Introduction
Operations management is the administration of business activities, processes, and practices with a view to enhancing organizational efficiency and effectiveness (Jacobs & Chase, 2013). It entails the process of facilitating the transformation of business inputs, such as labor and raw materials, into competitive products and services (Krajewski, Ritzman & Malhotra, 2013). Slack (2015) demonstrates that operations management allows companies to balance between the costs of business operations and their profitability objectives. Apple Inc. relies on its operations management function to develop and drive competitive businesses within the global consumer electronics industry (Wiskus, 2014). The efficiency of business operations within Apple, such as design, development, and promotion of personal computers, media devices, digital music players, and mobile communications, is attributed to effective management of its supply chain operations (Lockamy, 2017). This paper presents a critical analysis of operations management practices at Apple Inc. with a focus on the management of product design, the supply chain, and product quality.
Product Design
Product design refers to the application of innovative ideas in the creation or generation of a new product by a company (Chen & Ann, 2016). Operations managers support product design activities by ensuring that design processes are controlled, evaluated, and directed at achieving a company’s strategic objectives. Inputs into product design processes are also effectively controlled through operations management (Wiskus, 2014). Slack (2015) indicates that the quality of product design is influenced by the effectiveness of operations management processes within a company. Operations management concepts are applied in the design of Apple’s smartphones, compute, and tablets to ensure that they are highly innovative and of a higher quality than competing products in the consumer electronics market (Kuang, 2011). The company’s operations managers ensure that product designers have access to relevant materials, information, and capital for the design and development of the most competitive smartphones and computers (Badenhausen, 2013).
Kuang (2011) asserts that Apple’s products are described in the context of premium product design due to effective management of its product design processes. The company has one of the best industrial design teams in the industry due to effective management of the process of transforming raw materials into innovative technology products (Badenhausen, 2013). Product design operations within Apple are implemented with a goal of meeting the unique and changing needs of consumers of electronics products. As a result, Apple’s products have become symbols and icons of both innovative technologies and popular culture (Kuang, 2011). Jacobs and Chase (2013) explain that operations management activities should focus on responding to the needs of consumers anthe d strategic objectives of the firm. Apple’s designs are meant to satisfy the needs of buyers within the consumer electronics market, as well as its financial objective of increasing profits (Lockamy, 2017).
Operations managers at Apple provide product designers with a high level of flexibility to motivate creativity and innovation (Badenhausen, 2013). Designers are also encouraged to work in diverse teams so that they can exchange innovative insights for the design and development of the most appealing, user-friendly, and durable telecommunication products (Kuang, 2011). Product design processes within Apple are also focused on making lasting impressions related to the quality and innovativeness of its smartphones, compute, and tablets. Operations managers within Apple inspect design processes regularly with a goal of ensuring that its products have no defects (Badenhausen, 2013). In addition, the company’s operations managers ensure that the costs of product design match the prices attached to its tablets and smartphones. The company’s products are also designed for both simplicity and intuitiveness to make them more appealing to consumers within target market segments across the world (Wiskus, 2014).
Supply Chain Management
Supply chain management is the process of overseeing the movement of information, materials, and financial resources from the supplier to the buyer (Krajewski et al., 2013). It enables a company to ensure that the business operations of suppliers, producers, wholesalers, and retailers are efficient, effective, and coordinated (Jacobs & Chase, 2013). Badenhausen (2013demonstrateste that Apple is an industry leader in the management of global supply chain operations. Apple’s supply chain model is composed of five main elements: sourcing, assembly, warehousing, distribution, and returns. It sources its materials from the United States, As, and Europe. The assembly of its consumer electronics occurs in China (Lockamy, 2017). Notably, Apple plans and implements its sourcing and assembly operations to minimize production costs and increase the efficiency with which materials and information move across its supply chain (Satariano & Burrows, 2011). The ultimate objectives of the design of supply chain operations within Apple are to meet the growing demand in the consumer electronics market, to increase profits, and to gain n competitive advantage in the global market (Satariano & Burrows, 2011).
Apple uses a wide range of distribution channels, including its online store, a direct sales force, retail stores, wholesale, and network carriers, with an objective of providing customers with convenience and creating value for its supply chain operations (Lockamy, 2017). The return operations of Apple’s supply chain model enable it to run sustainable supply chain operations. For example, its reuse and recycling programs enable it to contribute positively towards environmental sustainability (Satariano & Burrows, 2011). Therefore, supply chain operations within Apple are designed to support its sustainability objectives. Research and Development operations within Apple are effectively planned and managed to promote the efficiency of its supply chain. For instance, the company’s Research and Development operations focus on supporting the development and implementation of new technologies, such as integrated supply chain management systems, to ensure that its global operations are highly coordinated, efficient, and cost-effective (Wiskus, 2014).
