Assignment on Operations at Apple Inc

Apple Inc. is one of the biggest companies when in consumer electronics market. It designs personal computers, mobile communication devices, music and digital players. The company also provides software and network solutions and devices for networking. Apple’s most successful line up of products include iPhone, iPad, Mac, Mac Pro, MacBook and iPod. Apple sells these products through its own retail stores worldwide. It also operates its own online store and also rely on third party wholesalers for its product distribution. The company is based in California and was cofounded by Steve Jobs in 1977. The company designs its own operating system for its products and provides other applications through iTunes store.

A company of this stature requires careful and structured planning. Company’s strategic plans divides into business plan and that further divides into operation plan of the company. Operational plans are essential to seamlessly run the business operations. Operational plan of Apple covers all its departments which include finance, manufacturing, operations, research and development, human resources and marketing. Apple follows the lenient business approach for its operations. Apple is managing and operating its chain of retail stores throughout the world. It also provides services through these stores. Apple uses functional approach for managing all its departments. The departments are based on their functions and divided in groups. These divisions include finance, marketing, human resources and production department. Each department has its own functional subcategories which create hierarchies. Operational management in particular is tied to production department (Kahney, 2019).

Apple makes groups of people according to their expertise and resources. It enables apple to learn from its employees and reduce costs and increase flexibility in operations of the company. The managers take hold of most of the organizational activities and there are no complex hierarchies and that come in the way of their decision making. This flat structure of hierarchies decentralizes the responsibilities of management. This decentralized system encourages employees at lower level of organization to take part in company’s decision-making policies. This decentralized system helps in decision making and better control the processes.

Apple successfully run its operations due to its vision. Its vision is the one that translates to effective business operation management. The success of the company can be seen through its innovative products. Apple’s strategy is to make consumer the centre of their all operations. They want to develop products that enhance user’s experience and make them productive. Apple’s operations management can be divided into ten important decisions that ensure that business processes run seamlessly and effectively. These ten decisions relate to each aspect of production such as product design, capacity design, quality management, processes, location strategy and inventory management. These departments run in coordination with each other to ensure smooth product design and development. The operation strategy aligns with company’s marketing and sales department and supply chain department for successful coordination. Apple through successful implementation of its operational strategies made a name for itself in computer technology industries. Apple also successfully runs its own Appstore for digital distribution of apps to its customers. It also sells its product through its online store and also provide third party accessories thorough its online store.

Apple through its successful implementation of operational strategies is now a leader in personal computers and smartphones market. Apple holds the major market share in desktop and laptop market through its mac line of products. It also has major smartphone market share through its iPhone line of smartphones. Apple sets an example for other companies to follow its operational strategies. Apple knows that effective operational strategies and use of innovative technologies is what makes them the market leaders in consumer electronics industry. Apple operational strategies helps in competing with the like of Dell, Lenovo, Sony, Google, Microsoft, Samsung, Amazon, LG and other consumer electronics companies. Apple’s focus on its strategic approaches and achieving high productivity is what makes it distinguish itself from other companies. Apple manages its operations with using unique and innovative technologies which makes production process easier and efficient.

Apple has assigned a dedicated team of senior managers to each decision of operations management. Each team manages its particular area of operation with their expertise and resources. This ensures excellent performance and efficiency in operations management of the company. All this operational efficiency leads to competitive advantages and achievement of Apple’s mission and vision. Apple focuses its operations on ten major areas of operation management which are discussed below:

Designing of Products and Services of Apple Inc

            The designing of the products and services is handled by key people in the organizations. These key people offer their expertise in key areas of development of product. Each area of business process is handled by a Vice President for example, the development and production of iPhones involves a Senior VP of Chip design and a Senior VP of Software engineering. These key people are responsible for their respective areas of production and often collaborate with each other on specific projects. Each VP of their divisions report to their senior VP of operations. This decentralized corporate structure enables flexibility in operations and effective implementation of strategies. Each team collaborates with other team on different projects as needed and sometimes work secretly in order to ensure privacy until the launch of the product. Apple’s each operational area ss based on teams and they deliver their projects as a team.

