Operations Management - New Nokia Cell Phone - Case Study Example

Abstract

In order to fulfill successfully the development of new Nokia mobile phone, it is operations manager’s task to present the comprehensive scheme of the project, including the breakdown of the activities, their scheduling, and length. For the purpose of providing the complete project schedule, the operations manager elaborates the project scheme on the basis of the project network, the calculations of the early/late start time as well as the defined critical path. The calculations will be presented in a form of tables and figures for enhanced visuality.

The concluding section of the report is dedicated to the two impact studies, which examine the relevance and the probable outcomes of the introduced alterations into the project course. Taking into consideration the input data, included in the case study, the report will provide the devised project agenda in order to achieve the cohesive teamwork, necessary for the new mobile phone introduction.

Introduction

Within the global technological arena, Nokia has managed to recommend itself as one of the prominent corporations, providing portability and ergonomic for the highly technocratic society. The diversified business of Nokia company successfully transmits its ideas through all of its product portfolios, and the new mobile phone is missioned to introduce the innovative approach to the communication on a global scale (Anbari, 2005). Within the intensive competitiveness of the market, the devices created by Nokia are greatly associated with Microsoft corporation, and Windows as the major platform presents the a reliable basis for the new edition in order to ensure efficient functioning.

The introduction of the new mobile phone by Nokia requires well-assessed and well-planned action schedule. The operations manager’s responsibility is to develop a detailed project plan, allocating the concrete activities among the team in order to lead the entire corporation to the desired objectives. For the purpose of ensuring the weighted and appropriate plan, the manager’s report contains the profound analysis of the strengths, weaknesses, threats and opportunities (SWOT). Further, the report is focused on the dispersion of the major task into the fractions between the functional teams.

The distribution of time resources is crucial for the entire project, thus, the project network is the tool that enables to define the concrete time frames, necessary for each activity (Brennan, 2011). The two alterations provided by the case study are to be thoroughly assessed with a view to the relevance and expected outcomes in order to define the degree the introduced changes influence the project in the context of the new mobile phone. Regarding Nokia’s rich experience, dating back to the second half of the nineteenth century, the corporation has covered the path from the small factory to the world’s communications giant, occupying the second position in terms of revenue.

Methodology

As it was already mentioned above, the comprehensive project plan is to present the congruence with the strong and weak points of Nokia, as the corporation’s special position within the industry does not, however, abolish the probability of new entrants and increased competitiveness, which might have an impact on the company’s financial performance. Therefore, it is essential to fulfill the inclusive analysis, and SWOT is the appropriate technique to evaluate the key Nokia’s aspects.

Strong points. Nowadays, the corporation known as Nokia Networks or Nokia Siemens Networks (NSN) maintains its course by acquisitions targeted at retaining its leading position in the global market. The company ensures its solid competitive advantage by means of the massive sector of 3g users, which are operated by Nokia, the front-runner of the advanced technologies.

The service quality based on company’s high standards is responsible for the customer loyalty, reflected in the formidable client base (Collins, 2011). The trustful relationships established between Nokia Siemens Networks and the end customer is the solid ground for the corporation’s financial performance, which indicates robustness and stability; these attributes are contributive factors in the competitive position, which is hard to be replicated.

Furthermore, during over one and a half centuries of its existence, Nokia managed to expand globally and increase its presence in 160 countries (Johnson, 2015). Diversity is an integral part of the corporate strategy, and the company’s client base vibrancy accompanied by the diversified product portfolio ensures the customers on all the planet’s continents, and Europe is the largest contributor. In its turn, the formidable territorial ubiquity of Nokia creates the premise for the further growth, as the positive tendencies are observed in all the areas.

Weak points. Despite the prominent position Nokia Siemens Network possesses, it faces the stiff competition from the market participants that display superiority in terms of services and product range, annual profit rates and available company’s competencies. Nokia Network is significantly dominated by the industry’s leaders – Alcatel, Huawei and Cisco, and the situation is mainly attributable to the poor presence in the North American market, which is ironically one of the largest contributors to the client base (Johnson, 2015). Additionally, the company’s specialization does not imply the engagement in the substantial projects, which has a negative effect on the company’s image.

