Saturday, March 5, 2016

Nike Process and Selection

Nike shoe process and selection

What type of product flow do they use?

Nike uses an assembly line flow. “An assembly line flow is characterized by a linear sequence of operations. The product moves from one step to the next in a sequential matter from beginning to end.” (pg. 57 Operations Management) They also use a project flow for a small portion of the business. On Nike.com you can customize your own shoe, from the shoes provided to you on the website. A project flow is used for unique or creative products. Each unit is made individually and is different than any other unit. So for Nike when and order comes in from the customer, each shoe is going to be made different from others, whether it be the color or style of the shoe.

What type of customer order do they process?

Nike uses a “Make to Stock” customer order which provides a fast service to customers from available stock. Make to stock has a standardized product from the producer, not specified by the customer. “Everything is keyed to producing inventory in advance of actual demand in order to have proper products in stock, for when the customers call (pg. 60 Operations Management).” In the make to stock customer order process, products are not always readily available. Customers can put orders through but the products can be on back order and they will have to wait until more of the product is produced. They alse use "Make to Order" because there are customers who customize their own shoes online and then Nike has to make the orders as they come in, they will not have them in stock

Which cell do they fall into in the process characteristics matrix?

Nike falls into the continuos and assembly line cell. This cell consists of order type, flow of product, product variety, market type, and volume. Nike has a large batch, a sequenced flow of product, a high product variety, a mass market type, and a high volume.

What are some of the factors influencing their process selection?

The factors that influence their process selection are the fact that they have a high volume and standardized product. They have to produce a lot of shoes and the shoes are made by the producers not the consumers, so they are not made to order they are mostly always in stock.

Can they adopt any of the mass customization methods discussed?

Nike has already adopted the mass customization medthos dicussed. On Nike.com you can customize the shoes they provide you to make alterations to, whether it be color or the design on the shoe.

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