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Its all activities in supplying an end user with a product or service, with objective of attempting to mange activates that lie outside manager’s normal realm of internal responsibility is to reduce the costs of delivering a product or services to a user and improving value (Jack R. Meredith & Scott M. Shafer). “(SCM) is a set of practices aimed at managing and co-ordinating the supply chain from raw material suppliers to the ultimate customer “(J. Heikkilä ).
Texts on supply chain structure normally suggest that great benefits could be achieved by co-operation between the customer and the supplier and allows the supplier access to the customer’s real demand data. However, as Lee et al. (1997b) state,” a different problem is under what conditions the customer would be willing to co-operate with the supplier, to give access to real demand data and to co-ordinate its ordering policies for the benefit of the supplier”.
How do companies in the fast-growing industries achieve customer satisfaction together with efficiency in supply chain management (SCM)?
Good relationship between the customer and the supplier contributes to dependable information flows, and reliable demand information flows in revolve contribute to high efficiency; these are well-researched issues also in other industry environments. But in a fast-growing systems business such as mobile phone telecommunications industry, the supplier needs to be able to adapt its offering to a wide variety of customer situations and needs by understanding the customer’s situation and need together with the right offering contributes to good collaboration in improving the joint demand chain, which further leads to superior demand chain efficiency and high customer satisfaction.
In Nokia, supply chain management is one of an important operational area. They observe it as a major competitive advantage of their business .They involve that all products and services sold under the Nokia brand comply legally with human rights and workplace practices throughout the value chain. The competence of their supply-demand network helps them in meeting the growing demand for their products. The close support with customers and suppliers is one of their core development principles. In addition it promotes diversity in the supply chain and strives to include suppliers from all over the world.
Nokia’s supply chain consists of direct sourcing (material supply for Nokia products, such as parts, components, packaging, software development, contract manufacturing and research and development) and indirect sourcing (office equipment, libber, services etc.).
Nokia expects the companies in its supplier network to get a similar environmental, ethical, managerial business approach. Nokia’s needs are fixed in a set of global Nokia Supplier Requirements (NSR) based on international standards. They identified standards and management systems which are equivalent to or exceed their own requirements.
– The ethics needs include Human Resource Management standards such as working conditions, fair compensation, training and competences etc.
– The environmental needs cover the demand of environmental management system (EMS) and compliance with Nokia’s standards for materials and waste management.
– While the managerial needs imposes the company governance driven by layout 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. It give training determined either on their expectations and the management of labor conditions or Design for Environment practices enabling all companies, that want it, to comply with Nokia high standard requests.
Nokia carries out systematic assessments of the suppliers’ performance to ensure compliance with the Nokia Supplier Requirements. These assessments are approved by Nokia assessors, where the results are communicated to the supplier and if request appropriate course of action is recommended. Furthermore and in-depth lardier conditions assessments are performed 5-10 times per year (Nokia.com). For Nokia, also supplier self assessment is a useful tool for improving their supply-chain.
Look at supply chain issues from an industry perspective
Despite being the leader on the market, Nokia keeps close support with other entities on the market, joining together on to improve their operations. In 2004 Nokia joined the Global e-Sustainability Initiative Supply Chain working group (Nokia.com). Aiming to promote good performance and develop tools, processes, management practices, and systems to assist members in dealing with supply chain issues. (GeSI) members include Nokia co operators as opponents (Motorola, Microrelectronics, and Telefonica).
Nokia request suppliers that all components and parts supplied to it are compliant with the Nokia Substance List, which indicate substances that Nokia has banned, restricted, or targeted for reduction with the aim of staging out their use in Nokia products. All suppliers should provide a record of the raw material content of products supplied and, if needed, to provide end-of-life treatment recommendations. To standardize the high quality and compliance, Nokia even tracks the origin of raw materials used by the suppliers because supply chains in the electronics industry are both long and complex. Furthermore suppliers are recommended to adopt similar practices.
