Analysis of Apollo Tyres Ltd

Operation management is an approach to designing, managing and enhancing the process of production to allow efficiency in productions of goods and services. Tung and Baird (2011) say that OM is concerned with the process of converting and transforming resources and inputs to final products that add value. Essentially, it involves product development, manufacturing, supply chain, working capital, purchasing and supply, and service. Some of tactical elements include inventory management, workforce management, planning, scheduling, inventory management, and quality management. Through interconnection of these aspects, the company set goals, define the path and draw the strategies to reach short-term and long-term goals. Therefore, this work will holistically discuses range of OM concepts with aim of improving organization outcome. In this case, Apollo tyre manufacturing company will be used as an ideal example.

Company overview

Apollo Tyres Ltd. Is eminent company established in 1972 with it’s headquarter in Gurgaon in India. Today, the company operates to over 100 countries around the world.

The company has two main global brands in the market which includes Vredestein and Apollo. Manufacturing of these products is done in Hungary, Netherlands, and India and distributed to the customer through a network of well-connected certified agents globally.

The recent internal report shows that the company has made a turnover of US$ 2.28 billion, assisted with global employees of about 16,000 employees. As of the end of March 2018, the organization traded in India on the National Stock Exchange and Bombay Stock Exchange with 59.68% of stock held by the government entities, financial institutions, banks, and the public.

Importance of the performance objective of the process of the polar diagram

Apollo industries measure its performance by looking at the degree which its operation meet the five performance objectives at a given time according to customer expectation. A polar diagram demonstrates how the five performance components comply with market requirements. This includes cost, speed, quality, dependability, speed, and flexibility

The first metric includes quality dimensions which based on the improvement of the quality of the products. Bureau (2018) holds that the firm measures of quality by examining at durability, ride, traction/handling, and appearance.

The company ensures that the tyre has an appealing appearance which easily attracts the customers. Individuals are highly motivated to buy goods which can maintain its look for a very long time scale or until replacement. Testing before debut is done to assure this aspect. Thus, the company ensures the products are difficult to bulge and sustains its surface. Additionally, the tyre handling is great in that it has the ability to efficiently transfer car energy to the surface (Bureau, 2018). This is very significant to grip in dry and most importantly in wet condition. Further, since the customers have a high affinity towards the durability of the tyres. The firm produces long-lasting products which can last up to two years (Bureau, 2018). Last quality, some people preferred to ride with a certain type of tyres due to their own perception. As such, high quality of the products must be maintained or improved to improve brand image. Other performance aspects include speed which the company produces and supply goods. The agencies in respective countries tend to deliver products on a timely basis. In respect to dependability, reliable goods and services are produce with fewer disappointments. Also, the company minimizes production cost by using lean management so as to make the company products affordable to the final consumer. Ultimately, flexibility is measured with a degree, at which changes are adopted. The enterprise has research and development section which analyzes trending issue to come with astute strategies. In regard, they are able to respond promptly.

Besides internal benchmarking, the company also does competitive external benchmarking to improve its performance. Statistics between Apollo and other competitor providing a similar line of products such as CEAT are reviewed. The results from the activity are important in knowing the customer preference and have knowledge about competitor so that adjustment can be done to gain a competitive edge

The diagram above indicates the performance of the general performance of Apollo is better than CEAT. The two industry produces tyre but of different degree quality. Apollo is leading in terms of quality, speed and cost whilst CEAT is doing greater with regard to flexibility and dependability. Apollo is seen to produce quality good and service, the good are durable and have strong grips (Khanna 2015). In terms of speed, the goads are able to reach to a destination in required time while for cost; there is more specialization, qualified workers, and use of advanced technology than counterpart enterprise. On the other hand, CEAT has a higher flexibility and dependability than Apollo. With dependability, the firm is highly predictable in terms of time, and their services are guaranteed to be effective. Lastly, they are flexible is they are easily adaptable to market changes. As such, they give the industry current and preferred goods.

