The paper is written as a slide presentation, with 6 slides including a title and bibliography slides, and extensive speaker notes. The presentation gives details of two differential operational processes at Apple Inc. The first issue is a supply chain, from the tier two suppliers moving through to the customers. The second issue examined is the sales process which takes place in the company's own retail stores. Both processes are illustrated appropriately.
Operations Management
Slide Presentation on the Supply Chain and an Internal Process at Apple
Apple is a technology company well-known for having a highly effective supply chain. The supply chain is managed to reduce the level of stock held by the firm; at any point in time the firm has only 5 days worth of stock in its inventory (Niu, 2012). This model requires an effective supply chain; if any delays occur they could result in lost sales as there is only a small buffer.
The efficiency is gained by the use of outsourcing to large, offshore, suppliers, with Apple benefiting from comparative advantages due to the lower costs. The company exercise a great deal of control over the supply chain, supplying exact specification to the component manufactures and often having exclusive, long-term contracts with the tier 1 suppliers. In both cases suppliers are expected to sign confidentiality agreements.
Slide
Apple has a number of different outlets; this is the supply chain for the firms own retail outlets or 'Apple Shops'. The supply chain starts with the tier two suppliers who manufacture and supply the components which will be used to make the Apple products. There are a large number of tier two suppliers, who send their products to the tier one suppliers. The tier one suppliers receive the goods from the tier two suppliers and manage the relationships, with the tier two suppliers after the contracts are established.
The tier one suppliers manufacture and assemble the goods. Apple is highly secretive regarding many of the suppliers in their supply chain. It is known that the major supplier for iPads and iPhones was Foxconn, but there appears to be a shift in the strategy as Apple is now shifting towards the use of more suppliers, including Pegatron, reducing the reliance on a single supplier (Dou, 2013).
A major source of efficiency in the supply chain is the distribution methods used for the products; they are sent to their destinations rather than moving through Apple (or supplier) warehouses. The amount of inventory needed is assessed based on existing sales and projected sales allowing for expected seasonal or promotional variations. The information is communicated from Apple, where there is an amalgamation of the data, to the suppliers, who are then responsible for the manufacturing, assembly and distribution of the goods needed to meet the orders for the shops. Once in the shops the products are available for the customers to purchase, with the shop having no more than 5 days worth of inventory (Niu, 2012).
Slide 4
There are many internal processes, one of the most important, as it is a source of differentiation, is the way that the shop workers sell products to the customers. The company prides itself on a very high quality service, looking after customers, allowing the, to try the different products before they buy, as well as providing a high level of after sales service. The impression of high quality starts with the clean crisp image of the shops, and a layout where there are tables set out with the different devoices to allow customers to wonder in and try them without a heavy sales pitch.
To assess and document the process it is possible to create a flow chart. The usual approach is to create a chart which looks at the basic tasks which are undertaken in the process, stating with the customer walking through the door. Although not undertaken in this presentation it is also possible to create a chart to movement or motion chart, which will show where the tasks take place.
Slide 5
The process is being measured by looking at what is done, with the process flowchart written for the tasks undertaken by a member do the sales staff. The process starts when the customer walks into the store. They are greeted by a member of staff at the door, and allowed to browse. After they have browsed for a while a member of staff will ask them if they would like some help. If the customer wishes to continue 'just looking' they are then left to browse, after which they may leave to look for help. Those customers who are looking for help, or answer yes, will then be asked if this is for a new product or an existing product, if it is for a product they already own they will be taken (in person) to an member of staff that deals with the existing purchases.
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