SMARTPHONE PRODUCTION SYSTEM

BMFG 4623
ENGINEERING ECONOMY AND MANAGEMENT
SMARTPHONE PRODUCTION SYSTEM
Prepared by:
No. Name Matric no
1. SISUBALAN A/L SELVAN B051410128
2. MOHAMED ZAID BIN ZULMI B051410271
3. NUR AKMAL FAKHRUDDIN BIN SURIANTO B051410208
4. NOORHANIM BINTI ALI B051410234
Prepared for:
DR. AL AMIN

List of contents
PAGE
1.0 Introduction 1
2.0 Scope of Work (SOW)
2.1 Project goals 2
2.2 Objectives 2
2.3 Works 3
2.4 Limitation 7
2.5 Deliverables 7
2.6 Stakeholders 8
2.7 Standards 9
2.8 Milestones 10
2.9 Assumptions 12
3.0 Work Breakdown Structure (WBS) 13
4.0 Operation Breakdown Structure (OBS) 14
5.0 Key Task list 15
6.0 Project Network 16
7.0 Resource Dictionary 19
8.0 Task list with resources 20
9.0 Cost account / Cost dictionary 21
10.0 Task list with cost 22
11.0 Project Budget Table 23
12.0 Critical Path of Project 25
13.0 Conclusion 26

1 INTRODUCTION
Smartphone is a device, which is no longer a strange thing to majority of
people since it has gradually entered their everyday life. It is a mobile phone with
features like computers and has internet search capabilities. Moreover, it is a
source of entertainment, a communication tool, and a search engine. It has been
used widely and has helped us in many occasions and safe our lives. But in
reality, smartphones aren’t healthy as it may sounds as before.
According to Belkhir L. (2018), smartphones are damaging the environment
and will have the biggest carbon footprint in the tech industry by 2040, meaning
that smartphones emit huge amount of carbon dioxide to the environment, from
the production chain. As result, this carbon dioxide will accumulate at the
atmosphere and cause greenhouse effect, which will then bring other disastrous
environmental effects such as global warming or pollutions. This can be further
supported by Greenpeace USA report (2017), which indicates that smartphone
production and disposal over the last 10 years is proving to have a significant
impact on our planet.
Due to this very reason, many manufacturers and researchers had started to
implement sustainability approach into the production of the smartphones.
Sustainable smartphones that are able to be recycled at its end life as well as
release less toxic substances, has becomes a trending topic among researchers
and consumers.
Furthermore, a sustainable production system that can be used for multiple
times is considerably important, since it decrease the production as well as the
environmental impacts. Hence, this has led to the decision of choosing
smartphone industry as the main topic for this project/assignment.
1

2 SCOPE OF WORK (SOW)
2.1 Project Goals
The goals of this project is to identify the minimum duration required to
finish the overall production of the new smartphone using new production
system in order to improve the smartphone’s features and performance, as
well as to practice a sustainable processing system to reduce the investment
costs and overconsumption of raw materials. Practicing such sustainable
production system may enable our company to produce highly improved
smartphones that meets customer requirements and needs, with less defects
and losses. The reason for why this project was carried out is mainly due to
our competitor’s pressure on our company. Furthermore, our smartphone
would be focused on making it more sustainable compared to others.
So in order to meet our overall goal of producing a suitable sustainable
production system and finishing the project without any sensitive issues that
could limit progression of this project, we need to identify some vital steps in
the project that must be managed correctly.
2.2 Objectives
The objectives of this project are;
1) To produce smartphones with features that meets customer needs
and wants, as well as to make it more sustainable.
2) To increase the number of users and productivity by implementing
sustainable production system.
2