Quality Assurance of Apple Inc

Quality assurance is another key area of decision in operations management. The ultimate objective of quality assurance is to deliver product and services that are up to standards and provide seamless user experience. Apple is known for its high-quality standards and it encompasses different areas of business such as product design and development, retail, marketing, online store, industrial design, production and human resources. We can see it in apple products which are built with attention to detail and provide excellent user experience.  Apple’s senior VP for operations ensures compliance with company’s quality standards by coordinating with other Senior VPs. Each Senior VP ensures quality standards are maintained in his area of business. This approach also helps making important decisions relating to production.

Capacity Design and Processes of Apple Inc

Apple ensures to maximize workforce capacity for its product development and design by implementing effective human resource management strategies. Company also work closely with its supplier to meet production deadlines. The company uses JIT manufacturing model to ensure that adequate capacity is maintained. Company has its own supply chain policy which directs suppliers to follow Apple’s guidelines during the production process. Processes are also designed according to Apple’s instructions. There is an Apple supplier code of conduct that needs to be followed by the suppliers. Apple uses innovative processes and techniques to optimize capacity and maximize production. This comprehensive approach helps in the area of capacity design and process efficiency.

Location Strategy of Apple Inc

            Apple is currently operating hundreds of stores in more than 20 around the world. Apple’s location strategy involves urban areas which are populous and are frequently visited by people. It opens it store on famous locations and the structures of the stores are state of the art. Apple serves millions of customers each day in these Apple stores. These stores act as a community hub for the local community. The company has limited authorization of resellers around the world. Despite this limited approach of authorization, Apple is still one of the most profitable companies in the world. Each Apple store generates millions of dollars in revenue each year.

Layout and Design of Store of Apple Inc

            Apple store design and layout focuses on simplicity and minimal décor to attract attention towards its products. The products are the centre of the store and people can easily try and use the products on display. They can also get information about the product from Apple employees on the store.

Human Resource and Job Design of Apple Inc

            This decision area is based on Steve Jobs emphasis on striving for excellence. The company is gradually changing its HR strategies to meet the changing needs of sociable environment. Company is now more focused on its employees and embraces diversity. Apple is continuing to evolve its human resource strategies to achieve sustainability and increased employee morale.

Supply Chain Management of Apple Inc

            Apple’s supply chain network is one of the most streamlined and efficient in the world. The company uses automation and continuously monitors its suppliers for any irregularities in the process. The suppliers need to follow Apple’s guidelines code of conduct to ensure compliance.

Managing Inventory of Apple Inc

            Apple uses first in, first out (FIFO) approach for its inventory management which ensures that old moles are sold before new model arrives. Also, apple recycles its parts to introduce new product like the iPhone SE. It not only saves R&D costs but also helps in managing inventory.

Scheduling & Maintenance of Apple Inc

            Automation is used mostly for scheduling processes and activities. This is to maximize capacity utilization. Apple handles maintenance through its dedicated teams. Each facility has its own maintenance team and sometime IT teams also help with the maintenance. They help maintaining company’s servers and other IT assets. The VP of Human Resources ensures adequate capacity to maintain high efficiency (Rowland, 2019).

            Apple by effective use of its Human Resources and by using innovative technologies handles these areas of decision making of operations management.

References of Apple Inc

Kahney, L. (2019, April 9). How Apple's Operations department works(Cook book outtakes). Retrieved from Cult of Mac: https://www.cultofmac.com/616052/how-apple-operations-department-works/

Rowland, C. (2019, February 19). Apple Inc. Operations Management: 10 Decisions, Productivity. Retrieved from Panmore Institute: http://panmore.com/apple-inc-operations-management-10-decisions-areas-productivity