Term paper

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Submitted to: submitted byMr. H.S. Bedi Manjit Paul

ACKNOWLEDGEMENT

Through my gratitude towards my supporters yet we like to add a few hearts full for the people who were part of this case study in numerous ways. People who gave understanding support right project ideas were conceived. First I want to thank Mr. Harpreet Singh Bedi, Lecturer operation management, lovely professional university, Phagwara for assigning this term paper & we also want to give hands full gratitude to him for his help & guidance. We would like to thank all the faculty of lovely school of business for having faith in us, & for their kind inspiration and helping us whenever asked. Last but not least, I expand my heartiest gratefulness all people who have given us best wishes & all help that I needed for the completion of the term paper.

MANJIT PAUL

CONTENTS

Literature review

Objective of the study

Introduction

Product Range

Transformational Process viz. Inputs, Outputs and process followed

In conversion.

Facility Layout

Facility Location

Quality Systems

Capacity management

Inventory Management Model of Supply Chain Management being followed Conclusion references

LITERATURE REVIEWA literature review is a body of text that aims to review the critical points of current knowledge and or methodological approaches on a particular topic. For this I used the

secondary data as well as primary data. Secondary data: For taking secondary data I searched the website of company and other websites related to it. Primary data: For taking primary data I take information from economic times and business standard newspaper.

OBJECTIVE OF THE STUDY

This research is based on analyzing Nokia Company which is a leading company in mobile industry. Here I analyze company’s facility layout, facility location to find the reasons of choosing particular location, inventory management, quality management, model of supply chain management. Here we do meticulously study these terms.

INTRODUCTION

Nokia is a world leader in mobile communications, driving the growth and sustainability of the broader mobility industry. Nokia connects people to each other and the information that matters to them with easy-to-use and innovative products like mobile phones, devices and solutions for imaging, games, media and businesses. Nokia provides equipment, solutions and services for network operators and corporations. Nokia's regional corporate headquarters is located at Alexandra Technopark in Singapore.In India, Nokia is the market leader in mobile devices. Nokia maintains sales, marketing, customer care, and research and development sites in the country. Nokia was recently recognized as the Brand of the year by the Confederation of Indian Industry (CII) as well as the most respected consumer durables company by the Business World magazine.

PRODUCT RANGE

Nokia makes many different cell phones. Current phones can be categorized by design, key features and advanced features. Designs include the classic candy bar shape, folding, sliding, twisting, large screen and full keyboard phones. They all make calls but key features can include Bluetooth, Internet browser, mail application, 3G Speed, FM radio, music player, video recorder and camera. Advanced features include N-Gage gaming, Wi-Fi, speaker phone, video playback, Blackberry-like push e-mail, global positioning system (GPS) and global roaming support.

Product category range

N series N96,N95,N86,N85,N79,N76

E series E51,E52,E66,E73,E75,

Everyday phones 6600,6210,6500,7100,7210,

7310,7610,5130

Low end phones 3100,2680,2610,2630,2760,

2330,

Bottom end 1661,1208

N SeriesThe N Series phones are the most feature-rich. There are currently 13 N Series ranging from the just released N97 at $699 unlocked with a touch screen, to the N96, N95, N86, N85 at $649.99 unlocked, N79 and N76 unlocked at $449.99. They all have many advanced features.

E SeriesThe E-Series is not quite as high-end as the N Series but still the phones still have plenty of Smartphone type features and good keyboards, making them suitable for business use. They range from the email-friendly E75 unlocked at $569.99, business-oriented E71, the E52 with long battery life, the E66 with excellent personal information management, messaging-oriented E63 to the classic-looking, thin E51 at $399.99 unlocked.

Everyday PhonesNokia's everyday phones are designated by four digit numbers rather than the N or E designator with two numerals. They range from the 6600i slide with powerful imaging; the simple 6720s, with a classic candy-bar design; a folding sensuous-looking 6600; integrated navigation and good-sized screen in the 6210 Navigator; the 6500 slide with a camera and flash; the balanced-looking 6500 Classic; the mirrored 7610 Supernova; simple-looking 3600, 6303, 6120; the interchangeable covers on the 7310 Supernova; the simple 3610 fold; stainless steel covers on the 6300; music-oriented 5800 unlocked at $399.99 and 5130 Xpress Music; funky looking 7210 Supernova; affordable 3120 Classic; and the 7100 Supernova

Low-end PhonesOnce you get down below the 5000 designator they get a bit boring, but at least they're cheap and durable. The 5000 has a camera. There's the robust 3100 Classic; the 2680 unlocked at $89.99 with a pretty good screen; the 2610 that AT&T uses for its no-contract

phone at $29.99; the 3109 with four hours talk time; the 2630 and the 2760s with a VGA camera; the 2330; and the 2600 with customized ring tones.