2.3 Works
2.3.1 Market Research
Market research is required to identify customer’s wants and
current trends to assist in our idealization of new design and
features for our product. The majority target of this product would
be the teenagers and adults. Hence, the market research can be
carried out with the help of clients or customers by forming a focus
group. Surveys also can be carried out to assist in the market
research; such as questionnaires and interview. Risk analysis will
be carried out for every findings to cope it with our production
system and availability of the technology.
2.3.2 Product Design
The design for the smartphones will then can be identified through
brainstorming session among researchers or stakeholders, based
on the findings from the market research. Then the smartphone will
be designed in accordance to these proposed ideas. Moreover, all
of these designs will be confirmed with the design documents
through concept modeling; Design conception and design
selection.
2.3.3 Product Development
The bill of materials of the confirmed design of the smartphone will
be evaluated. Initial prototype of the design will be formed for
testing regarding its dimensions and design.
3

2.3.4 Production Planning
Once passed through the prototype testing, the production of the
smartphones will be planned according to the suitability of the
processing of the dimensions and shape of the design. Then the
smartphones will be produced as planned and proceeded to
testing. The product will be tested in terms of its performance of
every features and strength of the product, in order to achieve
customer’s satisfactions. Then quality control department will be
required to inspect the quality of every single product, so that no
defected product will reached customers.
2.3.5 Marketing
After production, the products will be distributed directly to
customers or with the help of wholesalers and retailers. Various
marketing strategies will be carried out to advertised and the gain
attention of the customers to buy our products. Commercialization
and brochures are also will be carried out to increase our market.
4

Figure 2.1 Work schedule of this project
5

Figure 2.2 Work schedule of this project
6

2.4 Limitation
This project is solely focus only to improve the smartphones in terms of its
design and features based on customers’ requirements with sustainable production
system, as well as to increase the number of customers. Hence, it is only involve the
main production flow of the system; the daily maintenance duration as well as the
work in progress or waiting time would not be focused. The procurement and
installation of new machines would not be considered in this project as well.
Moreover, the major limitation of this project would be the availability of the raw
materials or other parts that are essential for the smartphones (like semiconductors
and processors), as well as the availability of the technology. The training session
for the workers or operational teams to learn on how to operate newly installed
equipment will not be discussed.
2.5 Deliverables
To begin this project, 6 sets of deliverables is designed to guide this project team
(us) in meeting the objectives and expectations of this project.
1) Market research
Provide as guide for us to get ideas on improving our product as well as to
get a clear picture of what customer wants and current trends.
2) Design Document & Presentation
Design document which includes items such as a detailed floor plan of our
company. The arrangement of the machines or processing sequence of the
production area is crucial in order to get a smooth production flow, to
decrease defects and increase productivity.
3) Prototypes
Prototype of the smartphone is produced to enable us to study the suitability
of the process for the design, after prototype testing. Sometimes, the
confirmed detailed designs won’t cope with the current technology and
available machines. Hence, prototype will provide us some planning to
further improve the design.
7

4) Operational Process
The operational processes of the production flow to get high quality
smartphones.
5) Quality Control/ Testing
Quality control will help us to identify and enable us to serve only quality
product. This also will help us to reduce the cost of manufacturing.
6) Marketing
Marketing to delivers promotional videos as part of product launch, as well as
to gain more customers and enable them to understand our product better.
2.6 Stakeholders
There are 5 major stakeholders on our project;
1) Employees/ project members
They devoted their self and contribute to the development of the
smartphones not only at inside but as well as at outside of the company.
They may promote our products indirectly to customers.
2) Suppliers
They supply the required raw materials or parts for us to produce our product
as planned and designed. Hence, they also contribute in the development of
the project/business.
3) Project Sponsor
They provide budget for this project to be existed and continue. They
champion the project and are a major spokesperson to promote it. They play
a crucial role for our project, especially during early phases of scope
development.
8

4) Governments
Government agencies such as regulatory bodies and taxation authorities are
responsible to provide us the rights to carry project as well as they may
sometimes provide us some access to foreign technologies. The taxation
bodies plays important role in the initial cost of our project or production
especially buying parts from other companies.
5) End users
One of the objectives of this project is to satisfy our customers. They buy our
product at the end of the production system. Their comments should also be
taken into account.
2.7 Standards
In this project, not only the production system of this smartphone is sustainable,
but the product itself is made of more sustainable components or parts. Hence, our
product is coped with few standards such as UL ISR 110.
According to UL ISR 110 (Underwriter Laboratories’ International Sustainability
Requirements), the smartphone must;
1) Contain environmentally preferable materials;
2) Be manufactured using environmentally and socially responsible practices;
3) Be recyclable at end-of-life;
4) Make use of recycled and recyclable packaging;
5) Have minimal environmental impact;
6) Have minimal human health risks;
7) Perform efficiently; and
8) Demonstrate innovation in sustainable manufacturing.
9

