Operation Management of Nike
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, production control, industrial labor relations and skilled trades supervision, strategic manufacturing policy, systems analysis, productivity analysis and cost control, and materials planning.
Nike started with dispersed production strategy as it is too small to construct its own production line and cannot support to recruit a large number of staff as well, especially in USA.. Every thing has both sides, and such strategy become its superiority in later time. It invited European designers to design for Nike sport shoes, then produce them through Asian manufacturers. It was its utmost objective to minimize its cost at that time in order to survive. The management strategy had been successful, and has greatly reduced the production cost. Nike had no more than 48 staff in 1972, compared with 3000 in Adidas at that time. However, the sales volume has increased nearly 1000 times during 12 years based on such operation management, from 1 million to 10 milliard dollar. The forward-looking operation management strategy had been an effective support for the brand to become the biggest foot ware company in USA.
After the explosive development, Nike started to expand through merger and acquisition, and thus increased the divergence of product
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, production control, industrial labor relations and skilled trades supervision, strategic manufacturing policy, systems analysis, productivity analysis and cost control, and materials planning.
Nike started with dispersed production strategy as it is too small to construct its own production line and cannot support to recruit a large number of staff as well, especially in USA.. Every thing has both sides, and such strategy become its superiority in later time. It invited European designers to design for Nike sport shoes, then produce them through Asian manufacturers. It was its utmost objective to minimize its cost at that time in order to survive. The management strategy had been successful, and has greatly reduced the production cost. Nike had no more than 48 staff in 1972, compared with 3000 in Adidas at that time. However, the sales volume has increased nearly 1000 times during 12 years based on such operation management, from 1 million to 10 milliard dollar. The forward-looking operation management strategy had been an effective support for the brand to become the biggest foot ware company in USA.
After the explosive development, Nike started to expand through merger and acquisition, and thus increased the divergence of product