OPERATIONS MANAGEMENT

REPORT
TRIMESTER- II

Submitted by
Group-2
Olivia Mukherjee
Prakhar Kishore
Rajat Chauhan
Ravleen Kaur
Sahajdeep Singh
Sai Nandan

Submitted to
Prof. Somonnoy Ghosh
Assistant Professor BIMTECH

1
 ACKNOWLEDGEMENT

We express our sincere thanks to our supervisor and mentor

Prof. Somonnoy Ghosh (Asst. Professor, BIMTECH). Without his
support and motivation this report would not have been successfully
completed. We are indeed grateful to the director of BIMTECH, Dr.
H. Chaturvedi, for inspiring us to carry out this report in BIMTECH.
We wish to extend our profound sense of gratitude to our parents
for providing us with moral support and encouragement extensively
whenever required. We would like to thank every entity who is
directly or indirectly related with the completion of the report.

2
 ABSTRACT

OnePlus is known for its Smartphones which are low in cost but high
in value, in short they are products which are value for money. They
play on low margin as they don’t apply any luxurious charges to the
customers. Along with price they emphasize heavily on the quality of
there products.

Our Study was mainly on the quality control and various processes
related to quality and production of OnePlus Smartphones. The
various quality control process are like inspection by hand, Machine
Precision, Post Construction Quality Assessment, Environment Test,
Drop and Tumble Tests, Endurance Tests etc.

3
 TABLE OF CONTENTS

SL CONTENTS PAGE
NO. NO.
1. Introduction 5-6
2. Quality 7-11
3. Distribution Channel 12
4. Services 13
5. Logistics 14
6. Conclusion 15
7. References 16

4
 INTRODUCTION
One Plus Technology (Shenzhen) Co Ltd, commonly referred to as OnePlus, is a
Chinese smartphone manufacturer, which is based in Shenzhen, Guangdong. It
was founded by Pete Lau (CEO) and Carl Pei in December 2013. The company
officially serves 34 countries and regions around the world as of
July 2018. They have released numerous phones, amongst other products. It is
a part of Oppo, which is in turn a part of BBK Electronics,
along Realme and Vivo.

The headquarters is in the Tairan Building in Chegongmiao Futian District.

OnePlus is also known for its very distinctive slogan: "Never Settle", included in
some of their wallpapers, and is a very big role in the company.

History:
OnePlus was founded on 16 December 2013 by former Oppo vice-
president Pete Lau and Carl Pei. The company's main goal was to design a
smartphone that would balance high-end quality with a lower price than other
phones in its class, believing that users would "Never Settle" for the lower-
quality devices produced by other companies. Lau explained that "we will
never be different just for the sake of being different. Everything done has to
improve the actual user experience in day-to-day use.
The company unveiled its first device, the OnePlus.One, on 23 April 2014 which
was intended to capture market from the Google Nexus series. In December
2014, alongside the release of the OnePlus One in India exclusively through
Amazon, OnePlus also announced plans to establish a presence in the country,
with plans to open 25 official walk-in service centres across India

5
Products:

International
Name Unveiled
Release
OnePlus 2 27 July 2015 11 August 2015
OnePlus X 29 October 2015 5 November 2015
OnePlus 3 14 June 2016 14 June 2016
OnePlus 3T 15 November 2016 28 November 2016
OnePlus 5 20 June 2017 27 June 2017
OnePlus 5T 16 November 2017 21 November 2017
OnePlus 6 16 May 2018 22 May 2018
OnePlus 6T 29 October 2018 6 November 2018
OnePlus 7
14 May 2019 25 May 2019
OnePlus 7 Pro
OnePlus 7T 26 September 2019 28 September 2019
OnePlus 7T Pro 10 October 2019 12 October 2019

6
 Quality

In manufacturing, a measure of excellence or a state of being free from

defects, deficiencies and significant variations.
Quality Control:
A system of maintaining standards in manufactured products by testing a
sample of the output against the specification.
Types of Quality Control:
 Checklists. At its most basic, quality control requires you to check off a
list of items that are imperative to manufacture and sell your product.

 Fishbone diagram. This visual is helpful for determining what causes a

specific problem, be it materials, machines, methods or manpower.

 Control chart. This helps you see how processes historically change
using controls. The chart helps you find and correct problems as they
happen, predict a range of outcomes and analyze variations.

 Stratification. Instead of looking at all factors together, stratification

separates data so you can identify patterns and specific problem areas.

 Pareto chart. This type of bar chart provides a visual analysis of

problems and causes so you can focus on the most significant issues.

