Group 1 Section B

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ASSIGNMNET-II

(GROUP)

ON PRODUCTION, QUALITY AND INVENTORY

MANAGEMENT OF MOBILE

SUBMITTED TO: SUBMITTED BY:

PROF. SUSMITA PAUL GROUP-1


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TABLE OF CONTENT

Particulars Page number

Budget 3Forecasting 4

Layout 5-6

Quality 7-8

Inventory 9-11


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PRODUCTION

Budget and Demand Forecasting

DATA ITEMS Per Unit

Cost(in Rs.

000)

Q1 Q2 Q3 Q4 TOTAL

Cost (in Rs.

'000)

Units produced 3863 2862 2863 5862

Media player

functionality

Component

0.876 3383.988 2507.112 2507.988 5135.112 13534.2

Bluetooth & Other

wireless

Components

0.98 3785.74 2804.76 2805.74 5744.76 15141

PCB level

components

0.725 2074.95 2074.95 2075.675 4249.95 10475.525

Other Passive &

Discrete

Semiconductors

0.145 560.135 414.99 415.135 849.99 2240.25

Camera Module 0.55 2124.65 1574.1 1574.65 3224.1 8497.5

Display 1.006 3886.178 2879.172 2880.178 5897.172 15542.7

Battery 0.25 965.75 715.5 715.5 1465.5 3862.25

Labor 2.067 7984.821 5915.754 5917.821 12116.754 31935.15

Operating System 0.275 1062.325 787.05 787.325 1612.05 4248.75

Other Softwares 0.098 378.574 280.476 280.574 574.476 1514.1

TOTAL Budgeted

Cost

6972 26207111 19953864 19960586 40869864 106991.425

GRAND TOTAL 1066991425

=10.7

crores


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Demand Forecasting

Year Sales (in units)

2006-07 15100

2007-08 18020

2008-09 16700

2009-10 15400

2010-11 14200

2011-12 16310

W1= 0.45

W2= 0.3

W3= 0.25

Forecasted Demand 15449.5 15450

Forecasted Demandfor

Q1 Q2 Q3 Q4

3863 2862 2863 5862


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MOBILE PHONE LAYOUT

Production depends on how efficient various machines, production facilities and employee

amenities are located in plant. While choosing a layout for mobile it involves deciding the type

of components to be used. For example - screen, window/android/nvidia, camera, key pad etc

Now its involves assembling of various components and maintaining appropriate spacing

between them. So that work can be done in effective efficient manner.

All the parts of mobile phone collected at one place from different area and after that assembling

process take place. Our major products are produced and assemble at one location. So equipment


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labour and component are moved to one place all facilities are brought and arranged around one

work center. Due to which we are able to save our time and money .


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QUALITY

Quality Certification

We need to certify our organization with ISO 9001, 9002, 9003

These three are important because:

ISO 9001: It certifies the organization providing services along with product

ISO 9002: It certifies and gives quality assurance for manufacturing unit

ISO 9003: It certifies and gives quality assurance in Final Inspection and Test

As we will be using all these three things therefore certification of these three quality assurancemodel is necessary.

Dimensions of Quality

Service quality dimensions:

Our organization will take care of the following services which have to be provided to

customers:

1. Time and Timeliness: Services provided on time that is the waiting time for customerfor repair is minimum

2. Completeness: Services are provided according to the specifications given by customers3. Courtesy: Customers are treated in a very friendly manner and proper time is given to

them so that they can tell the problems they are having

4. Consistency: Same level of services are provided to each and every customers inhandling there issues.

5. Accessibility and Convince: We will be opening our service centre in a very posh areaas well as in suburban area.


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6. Accuracy: Services provided to us and issue handling will be solved in first attempt.7. Responsiveness: We will respond to our customer within 24 hours of receiving a

complaint.

Product Quality Dimensions:

Our product will be assured on the following quality dimensions:

1. Performance: The mobile phone will be a smartphone with android os topped with ownandroid skin

2. Features: the phone will have a 5 megapixel camera, mp3 player, apps, touch screen,android 2.3

3. Reliability: The mobile phone will be reliable as its software is worldwide accepted andhardware is also tested for optimum utilization..