2.8 Milestones : An event in a project
Figure 2.3: Milestones of the project
10

Figure 2.4: Milestones of the project
11

2.9 Assumptions
At the end of this project, we expect to get the duration required to
complete the overall production of the new sustainable smartphone with new
features and performance. We expect to gain more customers (increased
marketability) by making them interested with our product. Making a sustainable
smartphones is also trending among teenagers and adults nowadays, so we
expect by implementing sustainability we might be able to increase our
productivity and number of users.
12

3 WORK BREAKDOWN STRUCTURE (WBS)
Figure 3.1: Work Breakdown Structure
13

4 OPERATION BREAKDOWN (OBS)
Project Manager : Mohamed Zaid b. Zulmi
 Responsible to monitor the work of others as well as confirm and keep the
sponsor or other stakeholders up to date regarding the projects.
Market Research : Sisubalan a/l Selvan
 Responsible to get information regarding customers’ requirements and
current trends.
 In charge of carrying out various market research methods.
Production : Nur Akmal Fakhruddin b. Surianto
 Responsible to monitor and supervise the flow of the production line.
 Confirm the design with researchers and stakeholders, and make sure it
copes with the sustainable approach and customers interests.
Marketing : Noorhanim bt. Ali
 In charge of marketing department, make sure products being shipped
properly to retailers, wholesalers or customers as planned.
 Responsible in making advertisement, brochures and commercials
regarding the products.
14
Project
Manager
Market
Research
Focus group Survey Risk Analysis
Production
Design Manufacturing
Quality
Control
Marketing &
Transportation
Figure 4.1: Operation Breakdown Structure

5 KEY TASKLIST
WBS
CODE
ID WORKPACKAGE DURATION
(days)
1.0 1 Smartphone Production System 70
1.1 2 Market Research 20
1.1.1 3 Focus Group 10
1.1.1.1 4 Respondent Moderator Focus Group 5
1.1.1.2 5 Client Participant Focus Group 5
1.1.2 6 Surveys 6
1.1.2.1 7 Questionnaires 3
1.1.2.2 8 Interview 3
1.1.3 9 Research Analysis 5
1.1.3.1 10 Risk Analysis 5
1.1.4 11 Market Research Findings 5
1.2 12 Product Design 20
1.2.1 13 Design 10
1.2.1.1 14 Research Evaluation 6
1.2.1.2 15 Design Document 4
1.2.2 16 Concept Model 5
1.2.2.1 17 Design Concept 5
1.2.3 18 Design Selection 10
1.3 19 Product Development 10
1.3.1 20 Bill of Material 2
1.3.2 21 Initial Prototype 3
1.3.3 22 Prototype Testing 3
1.3.4 23 Production Development Sign Off 2
1.4 24 Production Planning 8
1.4.1 25 Production Design 2
1.4.2 26 Production Testing 2
1.4.3 27 Production QA Design 2
1.4.4 28 Production Plan Sign Off 2
1.5 29 Marketing 12
1.5.1 30 Marketing Strategy 4
1.5.1.1 31 4P (Product, Price, Place & Promotion) 4
1.5.2 32 Marketing Plan 4
1.5.3 33 Marketing Collateral 4
1.5.3.1 34 Brochures 4
1.5.3.2 35 Advertising 4
1.5.3.3 36 Commercials 4
15

6 PROJECT NETWORK
6.1 Diagram
Figure 6.1: The Collapse Boxes of the network Diagram
16

Figure 6.2: The First section of Activity on Node (AON)
Figure 6.3: The Second Section of Activity on Node (AON)
17

Figure 6.4: The Third and Fourth Section of Activity on Node (AON)
Figure 6.5: The critical path of Activity on Node (AON)
18

