Operation management

Nike's Operations management concerned about forecasting, controlling, designing, operating, and scheduling business operations in the production of Nike foot ware. Its excellent management that has been developed and ameliorated during the long term operation has enabled that business operations to be efficient and at the same time using as few resources as required. It is also effective in terms of satisfying customer demands, and thus it has become one of the key issue that Nike develop prosperously despite the fierce competitions with other foot ware giants such as Adidas, Reebok, Puma, etc. The operation management system includes manufacturing and production systems, equipment maintenance management, …show more content…

It is eventually the contract company who take to risk of the transitions in market preferences, as they process the equipments that produce specific kind of product.

However, this may also have problems and threats. For example, the contract factories of Nike lies in 51 different countries that have huge differences between each other. Even though there is compliance systems, it is still difficult to monitor and keep the production quality of each factories to remain at the same level, not to say that the monitoring system can also be expensive if high standard is required. It would become a problem if Nike declares to promote a product globally. In addition, as Nike is the branding that is finally labelled on the product, all of the problems that occur in these contract companies will be counted on Nike. This requires high public relationship cost to resolve the problem, as well as maintaining good relationship with press and relevant sectors. Plus, the huge logistic system that are necessary for effective lean manufacturing may be a burden when facing changes of market. It is inevitable that in certain period of time, or in certain region, the market may experience recession, and customers may reduce purchasing. Then the under-used logistic center may become quite luxury to maintain. Such worrying provision may not be