Apple Operations Analysis (Essay Sample)

Apple Operations Analysis - Transformation Process
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Apple Operations Analysis - Transformation Process
Introduction
The transformation process of a business entity involves procedures, managerial actions, and all processes undertaken to transform inputs like materials, labor, and facilities into outputs, which are typically goods or services (McCubbrey, 2010). The transformation processes, and the general business layout including operations management are closely related. This is because the processes involved in production or supply chain will determine the facilities, and workmanship to be used. Apple Inc’s supply chain takes on the New Product Development Process model, which involves integration of marketing, R&D, and other functions (Is Apple Supply Chain Really the No. 1? A Case Study , 2013).
Apple Inc’s Supply Chain
The supply chain at Apple Inc is reputed to be one of the best. Gartner, a leading IT research firm has ranked Apple’s supply chain as the best in the world for 4 years consecutively (Case studies from Kimberly Klark, Apple, and Nike., 2014). The supply chain involves the following five key processes (Is Apple Supply Chain Really the No. 1? A Case Study , 2013):
1. R&D, where new technology is introduced, intellectual property licensing sourced, or third party business acquired.
2. Concept testing, where both market research and product testing is done, potential quality defects identified, and cost data assembled.
3. Pre-launch, where production issues are addressed, software provided for new products, purchase commitments managed, proper inventory levels provided, and launch quantity determined.
4. Launch, where backlogs are resolved, and demand forecast of about 150 days are made.
5. Quarterly Review, where inventory levels are reviewed, demand forecast adjusted, component cost trends and sales levels monitored, new product development status updated, and product life cycle status checked.
Apple Inc’s Transformation Process
Apple Inc uses a transformation process that is common to many companies. It consists of five key steps namely sourcing, manufacturing, warehousing, distribution, and return (Is Apple Supply Chain Really the No. 1? A Case Study , 2013). Apple has placed all its manufacturing processes in China, where quality labor can be sourced at a low price. The company sources most of its materials from China to reduce production costs. Other sources include the United States, Europe and other Asian countries. The finished products are kept in warehouses in America, and others shipped directly to online shoppers from the factory in China. At the end of their useful life, the used products are recycled. This is facilitated through Apple outlets that act as collection points for these materials.
Apple Line Analysis
One of Apple’s subsidiaries in China known as Foxconn makes use of unskilled labor, a factor which greatly reduces on labor consists. This is because of the migrant nature of this labor, where workers are not permanently hired. The company makes use of short tasks in tis processes. This enables workers to grasp new concepts quickly and also allows them to work in any position. The line arrangement at Foxconn involves short cycles and therefore is not dependent on communication between workers. Dependence on communication would have been a great impediment considering that China is composed of more than 130 dialects (Foxconn Delivers for Apple, 2007). Teamwork is so much reduced in the line system, and motivation problematic. The way to enforce motivation is through setting high standards, and enforcing line speed. This results in very poor employee satisfaction. Since most of the employees are not permanent, poor employee satisfaction is not a big problem in company production.
Automation at Foxconn limited is not necessary since labor costs are low and the company uses unskilled labor. Automation only becomes useful when used to replace inexperienced or unskilled workers, but it rarely replaces or eliminates manual work (Foxconn Delivers for Apple, 2007). Where the process involved is prone to error, like when placing numerous small components, automation becomes useful. Other common processes like soldering are done manually in many parts of the factory. Workers in a line system require so much supervision. At Foxconn, one supervisors oversees four people, which is quite high as compared to American situations. The need for technical support from technicians is also very high because of ...