That is lean? And it’s benefits.
It is minimizing the costs while enhancing the strategic value factors of quality, dependability and speed (Jack R. Meredith & Scott M. Shafer).
Lean offer a variety of benefits: faster response to customer due to shorter lead time, less scrap, higher quality, cost savings, workforce improving, increase revenue and uncovering problem.
Traditionally, most firms want to accept all customer order or at least provide a big number of options from which customer order. However, this confuses the production task, increase the chance of errors, and increase cost. With lean, the target market is usually limited and the options also limited. In Nokia Service Management Solutions have been developed to support the operator’s mobile services all through the service life-cycle.
The Service Quality Manager, Nokia NetAct(TM) enables the operator to monitor, manage and increase the availability of services. The (TM) Framework is an integral part of Nokia’s overall Operations Support Systems product portfolio.
That is NetAct(TM)?
“Nokia NetAct (TM) Inspector is a active Quality of Service (QoS) measurement system which offers a reliable, multi-vendor capable, cost-effective, flexible and scalable measurement solution for end-user services such as MMS, SMS, WAP and mobile IP based services” (Nokia.com). As an essential element of the Nokia NetAct solution, it enables smooth operations and effective information flow. As in Inspector it utilizes (QoS) measurement probes, called stethoscopes, to perform polling requests at scheduled intervals.
“Nokia NetAct(TM) Traffica is a real-time traffic monitoring and troubleshooting tool, offering to the operator detailed visibility to the actual network and service usage. Traffica functionality includes real-time graphs to visualize the traffic, threshold alarms, direct record access for detailed analysis and interaction with the other Service Assurance applications of the NetAct(TM) framework”. Traffica being useful to many sanctions in the operator’s organization, like Operation and management for faster problem finding and troubleshooting, customer care for quick and precise answers to customer complaints, planning for better visibility on actual load, and marketing for subscribe behavior analysis.
In addition, Nokia NetAct(TM) Optimal Planner, Nokia NetAct(TM) Intelligent Service Configurator, and Nokia NetAct(TM) Service Optimizer highlight Nokia’s commitment to efficient network operations through maximum re-use of existing resources targeting lower operating costs and speeding up the service launch.
Nokia Vice President (Jyrki Holmala) said “Operators are increasingly looking for solutions to get more from their networks. Operators are seeking ways to run their networks more efficiently – managing many technologies at once. We trust that with our operational and end-to-end mobile expertise, we can greatly support operators, enabling them to offer high quality mobile services in a cost-efficient way to their customers”(Nokia.com).
The benefit of TM For operators:
Analyze customer behavior, roaming and mobile types.
Identify capacity bottlenecks or under-used services.
observe the real usage of the network in real time.
Optimizing network usages and revenue.
Get rid of network problems faster (this helps the operators to enhance the network quality experienced by the subscriber).
The benefit of TM for subscriber:
Quake response to customer complaints.
Many organization may face difficulties in the design and implementation of these aspects, because they may not choose the right product. Even though Organization will be able to choose the right product must come to meet the requirement of organization target. These are realistic and necessary. Project comes to the activities and services that respond to these needs.
Report discussed the aspects of operation management which is Service and Product design ,Supply-chain management and Lean management and logically analyses it and find that Nokia utilize this aspects as match as it can.
This report discusses the successful implementation of some Operation management aspects like (Service and product design, Supply-chain management and Lean management) at Nokia company and offered to stop during implementation for using proper methods in these aspects. Report tried to define and manage these features successfully in terms of time, cost and quality.
It’s good to say that it is very important to manage operations in the daily base of any organization. Successful Operation management leads to produce high quality and high performance and this may archived by:
– Set up some processes that may measure and then address the issues that might affect problems for supply and lean system through reporting periodic auditing to insure ongoing compliance.
– Nokia should focus on new technology to improve the lean system to maximize the productivity and reduce the cost.
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