Nokia India Questions

Nokia India: Battery Recall Crisis
Questions
Raghav-MS20GL127
Umang-MS20GF087
Rohin-MS20GL135
Q. 1 Please draw an ‘As-Is’ operations flow diagram, showing the product flow and the
information flow of the battery recall process followed by Nokia. Please also draw a ‘To Be’
flow diagram with improved processes.
Q.2 Based on the above flow diagram, please highlight the strengths and weaknesses of the
recall plan.
Q.3 What recommendations would you make to Nokia India’s CEO to handle the next such
crisis more effectively in terms of –
a. Crisis Management
b. Ensuring Smooth Product Flow
c. Communication with Suppliers
d. Communication with Customers
e. Customer Relationship Management
f. Supplier Relationship Management
Q.4 Based on your recommendations, please prepare a check list of actions to be taken to
effectively respond to such a situation in the following grid.
Phase of Recall & Outcome Sought
Before During After
y & Planning
uct
lopment
munications
tics &
mation System
Q1. Operation Flow Diagram ‘As-Is’:
Operation Flow Diagram ‘To-Be’:

Q2.
Strengths:
1. The ‘As-Is’ diagram shows fire-fighting situation where protocols don’t really translate well into Standard
Operating Procedure (SOP). Multiple tasks are carried out at a time.
2. The ‘As-Is’ diagram is final procedure carried out by Nokia India after multiple changes in the original
procedure, due to unforeseen events like National holidays, media creating panic among customers, supply,
packing and distribution challenges along with retrieval of old batteries and handling them. Nokia was able
to handle these situations very well and re-establish trust among its customer base
3. The ‘To-Be’ plan is based on the aftermath learnings from the incident. It takes into account that
spreading such news early on with the customer without setting supply chain in order could create panic
situation. The plan also considers the distribution challenges Nokia India would face due to inaccurate
addresses and contact information provided by customers.
4. ‘To-Be’ plan uses customer data to filter target customers. Using this information order for replacement
products could be placed accurately and also distribution of products would be easy since customer
locations are known and hence right quantity could be supplied at each CCCs , NPDs or RDs . Instead of
sending in bulks. This plan would also help in solving problem area wise with high precedence given high
density areas and inform customers accordingly.
5. ‘To-Be’ model would replace batteries in rural areas where pin pointing exact location is difficult in their
nearby gram panchayat office or post office. Two chances would given to replace, if customer does not turn
up then he would have to visit nearest CCC to replace.
Weakness:
1. The ‘As-Is’ plan does not predict area wise demand accurately, it sends replacements in bulks to all the
CCCs and NPDs without getting actual information about actual demand. This leads unbalanced supply and
demand.
2. ‘As-Is’ plans hampers the production at Chennai plant since the batteries are supplied to Delhi instead.
Also, sending batteries to Delhi from Chennai then packing them in Delhi and then distributing leads to extra
transportation. The batteries could be supplied from plant to CCCs and NPDs by repacking them in the plant.
3.’To-Be’ plan relies on the accuracy of data which Nokia has and assumes that supply of batteries from
suppliers in Singapore and Dusseldorf is at 100% OTIF level. It also assumes that customers would be still
using the same model with faulty battery.
Ans3 ) For next time company should keep in mind that:
Crisis Management
 The company should keep in mind that these types of problems can occur again so they should
create quality check on regular basis so that the chances of these problems reduce
 As we can see in the case that wrong information has created a big problem for the company so
company should take care of media also so that no wrong information creates problem to goodwill of
the company
 Company should first Annalise the problem and its affect then it should take action according to it.
Decisions taken in panic and hard and fast decision can create a big problem
Smooth Product flow

 The company should work on logistics and create shorted road map and as it will help
company to fight these types of crisis easily
 Company should give 3 party logistics so that they can work on different problems
 Company should work on reverse logistics
Communication with suppliers
 Nokia should immediately inform suppliers to stop selling the faulty products
 Nokia should keep some extra stock to its suppliers so where delivery is not
possible customer can come and collect it to nearest store
Communication with Customer

 Company should keep the complete data about customer so that reverse
logistic could easily done
 Company should create trust again towards its customer
Supplier Relationship Management

 Suppliers should be paid on time and some extra initiative should also
given so that they can help company at time of crisis
 Company should keep good supplier relation so that supplier can help in
providing raw material and extra services also
Q4.
. Before During After
(Prepare for recall) (During recall) (Realising recall success)
Policy & - Recognize the - Determine the - Design a resolution plan to

importance of a seriousness of the close the
Planning
recall procedure situation and the recall process.
- Assign recall scale of recall. - Complete product re-
responsibilities to - Develop a recall plan introduction
various based on prevailing - Audit Recall
departments external conditions
- Devise an agile
recall plan manual
Product - Taking possibility - Determine the cause - Identify defects by checking

of product recall of defect and plan recalled products
Development
during new modifications to - Monitor customer satisfaction
product designing. existing products to with product replacement or
- Consider product reduce wastage of new product.
safety and current inventory.
traceability during - Determine
product adjustment offer and
development scale of product
- Study previous replacement.
products and - Identify the design
promote TQM, flaws
FMEA and COPQ
analysis. Carry out
multiple product
tests.
Communications - Identify the - Effectively - Customer and stakeholder

stakeholders who communicate the reassurance
need to be problem to all the - Rebuild brand reputation and
reached out to. stakeholders. brand awareness
- Build credibility in - Select the media for
the eyes of delivering the
stakeholders message
- Incorporate - Announce and follow
product recalls in up with the recall
crisis
communications
Logistics & - Test mock recalls - Create list of potential - Maintain recall logistics even
- Implementation of customers, heat maps after the recall procedure
Information
a system to send to prioritise resource - Improve reverse logistics for
System out rapid allocation for all any future events.
notification of locations - Document all recall
product defects. - Trace defective procedures.
products accurately

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Nokia India: Battery Recall Crisis

Phase of Recall & Outcome Sought

Before During After

Q1. Operation Flow Diagram ‘As-Is’:

Operation Flow Diagram ‘To-Be’:

Ans3 ) For next time company should keep in mind that:

Smooth Product flow

Communication with Customer

Supplier Relationship Management

Policy & - Recognize the - Determine the - Design a resolution plan to

Product - Taking possibility - Determine the cause - Identify defects by checking

Communications - Identify the - Effectively - Customer and stakeholder

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