Operations management deals with measuring and analyzing internal processes such as producing, distributing, managing purchases, controlling inventory, quality control, logistics and evaluation of processes in goods and services. The operations management focuses on effectiveness and efficiency of processes. The nature of operations management depends on type of products and services in the organization such as retail, wholesale and manufacturing (McNamara, 2016).
Operational efficiency enables an enterprise deliver services and products to their customers in a cost-effective manner possible ensuring that its products and services are of high quality and properly supported. Efficiency of operations involves utilization of resources, production, distribution, and management of inventory. Efficiency of every operation is attained through streamlining the core processes of a company to effectively respond to the changing forces in the market in a manner that is cost-effective (McNamara, 2016). Companies require minimizing redundancy and waste to be efficient and leverage resources contributing to major success and utilize best of its business processes, technology, and workforce. Through operation efficiency, companies reduce internal costs that enable them generate and attain higher profit margins and become extra successful in highly competitive markets. Operations efficiency ensures that small business compete with greater economies and have bargaining power with other vendors.
Operational effectiveness practices allow businesses and organizations maximize their inputs through faster development of products than their competitors do and minimization of defects. Operational effectiveness is divided into leading and controlling the functional importance of products. It also involves measurement and improvement of processes, leveraging of automation processes and continuous improves of performance. Michael porter defines operation effectiveness as practices that enable organizations to utilize their resources, implement them, and achieve the mission and goals in a better way. Operation effectiveness improves the functional performance of an organization in a continuous way (IACBE, 2017).
They are strategies and techniques that assist establishment of basic goal to deliver quality goods and services to customers in timely and cost effective manner
Business operational sustainability method evaluates maintenance of existing practices without placing future resources at risk.it is linked to ecological resources, social and economic resources. Ecological sustainability in a company ensures that the company uses the natural resources at the current pace without depletion of resources that the company relies on. A company has to minimize negative effects on the environment when delivering services and goods through proper use of natural resources such as recycling, reduction of wastes through selling processes and production (IACBE, 2017). Social sustainability in a company ensures that the community accesses equal and similar resources. Large and small companies involve in social sustainability through proving to understand basic needs of all residents. Economic sustainability is attained in a company with long-term strategies geared towards growth and development. Established companies should consider the economic condition if the area or city and search to satisfy the prevailing situation and make it better.
The process of operations management in Apple Company
Operations management process involves designing of products and services, selection of processes, technology management, designing work systems, planning location, facilities, and improving the quality of the organization of products and services. Operations of activities include forecasting, capacity planning, scheduling, managing inventories, assuring quality, motivating employees, and deciding on location of more facilities (Muncaster, 2014). The six sigma in operations management include transportation (movement of goods and services), inventory (product or service waiting), movement (movement of associates), waiting (associates waiting), over production (more than customer demands), over processing (more than customer requirements), and defects (quality issues).
Operation management techniques in Apple Company
Apple Company has used technology to facilitate technological demands and handle big changes in the world markets. Established technology has fastened the transactions among customers in the business environment and uplifted the company. Apple Company is efficient in its computer operating system applications such as Ilife, O S X and otherprofessional applications. It has promoted satisfactory user experience in digital products and expansion of the distribution network and institutions such as businesses, education sectors, and government markets. It has major distribution channels and operations managers who make policies and implement them to meet the mission and vision of the company (Jacobs & Chase, 2017). The managers solve emerging problems of client retention, delays in shipment, quality of products and services as well as satisfaction of customers (Rowland, 2017).
Operations management officials in Apple Company ensure effective operations when designing its goods and services. Senior VP handles Macs development and Mac Hardware Engineering who coordinate with Apple Inc’s senior VP for Operations. The Senior VP ensure the company complies with high quality standards that allows product development, design, retail marketing, industrial design, human resource management and online sales. Apple Company employs a holistic approach to ensure quality is met when addressing the decided operation management. Apple Company demonstrates proper usage of available time, knowledge, adaptation of company culture and avoids complexity of its products. During its process and design, Apple has suppliers with directions about processing and optimization of capacity as well as efficiency in processing (Rowland, 2017). Apple has a selective location strategy with limited authorized sellers. It has most stores located in urban centers to ensure maximization of foot traffic and exposure to brand. It has more than 450 stores in more than 16 countries in the world. The strategy has generated huge profits and revenue in each retail store. It layout and design emphasizes the expectations of the company. It has spacious décor that ensures it focuses on Apple products.
Apple’s innovative office layouts encourage efficiency and creativity of workflows. The human resource department has strategies to design jobs based on initial emphasizes on excellence according to Steve jobs.
The Company reflects social workplace to get optimum morale for employees through its mastery of job design and strategies for human resource staff. The supply chain management in Apple Company is most efficient and streamlined. It automates its processes and regularly monitors its suppliers (Rowland, 2017). The monitoring evaluates the capacity and productivity of suppliers and compliance with code of conduct belonging to Apple suppliers. Apple Company uses different methods of inventory management including serialized method that effectively tracks and controls all Apple’s products.
The first in, first out (FIFO) method ensures that old-model units are sold before new models are brought in the market. Apple is scheduling of activities occurs through automation and manual processes (Rowland, 2017). Automation schedules activities in the supply chain and production processes. Manual scheduling occurs in Apple stores and offices to maximize utilization of equipment, human resources, and facilities. Apple Company maintains it products in good states through IT teams who deal with servers and IT assets. The human resource maintains high performance in the Company.