 Histogram. A common graph that uses bars to identifies frequency

distributions that indicate how often defects occur.

 Scatter Diagram. Plotting information along two axes on this graph can
help visually identify relationships between variables

7
OnePlus has in the past invited various publications and journalists to tour their
production facility so as to show the world how it puts phones together.
Normally when journalists are invited for factory visits by most brands, the
companies are particular about not allowing any photography or filming inside.
This time, however, OnePlus invites Linus Sebastian of Linus Tech Tips to tour
their production facility that was producing the recently launched OnePlus 6.
Linus brought along with him his 8K Red Weapon camera and recorded his
visit in intricate detail. Linus says that when he shot the video, OnePlus was in
the PVT or Production Validation Test phase of production. Here’s all the steps
OnePlus apparently takes to ensure a certain quality in the final product.

Inspected by Hand
During the construction of the OnePlus 6, the device is inspected by humans at
various stages. They check for any physical blemishes on the outer housing, the
display and the buttons in general. They also inspect the construction for any
glue leakage. If any imperfections are found the part is either scrapped, or, like
in the case of a glue leak, the whole phone is apparently taken apart and
reassembled

Machine Precision to achieve Perfection

OnePlus says that the alignment of various components must be exact in order
to ensure structural and functional integrity. The company, for example, uses a
machine to dispense the glue that is used to seal the display assembly with the
housing. Machines are capable of repeated and precise behaviour such as this
one, so relying on them is a better idea. The company also uses machines to
align and place the back panel, along with applying pressure on it to seal the
back in place. With a human, it would be difficult to ensure the exact pressure
being applied at the exact spots for a precise amount of time, a thousand times
over.

8
Post Construction Quality Assessment
Once the phone has been assembled (going through checks and inspections at
each stage), it goes through a final visual inspection and wipe down. Software is
loaded onto it and then, each finished unit goes through what is called a
thorough quality assessment process. There are 16 steps in the QA testing
which involve testing the flash, proper functioning of OIS, an autofocus test
which involves moving the camera away from and closer to the test target and
even a human inspection of all camera functions in case the QA software may
have missed something. The headphone jack is also tested to ensure it behaves
the right way when plugging and unplugging headphones. Other tests ensure
that the antenna, WI-Fi and GPS chips dash charging and other aspects of the
device are working as per specification. At some point during this stage, a
machine is also seen applying a screen protector to the OnePlus 6, a practice
that has become standard since the OnePlus X to prevent damage during
shipment. Finally, the process wraps up with another visual inspection and wipe
down, after which the devices are placed in protective sleeves and shipped off to
packaging.

9
Environment Test

Part of the testing involves putting the OnePlus into a chamber that is capable of
rapidly changing the inside temperature from 75 degrees Celsius to -40 degrees
Celsius. The phone stays in this chamber for up to a week and a half. From here,
the phone then goes into a second chamber that maintains very high
temperatures at 95 percent humidity. From the humidity chamber, the phone is
put through a raindrop test where the phone is subject to simulated rain for a
100 hour. OnePlus expects that after a few days of drying, the phone should be
fully functional.

Drop and Tumble Tests

The next step in the PVT phase for the OnePlus 6 is going through a series of
drop tests. OnePlus apparently dropped the OnePlus 6 onto a smooth slab of
marble from multiple heights. For each height, the phone is dropped twice on its
front face and twice on its back. The acceptance rate for this test is a maximum
of 10 percent screen damage, but the rest of the phone must function as intended

Endurance Tests
The endurance lab is the last step in the process. Here, OnePlus has machines
that test the robustness of the charging port and the headphone jack by plugging
and unplugging cables and applying pressure on them. There is also a machine
that simulates the pressure your phone undergoes when you decide to sit with
the phone in your back pocket. This device applies 25 kilos of force on the

10
screen a total of a thousand times. The last step is putting the phones through a
staggering number of minor drop tests. The OnePlus 6 is dropped from a height
of 10cm 10,000 times on its back, 10,000 times on its front and 2,000 times on
each edge for a total of 28,000 drops. OnePlus expects the phone to easily
survive the minor drop test.

For continuous improvement OnePlus is doing the following:

1. Improve software R&D quality and development efficiency through quality

planning, process quality assurance, quality improvement and optimization

2. Quality planning: According to the project requirements and risks, organize

agile development team to conduct quality planning for the development project
and implement in the project.

