1. NOKIA’S 10 OM DECISIONS

2. Service and Product Design Consumer taste divergence/fashion business Shortening life cycles Research&Development Fragmenting market segments -> more and more models Self-Expression - personalized ”Me phones” Be first in the market and set standards Defines much of the transformation process. The factors of cost, quality and human resources must be made during the stage.

3. Quality Nokia has its own set of standards, like ISO 9000, suppliers have to comply with it Preferred suppliers Customer has a very high quality standard nowadays and operation management decision in quality must be clear and strict for its members to understand and comply. It must set a quality, standard and operating procedure to meet customers’ high expectation.

4. Process and Capacity Design Mass Customization Highly automatized production New ideas, i.e. basic, low-end models in India Operation management should decide on the process, the type of technology and to what extent it is to be used + human resources + quality and maintenance that determines its basic cost structure.

5. Location Head office in Finland Appr. 60 000 employees in 128 nationalities R & D centers in 11 countries (31% of staff work in R&D) Production facilities in 9 countries New division: China contributed more than 25% to global growth in 2007 (India 9%) BRIC countries (Brasil, Russia, China and India getting stronger) For physical goods, location selection can be determined by pools of qualified human resources, technology, raw material, access to market and government policy.

6. Layout design Consumers look for experience - not just technology – (Consumer Experience Management CEM) Material flow, process selection technology used, capacity needs, workers needs, inventory requirement, and capital define layout design.

7. Human Resources Employees trained in many company centres aroudn the world – cross-seciality skills are necessary Efforts to promote teamwork & individual responsability In the times of crysis Nokia doesn’t close the factories but cuts on the production size Employees are the integral part in the total system design. Operation management must set a policy to set labor standards to ease transition of skills, improvement of knowledge, skills and abilities (KSA), build a balance work and life quality in an effective cost target.

8. Supply Chain Management Preferred supliers Production in Thailand and other cheap-labor countries Attention to logistics optimation -> production costs and flexible manufacturing Decisions that have to take place of what to produce, what material to buy, from where, how is the cost and how is the delivery from supplier to the final end customers in on-time delivery and minimum cost possible.

9. Inventory No inventory (moved to suppliers) Decisions on how and where manage the inventory level to keep long term customers satisfaction, suppliers, material availability, not to disrupt the production.

10. Scheduling Quick response logistics Efficient way of allocation, control and management of materials, capital goods and human resources to efficiently produce the final goods from the input available.

11. Maintenance Attention to customer needs and design Attention to speed to the market >R&D Stong supplier relationships (eg phone cover manufacturer deliveres just on 4 hour notice) – high trust Decision must be made regarding the desired level of reliability, stability and systems must be established by management to maintain the reliability and stability.