Production and Operations Management of Apple and Porsche - Case Study Example

Student’s Name: Tutor: Course: Date: Production and Operations Management of Apple and Porsche Introduction Apple and Porsche are some of the best known brands in the world. The two firms produce technological and automobile products respectively; targeting a variety of markets. Apple is one of the most innovative technological companies in the world and has managed to set consumer trends in the global market for a very long time. The firm has high quality product and operations management and this has helped it strengthen its relationships with its clients. On the other hand, Porsche is well known for producing high end engineered cars which cater to the needs of the upper class, urban consumers. As a result, the firm has been able to create long lasting value in its products for more than fifty years. This paper will compare and contrast various aspects of products and operations management practiced by both Apple and Porsche to find out how they have impacted both firms. In specific, it will deal with process design and quality management aspects. Process Design Apple’s process design uses the batch flow, where research and development activities are done from different geographical locations. Designers are given independence to work freely to ensure that their thinking processes in not inhibited by unnecessary financial or management bottlenecks. The firm’s process design mainly relies in the production of different products in varying segments. In effect, the industrial design studio is where many Apple’s product ideas are conceived by small teams working in the firm. After a team is able to decide on the specific product it wants to develop, it is allowed to work on a new project secretly away from the glare of other workers (Lashinsky 67). This puts in motion a start up project which can be further developed into a new product idea. Therefore, the process design is specialized because different sections in the firm perform their own unique tasks after which different parts of a product are joined to come up with a final product. Porsche uses process flow analysis to streamline its design processes to make them more efficient. For its customized products, the firm relies on job shop design models to delink different procedures that are necessary before a vehicle can be certified to be ready for the market. For mass product needs, batch flow systems by relying on the plants of other firms to manufacture different parts which are later quickly assembled in its machining locations before they are sold off as complete products. The firm’s design process combines engineering precision with everyday product usage to ensure that the final products sold into the market are able to suit the needs of end users (Trites). The process flow analysis processes used by the firm compel all design teams to perform tests on the strength of their vehicles to determine how they respond to different conditions. A key part of Apple’s process design is that it develops a wide variety of prototypes which help to guide in final product design. The new product process is an internal policy that stipulates all the necessary steps that have to be followed when a product is being developed in the firm. Therefore, the process outlines specific employees that are expected to work on a particular product and the stages they are going to work on to ensure it satisfies the needs of clients in the market. Weekly product reviews help company executives to plan how the marketing function of a product is to be executed in various target markets the firm wants to sell it (Lashinsky 73). The executives are able to conduct an evaluation of various suppliers to find out if they are able to produce important components of the product before production processes are initiated. This approach has helped the firm to evaluate the specific contributions different suppliers to its internal production processes. Porsche relies on its small organizational structure to carry out internal production processes which are able to meet the needs of clients in various markets. The theory of constraints is used by the firm to coordinate different production functions across various departments, to create valuable linkages between internal and external operations. This approach makes it possible for the firm to deliver its vehicles in different markets they are supposed to be sold in within appropriate timelines. While developing prototypes, the firm combines both technical and cultural aspects that are relevant to its target market to engineer high quality products (Trite 73). Moreover, the firm is able to avoid pitfalls that are caused by external factors in the industry it operates in to boost performance. Therefore, the firm is able to demonstrate to its clients the idea behind its products, their purposes and how they can be used to satisfy different consumer needs. One of the key features of Apple’s operations is that the firm outsources most of its production processes to different geographical zones in the world. Various logistics functions are also outsourced to other firms and this helps it focus on its core competency, innovation and design of high quality technological products. The batch flow process systems adopted by the firm determine the manner in which different production segments are initiated to complete the product development process. Specialised tasks during production are built on the firm’s innovative research and development models where low volumes of differentiated products are manufactured. The usability of these devices is a key factor that guides the design process in the firm because it strives to offer its clients a memorable experience whenever they use its products (Muller 63). By using flexible labour systems, the firm is able to create value in its internal production processes. One of the most important aspects of Porsche’s design processes is that they strive to achieve high output using low costs. The firm uses fast time cycle theories to quicken the time period between production and distribution of its products in different markets. This reduces the waiting time of its vehicle units in the market and as a result, the production processes in the firm are able to run quickly without any hitches. Various parts that are used to manufacture cars reach the assemblage points within a short period of time to eliminate any delays that may slow down work (Gong 87). All shipping and supply chain systems are effectively coordinated to reduce any excess inventory that may drive up costs in the firm. These statistical process controls make it possible for the firm to optimize its output levels to make sure that quantities of units supplied are able to meet the needs of various markets effectively. Quality Management Quality cycle processes used by Apple ensure that different