From the above, the entity needs to evaluate its performance, especially in flexibility and dependability. Dependability can be done by reducing employee strike so that they can have predictable services (Khanna 2015). Flexibility, on the other hand, intensive capital should be invested in research and development with high trained expertise employed in this position. Improving its weakness and focusing on strength will give the company an upper hand in the trye industry.

Aligning product and process design according to customers and company

Apollo is one of the outstanding institutions which top the market through its design, innovate and creative products. For decades, Apollo products have gained users’ love by attaining empathetic design challenge. Often, the company unveils innovate products which strengthen its competency as compared to another manufacturer. In order to generate unique design and processes, the firm normally seeks customer advice; examine competitor; conduct research and development service and so forth. This is to enable to effectively respond to the internal and external environment while maintaining focus on customer needs and company goals

Nandy (2011) holds that collating information from the employee contributes to an innovative and ideal decision. Apollo tends to inspire these ideas by having a sound performance system. Ravichandra et al., (2015) explain by saying that this is achieved by setting performance level, communicating strategy direction; stimulate actions and influences behavior on the basis of bad and good results. Timely feedback is then given based on key performance indicator. As it determines where to initiate the intervention, facilitate learning and enforce as well as revise strategy. Pederse and Sudzina, (2012) assert that Apollo encourage high performance through employee training are given interconnected with reward framework specific considering range of current and future design and process needs hence increasing customer satisfaction and realize company goals

Aguinis Joo and Gottfredson, (2012) demonstrates that engraining sophisticated information system helps in assessing data to give sufficient data for management to correspond to market needs. IT has contributed research and development which helps in honing quality. Together with information from competitors, customer views and staff ideas, the company brand, quality, and price can be set in an informed manner.

Processes design

The first stage is the idea stage which management or research and development section expresses interest in developing a new product. Introduction and discussion of product idea and sketch are done. Once the product is defined, product start-up is initiated where a special team is given the mandate to concentrate in developing the new product (Yadav, and Sagar, 2013). Some procedure is formulated which free up the involved parties from regular structure of the firm to help them pay attention to the development process. Prototyping is the next stage which involves creating visual of the product, this stage takes a lot of time to complete. After the prototype is chosen and the management consent to instigate production, Apollos new product document that explicates the detailed process and maps for the different stage is given to global supply manager and engineering product manager who focuses on production part. The weekly meeting is done by the design team to improve on the idea while the executive meeting it to review if the goals of the team are being met (Atkinson 2012). The production management is a stage which both global supply manager and engineering product manager collaborate to ensure the product comes out to be the best. Then testing and packaging is done to ensure the products have every essential factor that is needed in the market. The last step is rules of the road where a document is prepared to assay each milestone and the whole process within it. This document ensures that both process and quality have observed all the qualities.

Manufacturing process

The primary products for Apollo Tyre Ltd consist of the tyre and tubes and are manufacturing using jobbing process (Kalpakjian et al., 2014). The first step is production mixing where primary ingredient mixed inside a dough kneading machine depending on which side of the tyre is being manufactured. The required proportion is controlled by a computer utilising pre-programmed recipe. Chemical such as sulphur, carbon black and other components are added to form final compound.

Extrusion stage is where extrusion machine press the compound to develop the desired shape, length, and width. Then it is passed through a calendaring machine where the cord is engrained. Afterward, tyre building is executed where various parts is assembled. The tyler builder is made up of the barrel which consists of the bladder where inner liner is placed. The barrel is deflated and the tyre is removed from the machine (Khanna 2015). Basing on barcoding of the week, the curing process is done. The machine contains mould which as per set up specifications. The curing occurs which takes 8-20 minutes at 300 degree Celsius. The final product comes out as a finished tyre from conveyer belt ready for inspection. Inspection is done in the quality assurance lab to ascertain manufacturing process. The samples are tested to ensure a certain standard is met. The products are stored ready for sale when they have been confirmed to have the right quality.

