Operations Management of Apple Inc. (Dissertation Sample)

Operation Management
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Executive Summary
Apple company is among leading companies in technology industry globally. The case report discusses operations management in regard to Apple Inc. Operations in a firm include quality control, manufacturing, marketing, inventory management, product planning, supply chain and maintenance functions. Apple company utilize operations management tools like Six Sigma and Lean Manufacturing to improve efficiency in functions through waste identification and elimination. Besides, ICT is very critical in operations as ensures effective communication and provide relevant information for operations planning. Similarly, use of artificial intelligence (AI) in operations enhances efficiency of operations by ensuring accuracy and quality. However, poor management of AI results to lack of innovativeness and legal issues.
Introduction
Apple Inc. is a global technology company from the United States with its headquarters based in Cupertino, California. The company designs, manufactures and sells computer software, consumer electronics, and Online services. Apple was founded by Steve Jobs alongside Ronald Wayne and Steve Wozniak (Budnikas, 2011). The company started as a small firm manufacturing and selling personal computers and throughout the history the company has expanded to other sectors. Currently, the company ranks number two after Samsung in the manufacture of phones. In the recent annual Fortune 500 list, Apple ranks number among the largest companies in the United States (Gupta and Prinzinger, 2013).
Financial analysts in American and globally ranks Apple Inc as the largest Information Technology Company in the work in terms of revenue generation. Apple Inc. employs over 120,000 workers to facilitate operations in more than 500 retail stores in the United States and other parts of the world. The vision statement of the company is to provide user-friendly and non-intimidating technology to customers at affordable prices (Budnikas, 2011). Apple’s vision acknowledges the fact that not all customers have the expertise to operate electronic devices. As a result, the company makes the customer comfortable through its interface.
On the flip end, Apple’s mission is to enhance personal computing experience of people from different backgrounds including students, teachers and professionals. The company strives to attain its vision and mission statements, which incorporate the Apple’s main objective by managing a portfolio of products. The portfolio includes iPad, Mac, smart television, iPhone, watch series and online services (Budnikas, 2011). Additionally, Apple Inc. supports its vision through two grant objectives. The first objective includes building hype and anticipation for new future products. For instance, the objective aims to make customers of iPhone 5 like its improvement more.
Apple strives to attain the first objective by using annual events and conferences to announce new product release and provide relevant information before the launch of the product. As a result, customer builds demand for Apple’s new product before hitting the shelves. An increase in demand compels the company to build increase manufacturing operations, keeping in mind the cost minimization objective (Montgomerie and Roscoe, 2013). The second grand objective of the company is to expand and ensure sustainability under a strong brand. Regarding the objective, Apple sets market trend by launching new products before competitors. Similarly, the company ensures consistency in quality management of its products to sustain its brand name. Finally, Apple company engage in continuous operations to develop new products and promote operations efficiency to become a global leader in technology industry.
Evaluation of Operations and Quality Management Processes
The core operations strategy of Apple Inc is to maintain innovativeness in product development. Innovative operations of the company assist in making its product easy to use and in maintain sleek designs, which gives users aesthetic appeal. Another critical operations strategy is that of enhance marketing efforts to guide client behavior. The main operations process of Apple Inc. includes quality management, job design and human capital management, supply chain function, inventory control, capacity management, quality management, and product design. The main quality management processes of the company include quality planning, assurance and control.
Operations management processes
Product and Layout Design Processes
Design operations of the company comprise the main functions that make Apple a famous organization. Apple involves its components and official in the process of design its products or online services (Peinado et al., 2018). For example, Apple uses two officials in the production of Macs; Mac software engineer and Mac hardware engineer. The senior engineer works in coordination with subordinate employees to ensure flow of tasks in the design department. Apple prospers in manufacturing sector because of the interactions between officials in the design department, which contributes to output efficiency.
On the other hand, layout design deals with expectations of customers by focusing on enhancing customer experience. Apple provides spacious warehouses and authorizes sellers to ensure better storage of the firm’s products (Peinado et al., 2018). For instance, product stores of the company have less décor to improve concentration on products. Additionally, Apple Inc. utilizes advanced office layouts to promote creativity, innovativeness and efficiency at the workplace. Creative, innovative and efficiency operations of the company promote quality of products.
Job design and human resource processes
Job design and human capital management processes significantly contribute to the global success of Apple Inc. The company applies short-term and long-term strategies relating to human resource to achieve employee diversity, recruit competent staff and retain talented workers. Steve Job’s focus on excellence guide both short-term and long-term strategies for human resource and job design processes (Peinado et al., 2018). However, the company keeps on changes the strategies to deal with challenges like employee turnover and employee incapacitation. Apple focuses on ensuring that the work environment is conducive to employees to enhance their morale.
For instance, when Tim Cook was the CEO of the company, Apple created a sociable work environment. The purpose was to ensure employee engagement, satisfaction, and commitment. Today, Apple Inc performs well because the sound job design and human resource strategies that it implements (He et al., 2018). Employee training and development is one the grant strategies that Apple uses in human resource management to ensure competence and professionalism at work. Also, the company defines the responsibilities and obligations of specific job positions to avoid contradiction and overlap of activities. The strategies enable the company to deal with challenges in job design and human resource operations.
Inventory management processes
Apple embrace innovation as part of its culture to ensure production of unique products. As a result of innovativeness, the company uses unique inventory management approaches (He et al., 2018). Notably, the company handles global management tasks through its App sores managers. The approach enables Apple Inc. to track and control its products globally. Additionally, the company utilizes FIFO (First-in-First-out) approach in valuation of its inventory. FIFO also ensures that the company release new product after completion of old stock.
Apple’s use of FIFO inventory approach enables the company to identify changes in tastes and preferences of customer (He et al., 2018). Similarly, utilization of App sores and FIFO make manufacturing of products luxurious because all requirements are readily available. As a result, customer purchase the company’s products more than those of the competitors because of the unique features.
Supply chain operations
Globally, Apple Inc. has an effective supply chain consisting of royal suppliers. Most of the supply chain operations to the company are computer enabled (Lewis, 2019). Computerization of supply chain process enable the company to work jointly with its suppliers. The company ranks its suppliers at top to enhance effectiveness in supply chain. One of the driving factors in Apple’s success is effectiveness in supply chain operations. Typically, the company utilizes supply chain automation to monito its suppliers to avoid stockout challenges and reduce lead-time (Gupta and Prinzinger, 2013). In particular, the firm uses demand schedule to assess productivity of suppliers in terms of progress to meeting requirements.
In monitoring, the firm assesses whether its suppliers are complying with the set code of conduct. The management of supply chain processes ensure that Apple is meeting international demand without challenges. In supply chain management, Apple promotes operations efficiency by forming treaties with suppliers. Supplier contracts in the firm are for suppliers who show commitment to deadlines (Gupta and Prinzinger, 2013). As a result, suppliers are able to reap cost saving benefits after selling products. Similarly, Apple Inc. engages in Research and Development operations to come up with new and more effective international supply chains (Nagamia, 2015)....