Operations

Management
 Table of Contents

Introduction
• Pijush Kumer Ghosh (EX020016)

Operations Management Decisions

• Ashfaq –Us Saleheen (EX020012)

Quality Management & Supply Chain Management

• Md. Mofizul Islam (Ex020015)

Location Design, Layout Design, Scheduling &Inventory Management

• Md. Firoz Uddin (EX020016)
 Operations management

 Term used to describe all the activities managers do to

help their firms create goods and service
 Converting resources into goods and services
 Product creation, development, production, distribution,
managing purchases, inventory control, quality control,
storage, logistics and evaluations

 A great deal of focus is on effectiveness & efficiency of

processes
 Substantial measurement and analysis of internal
processes in order to become more effective and efficient
 Nokia in brief…………..

activities around the world

production, sales, marketing 123 553 employees
Head office in Finland; R&D,

Strong R&D presence in 16

countries,37 020 employees in Sales in over 160 countries
R&D (approximately 30% of
workforce, including Nokia
Siemens Networks)
Organizational Structure-NOKIA
 Corporate Functions - NOKIA
Nokia Siemens
Mobile Solutions Mobile Phones Markets NAVTEQ
Networks
• Responsible for • Responsible for • Manages our supply • Jointly owned by • A leading provider of
developing and developing and chains, sales channels, Nokia and Siemens, comprehensive digital
managing our managing our brand and marketing provides wireless and map data and related
portfolio of smart portfolio of affordable activities, and is fixed network location-based content
phones and mobile mobile phones, as responsible for infrastructure, and services for
computers. The team well as a range of delivering our mobile communications and • automotive navigation
is also busy services that people solutions and mobile networks service systems, mobile
developing a world- can access with them. phones to the market platforms, as well as navigation devices,
class suite of internet professional services Internet-based
services under the Ovi to operators and mapping applications,
brand, with a strong service providers. and government and
focus on maps and • business solutions.
navigation, music,
messaging and media
Operations Management
Decisions at Nokia
 According to clients:

– Market dynamics – market trends – consumer

taste – personalized depending countries
– Fragmenting market segments – more models
– Personalized experience – not just technology
– shorter product life cycles – varying tastes
– Usability – more technological power but easier
to use
– Multimedia portable player, Navigation systems
– Listening to customers demands
 Related to their own workers:

– Nokia Code of conduct: Commitment to equal

opportunity & openness.
– promote teamwork & individual responsibility
• Rotating team leaders
– Entrepreneurial spirit
– Cross-functional Team:
• Employees from different functional areas
• Ensure that all viewpoints are heard and given
proper weight
 Related to their suppliers:

– Quick response logistics

– Suppliers included in teamwork's
– Decentralized production
Quality management
Quality – “the heart of Nokia’s brand promise”
• In Nokia quality is the highest objective, not only being the
characteristic of their products and services, but one of their most
important essences.

Nokia wants to achieve excellence in the following

fields:
• customer service and gaining customers loyalty (by
taking care of the quality and reliability or their
products and services)
• product leadership (improvement, innovation)
• operational modes - effective, efficient and ethical
management
Management- “Self-Regulating Management System”

• As all operations influence the final quality of their performance ( products,

services etc), quality is managed from the top - starting with the quality of
management, through processes to the final product. As the consistency of all
actions is crucial in managing the quality, special framework for management
practices („Self-Regulating Management System”) has been developed. In Nokia,
„everybody in the chain has a role to play in achieving quality”, thus all the
employee in all lines and operational units have to take it personally.

• As the customer is the driving force in Nokia, so managing the quality is started
with acquainted with customer requirements and then processes are continuously
improved according to the feedback we received from the customers.
Supply-chain management
 Supply-chain management
 For Nokia, supply chain management is a very important operational area.
They perceive it as a significant competitive advantage of their business .
 They require that all products and services sold under the Nokia brand
comply legally with human rights and workplace practices throughout the
value chain.
 The efficiency of their supply-demand network helps them in meeting the
growing demand for their products.
 The close cooperation with customers and suppliers is one of our core
development principles.
 Moreover it promotes diversity in the supply chain (including companies
owned by minorities, women etc.) and strives to include suppliers from all
over the world.
 Nokia’s supply chain includes direct sourcing (material supply for Nokia
products, such as components, parts, packaging, contract manufacturing,
software development, and research and development) and indirect sourcing
(office equipment, services etc.)
 Requirements
Nokia expects the companies in its supplier network to take a similar ethical,
environmental, managerial business approach. Nokia’s requirements are stated in a
set of global Nokia Supplier Requirements (NSR) based on international standards.
They recognize standards and management systems which are equivalent to or
exceed their own requirements

