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ImpeccableOrientalism

Uploaded by ImpeccableOrientalism

2024

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Apple Operations Business Case Studies Smartphone Manufacturing Global Operations

Summary

This case study provides a comprehensive overview of Apple's operations, specifically focusing on the production of iPhones. It explores various aspects, including operational challenges, supply chain management, and responses to external influences. The impact of globalisation, technological advancements, and ethical considerations are also highlighted in the study.

Full Transcript

8\. \'Ph2ne ![](media/image3.jpg) Study 2022 ![](media/image5.jpg) @ Aggie the iPnun€1 3usiness Cast? Study 2G24![](media/image8.jpg) Apole the iPhone Busines€ Study 2024 +-----------------------------------------------------------------------+ | The strategic goals of a...

8\. \'Ph2ne ![](media/image3.jpg) Study 2022 ![](media/image5.jpg) @ Aggie the iPnun€1 3usiness Cast? Study 2G24![](media/image8.jpg) Apole the iPhone Busines€ Study 2024 +-----------------------------------------------------------------------+ | The strategic goals of a | | | | business refer to the long-term goals and objectives, such as profit | | maximisation, growth, efficiency, financial stability | | | | Greenpeace in terms of its overall aims and purpose for being. | +-----------------------------------------------------------------------+ 1.1 Role of Operations ====================== 1. 2. Quality issues in the production of the iPhone 5 (scratched casing) led to this model being discontinued in 2013 and replaced with the iPhone 5c using a low-cost plastic casing. This represented a shift in Apple\'s approach to quality, ![](media/image19.jpg)Goods/Services in Different Industries ------------------------------------------------------------ (customised goods). Standardised iPhones being assembled 45 Challenges with Interdependence ------------------------------- Image: South China Morning Post --------------- -------------------------------------------------- Globalisation presented by each influence to make a judgement. --------------- -------------------------------------------------- 1.2 Influences on Operations ============================ +-----------------------------------+-----------------------------------+ | @ Starting Salary is \$2 an hour. | | | | | | @ They know that workers sleep in | | | a tiny dorm (six or eight to a | | | room) for \$17 a month. | | | | | | @ At the Foxconn Shenzhen plant, | | | the minimum wage reached 1 ,800 | | | yuan (\$286) to 2,200 yua | | | n(\$349) per month, higher than | | | the 900 yuan | | +===================================+===================================+ | | iSweat | +-----------------------------------+-----------------------------------+ | | | +-----------------------------------+-----------------------------------+ ![](media/image30.jpg)3. tine iP ^h^ one C ase202:-1 edit;or: ![](media/image32.jpg) ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------ The environmental allegations underscore the role electronics plays in China\'s heavy-metal pollution problems. Academic studies have shown high levels of heavy metals in areas of China near electronics recycling centres, while Chinese researchers found in a survey of more than 7,000 female electronics workers released earlier this year that heavy-metals exposure was among their occupational hazards. Heavy metals such as cadmium and lead can cause cancer and other health problems. \"7 Air pollution in China is estimated to cause more than one million premature deaths each year, ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------ Corporate Social Responsibility ------------------------------- The Triple Bottom Line: People, Planet, Profit ============================================== js @ Ethical Issues in the Production of Smartphones ----------------------------------------------- 2. using examples, explain how technology influences the operations process. 3. Summarise how legal regulations influence the production of iPhones. 4. Explain what is meant by the \'triple bottom line\' and why modern businesses need to consider more than profits and the interests of shareholders. 5. Outline some of the issues related to labour and the environment for Apple\'s outsourcing partners in China. In your response, identify the difference between Corporate Social Responsibility (CSR) and legal compliance. 