Operations management plays an important role in promoting Apple’s supply chain activities. For example, the pre-launch and product launch operations are successful due to effective operations management practices. During pre-launch, issues related to inventory levels, product quality, ty, and payments to suppliers are effectively managed to ensure that product launch operations are successful (Lockamy, 2017). Operations managers within Apple conduct demand forecasts and resolve backlogs during the launch of new products to ensure that sales objectives are achieved. Quarterly reviews of Apple’s supply chain operations are conducted with the purpose of monitoring cost trends, sales levels, and checking the status of product lifecycles (Satariano & Burrows, 2011). Demand forecasts are also adjusted during quarterly reviews to ensure that the supply of smartphones, tablets, and computers is aligned with changes in demand within the global market (Lockamy, 2017).
Quality Management
Quality management is the process of administering business operations and tasks to achieve the highest possible level of business excellence (Slack, 2015). Effective quality management practices entail quality planning, control, and improvement (Jacobs & Chase, 2013). Companies assure quality in the design and production of products through effective management of quality planning and control operations. Apple applies the Total Quality Management (TQM) model in managing its quality control operations. The TQM model enables the company to align its quality standards with the needs and expectations of customers (Chen & Ann, 2016). Apple’s operations managers ensure that quality control operations focus on delivering reliable products to consumers. Through TQM, Apple ascertains that customers receive smartphones, computer devices, and electronics that meet the expected level of performance (Wiskus, 2014).
Companies apply the TQM model to ensure that their quality control operations are process-centered (Krajewski et al., 2013). Apple’s ISO 9001:2008 certification is attributed to its commitment to high-quality standards in its supply chain operations (Patrick, 2016). High-quality standards allow Apple to effectively achieve its objectives, such as enhancing customer satisfaction, reducing costs, growing profits, encouraging innovation, and increasing market share. Notably, Apple remains one of the leading smartphone brands due to its commitment to quality (Chen & Ann, 2016). The implementation of the TQM model within Apple’s quality management operations allows it to engage in continuous improvement of its products. Research and Development operations are designed to support the needs of the company for continuous quality improvement. The company applies market research data to understand the needs of consumers in order to integrate high-quality features into its computer and smartphone brands (Patrick, 2016). Apple’s product design operations are informed by the philosophies of empathy, friendliness, focus, and us crafts. The design philosophy allows the company’s designers to apply their skills and innovative ideas to develop products on the basis of f clear understanding of the needs of customers (Chen & Ann, 2016).
Conclusion
Operations management plays a vital role in supporting product design, supply chain activities, and quality control at Apple. Through effective operations management, Apple’s product designers have access to adequate materials, financial resources, and information for the development of high-quality smartphones, computers, and consumer electronics. The company’s operations managers ensure that supply chain activities are designed and implemented for efficiency, quality, t,y and effectiveness. Apple’s supply chain operations are reliable and designed to meet the growing demand in the market and the changing preferences of consumers due to effective management practices. The company is known for its high-quality and innovative products across the world due to the adoption of effective quality management practices, such as the application of the TQM model. Effective operations management has enabled Apple to achieve its strategic objectives, which include enhancing customer satisfaction, improving profit, reducing costs, improving performance, and increasing its share of the market.
References
Badenhause, K, 2013, 'Apple Dominates List of the World's Most Valuable Brands.common Forbes.com4
Chen, C, & Ann B.016, 'Efficiencies vs. importance-performance analysis for the leading smartphone brands of Apple, Samsung, and HTC', Total Quality Management & Business Excellence, 27, 3/4, pp. 227-249
Jacobs, R. & Chase, R., 2013, Operations and supply chain management, McGraw-Hill Higher Education.
Krajewski, L.J., Ritzman, L.P. & Malhotra, M.K., 2013, Operations management: processes and supply chains (Vol. 1), New York, NY: Pearson.
Kuang, C, 2011, 'What Steve Jobs Can Still Teach Us', Fast Company, 159, pp. 90-92
Lockamy, A 2017). 'An examination of external risk factors in Apple Inc.’s supply chain', Supply Chain Forum: International Journal, 18, 3, pp. 177-188
Patrick, S, 2016, 'Apple Faces Uproar over Rumored Removal of Audio Jack from Next iPhone', Investor’s Business Daily, 23
Satariano, A, & Burrows, P, 2011, 'Apple's Supply-Chain Secret? Hoard Lasers', Bloomberg Businessweek, 4253, pp. 35-37
Slack, N., 2015, Operations strategy, John Wiley & Sons, Ltd
Wiskus, D. 2014, 'Where Apple Design Is Headed', Macworld, 31, 6, pp. 16-17
