ASSIGNMNET-II (GROUP) ON PRODUCTION, QUALITY AND INVENTORY MANAGEMENT OF MOBILE

SUBMITTED TO: PROF. SUSMITA PAUL

SUBMITTED BY: GROUP-1

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TABLE OF CONTENT
Particulars Budget Forecasting Layout Quality Inventory Page number 3 4 5-6 7-8 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 Media player functionality Component Bluetooth & Other wireless Components PCB level components Other Passive & Discrete Semiconductors Camera Module Display Battery Labor Operating System Other Softwares TOTAL Budgeted Cost GRAND TOTAL
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3863 0.876 3383.988

2862 2507.112

2863 2507.988

5862 5135.112 13534.2

0.98

3785.74

2804.76

2805.74

5744.76

15141

0.725

2074.95

2074.95

2075.675

4249.95

10475.525

0.145

560.135

414.99

415.135

849.99

2240.25

0.55 1.006 0.25 2.067 0.275 0.098 6972

2124.65 3886.178 965.75 7984.821 1062.325 378.574 26207111

1574.1 2879.172 715.5 5915.754 787.05 280.476 19953864

1574.65 2880.178 715.5 5917.821 787.325 280.574 19960586

3224.1 5897.172 1465.5 12116.754 1612.05 574.476 40869864

8497.5 15542.7 3862.25 31935.15 4248.75 1514.1 106991.425

1066991425 =10.7
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Demand Forecasting

Year 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12

Sales (in units) 15100 18020 16700 15400 14200 16310

W1= W2= W3= Forecasted Demand

0.45 0.3 0.25 15449.5 15450

Forecasted Demand for

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 assurance model 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 customer for repair is minimum 2. Completeness: Services are provided according to the specifications given by customers 3. 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 in handling there issues. 5. Accessibility and Convince: We will be opening our service centre in a very posh area as 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 own android 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 and hardware is also tested for optimum utilization.. 4. Conformance: the mobile phone will be checked so that all mobiles are in conformance with specifications decided. 5. Durability: The mobile phone will have a strong body made of aluminum which will last for at least 3 years 6. Serviceability: The phone will be made of many small individual parts which can be taken 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 have practical 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 also company 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 of something. 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 for which 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, semiconductors, 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
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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 Gross requirement Scheduled receipts Available (on hand=1501) Net requirements Planned order receipts Planned order releases Q1 3863 1001 2862 2862 2862 Q2 2862 0 2862 2862 2863 Q3 2863 0 2863 2863 5862 Q4 5862 0 5862 5862

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