Executive communication

We will be introducing you to the premier new product in the Apple line-up, an in-head cellphone device called the “iHead”. We will first explore the product’s mission, vision, the goals of this product, objectives, as well the role of new technologies, all in connection with the iHead. Then, we will discuss the proposed supply chain, the choice to use or not use global suppliers, and outsourcing, as well as inventory optimization. Finally, we will go over the process focus, and discuss the quality tools and techniques for improvements, including focusing on forecasting and strategy through forecasting.

Mission, Vision, Goals, Objectives, and New Technology

Apple is serious about the pursuit of new products and keeping focus on a quality global supply chain. The vision statement of Apple states that they are on the Earth to make great products, and to constantly be on the edge of technology innovation and focused of innovation. The iHead new product is in keeping with the mission and vision of Apple in staying focused on innovation. The use of new technologies with this product will be a beneficial aspect of the new product launch. Apple is dedicated to staying on the forefront of new and innovative technology and ideas, and with the iHead adding to the already impressive lineup, it joins a family of products backed with constant improvements and dedication to the latest technology.

Supply Chain, Global Suppliers, Outsourcing, and Inventory Optimization

Within the supply chain, the first network is that of the supplier. This is where the raw materials for assembling parts of the in-head cell phone come from. After getting the raw materials from a supplier, some components would be made by a given company (Christopher, 2016). These components would be assembled in readiness for compiling a phone that would turn out to be an in-head cell phone from Apple Company, or iHead. Then there is the manufacturer as the next network. In our case, the manufacturer is Apple, who would bring about a phone that would appeal to consumers. After getting the phone, it moves to consumers who turn out to be the last network within the supply chain of an in-cell phone by Apple (Hugos, 2018). A supply chain must be there for a product to get to its market.

Visual Representation of an in-cell phone supply chain by Apple

Supplier in-cell phone in-cell phone manufacturer (Apple) consumer

components in-cell phone

Today, we will be going over whether global suppliers will be used for our new product. The new product is an in-head cellphone or now officially called “iHead”. We are proud to announce that we will be using global suppliers from all over the world to fulfil and keep up with supply and demand of our new product. The amount of resources our new product will need, has driven our decision to go global. Suppliers will be chosen based on quality, delivery promises, and overall product cost. Some of things that are concerning about global suppliers such as low wages, child labor, and hazardous working conditions will be thoroughly reviewed before selecting a supplier. Apple has, and always will continue to provide its customers with a well built and affordably priced product worldwide.

Outsourcing is one of the most difficult decisions a company must explore and make. While Apple would love to keep everything in house, it is just not cost effective. Apple’s decision to outsource has allowed them to pay dividends which in turn allowed them to reinvent products at a much faster rate than if they had used factories in the United States. Due to Apple’s strong dependable relationships with its suppliers, they have been flexible when it comes to spikes requiring additional products or when it comes to releasing a new product. Apple has built a strong and successful team that works together to produce and provide products in a timely manner. Outsourcing has had a major impact in the success of the company. While outsourcing may not be the favorable thing to do, it has worked for Apple and its customers. We will continue to outsource as long as the working relationships continue to be favorable.

To optimize the process flow and supply chain, the Inventory Optimization Methods will be used. Optimizing inventory means finding the perfect balance between demand and supply. Optimized service spares inventory maintains a level of inventory that virtually eliminates out-of-stock situations while improving efficiency and cutting inventory costs. Here are a few practices that are fundamental to achieving the significant inventory reductions and substantial bottom-line savings that are the hallmarks of inventory optimization and these practices will be used for our new iHead product (Heizer, Munson, Render, 2016):

· Criticality Analysis

· Demand Forecasting

· Lead Time Forecasting

· Issue Size Forecasting

· Economic Modeling

· Optimization of Reordering Parameters

· Exception Management

· Inventory Segmentation

· Spares Risk Assessment

· Spares Pooling

· Knowledge Capture

· Reporting Inventory KPIs

Our product is very simple and straight forward. The product will be produced in China and we will store a small amount in the store. We will have an automation replenishment system in place that will automatically message our offshore partners when our stock is under 50% of what we normally have. A shipment will automatically be put together and sent to us to ensure we are not left without any merchandise.

Process Focus and Quality Tools, Techniques for Improvements, Forecasting.

The process focus for the new iHead Apple product has begun with the conception of the idea for the product. Once the determination is made that the product is worth the risk, based on research by the marketers and financial experts, a concept statement is developed. This statement is developed to put forth a better explanation of what the iHead product will look like, what special features it will have, and what style the product will be. We would need to collaborate with a focus group to see if the product will be received well. We can also conduct marketing research surveys to help quantify if consumers would like the product enough to purchase it. The next step would be the development of the iHead and sending it for Beta testing. We would do this by selecting a few cities to text the product for several months and then evaluate the sales to see if we should expand the iHead product to other cities.

The iHead is a new product that will need to be monitored and controlled to understand what can be improved. Our customers may or may not like the new product and our goal will be to listen to their feedback to ensure our product is a success. “The six sigma is a program designed to reduce defects to help lower costs, save time, and improve customer satisfaction.” (UOP) Its strategy focuses on total customer satisfaction and is used to sustain and achieve business success. We will utilize the DMAIC strategy that is an integral part of Six Sigma which is used to improve processes with data-driven quality strategy. This strategy will guide us in ensuring that our iHead is another successful product of Apple.

Another technique for improvement is strategic forecasting. Apple Inc. might find Quantitative forecasting helpful with the introduction of its new product the iHead. This is because Quantitative forecasting is a method based on historical data. Apple Inc. would be able to retrieve past product sales data, in order to examine when and what things are drawing the customers to purchase their products. This would also allow the company to budget money from peak months in order to fund its research and development department to continue inventing newer products. Also, this will help keep track of products that are drawing the crowd and would allow for Apple Inc. to know which path to take in order to keep their prior customers coming back. Not only would it help with prior customers coming back but it will also draw new customers that have never used their products before to finally take the leap of faith and purchase an Apple product.

Since the iHead is a new and developing product of Apple, influencing demand would be ideal as it makes its debut. This gives Apple the advantage of increasing the demand by advertising, promoting, personal sells, and price cuts. If this product remains successful, we can continue with changing inventory levels. When the iHead is in high demand, we will have more inventory in our storage that the company owns and can deliver to the distributions centers as needed. These plans will help with promoting our latest product and ensure that we have enough inventory to guarantee customer satisfaction.

Conclusion

This presents our premier product, the iHead in-head cellphone device. We have discussed the product and how it relates to the mission, vision, goals, objectives, and new technology collaborations and uses for the product. Then, we went over the proposed supply chain, and whether global supply and outsourcing will be used or not, and inventory optimization methods. Finally, we explored the process focus and the quality tools and techniques to be used for improvement, including forecasting.

References

Christopher, M. (2016). Logistics & supply chain management. 5th ed. Harlow, England, U.K.: Pearson Education Limited.

Heizer, J.; Munson, C.; Render, B. (2016). Operations management: Sustainability and supply chain management. (12th Ed). Boston, MA: Pearson

Hugos, M. H. (2018). Essentials of supply chain management. 4th ed. Saddle River, NJ: Wiley