Intel Corporations Operations Management, 10

Decision Areas
1. Design of Goods and Services. Intels mission statement and vision statement guide
operations management decision-making in this strategic decision area. The companys
objective in this area is to produce profitable and excellent output that satisfies market
demand. For example, Intels corporate vision and mission emphasize leadership in
bringing semiconductor products to every customer around the world. This aim is
achieved through microprocessors and other products designed with cutting-edge
technologies and distributed globally. Intels operations management supports these
activities through cost minimization and resource planning to optimize the impact of
product designs on organizational stability.
2. Quality Management. The determination and satisfaction of quality expectations are
the objectives in this strategic decision area. Intels operations managers evaluate
quality expectations through market research and feedback from customers, sellers and
distributors, among others. The data is used as basis for implementing adjustments in
operational policies. For example, to address concerns regarding defects, adjustments
are made in Intels operations management policy on margins of error. Such action
supports optimal productivity while addressing quality issues. Operations management
effectiveness in this strategic decision area aligns with Intels generic strategy and intensive
growth strategies.
3. Process and Capacity Design. Operations managers objective in this strategic decision
area is to maintain processes through standards compliance and resource adequacy to
support productivity goals. In the case of Intel Corporation, such goals are achieved
through process automation. As part of the companys operations management, reviews
are regularly conducted on available technologies and related resources to determine
capacity statuses and requirements. For example, operational capacity levels are
evaluated to develop corresponding solutions to optimize Intels operational productivity
in its microprocessor fabrication plants. These operations management efforts ensure
high-efficiency processes and advantageous economies of scale, which are among the
strengths highlighted in the SWOT analysis of Intel Corporation.
4. Location Strategy. Cost-optimal distances from target markets, suppliers and
resources are the objectives in this strategic decision area of operations management.
Intels approach to achieve these objectives focuses on human resources and logistics.
For example, the company prioritizes access to talent necessary to maintain the
competitive advantage of its semiconductor business. Nonetheless, to complement this
situation, sellers and Intel Store locations are optimized for maximum reach in target
markets. These locations are included in Intels marketing mix or 4Ps. The approach
ensures the companys operations management effectiveness in this strategic decision
area.
5. Layout Design and Strategy. Intel aims to maximize efficiency of the flow of resources
and information to address this strategic decision area. Through such maximization, the
companys operations management supports high productivity. Intel fulfills this aim by
using office layouts that facilitate efficient work and creativity. For example, the
companys office layouts make it easy for employees to meet and share creative ideas
for new product development. Also, many characteristics of layouts, including processor
fabrication plant layouts, are based on Intels organizational structure. Any new product
line requires new spaces, layouts, and corresponding components in the corporate
structure. This approach shows that Intels operations management in this strategic
decision area is flexible to accommodate changes linked to business growth and
expansion.
6. Job Design and Human Resources. In this strategic decision area, the main objective is
to maintain adequate human resources to support operational efficiency and
productivity goals. Intel satisfies this objective through an operations management
approach that primarily involves human resource management. For example, the HR
strategy involves job designs that support Intels organizational culture, which emphasizes
discipline, results orientation, and other factors. Also, the company has productivity
enhancement measures, such as leadership development programs and seminars for
better employee output. Thus, Intels operations management addresses the aims in
this strategic decision area.
7. Supply Chain Management. A high-efficiency and adequate supply chain is the
objective in this strategic decision area of operations management. In Intels case,
supply chain is automated to maximize efficiency. For example, the company has
computer systems and databases for monitoring and determining areas that need
immediate adjustment. In addition, Intels operations management efforts influence
suppliers through policies that extend to their business activities. For instance, the
company develops and implements policies to improve the sustainability and
environmental impact of the entire supply chain, inclusive of suppliers and other
relevant organizations. These operations management efforts are part of Intels corporate
social responsibility strategy. These efforts are also partly responsible for the companys
high operational productivity and economies of scale that contribute to Intels
competitive advantage in the semiconductor industry.
8. Inventory Management. Intels operations managers are concerned with inventory
holding and ordering to support business productivity goals. The objective is to ensure
that the inventory satisfies capacity requirements alongside market demand. Intels
operations management approach for this strategic decision area involves a serialized
inventory and the first in, first out (FIFO) method. For example, the FIFO method
addresses issues with technological obsolescence, especially with regard to
intermediate products in semiconductor fabrication processes. Correspondingly,
serialization allows Intel to track every item in its inventory. The resulting combination
ensures the companys efficiency and effectiveness in satisfying changes in market
demand. This operations management approach supports increasing R&D investment,
which is a significant technological external factor (Read: PESTEL/PESTLE Analysis of
Intel Corporation).
9. Scheduling. In operations management, the objective in this strategic decision area is
to establish short-term and intermediate schedules that satisfy market demand. An
appropriate approach in Intels case involves short-term schedules for immediate
concerns and generalized schedules for regular processes. For example, the company
uses short-term schedules for microprocessor fabrication processes involving batches
or projects. On the other hand, generalized schedules are for regular processes like
equipment maintenance and product development iteration. This approach ensures that
Intels operations management and productivity efforts satisfy dynamic needs and
relatively steady needs in the semiconductor business.
10. Maintenance. Process stability and reliability are the objectives in this strategic
decision area of operations management. Intel has a multi-pronged approach to ensure
effective solutions for these concerns. For example, operations managers coordinate
with HR management teams to maintain an adequate workforce. In addition, Intel
supports high operational productivity by maintaining cutting-edge technologies, such as
equipment used to fabricate semiconductor chips. Another operations management
approach involves high R&D investment to maintain technological competitive
advantage, which addresses the external force of competitive rivalry (Read: Porters Five
Forces Analysis of Intel Corporation).