This manufacturing process leads to quality products although its disadvantage is that it consumes much of time (Bhat, and Aswathappa, 2010) as their some distance covered between machinery to another. Also, when employees move from different workstation to carry item during the production process, product quality is hampered. Additionally, design flaws may not be realized until the product is finished which leads to waste of raw materials. The organization can make use of continuous production which can save money and time through efficient operation. It minimizes time used of movement between production areas. However, the major problem with the technique is that during installation and repairs, the entire production process is put on hold.

Application of OM

Inventory management

Inventory management involves maintaining an optimal level of raw material, work in progress and finished goods (Panneerselvam, 2012). Some key inventory management feature which Apollo does includes Tyre Kit Management, Stock Adjustment Management, Barcode Management, Tyre, Tube, Flap Management, Stock Transfer Management, Stock Transfer Management, Stock aging & ledgers, and Stock Count Management. To achieve this, continuous inventory approach is used. With this, inventories are continuously being checked by a computer system which has a laser scanner which detects the barcodes in the tyres. The transaction is recorded and the level of inventory automatically updated. The system is accurate and gives the management with timely status about the inventories, supplies, equipment, parts in-process, and completed goods (Khanna 2015). Replacement is then done when the re-order level is reached. By so doing, one can manage warehouse space, have adequate inventory, control good movements within the store or customer site, and minimize cost. On the contrary, the method is expensive to since there is a high initial installation fee as well as the training of workers. Further, it requires close monitoring to avoid theft and possible error in the system.

Capacity management

Capacity management is a process which helps the company to minimize risk related to change and growth, especially in supply and demand side. Variation of demand normally creates challenges with regard to procurement of resources, scheduling among others. Hence managing both short-term and, long-term it is very important. Short-term plan help managers to forecast demand of product for a period of 12 months while long-term, is done to adjustments for major changes (Khanna 2015). For instance, based on the increasing demand for automotive vehicles across the globe Apollo Tyres Ltd invested over 600 million dollars in 2017 to increase the capacity of its production plants in Chennai and Hungary to expand and meet the needs of the fast-growing global populations. Apollo uses output capacity measure to forecast demand. This is because its operation is repetitive and high standard.

Capacity management has benefits such as it helps monitor cost. Key issues are considered during planning ranging from supplies, production schedule, and facility. As such, careful planning will allow cost to be minimized. Further, capacity planning is useful in obtaining additional information from the process which can help the organization to improve efficiency and support growth. On the other hand, capacity management has a dark side like the high cost of obtaining information and forecasting. Also, the firm can be vulnerable if the predicted outcome does not come to pass leading to possible losses.

Quality management

Quality management connotes the ability to exceed or meet customers’ needs. Apollo has put much emphasis on supporting customer satisfaction by improving and preventing the quality issue from occurring. Its inspection of the quality department is well organized and examines its products before, during and after production to see it right procedure has been followed. Gomes, Yasin, and Lisboa, (2011) establish that products are usually tested before they reach to the market. This gives the company an opportunity to discover deficiency at an early stage. Moreover, the customer has been given toll-free number which they are able to report suspicious behavior of their product when they using, coupling it with monitoring and evaluation of the firm ensures stoppage of production of defective products or adjustment to the required standard. Consequently, deficiency is eliminated.

The quality section makes sure tyre meets aesthetic standard through its design and soft touch (Corporate.apollotyres.com. (2018); reliability is met through infrequency of breakdown. Further, the tire is durable by having useful resistance corrosion and required mile. Quality is also ensured in terms of services by doing work at agreed fees, providing friendly and timely services, solving issues amicably, and being reliable. Together, the entire element leads to quality management.

Benefits of quality management are that it saves the firm from financial and market as a result of a failure that could happen during the replacement of a failed product or repeat production. Additionally, it promotes quality improvement as the more preventive measure is sought. Set with this program is that the decision connected to quality may not be connected to the market hence no profit is gained from the process. Furthermore, failure to proper planning can results in wastage of fund as some strategies do not relate to firm strategy.

The above work has shed light on features that support effective operation management. The core aspect is based on the ability to align itself according to customer needs and maintain optimal firm activities. I believe that this study will be useful to other firms in promoting their efficacy.

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