Operations Management

Apple has built a closed ecosystem where it exerts control over nearly every piece of the
supply chain, from design to retail store. Because of its volumeand its occasional
ruthlessnessApple gets big discounts on parts and manufacturing capacity.

In Apples case, the 10 decisions of operations management are carefully implemented

through coordinated efforts in product design and development, sales and marketing, and the
firms supply chain -
1. Design of Goods and Services. Apples processes in the design of its products are
handled through a number of organizational components and officials. For example,
the development and production of Macs involve a Senior VP for Mac Hardware
Engineering and a VP for Mac Software Engineering.

2. Quality Management. This decision area of operations management emphasizes

quality standards and controls. Apple Inc.s Senior VP for Operations coordinates with
eight other Senior VPs to ensure compliance with the companys quality standards.

3. Process and Capacity Design. Apples human resource management strategies include
support to maximize workforce capacity for product development and design. In
addition, the company works with suppliers to ensure efficient processes and
adequate capacity in this decision area of operations management.
4. Location Strategy. Apple Inc.s location strategy is selective, involving limited
authorization of sellers. However, most Apple Stores are located in urban centers to
maximize foot traffic and brand exposure. At present, the company has more than 450
stores in 16 countries around the world.

5. Layout Design and Strategy. Apples layout design and strategy emphasize customer
expectations. For example, Apple Stores are spacious with minimal dcor to ensure
focus on Apple products.

6. Job Design and Human Resources. This decision area of operations management
requires job design and human resource strategies specific to the trends in Apples HR
needs. Apple has mastered job design and human resource strategies to ensure
continued support for its industry leadership.

7. Maintenance. Apple Inc addresses maintenance needs through dedicated

maintenance teams. For example, the company has different maintenance teams for
its various facilities. Apples IT teams also function as maintenance teams for the firms
servers and other IT assets.

8. Inventory Management. In this decision area of operations management, Apple Inc.

uses different methods of inventory management, such as the serialized method for
effective tracking and control of Apple products. The company also uses the first in,
first out (FIFO) method.
9. Scheduling. Apple Inc. applies this decision area of operations management through a
combination of automation and manual processes. The main aim of the firm in this
decision area of operations management is to maximize the capacity utilization of
facilities, equipment and human resources.

10. Supply Chain Management. Apples supply chain is among the most efficient and
streamlined in the world. To address this decision area of operations management, the
company uses automation of processes and regular monitoring of suppliers.