M1 Topic 3 Operations Processes - Apple case study

Question 1

How have transformed inputs affected Apple’s operations process (2)

Answer 1

Apple partakes in yearly surveys of customers as input for new products:
- Feedback Earlier models: iPhone 5 in cell display to
eliminate the glass layer between touch pad, liquid
crystal = thinner phone

• 2015 Iphone 6 and 6+, to big, = iPhone SE release

Question 2

How have transforming inputs affect Apples operations Process

Answer 2

7 Oct 2012 Foxconn plant riots: 2000 workers riot, due to iPhone 5 quality controls being tightened = extremely high stress

Question 3

How is Variety Manged at Apple

Answer 3

Forecast variation through data from customer survey and consumer panels;
- 2017, 3 new models: iPhone 8, 8+, X = iPhone X
exceeded expectations, Iphone 8,8+ less popular than
projected

Question 4

How has monitoring affected Apple’s operations process (2)

Answer 4

Challenge as Apple outsources operations to Foxconn
- 7 Oct 2012 Foxconn plant strikes: quality controls tightened without proper training = increase stress

• 2013 China Business report: “Apple returned at least 5 million iPhones due to defects, cost Foxconn $1.6 bn US to cover cost for replacement

Question 5

What does Apples warranty state

Answer 5

“You are entitled to a replacement or refund for a major failure and for compensation for any other reasonably foreseeable loss or damage.”

Question 6

How have Warranties affected Apple’s operations process (2)

Answer 6

2018 “error 53”: 275 AUST denied repair or replacement due to use of 3rd party repairs = Apple $9 million penalties

ACCC Sarah Court: “customers…legally entitled to a repair or replacement under… Australian consumer law… Apple… Led customers to believe…denied remedy… used… a third party repairer