Manufacturing strategy and operations Essay Example | Topics and Well Written Essays - 3000 words

Manufacturing strategy and operations - Essay utilisationThe adoption of this attempt has a number of benefits to an physical composition and the overall consumer satisfaction. In analysing this option of production, the paper willing provide a case study of Nike, a company that has operated sweatshops in various parts of the domain of a function including Asia and South America. The benefits of this geographically distant manufacturing strategy adopted by the company will be evaluated in line with the principles of this approach. Geographically-distant low bell manufacturing impacts on global customer service expectation The current famish with geographically-distant low manufacturing location has led to the emergence of manufacturing units in china and other countries. This is attributed to the low cost of tug and materials in these countries, which lead to production of low cost goods. Through this approach of manufacturing, a number of organisations perplex significantly increase production of low cost goods and services, which has affected positively on the overall be of the product (Tengstam, 2008). Nike through its units in Asia and other parts of the world where the cost of labour and materials are low, discombobulate increased its production of low cost footwear. As one of the largest manufacturers of sports footwear in the world, the company has ameliorate its global customer satisfaction through 100% outsourcing of its production processes. Through this process, the company focuses on seek and development and leaves the engaging processes of manufacturing and large-scale production to offshore-outsourced companies. This ensures that the company presents well designed and consumer taste based footwear, which improves the organisations market influence (Kumar, 2001). One of the open costs of long distance manufacturing processes to customers is the low cost of goods bring ind due to the low production costs and raw materials. As a company that uses raw materials from china, Indonesia and India, Nike has increased its market control due to the relatively low costs of its products. The intensive cost of installing and maintaining a production unit increases the overall cost of production and this is responsible for increased cost of products in a number of multinationals. This does not however occur with Nike as it focuses on research and development processes which results into production of high up quality-low cost goods. The capital costs of installing more production machinery are thus bypassed and this enables the business to produce low cots footwear and other sport accessories (Harzing, 2005). Nikes logistic and manufacturing strategy The manufacturing strategy of Nike has remained its core personnel and reason for dominance in the global market as it has enhanced its core competiveness. As an approach that seeks to eliminate initial capital and the need to manage production cost, Nike developed the use of off shore sweatshops operated in Asia and southern America. These contracted companies have the capacity to produce high quality footwear and sports accessories, which enhances its competitive say-so in the market. Within these sweatshops in Asia and South America, Nike monitors the production quality and sends expatriates to these factories to manage their production proces