4. Conformance: the mobile phone will be checked so that all mobiles are in conformancewith specifications decided.

5. Durability: The mobile phone will have a strong body made of aluminum which willlast for at least 3 years

6.

Serviceability: The phone will be made of many small individual parts which can betaken out and repaired without damaging any other part of the phone. Also the service

will be done within 24 hours and service centre will be there in every city in

collaboration with mobile repairing centre present there.

7. Aesthetics: the phone will have a elegant yet trendy design and also the phone will havepractical design in order to attract customers of all age groups and the phone will be

available in many colors.

8. Safety: The phone will be following all safety standards required for mobile and alsocompany will be making cell for maximum safety and features like auto power cutoff to

prevent burst of cell phone while charging.


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Procurement and Inventory Management

PROCUREMENT FUNCTION FOR MOBILE COMPANY:

Procurement is the acquisition of goods or services which means the Act of getting position ofsomething. It is the act of purchasing, receiving, storing, inventory. procurement process is done

keeping in mind the cost associated with it keeping in mind the needs of customer in terms of

quality, quantity, time and location and it is also important to have the right or appropriate

goods/services. Procurement is the supervision of all suppliers, services, and construction

needed by the country. Under procurement, comes the selling, trading and dispose of surplus

supplies belonging to the country after the declaration of surplus.

Our organization is of mobile phones; so under this kind of organization the important things forwhich one needs to do procurement are media player, Bluetooth, few semi-conductors, camera

module, display, battery, labor needs to be procured.

For the procurement of lenses for the camera function in a mobile phone, a company needs to

deal with a supplier who is into the business of camera, lenses etc. For the same reason, we will

be procuring from Carl Zessis and this is into healthcare, sports, Analzing, microelectronics,

photography. . It is one of the very good company in terms of what we want for our product i.e.

the lense which we want for the camera making of our mobile product.

In order to have the batteries, we needs to procure it, and this is the important part of a mobile

phone. These batteries are being supplied from Lithium-Iron Batteries which is into this business

of batteries.

And, finally for software, we will be dealing with different dealers .dealers for Bluetooth, semi-

conductors, display, media-players. These dealers are those who will be providing our company

with all all the raw material.

INTRODUCTION OF INVENTORTY


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And now when we are through with the procurement part, we need to have proper inventory

with us so that our company doesnt suffer due to shortage.

What this inventory is? Inventory is the detailed list of all the items in stock. The scope of

Inventory management is between the fine lines between replenishment lead time, carrying cost

of inventory, asset management, Inventory forecasting, physical inventory. Under inventory,

retailer is into acquiring and maintaining proper assortment while making the order, when

shipment is taking place and keeping in mind the associated cost.

Inventory are of 4 types:

Raw material- purchased but not processed Work in progress-undergone some changes but not completed Maintenance/ Repairing/ Operating- necessary to make machinery and its production

productive.

Finished Goods- completed product awaiting shipment.

Inventory management is done by way of

ABC analysis- here the inventory is divided into 3 parts;

A-high annual dollar volume B-medium annual order volume C-low annual order volume

Record accuracy Cycle counting Control of service industry

Inventory is done keeping in mind the budget and its forecasted value for each quarter on the

basis of sale of previous years data is:

Q1 Q2 Q3 Q4


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3863 2862 2863 5862

And therefore this will be our inventory of finished goods in each quarter as this is what we have

forecasted for the next year as our sale value.

Now, in our organization we will be using the modern concept of manufacturing which is JUST

IN TIE (JIT).when we define JIT, it is a production strategy that is used in order to improve a

business return on investment by reducing in-process inventory and associated carrying costs.

The only reason for us to use this method in our production and managing of inventory is to

reduce our cost in terms of storage of unnecessary inventory.

ITEM: Mobile LT:1

LOT SIZE:LFL SS:500

Q1 Q2 Q3 Q4

Gross requirement 3863 2862 2863 5862

Scheduled receipts

Available (on hand=1501) 1001 0 0 0

Net requirements 2862 2862 2863 5862

Planned order receipts 2862 2862 2863 5862

Planned order releases 2862 2863 5862

Documents

Group 1 Section B