7 RESOURCE DICTIONARY
NO. CODE RESOURCE NAME MEASUREMENT
UNIT
1 1.0 Company A Number of Manpower
2 1.1 Marketing Department Number of Manpower
3 1.1.1 Marketing Department Number of Manpower
4 1.1.1.1 Marketing Department Number of Manpower
12 1.2 Design Department Number of Manpower
13 1.2.1 Design Department Number of Manpower
14 1.2.1.1 Design Department Number of Manpower
19 1.3 Research and Development Department Number of Manpower
20 1.3.1 Research and Development Department Number of Manpower
24 1.4 Production and Quality Department Number of Manpower
25 1.4.1 Production and Quality Department Number of Manpower
29 1.5 Marketing Department Number of Manpower
19

8 TASK LIST WITH RESOURCES
WBS
CODE
(ID)
WORKPACKAGE RESOURCE QUANTITY
1.0 Smartphone Production
System
Production Planning 58
1.1 Market Research Researching 19
1.1.1 Focus Group Researching 7
1.1.1.1 Respondent Moderator Focus
Group
Researching 5
1.1.1.2 Client Participant Focus Group Researching 2
1.1.2 Surveys Researching 5
1.1.2.1 Questionnaires Researching 2
1.1.2.2 Interview Researching 3
1.1.3 Research Analysis Researching 3
1.1.3.1 Risk Analysis Researching 3
1.1.4 Market Research Findings Researching 4
1.2 Product Design Designing 7
1.2.1 Design Designing 3
1.2.1.1 Research Evaluation Designing 2
1.2.1.2 Design Document Designing 1
1.2.2 Concept Model Designing 2
1.2.2.1 Design Concept Designing 2
1.2.3 Design Selection Designing 2
1.3 Product Development Manufacturing Development 12
1.3.1 Bill of Material Manufacturing Development 2
1.3.2 Initial Prototype Manufacturing Development 4
1.3.3 Prototype Testing Manufacturing Development 4
1.3.4 Production Development Sign
Off
Manufacturing Development 2
1.4 Production Planning Manufacturing Production 10
1.4.1 Production Design Manufacturing Production 3
1.4.2 Production Testing Manufacturing Production 3
1.4.3 Production QA Design Manufacturing Production 2
1.4.4 Production Plan Sign Off Manufacturing Production 2
1.5 Marketing Marketing 10
1.5.1 Marketing Strategy Marketing 3
1.5.1.1 4P (Product, Price, Place &
Promotion)
Marketing 3
1.5.2 Marketing Plan Marketing 1
1.5.3 Marketing Collateral Marketing 6
1.5.3.1 Brochures Marketing 2
1.5.3.2 Advertising Marketing 2
1.5.3.3 Commercials Marketing 2
20

9 COST ACCOUNT / COST DICTIONARY
NO. RESOURCE NAME
Number
Of Unit
Cost/Unit
(RM)
Amount
1. Company A 58 100000 5800000
2. Marketing Department 19 3276 62244
3. Marketing Department 7 395.41 2767.87
12. Design Department 7 1209 8463
19. r
e
Research and Development
Department
12 2067 24804
20. Research and Development
Department
2 344.5 689
Department
4 689 2756
Department
4 689 2756
Department
2 344.5 689
24. Production and Quality
Department
10 1724 17240
Department
3 517.2 1551.6
Department
3 517.2 1551.6
Department
2 344.8 689.6
Department
2 344.8 689.6
21

