions are small and medium businesses, government markets, education sectors, retailers, and enterprises. The company is working with the current strategy of the constant and consistent introduction of software and hardware applications into the market. Further, to maintain superior quality purchasing experience, it makes plans and strategies related to the expansion of business which is the part of operations management(Xue, 2016). Modular Design and Robust Design Modular Design This design includes manufacturing of computers with the help of parts that can be replaced easily and used standardized interfaces. Apple uses this design in its manufacturing process of computers which enables the users to easily upgrade the certain aspects of the system without buying a new system for the same purpose. The main modules in the systems of Apple Inc. include processors, power supply units, graphics cards, hard drives, mainboards and optical drives. This enables the company to gain the trust of customers by providing them with a durable product. It also increases the sales of products related to the changeable parts of the systems(Bonvoisin, Halstenberg, Buchert, & Stark, 2016). Robust Design The company is using Robust Design in the manufacturing of MAC series laptops and Computers. Because the company is concerned with reducing the variations of raw material but is not reducing the features of the computer. It indicates that a robust design is helpful in
OPERATION MANAGEMENT3 the production of more innovative and technology-based products with the removal of unnecessary components. It also decreases the cost of production for the company as unnecessary processes are deleted with the deletion of expenses on them. Apple Inc. is concerned with using this design with high integrity(Bates, Kenett, Steinberg, & Wynn, 2006). Internal and external failures Internal Failures Failure to Automate The organization uses the facility of automatic data collection which helps in avoiding human errors and provides the perspective and updated according to the real-time system. The staff of the organization gets free by setting up the automatic functions with the help of Chain Drive. Chain Drive can be defined as the integrated operations management platform that systematizes the slow and manual data entry of the past and collects all important information in an integrated database. It can also be a reason for the failure of the automated system and loss of all important data and information. Failure to Analyse The ability to analyze the information in the most important and challengeable task of the company. There can be a failure in estimating the demands and expectation of the consumers that can affect the manufacturing process up to a great extent(Battistoni, Bonacelli, Colladon, & Schiraldi, 2013). External Failures Changes in Quality Standards If there is any change in the quality standard of the products, then the company may have to face the problem in its manufacturing process because of changes in the process, technology, and designing process. Increasing cost of Raw Material An increase in the cost of raw material impacts the manufacturing process as there will be no availability of sufficient RM on time and it will impact the time and efficiency of the manufacturing process(Tucker, Heisler , & Janisse , 2013).
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OPERATION MANAGEMENT4 Process Strategy and Manufacturing Process Process Strategy Process Strategy of the company includes the following aspects: Product Innovation Apple believes and works with the innovation in its manufacturing process. The management of the company launches innovative products which cannot be compared to any other product on the market. Technological Advancements The process strategy of Apple Inc. includes production and manufacturing of the products with the help of highly and upgraded technologies to provide advanced features to the customers. Outsourcing Apple outsources its functions and activities related to the manufacturing of some specified products and parts of computers. It is the part of the process strategy of the company which helps in bringing perfection in the quality of the products(The difference in internationalization strategies: Apple Inc. and Samsung Electronics, 2016). Manufacturing process The company has launched its computer series with the name of “Mac”. The new MacBook is made from a single aluminum brick. This strategy prevents the disclosure of many screws and has some other innovative features. This approach is known as "Unibody Enclosure”.
OPERATION MANAGEMENT5 (Apple, 2013) The company employs some CNC machines to shape the Unibody with the help of a solid metal block. The remaining 90% is recovered at the time of manufacturing the recycling of the new blocks of aluminum. This results in a lighter and thinner enclosure that is simultaneously stiffer and stronger. This affects the aesthetics so that some opening and sleeping screws that are pierced by the laser are not visible to a person with naked eyes. The only ports and breaks can be seen at the edge of Mac include super drive slot, IR port etc. (MacRumors, 2015) The battery and hard drive are covered by the access door with the help of screws holding the top and bottom case together. The new manufacturing process of the Mac is concerned with removing PVC and BFR from the cables, logic board and connectors to minimize the use of harmful chemicals. The packaging has been decreased by 37% which means the reduction in the use of paper and environmental loss. These all changes are liked by the consumers as they are getting the best quality product of the market.
OPERATION MANAGEMENT6 References Aljafari, A. (2016). Apple Inc. Industry Analysis Business Policy and Strategy.International Journal of Scientific & Engineering Research, 7(3), 406-441. Apple, P. (2013).Apple Reveals New Laser Manufacturing Process for the iMac. Retrieved July 20, 2018, from http://www.patentlyapple.com/patently-apple/2013/10/apple- reveals-new-laser-manufacturing-process-for-the-imac.html Bates, R. A., Kenett, R. S., Steinberg, D. M., & Wynn, H. P. (2006). Achieving Robust Design from Computer Simulations.Quality technology and Quantitative Management, 3(2), 161-177. Battistoni, E., Bonacelli, A., Colladon, A. F., & Schiraldi, M. M. (2013). An Analysis of the Effect of Operations Management Practices on Performance.International Journal of Engineering Business Management , 5(44), 1-11. Bonvoisin, J., Halstenberg, F., Buchert, T., & Stark, R. G. (2016). A systematic literature review on modular product design.Journal of Engineering Design, 27(7), 1-27. MacRumors. (2015).Apple Watch Uses Chip Manufactured on Samsung's 28-Nanometer Process. Retrieved July 20, 2018, from https://www.macrumors.com/2015/05/07/apple-watch-28nm-samsung-processor/ The difference in internationalization strategies: Apple Inc. and Samsung Electronics. (2016). Retrieved July 20, 2018, from https://repositorio.iscte-iul.pt/bitstream/10071/13973/1/MIM%20Dissertaion%20Eve %20Pinto-Cardoso%20Final.pdf Tucker, A. L., Heisler , W. S., & Janisse , L. D. (2013).Organizational Factors that Contribute to Operational Failures in Hospital. Retrieved July 20, 2018, from http://www.hbs.edu/faculty/Publication%20Files/14-023_f68586ef-ffd3-4147-8178- 0053916c0af8.pdf Xue, C. T. (2016). An Examination of the Strategic Use of IT Applications in Achieving Competitive Advantages.International Journal of Advance Research in Computer Science and Management Studies, 4(7), 16-25.
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