Operation Management at Apple

Operation Management at Apple
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Operation Management at Apple
Introduction
Operation management is the process through which organizations plan, organize, and control the various resources it need to produce goods and services. As such, operation management involves managing the entire production process, from the sourcing of raw materials to the delivery of finished products to customers. Effective operation management is important for businesses because it improves efficiency, reduces costs, and increases customer satisfaction. To achieve operation management efficiency, the operation managers have to identify and address sources of variation, as well as implement processes and systems that optimize production and minimize waste. Each variation in operation management has negative consequences on the performance of a given organization. Notably, publicly listed companies have to address variations in their operation frequently so that they can generate value for their shareholders.
Apple Inc. is a global company involved in the design, development, and selling a range of technological products and services. The company has a number of popular products and service such as the iPhone, iCloud, and iPod, among other (Apple Inc., 2022).Steve Jobs is credited with the establishment of the company in 1976 and it is based in Cupertino, California (Apple Inc., 2022). Apple has a market capitalization of over $2 trillion, which makes it one of the largest companies in the world. To retain its position as a technology leader, the organization has to constantly address variations in its operation management that are likely to negatively impact its performance. Three potential variations that have a significant influence on Apple’s performance are customer demand variation, product variation, and process variation.
Discussion & Analysis
Customer Demand Variation
Changing customer demands are responsible for the majority of variability in the supply chain of various companies, according to Min, Zacharia, and Smith (2019). This is because customer variability can be influenced by product characteristics and environmental factors, which can make it difficult for a company to accurately determine the future demand for its offering in the market. Choi et al. (2021) also note that the irregularity of customers’ purchase of good and service introduces noise to demand forecast and results in a ripple effect on product elements such as life cycle, to the detriment of supply chain management process. Research findings have suggested that customer expectations can usually result in service system variability (Gebauer and Kowalkowski, 2012). Consequently, companies have to change their strategical approach, restructure their organizational processes, and focus on meeting customer requirements and improving customer loyalty (Yu 2013). This focus on customer service can bring financial, strategic, and marketing benefits (Yu 2013), but it can also create variability and affect resource planning and output forecasting.
At Apple Inc., variability in customer demand remains one of the major variables that have a negative impact on performance. In its annu...