Bottom EndAt the bottom end is the bland but affordable 1661 and 1208.

TRANSFORMATION PROCESSA transformation process is any activity or group of activities that takes one or more inputs, transforms and adds value to them, and provides outputs for customers or clients. Where the inputs are raw materials, it is relatively easy to identify the transformation involved, as when milk is transformed into cheese and butter. Where the inputs are information or people, the nature of the transformation may be less obvious.

Type of transformation

Kind of transformation used by nokia is: Manufacture – the physical creation of products (for example cars)

input

transformatio

n

output

Circled in yellow above are all the computer chips in the cell phone that require significant processing in their manufacture, about 18 chips. The inputs and outputs for manufacturing these chips are:

Input Output

70.5 X 5, or 352.5 pounds of

water (200 - 400 pounds are

used in an average 5 minute

shower

352.5 pounds of water

3.5 X 5, or 17.5 pounds of

energy

Varies according to how energy

is generated.

0.16 X 5, or 0.8 pounds of

chemicals

0.8 pounds of chemicals, usually

in water solution, possibly

treated.

There are additional inputs and outputs associated with the manufacturing of each of the other components of the cell phone, including its plastic case, antenna, its battery, and the energy used during its lifetime to recharge the battery.

FACILITY LAYOUT

Layout refers to the configuration of departments, work centres, and equipments, with particular emphasis on movement of work(customers or materials) throgh the system.

In nokia manufacturing indutory process layout is being used.

Process layout: is the layout that can handle varied processing requirements.

The variety of jobs that are processed requires frequent adjustments to equipments.

Reasons for using process layout in nokia:

In process layout, work is divided into different processes, this layout is efficient, and as it has ability to change product designs easily. in the same way nokia belongs to mobile indutory where changes in attributes and functions of mobile keep changing either due to change of technology or taste of people.

Production process of nokia is directly matching with characterstics of process layout like

In process layout, work is divided into different processes. Nokia’s production is also divided into different processes. As dipicted in process mapping there are following processes being covered:

Design a concept. Cell-phone companies employ a team of designers to create a concept for their latest phone release. They often try to surpass their previous model(s) by providing sleeker design and better functionality. The design concept goes through different stages, and the rendering of each part and functionality goes through a separate approval process.

Add and define features during the design phase . Features normally seen on a cell phone include the ability to make voice calls and send text messages; however, consumers can opt for additional features such as a built-in camera, video, MP3 player, Internet, GPS, instant messaging, games, radio, push-talk, playback recording, and anything you can think of that can fit into a small hand-held device.

Identify parts to use , including the battery, hard case, keypad, volume control, Bluetooth enabler and wired headset socket, as well as the parts that

make up the camera and MP3 player. Each cell phone consists of a microchip, like those produced by Broadcom or Qualcomm. The microchip, also called a SIM (Subscriber Identity Module) card, lets the cell phone work at high-speed standard known as W-CMDA.

Build the parts after identifying them . Some parts are readily available from electronics makers like Samsung. Other distributors can deliver the small parts to a cell phone company's assembly line. During the building process, each part goes through rigorous quality control, to ensure that even the smallest part functions well.

Put the cell-phone parts together . An assembly line consists of a row of multiple assembling machines to house the cell phones while they are being built. Because the small parts are sensitive to specks of material like and hair, people who operate the assembly machine wear clean coverall suits, complete with head covers. Furthermore, it is important to maintain the temperature in the room, to ensure that the machines do not break down due to overheating and the chips do not melt. Keeping the room between 55 and 65 degrees F is ideal.