One of the stumbling blocks for Nokia Networks is mirrored in the cost pressure over particular company’s projects, which has caused the steady decrease tendencies in the profitability rates.

Opportunities. The overwhelming Long-Term Evolution, where Nokia is the undisputable leader, presents the area of numerous opportunities due to increasing demand. The client base of Long-Term Evolution nowadays exceeds the 160 million due to increased capabilities, which has no equivalents within the market. The emerging economies are attractive for the foreign direct investment, and developing market penetration would significantly enhance the company’s presence. The highly technocratic environment is gaining momentum and the urgency of broadband communication evokes the telecommunication corporations to penetrate the untouched economies. The number of emerging markets present the particular interest for Nokia due to the opportunity of cost optimization, thus, the company should regard South-American countries, India, and China as potential partners.

Threats. The telecommunications industry is characterized by the high occurrence of operator unification, which bears a certain amount of challenge in the context of emerging markets, as Nokia Network might face the decreased market access (Johnson, 2015). Moreover, the industry is marked by the stiff competition, which imposes the cost growth in terms of new product development and research activities. In this respect, the small-size competitors appear to be unable to fit the demands of the severe environment, dictated by the large-scale participants. As a logical consequence, the necessary evil is implied by the mergers between the companies. The competitiveness is to be perceived by Nokia as an undisputable priority, and this particular threat is to work as the push factor for the future company’s development and growth. The exposedness to innovations and technological advance to a great extent influences Nokia’s position. Nowadays, Nokia Network is facing considerable price pressure from the cheap vendors. The peculiarity of the industry put the service quality and the efficiency far above the price, and the company’s capability of meeting the client requirements is defining.

The Liability To Customer Needs

Nokia Siemens Network is working in tight collaboration with about 600 operators worldwide, and the primary task of the company is to establish and retain the trustful and transparent relationships through enhanced effectiveness and commitment to high standards.

Nokia Network is the major supplier for a huge number of telecommunication companies, where the certain percentage is occupied by the civil defense sector in a range of regions, and the provision is aimed to enhance the effectiveness of the administration dimension (Greasley, 2008). However, assessing the company’s capabilities and perspective, the objectives go far beyond meeting the requirements of communication means or mobile phones in particular.

The superior goal of Nokia Siemens Networks is to develop the telecommunication technologies on the permanent basis so that they can be applied for the purpose of the worldwide flourishing among the nations. Elaborating the plan of the new project, the company aspires to empower the new generation technology to make a huge influence on the global-scale improvements. By taking an active part in tackling the environmental and social issues, Nokia seeks to reduce the industrial footprint in regards to industries and overall humanity impact.

Nokia Networks views its high-speed communication opportunities as an effective tool for enhancing the situation in underdeveloped regions, as the multiplicity of technological advancements at company’s disposal can make a huge difference for the poor destinations on all the levels, from communication to education and employment issues. Thus, the planned project for the new mobile introduction is an object for high hopes of the corporation. In this context, the commitment to high standards is Nokia’s priority, however, the accessibility is one of the core company’s attributes, which is not to be compromised. The efficiency, ergonomics, and convenience are to be the major motivators for Nokia client to be loyal to the products and services offered. Leaning on the sensible customer base as the major company’s achievement, the new mobile phone project must comply with forward-looking aspirations.

Task And Team Management

The input data included in the case study of this project emphasizes the most appropriate manner to fulfill the project tasks to perform the dispersion of the project into a number of fractions in order to ensure the cohesive work. Thus, the mobile phone project is fragmented into 5 subprojects. The first activity is designated by ‘P’ and it describes the product specifications related to the new phone model. Basically, the activity is centered around the metrics and the basic features, formulated by the customer preferences, requirements, and manner of application.

Furthermore, the product specifications, included in ‘P’ section are to be reorganized, taking into consideration the subcontractors standpoint, which in its turn will directly proceed to the subproject ‘S’, where the activities are based on the supplier specifications. This stage is referred to as one of the most important, as it practically determines the way the new mobile phone will function (Jacobs, Chase, & Jacobs, 2010). The constituents of the new device will be elaborated in the subproject ‘D’, which will be followed by the ‘I’ stage, where the developed product will be completed and ready for the testing. The concluding subproject is represented by ‘D’ stage, which is intended for the considerations in terms of the future contracts with the suppliers.

