The 10 OM Decisions in Nokia firm

1. The 10 OM Decisions in Nokia firm by Squirrels

2. 10 OM Decisions • Service, product design • Quality management • Process, capacity design • Location • Layout design • Human resources, job design • Supply-chain management • Inventory management • Scheduling • Maintenance

3. Service, product design Diversity in mobile phones and services offered. The Services division operates in five areas of consumer Internet services: music, maps, media, messaging and games

4. Quality management No matter if it’s business or normal type of mobile model, it’s characterized by high robustness and quality. Used materials vary but quality is sustained.

5. Process, capacity design Nokia produce high variety of mobile phones and also they’re produced in high amount which is connected with big popularity of Nokia phones in the market. As well as mobile phones Nokia together with Simens produces core and access network equipment for mobile operators.

6. Location Because of high amount of expenses in Finland, huge part of Nokia facilities were moved to other countries. Especially we need to mention rapidly developing countries such as China, Brasil, Russia or India (BRIC countries)

7. Layout design Searching for new places to produce phones with lower cost than in Finland, Nokia decided to open their production facilities in countries such as Mexico, Korea, Brazil or China (“Companies go where the market is”) Moreover Nokia has decentralized R&D in 11 countries

8. Human resources, job design A flat, networked organization, as well as speed and flexibility in decision-making, characterize the Nokia Way of working. Nokia has a distinctive management and leadership approach based on the Nokia Way at all levels. This creates commitment, passion and inspiration through collaboration and coaching, and ensures focus and efficiency by setting targets, fulfilling goals and reviewing results. Personal growth through self-leadership provides the foundation for successful management and leadership practice http://www.nokia.com/A4126303

9. Supply-chain management Production is moving to low-cost labour countries like Taiwan or Vietnam. Nokia developed a comprehensive set of global Nokia Supplier Requirements (NSR), which include specified environmental and social requirements If Nokia finds a supplier is not meeting Nokia's expectations, Nokia compel them to commit to and implement corrective action. This is the best solution for the supplier, for Nokia, for the workers, and for the environment. In practice, suppliers have generally reacted positively and seen this as a way to improve their business. However, if a supplier were to refuse to address any of these issues Nokia would be prepared to reconsider our business relationship. http://www.nokia.com/A4252210

10. Supply-chain management (2) 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 CR supply chain issues. Other GeSI members include: • Bell Canada • BT • Cisco • Deutsche Telekom • Ericsson • ETNO • France Telecom • HP • Lucent • Microsoft • Motorola • Nokia • O2 • Sun Microrelectronics • Telefonica • USTelecomAssociation • Vodafone http://www.nokia.com/A4252210

11. Inventory management No inventories (moved to suppliers) Highly automatized production Focus on ITC systems and production platform flexibility

12. Scheduling Shortening life cycle of products Quick response to market changes

13. Maintenance • Clients’ satisfaction is crucial • High emphasis placed on quick response on clients (especially business) problems – special teams of network engineers trained to troubleshoot problems in the shortest possible time (NSN)