Cell phone assembly line

Test the phone in the QA (Quality Assurance) department before packaging. The QA analysts perform product testing for each functionality, as well as ascertaining the durability of the project. They test the signal, volume, battery power, key pads, screen resolution, photo, and video, Bluetooth, texting, email, Internet and other features. If they find any problems, they will send the phone back for correction. Anything item does not pass the second time goes into the "reject" pile.

cell phone ready for testing

Nokia Head quarters

R&D Department

Decision

Purchase departmentBuying materials

Package all the systems that pass the QA Testing. After packaging, they are shipped and delivered.

process layout is efficient, as it has ability to change product designs easily. in the same way nokia belongs to mobile indutory where changes in attributes and functions of mobile keep changing either due to change of technology or taste of people. So this is best layout for cellphon company.Benefits of using process layout

Flexibility: The firm has the ability to handle a variety of processing requirements.

Cost: Sometimes, the general-purpose equipment utilized may be less costly to

purchase and less costly and easier to maintain than specialized equipment.

Motivation: Employees in this type of layout will probably be able to perform a

variety of tasks on multiple machines, as opposed to the boredom of performing a

repetitive task on an assembly line. A process layout also allows the employer to use

some type of individual incentive system.

System protection: Since there are multiple machines available, process layouts are not particularly vulnerable to equipment failures.Process mapping

Process mapping shows different workcentres or process of cellophane production that how work is moved from one work centre to another.

FACILITY LOCATION

Mobile devices and technology

BrazilChinaFinlandGreat BritainHungaryIndiaMexicoRomaniaSouth Korea

Nokia is today the world’s largest manufacturer of mobile devices and the world’s sixth most valued brand. They have a total of 9 production facilities in eight countries i.e. Brazil, china, Finland, Hungry, Mexico, Romania, Great Britain, South Korea. The most recent being a factory in India. Green dots in the world map denote facility location.

Location decisions represent a key part of strategic planning process of virtually every organization.Nokia has set up its mobile device manufacturing facility at Sriperumbudur in Chennai in the state of Tamil Nadu in the southern part of India. So that company can meet the increasing demand for mobile devices in India. The manufacturing unit in Chennai will be Nokia's tenth mobile device production facility globallyThe manufacturing facility is operational with an investment of USD 210 million and currently employs 8000 people. Reason for selection of Chennai

Nokia may need to make location decision for a variety of reasons. They are viewing it as part of their expansion program further to India.

It is anticipated that there will be a long term sustainable demand for mobile telephony

in the fast growing Indian market. For continuous development of global manufacturing network. Skilled labor is available in Chennai Friendly business environment Support from state government good logistics connections Overall cost efficiency.QUALITY SYSTEM

Quality is an integral part of every-day management. Its part of business, and its part of the way we think. Company doesn’t have a separate quality system and management system. It’s just one system, and it’s how it runs and implements the global processes of this large company. According to it its quality definition – in everything we do – has the customer right in the centre.

With such a global system in place, it has a certification partner with a global presence was a key factor in selecting DNV. Here Stiftelsen Det Norske Veritas or DNV is a classification society organized as a foundation, with the objective of "Safeguarding life, property, and the environment". The company-wide agreement makes DNV the preferred supplier of auditing and certification services within management system certification both on the quality and environmental side.

With DNV Nokia now have in place one single audit plan for all our facilities around the world. This helps us combine and operate the audits efficiently and consistently.”

Customer decide quality

With many competitors and a constant push for innovation, the mobile phone market is very competitive. New trends and technologies must be met and mastered, and the time from development to finished product is short. What constitutes good quality is in the end up to the Nokia’s demanding customers around the world.

“Company closely monitors failure trends of our products from customers. This is a key quality measure for it

Capacity management

Capacity is the upper limit of the ceiling on the load that an operating unit can handle.

So efficient capacity planning is necessary as it has real impact on the ability of the organization to meet future demands for the products and services. Nokia is very serious about its capacity planning.

As a big MNC, Nokia is very much organised. First, it takes into account the rate of penetration in the country and its level of growth in the future. It looks the part of the market that needs improvement. Now Nokia is planning to increase the production capacity at its factory in Chennai for increasing its market share. The company had shipped over 25 million mobile handsets last year from its Chennai factory.

INVENTORY MANAGEMENT

Inventory is a list of goods and materials, or those goods and materials themselves, held available in stock by a business. Inventory are held in order to manage and hide from the customer the fact that manufacture/supply delay is longer than delivery delay, and also to ease the effect of imperfections in the manufacturing process that lower production efficiencies if production capacity stands idle for lack of materials.