segments of production focus on specific details of product design and marketing. Six sigma principles are used to evaluate the statistical implications of different operations in the firm to find out how they contribute to quality parameters that have been set. The statistical processes are used to measure the performance of products and the quality of processes used to manufacture them to ensure that their standard measures up to the high quality parameters set in the firm. As a result, the work culture around the firm encourages workers to exercise their skills to come up with concepts that are responsive to peculiar consumer needs in the market. This aspect of quality management has made it easy for the firm to institute product upgrades and its improvements for its clients; a factor that has made them stay loyal to its products in the market (Muller 59). The firm’s marketing processes are focused on niche markets which are willing to pay premium prices for its products. Therefore, this approach has helped the firm to differentiate itself in the market, which has become one of its most unique features of its business model. Porsche’s quality management processes focus more on intelligent performance to make the company’s operations more efficient. The firm has invested in lean manufacturing processes which are aligned to its critical supply chain processes to ensure that its products are responsive to prevailing needs in the market (DuBrin 93). These lean manufacturing processes enable the firm to deploy resource conservation strategies in all areas of its operations which boost its competitiveness in various markets it operates in. The delivery processes used by the firm ensure that products are delivered to clients within the right time to give the firm a competitive advantage over other firms that produce substitute products. The firm has strong customer relationship management processes which encourage customers to contribute their ideas to specifications they want included in their cars, after placing their orders. Apple’s quality management approach is influenced by a strict policy on attention to detail and innovation. Continuos quality improvements by the firm on its products and services help it to boost its own internal processes and this maintains consumers’ confidence in its products . The firm’s closed operating systems help it maintain the differentiating hallmark of its products by ensuring that all applications add value to customer’s usage experience of its products. This customer relationship strategy has strengthened the appeal of various Apple products to various consumers worldwide (Kalb). Consequently, customers’ experiences have consistently strengthened their loyalty and in its major markets, its new phone and tablet models sell out a few weeks after their launches. Another important result of this closed ecosystem software is that the firm is able to liaise with developers, multimedia distributors and book publishers. The firm has exclusive deals with several content providers and this increases the inherent value associated with its products in different markets. On the other hand, Porsche uses just in time processes to manage its production and distribution processes. This helps the firm to improve its production efficiency because it restricts the volume of inbound raw materials to ensure they are adequate for products its employees intend to manufacture within a specific period of time (DuBrin 106). The firm assesses the existing demand of products in the market before manufacturing to measure the exact volumes which are needed within a particular period. The firm’s logistic processes enable it to deliver products to various consumer markets within the shortest time possible to reduce any unnecessary delays. The firm has also developed systems which allow it to produce different products within one production line. As a result, the firm is able to use the same expertise to develop different car models in the same assembly location and this ensures the timely manufacture of its models. Apple’s supply chain management combines industrial relationships, effective marketing management and relevant logistics theory to make its internal and external processes more competitive. It has effective supply management systems which estimate the value it is likely to obtain by partnering with retailers and other service firms to increase the level of satisfaction its consumers obtain from its products. The firm partners with mobile and technology service providers such as Verizon and ATT to offer integrated services at a discount to its consumers.. Apple has beneficial relationships with various component sellers who provide different types of technological parts at an affordable price (Muller 73). As a result, consumers are able to purchase various products in different stores of their choice without too many restrictions. Porsche’s has effective internal management processes due to its investments in excess capacity. This helps the firm to eliminate delays that arise due to increased production that occurs due to its lean management and just in time strategies. The firm is able to acquire parts for its sports cars from Volkswagen and in return it sells Volkswagen units in its dealership franchises in Australia and other parts of the world. In recent years, the firm has instituted high quality technological processes to streamline its inbound and outbound logistical cargo flow to save the amount of time spent on production (Van Brocke and Rosemann 83). The software used has helped the firm to automate all supply chain processes to ensure greater transparency is observed at all levels of production. Therefore, the firm has been able to strengthen the appeal of its products in various global markets. Conclusion Apple and Porsche have been able to improve their performance due to high quality production and process management improvements. As a result, both firms have been able to stand out in their respective industries and this has improved the amount of revenues they have been able to obtain in their business operations. Works Cited DuBrin, Andrew J. Essentials of Management. Mason, OH: Cengage Learning, 2011. Print. Gong, Yeming. Global Operations Strategy: Fundamentals and Practice. Berlin: Springer, 2013. Print Kalb Ira. “Apple's Success Wasn't Just About Platform Control, Design or Management.” Business Insider, 28 Jun. 2012. Web. 24 Dec. 2013. Lashinsky, Adam. Inside Apple: How America's Most Admired--and Secretive--Company Really Works. New York: Business Plus, 2012. Print. Muller, Christoph. Apple's Approach Towards Innovation and Creativity. Berlin: Grin Verlag, 2011. Print. Trites , David. “The Porsche 911 Turns 50 - And Runs Better Than Ever.” Forbes, 16 Aug. 2013. Web. 24 Dec. 2013. Vom Brocke, Jan, and Michael Rosemann. Handbook on Business Process Management. Berlin: Springer, 2010. Print. Read More