6. How has Apple sought to address its CSR since the investigations by environmental groups and the 7. Discuss the key ethical issues associated with the production of smartphones. Apple & tne iPhone Case Study 1.3 Operations Processes ======================== OUTPUTS ------------------------------------------------ ----------------------------------------------- ------------------ Assembly and value adding using (iPhone) transforming resources:![](media/image34.jpg) Customer Service Inputs: Transformed and Transforming Resources ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- --------------------------------------------------------------------------------------------------------------------------------------- and components (materials) such as touch screens, memory chips, circuitry, speakers and audio chips. See page 20 for further details on the inputs used in producing the iPhone. Apple\'s outsourcing partners provide both ![](media/image44.jpg) the human resources and facilities required to manufacture iPhones. ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- --------------------------------------------------------------------------------------------------------------------------------------- @ Apple the iPhone Case Study edition image: Twitter ---------------- ---------- --------------- ---------- iPhone 12 min iPhone 5 7.4 mm of tools ![](media/image49.jpg)![](media/image51.jpg)![](media/image53.jpg)Transformation Processes ------------------------------------------------------------------------------------------ Volume, Variety, Variation & Visibility --------------------------------------- 10% ![](media/image66.jpg) After sales support and assistance \"You are entitled to a replacement or refund for a majorfailure and for compensation for any other reasonably foreseeable loss or damage. You are also entitled to have the goods repaired or replaced if the goods fail to be of acceptable quality and the failure does not amount to a majorfailure. Repair of the goods may result in loss of data. Goods presented for repair may be replaced by refurbished goods of the same type rather than being 1. Outline the key transformed and transforming resources used in the production of iPhones. 2. Explain how the ineffective management of transforming resources can lead to delays and higher costs. 3. How do variations in the demand for iPhones impact on the operations process? 4. Explain the interdependence of operations and human resources in task design. 5. Outline the legal action taken by the ACCC against Apple, and how affects iPhone warranties. ![](media/image68.jpg) 1.4 Operations Strategies ========================= 10% - Replacing suppliers with in-house development of components, such as graphics and audio chips. - Switching to cheaper suppliers. In 2014, Apple replaced Samsung as a supplier of memory and processors (worth \$10 billion per annum) with rival competitor TSMC. - Changing outsourcing partners, such as in 2014 when the low-cost iPhone 5C was assembled by Foxconn\'s competitor Pegatron, positioned to compete with Samsung\'s cheaper alternatives. - Relocating production: In 2017 Apple moved the production of the iPhone SE from China to India. This significantly reduced the price of iPhones by eliminating the 20% custom duty on smartphones in India. - Vertical integration: in 2019 Apple purchased its key supplier of 5G modem components, Intel. Product/Service Design & Development ------------------------------------ +-----------------------+-----------------------+-----------------------+ | \'6.22 | | 21.91 | +=======================+=======================+=======================+ | | | | +-----------------------+-----------------------+-----------------------+ App:e the iPhone Case Stud\'/ 2022 Supply Chain Management ----------------------- Outsourcing Concerns: \"China-Plus-One\" strategy ------------------------------------------------- No O Holding Stock ------------- Quality Assurance ----------------- Global sourcing --------------- No O Economies of Scale ------------------ - Efficiencies in production by using skilled labour of mega factories such as Foxconn - Technical expertise shared by outsourcing partners who manufacturer for other electronic companies Scanning and Learning --------------------- Research and Development ------------------------ 1. Explain how the outsourcing of iPhone production creates challenges for Apple in achieving performance objectives such as quality and dependability. 2. Give examples of how performance objectives such as speed, flexibility and cost are achieved by outsourcing the production of iPhones. 3. Discuss the various challenges and strategies adopted by Apple in managing its supply chain. 4. Outline the key advantages and disadvantages of outsourcing the production of iPhones to manufacturing partners in China. How is this partnership being threatened by the China-US trade war? 5. How does technology present both opportunities and threats to the production of iPhones? 6. What are the risks associated with the inventory management of iPhone components? 7. Use examples to explain the interdependence of operations and human resources in quality management. 8. Outline the key benefits and challenges in the global sourcing of iPhone components. NO @

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