Operators face a fragmented business environment in which organizations; processes and information are divided into silos. There is no end-to-end, consistent view of networks and services, information is difficult to access, process automation is limited and existing resources are not used efficiently. To improve the situation, operators are consolidating their inventory in long,complex projects that have no guarantee of success. The Nokia Inventory solution offers an end-to end view of fixed, mobile and converged networks. It allows you to maximize end-user quality of experience while achieving cost savings. Deployment and integration times are reducedconsiderably, due to a new, modern architecture suitable forcomplex multi-vendor networks, together with the combined Telcoand software integration expertise of Nokia Siemens Networks.

MODEL OF SUPPLY CHAIN BEING FOLLOWED

Supply chain is the sequence of organizations-their facilities, functions, and activities - that are involved in producing and delivering a product or service. The sequence begins with basic suppliers of raw material and extends all the way to the final customer. facilities include warehouses, factories, processing centers, distribution centers, retail outlets, etc.Importance of supply chain

transforming raw materials into finished goods in a cost-effective way, while providing dependable delivery of those goods day after day, requires a clear understanding of supply chain. It also requires having control of a realistic plan and the ability to implement it. There is a strong connection between high-performance supply chains and financial success.

o Nokia's frequent and a very flexible and efficient global supply chain supports rapid product market innovations, which are major contributors to fast revenue and profit growth. So efficient supply chain is necessary for its continuous development.

The company had an integrated supply chain which inter-linked suppliers, manufacturing plants, contract manufacturers, sales, logistics service providers, and the consumers. It entered into a long-term relationship with its suppliers and also supported them in improving their processes, which in turn helped the company

Nokia has altered the playing field with rapid-response manufacturing, quick-ship logistics and a global supply web that links Nokia suppliers and plants. The company also supports vendor-managed inventory and collaborative planning. The company had a wide distribution network which helped it to effectively reach the end customers

Nokia doesn’t sale its cell phones directly to individuals, they sale them through operators such (Bouygues, SFR, Maroc Telecom) and to distributors (Cora, Auchan, Carrefour…) also to traders who are intermediate who are responsible for the marketing of Nokia products with the small distributors.

Nokia’s supply chain management

Supply chain management is the strategic co-ordination of business functions within a business organization and throughout its supply chain for the purpose of integrating supply and demand management.Nokia started their SCM transformation process in 1995 with the strategy of replacing inventory with information and creating a pull-driven supply chain with end –to –end integration linking suppliers, factories, telecom operators, channel partners, contract manufacturers, banks, sales, hubs and logistics service provider to consumer. Their approach was to create the most efficient supplier network to offer the best solutions to meet customer expectations.

Nokia is organised in the base of two teams:

Logistics team: There is one team of prevision and sales planning. Supply team: working against a team to optimize the daily production capacity and supply.

CONCLUSION

From all the above research it is clear that nokia is on growth with its operation strategies and giving tough competition to its competitors. It has chosen efficient facility locations, layout, supply chain management. Nokia’s supply chain management is very efficient needed to increase value add to their end customers; to provide more timely and cost effective products and services to market; to better synchronize the flow of information, products and cash; and ultimately to increase productivity

and profitability. The best part of its strategies is that it also includes customers who will decide its quality which is very necessary for long term growth of company’s operations.

REFERENCE

http://www.ehow.com/how_4616220_how-cell-phones-made.html http://www.google.co.in/search?hl=en&q=quality+system+of+nokia&meta=&aq=f&aqi =&aql=&oq=&gs_rfai= http://www.dnv.com/industry/it_tel/ourcustomers/mobile_quality_delivered.asp htttp://www-935.ibm.com/services/us/gbs/bus/pdf/bcw00617-scm_executive_summit_2006_insights.pdf http://www.thehindu.com/2008/10/29/stories/2008102957570200.htm http://www-935.ibm.com/services/us/gbs/bus/pdf/bcw00617-scm_executive_summit_2006_insights.pdf http://www.nokiasiemensnetworks.com/NR/rdonlyres/51FA34FD-05BD-430B-A6BF-D92D18449427/0/Inventory_Management__executive_summary.pdf http://www.symbian-freak.com/news/010/02/nokia_plans_to_develop_salo_plant_operating_mode.htm

ANNEXTURE

Inside view of Nokia