History Of Operation Management Of Nike

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Student name: Issam Mohmmed Al-Yahyai Student ID: 5714795 Introduction: Operation management is set of activities which create value in by transforming the inputs in to out puts. In this paper, we are going to talk about NIKE and learn how it is able to use OM in its day to day operations. We will also look at NIKE’s business strategy, features of their operation and SWOT. NIKE Blue Ribbon Sports was founded in 1964 by Phil Knight and Bill Bowerman. The company was importing and distributing Japanese running shoes. The founders realize while other competitors in the USA were manufacturing their products at a high cost, and on the other hand the Japanese products were high quality, low cost so they started importing high tech sport shoes…show more content…
• Low Costs. • Time. • Flexibility. Operations Management operations management is important to NIKE Operation management in NIKE always try to improve profit margins, minimizes price markdowns, reduces inventories, and deliver the right product on time. The company moves more than 500 million units a year through its supply chain. The company manages 700 factories in 42 countries. NIKE products go through 57 distribution centers to 140,000 retailers. Yet NIKE does not own any factories, instead it outsources to 3rd party manufactures because of the cost advantage. The row materials come from the supplies with in the manufacturing host country. Features of NIKE operation: The Operation Management in NIKE focuses on 10 decision-making areas: • Design of product and services. • Quality management. • Process capacity design. • Location strategy. • Layout design and strategy. • Human resources. • Supply chain management. • Scheduling. • Maintenance. • Inventory Management. Design of Products and…show more content…
(TQM) leads to producing high quality products and services to the consumer. There are to elements to (TQM) one is based on the business strategies on customers wants and needs and the other is operation improvement element which is aimed at the fast performance improvement rate of the company. NIKE accomplishes TQM by incorporating principles of sustainability in all their decision-making process. The company analyzes their day to day environmental operations throughout the product life cycle stages. Management planning along with human resources and product portfolios are managed and developed throughout the product lifecycle stages. NIKE’s quality characteristics can be characterized in terms of durability, contact, recovery, reliability, functionality and appearance. Process capacity
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