• The ethics requirements include mainly Human Resource Management standards

such as fair compensation, working conditions, training and competences etc.
• The environmental requirements comprise the demand of environmental
management system (EMS) and compliance with Nokia’s standards for materials
and waste management.
• Whereas the managerial requirement imposes the corporate governance driven by
conduct policy, such as a code of conduct, defining the standards of performance of
the company in all their aspects.
Giving support to the suppliers, training
• Nokia offers their potential suppliers its support in meeting the Nokia Supplier Requirements

Monitoring
• Having once selected the supplier, Nokia carries out systematic assessments of the suppliers
performance to ensure compliance with the Nokia Supplier Requirements

Look at supply chain issues from an industry perspective

• Despite being the leader on the market, Nokia keeps close cooperation with other entities on
the market, working together on to improve their operations. In 2004 Nokia joined the Global
e-Sustainability Initiative Supply Chain working group. The aim of this group is to promote
good conduct and develop tools, management practices, processes, and systems to assist
members in dealing with supply chain issues

Substance management
• Nokia requires that all components and parts supplied to us are compliant with the Nokia
Substance List, which identifies substances that Nokia has banned, restricted, or targeted for
reduction with the aim of phasing out their use in Nokia products. Suppliers are required to
have a record of the raw material content of products supplied and, if needed, to provide end-
of-life treatment recommendations
 Location

 As a global company, Nokia operates in over 130

countries with the headquartered in Finland, in
the origins of Nokia. To create cutting edge
technologies, it carries out researches in
technologically advanced countries. Moreover,
according to its diversity and location policy,
Nokia wants to cooperate with companies form
different locations as gaining new markets is one
of the companies goals.
Process, capacity design

Due to the inherent properties of the

telecommunications market, Nokia is required to be
very flexible. Each quarter new technologies, solutions
and cutting edge products are introduced. That’s why it
is critical to be able to quickly adapt to changes. In this
case incorporating new technologies in all the processes
is invaluable and helps to achieve flexibility Although
telecommunication products have rather short lives,
Nokia has design the capacity to ensure meeting all the
demand (capacity built in view of demand supports the
credibility of Nokia).
Layout design

Nokia as a international company also uses

global manufacturing network that gives them the
ability to respond quickly to changes in demand
and technology. They have suppliers in all parts
of the world so that they can easily introduce
changes to their processes and the utilization of
resources is optimal.
Global Presence of Nokia
Scheduling

Average life cycle of a mobile phone is about 2

years and during one year many new models are
introduced. That’s why production of one line of
products is done simultaneously with the research
and design process of new products. Scheduling
and taking measures in anticipation of new
ventures is in this case a critical issue.
 Inventory management

 Thanks to joint ventures and close cooperation

with their supplier, Nokia can optimize their
inventory levels. The suppliers as Nokia partners
also participate in product development process,
what helps better assess the needs of the future
production. Efficient management of the inventory
is also supported by the diversification of the
location of suppliers. Moreover Nokia builds its
inventory in view of demand, minimum levels of
the inventory has to be maintained.
 Service & product design
Technology - “Not only Research but Development”
• Nokia believes that effective research and development is vital to remaining
competitive in the mobile communications industry.
• In 2005 about 36% of Nokia’s workforce was involved in R&D in centers in 26
countries.
• Nokia invests a substantial portion of our resources in research and development
long and short run activities supporting the development of new products as well
as seeking for cutting edge technologies for future ventures.

Blending cutting edge technology with high fashion - “experience

design”
• When designing the product, emphasis is put not only on the its technological
aspects but also on the layout. In Mobile Phone section fashion designers are
incorporated in to the process of developing a new product
 Environmental management system

Nokia believe that environmental management has to be fully incorporated in their business
processes. Environmental issues are everyone’s responsibility at Nokia and an integral part
of managing business because they are related to all they do.

• The Nokia wide Environmental Management System (EMS) according to the ISO 14001 standard covers production
sites and large offices

Our Environmental Management System consists of:

• Nokia's Environmental Policy

• Identification of environmental aspects, and evaluation of their significance
• Objectives and programs for achieving environmental targets
• Compliance with legal and other regulatory requirements
• Audits, management reviews, and continuous improvement
• Operational management (data and processes) for energy and water consumption, waste etc.
Thank You