10 TASK LIST WITH COST
WBS CODE
(ID)
WORKPACKAGE DURATION RESOURCE COST
(RM)
1.0 Smartphone Production System 58 Production Planning 10000
1.1 Market Research 19 Researching 3276
1.1.1 Focus Group 7 Researching 395.41
1.1.1.1 Respondent Moderator Focus
Group
5 Researching 282.39
1.1.1.2 Client Participant Focus Group 2 Researching 113.02
1.1.2 Surveys 5 Researching 862
1.1.2.1 Questionnaires 2 Researching 344.8
1.1.2.2 Interview 3 Researching 517.2
1.1.3 Research Analysis 3 Researching 537
1.1.3.1 Risk Analysis 3 Researching 537
1.1.4 Market Research Findings 4 Researching 670
1.2 Product Design 7 Designing 1209
1.2.1 Design 3 Designing 519
1.2.1.1 Research Evaluation 2 Designing 346
1.2.1.2 Design Document 1 Designing 173
1.2.2 Concept Model 2 Designing 345
1.2.2.1 Design Concept 2 Designing 345
1.2.3 Design Selection 2 Designing 345
1.3 Product Development 12 Manufacturing
Development
2067
1.3.1 Bill of Material 2 Manufacturing
Development
344.5
1.3.2 Initial Prototype 4 Manufacturing
Development
689
1.3.3 Prototype Testing 4 Manufacturing
Development
689
1.3.4 Production Development Sign
Off
2 Manufacturing
Development
344.5
1.4 Production Planning 10 Manufacturing
Production
1724
1.4.1 Production Design 3 Manufacturing 517.2
22

Production
1.4.2 Production Testing 3 Manufacturing
Production
517.2
1.4.3 Production QA Design 2 Manufacturing
Production
344.8
1.4.4 Production Plan Sign Off 2 Manufacturing
Production
344.8
1.5 Marketing 12 Marketing 1724
1.5.1 Marketing Strategy 3 Marketing 517.2
1.5.1.1 4P (Product, Price, Place &
Promotion)
3 Marketing 517.2
1.5.2 Marketing Plan 1 Marketing 172.4
1.5.3 Marketing Collateral 6 Marketing 1034.4
1.5.3.1 Brochures 2 Marketing 344.8
1.5.3.2 Advertising 2 Marketing 344.8
1.5.3.3 Commercials 2 Marketing 344.8
11 PROJECT BUDGET TABLE
11.1 Direct Cost
Marketing Department : RM 2700
Design Department : RM 1000
Research and Development Department: RM 1500
Labor costs : RM 1500
Direct Cost: RM 6700
23

11.2 Direct Equipment Cost
Software : RM 500
Testing apparatus : RM 1000
Direct Equipment Cost: RM 1500
11.3 Indirect Cost
Electricity : RM 400
Water : RM50
Office Supplies : RM 100
Indirect Cost: RM550
11.4 Total Project Cost
Total Project Cost: RM 6700 + RM 1500 + RM550 = RM 8750
24

12 CRITICAL PATH OF PROJECT NETWORK
 Longest path with the highest accumulated duration of 70 days, which is the critical path. For this project, marketing would take
more time to complete compared to other departments; production and market research. This is due to marketing has been
carried out throughout the countries or even globally with using many kinds of resources such as internet, magazines, newspaper
or radio. Hence it requires more time to prepare and distribute. Moreover, marketing departments have to conduct and meet up
with distributer or marketer which time consuming. Commercialization can be carried out through television or radio
advertisement. Such marketing strategies will take more time to be in process until it reach more customers to buy our product.
Figure 12.1: Longest path (Critical path)
25

13 Conclusion
Smartphone has been widely used and helped us in many important
occasions. It has become a source of entertainment, a communication tool, a
search engine and has gradually entered our daily life. But it also has caused
many issues regarding environments and the safety of the users. Hence, many
researchers have starting to develop smartphones with sustainable components
and parts that are able to decrease such environmental impacts. Based on this
project, we were able to come up with the best solution and design for a
sustainable smartphone that is able to attract more consumers to buy our
product. We were able to provide a sustainable product through a sustainable
production chains in accordance to the customer’s needs. Based on our findings,
we were able to deliver our products in 70 days with the support of our suppliers
and sponsors, as well as the employees. In order to meet our overall goal of
producing sustainable smartphones and increase our marketability, we have
identified some vital steps in the project that must be managed correctly, which
is by limiting the sensitivity of the project; or by making sure that all tasks are
performed on schedule and by the right expertise; or by maintaining great level
of support to users and kept them updated on the project by communicating with
the project stakeholders.
26

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