3. Quality Assurance: Conduct software quality control to ensure the

implementation of quality planning measures. Conduct software development
process operation and compliance supervision, process coaching and training as
needed.

4. Quality improvement: Identify and improve the points through measurement,

process audit, standard verification, quality backtracking, process summary, and
organize improvement of processes, tools, management processes, etc.

5. software development process improvement: through the implementation of

internal process monitoring, Guide business agile development process
optimization and DevOps efficiency improvement through other company's
excellent practices.

11
 DISTRIBUTION CHANNEL
When OnePlus entered the Indian market it started by selling one flagship
phone launched every year, an initial “invite only" offer, exclusive product
events, and a loyal club of OnePlus fans built largely through digital advertising.
The Major focus of OnePlus was to sell their smartphones using their own
website as well as online ecommerce channels and OnePlus has ties exclusively
with Amazon to sell their phones through other offerings. But with changing
times they have changed their distribution channel from Exclusive Amazon
offerings to retail stores. OnePlus has started to sell its phones at electronics
retail store chain Croma, which is owned by Tata Group. Their tie with Croma
was to offer youngsters and tech enthusiasts the hands on experience of
OnePlus smartphones which they were unable to get through online
ecommerce sites.
OnePlus along with Croma has started to open their own exclusive stores for
selling their products through offline medium. The company is eyeing to open
600+ stores in India within this year.

OnePlus

CROMA AMAZON OWN EXCLUSIVE

WEBSITE STORES

CUSTOMERS

12
Online Channels –
1. Amazon.
2. Oneplus.in, through its own website.

Other –
1. Croma Stores.
2. OnePlus Exclusive Stores.

SERVICES

OnePlus has a small but increasing service network currently it has around 60
service centers. Most of them are outsourced one’s but OnePlus is now setting
up its own network of service centers by moving away from the outsourced-
model to have a tighter control over its operations. Also OnePlus is bringing the
global contact service operations to India to support European and US markets.

In 2016 OnePlus started manufacturing with Foxconn in India, SMT production

being done in India. The production started with OnePlus global partner in
Noida. The entire production has now shifted locally. Oppo does production for
OnePlus globally, and in India as well through their Noida facility.

OnePlus is looking to have a dedicated independent R&D center which will be

focusing on India specific product feature developments. The center will
initially be focused on India, but in the long term, it will support the global
product development. There are a lot of Indians working on global products.
OnePlus have a team that is working from various business centers.

13
 LOGISTICS

OnePlus wants to deeply implement the ‘Make in India’ strategy because

of the various government policies which are favouring the local
producers by lowering the taxes and duties for the local manufacturers.

OnePlus is finalising its plan on local component manufacturing or

sourcing. If the plans become successful, India can potentially become
its global manufacturing hub with handsets getting exported from here.
In India, OnePlus phones are assembled by a vendor who also
assembles Oppo brand mobile phones.

Apart from the manufacturing facility, OnePlus has implemented an

altogether different approach with its supply chain in India. As most of
OnePlus sales worldwide are done through online sales. In India, it has
set up an India specific offline retail channel to boost sales in tier II and
tier III cities to penetrate the Indian market deeply and to increase its
sales all over India.

Although OnePlus outsources most of its supply chain and logistics

services, it has started to reduce it, to increase its profit and decrease its
expenses.

14
 Conclusions
The mobile phone market in India is all about pricing. And that’s where
OnePlus has scored big in India. It has positioned itself in the premium
segment but at a maximum price of ₹60,000, which is way below the
starting price of ₹75,000 and above for an iPhone or a Samsung
flagship. While the performance and pricing of its products might have
endeared OnePlus to Indians, there are challenges ahead. The biggest
one is to scale in offline and to maintain its quality without compromising
cost, while maintaining its premium play. Another challenge for any
manufacturer in the premium segment is the non-seasonal cycle.

OnePlus isn’t the new kid on the market. The company is now all grown
up, and that’s reflected very well through its latest smartphones. While
it’s the most expensive OnePlus ever, it’s still quite far from the usual
pricing level for a top of the line handset in the current day and age.

15
 REFERENCES
1. https://telecom.economictimes.indiatimes.com/news/oneplus-to-set-up-
own-service-center-networks-to-support-global-markets-from-india-vikas-
agarwal/66033070

2. https://www.indiatoday.in/information/story/one-plus-service-centers-in-
india-1453219-2019-02-11

3. https://www.business-standard.com/article/pti-stories/oneplus-plans-up-
to-5-fold-increase-in-headcount-at-india-r-d-centre-119022800946_1.html

16