BUS2113 - Operation Management Strategies: Apple Inc. Analysis

This report analyzes the operation management strategies of Apple Inc., focusing on aspects like modular and robust design in manufacturing. It examines internal failures, such as failure to automate and analyze data, and external failures like changes in quality standards and increasing raw mater...Read More

Running head: OPERATION MANAGEMENT
operation management

OPERATION MANAGEMENT 1
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 MANAGEMENT 2
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 MANAGEMENT 3
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).

OPERATION MANAGEMENT 4
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 MANAGEMENT 5
(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.

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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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