Figure 1. The Activities Included In The Mobile Phone Project

Taking into account the input data provided within the case study, it is evident that the most appropriate mechanism to be used for the best project performance and desired outcomes are the functional team structure (Jacobs, Chase, & Jacobs, 2010). The framework gives an opportunity for the workforce to concentrate on the specific task and, the team members are to develop each separate project individually with the supervision of the subproject manager (Heizer & Render, 2001). The subproject manager’s task is to perform the controlling function in terms of schedule and conduct the regular meetings with the colleagues to trace the commitment to the plan, elaborated by the project manager. In other words, the project team is to present the cohesive mechanism, and the subproject manager is missioned to ensure the cogwheels with the informational assistance. Ultimately, in order to connect the developed plan with the actual results, the subproject manager will report to the project manager, upon each subproject conclusion.

Figure 2. The Project Network

The Case Study: The Impact Of The Changes

The case study information emphasizes, that there are the two alterations to be introduced into the project course, and therefore, it is essential to provide an assessment in terms of the relevance and the results of the changes applied. The first novelty consists in the concurrent fulfillment of each subproject tasks, in order to avoid the activities prioritization. By introducing the parallel functioning of the teams, the project will be executed in the sequential manner: PSDIV.

The introduction of the change would significantly reduce the length of the project from 56 to 29 weeks, and the project course would be characterized by the absence of the slacks, due to the being on the critical path. The implementation of the alterations will be described in the figure below.

Figure 3. The Critical Path

The other alteration to the project course to be analyzed lies in decision-making in terms of the supplier selection at the time of ‘P’ processes and establishing of the direct relationships with the functioning teams. The novelty entails the additional process to be included in ‘P’ subproject – P5 – which will be fulfilled within the period of 12 weeks. As a result, the constituents of subproject ‘P’ will be performed in conjunction and the new model requires ‘V’ and ‘S’ subprojects to be excluded. In terms of the timeframes, the application of the second alteration would reduce the project duration from 56 weeks to 20 weeks in contrast to the critical path calculations. Likewise, the slack probability is precluded due to being on the critical path.

Figure 4. Early/Late Start Time Calculations

Figure 5. Slack Calculations

Ethical And Diversity Considerations

The introduction of the simultaneous team functioning is beneficial in terms of the project duration, and the project length would be reduced more than by half. Additionally, the alterations would significantly accelerate the speed of market penetration. Nevertheless, the new work scheme does not abolish the dependency degree between the processes: for instance, during the product specifications development, the aspects concerning hardware and software elaboration are influenced by the market research. In this respect, analyzing the pros and cons of the novelty would recommend the matrix framework implementation (Jacobs, Chase, & Jacobs, 2010). From the ethical point of view, the introduction of the matrix structure would lead to more favorable working environment through increased communication.

Moreover, in contrast to the previous organizational structure, the new approach implies less amount of certainty thus the working environment will be diluted by spontaneity. The team members would be provided with the latitude in relation to assessing the outcomes of the previous subproject teams. In other words, the matrix structure would build advantageous premise for the democratic and participative ecosystem, where there is a chance of expressing opinion and ideas (Jacobs, Chase, & Jacobs, 2010). However, the enhanced creativity is possible in case of sufficient management function and clear understanding of the tasks.

By ensuring the parallel functioning of the creative team, the complex design dimension, for instance, would be resolved on the basis of diverse perspectives. The introduction of the second alteration would considerably optimize the project course by excluding the overlapping processes in the context of the particular subproject. Nevertheless, the core aspect of the project change is implied by the imposition of the supplier in the category of project specifications. It should be mentioned, that the decision-making in relation to supplier selection should be based upon their influence on the product market position. What is more important to realize, the mobile phone design constitutes over 80 percent of the device cost, therefore, the participation of the supplier is given a new meaning, considering the impact on the new phone’s place within the market.

Furthermore, the integration of the supplier into the design devising would lead to the reduction of the required time for the product development, increased quality and enhanced implementation of the innovative technologies.