OPERATIONS

DEPARTMENT REPORT

TEAM MEMBERS:
3. AMAL RADHAKRISHNAN UNNITHAN
6. ANJANA NAIR
7. ANOOP M.
14. HARIPRASAD K.P.
30. SWETHA SURESH BABU
31. VIJISH T. MADHAVAN
34. VISHNU P.V.

TEAM MEMBERS AND THEIR CONTRIBUTION TO THE REPORT

NAME

DESIGNATION

CONTRIBUTION

HARIPRASAD K.P.

Operations Manager

VISHNU P.V.

Product Designer,
Process Analyst

SWETHA SURESH BABU

Product Designer,
Process Analyst

VIJISH T. MADHAVAN

Purchase Manager,
Selection of vendors,
Supply Chain Coordinator Invoice preparation,
Data Collection

ANOOP M.

Selection of vendors,
Invoice preparation,
Data Collection,
Final Report Preparation,
Report Presentation
Product Design

Product Design

---

Contacting vendors,
Negotiation with vendors,
Data Collection

AMAL RADHAKRISHNAN
UNNITHAN

---

Contacting vendors

ANJANA NAIR

---

Data Collection

VENDORS
NEETHU SANTHOSH KUMAR Blue Diamond

Invoice Sending

VISHNU H.

Blue Diamond

Invoice Sending

SREERAJ S.

CS Inc.

Invoice Sending

CHIPPI MOHANAN

CS Inc.

Invoice Sending

1. SELECTION OF VENDORS
As per the companys demand for international purchase of low cost
and high quality components for manufacturing LED TV, refrigerator, a
study was conducted to identify the vendors supplying the same. In the
study, five Chinese companies meeting our companys demand and
expectations were found. The details of these companies and their
international ratings are listed below.

Company
Name

Company
Owner(s)

J&L
Corp

Li Juan &
Liu Fang

Yin-Yang
Inc

Blue
Diamond

Bo
Honghui

Ai Nishu

City

Phone

Shanghai

+869745224453

Shenzen

Beijing

+868085011111

+868281229625

e-mail

Started
In

Rating
(Out of
5)

j&l@yahoo
.co.in

2006

3.9

yin_yang@
gmail.com

2008

4.0

neeth021@
gmail.com

2005

4.6

anishchippi
@gmail.co
m,
CS
Internatio
nal Inc

Chippi
Anish &
Sreeraj S

Xiamen
+867736225522

sreeraj5155
@gmail.co
m

2007

4.5

Address
Room 901-903 Hailiang
Building, No. 22, Lane 118,
Zhongjiang Road, Putuo,
District Shanghai, China,
200062
Room No.703, Hongshi
Central Building No.225
Chaowang Road Gongsu
District Hangzhou,Shenzen,
China
Room No.1007 Block A
Hongxi Center EcoBusiness No.2 Tiyu Road,
Beijing, China

Room 2905-2909,
Chuangshiji Square No1,
Jiefang Avenue Hankou
Xiamen, China

Tuy-Lin
Corp

Tuy Wei
& Lin
Zhang

Wenzhou

+869745224453

tuy_lin_cor
p@yahoo.c
o.in

2006

4.0

Rm2208, Mingchengguoji,
Wuyicun, Renmindonglu,
Yuhuaqu, Wenzhou City,
Hunan District, China

2. CONTACTS WITH VENDORS

The vendors were contacted through e-mail, phone and quotation
approved by the management were sent to each of them. A sample e-mail
and quotation details send on 23-11-2014 are furnished below.
E-mail
Dear Blue Diamond,
We Ninth Sense is a startup company established in Kochi
(India) on 23 November, 2014. Our founders are Shafiq Showkath Ali
and Miya Davis. Our products are LED TV and Refrigerator.
rd

We wish to purchase raw materials from Blue Diamond.

We are interested to know about your supply process and the offers that
your company can offer us. Our list of required components is attached
with this mail. We request you to send your invoice as soon as possible.
Hoping to be your best customer ever.

Yours Faithfully
Hariprasad K.P.
Operations Manager,
Ninth Sense

Quotation
Refrigerator Components
Sl
No.
1
2
3
4
5
6
7

Sl No.
1
2
3
4
5
6

Item
Compressor
Refrigerator door
Shelves
Ice maker
Temperature Controller
Chiller
Drain Pan

Units
1100
1100
1100
1100
1100
1100
1100

LED TV Components
Item
Specification
Power Supply
12-18 Volts
Video/Control Board
Inverter Board
1200-1500 Volts
Remote Receiver
5 Volts
LVDS Cable
Tcon Board
5-12 Volts

Units
1100
1100
1100
1100
500 Bundles
1100

3. SHORTLISTED VENDORS
Based on the invoices received, only Blue Diamond and CS Inc. are
capable of supplying the entire set of components required by the
company. The e-mails, invoices sent by them are shown below.

3.1 Invoice received from Blue Diamond

Dear Hariprasad,
Thank you for sending your decree to Blue Diamond. We have
enclosed the invoice along with this mail. We are ready to send the
shipment anytime once we receive your confirmation. Hoping to serve
you well.
Regards,
Nishu
Vendor Manager
Blue Diamond

Blue Diamond
Address: Room No.1007 Block A Hongxi
Center Eco-Business No.2 Tiyu Road,
Beijing, China

Bill To: Ninth Sense

Address: Ninth Sense, Palarivattom,
Kochi, Kerala, India, Pin- 682025

Phone:

+86-8281229625

Email:

neeth021@gmail.com

Phone: 9645125718 ; 9847630049

Invoice #: 385269
Invoice Date: 23-11-2014

Email: hariprasad_ninthsense@gmail.com

Invoice For:

Item #

Description

Qty (Nos) Unit Price (Rs)

Discount

Price (Rs)

Compressor

1100

1574

1731400.00

Refrigerator door

1100

8490

9339000.00

Shelves

1100

3146

3460600.00

Ice maker

1100

2439

2682900.00

Temperature Controller

1100

5276

5803600.00

Chiller

1100

1479

1626900.00

Drain Pan

1100

1289

1417900.00

Power Supply

1100

699

768900.00

Video/Control Board

1100

308

338800.00

10

Inverter Board

1100

1009

1109900.00

11

Remote Receiver

1100

599

658900.00

12

LVDS Cable Bundles

500

1509

754500.00

Tcon Board

1100

295

324500.00

Bluetooth

1100

690

759000.00

13

Invoice Subtotal (Rs)

30776800.00

Tax Rate

10.00%

Sales Tax

3,077,680.00

Other
Make all checks payable to Blue Diamond.
Total due in 45 days. Overdue accounts subject to a service charge of 2% per month.

Deposit Received
TOTAL (Rs)

33854480.00

3.2 Invoice received from CS Inc.

Dear Hariprasad,
Were glad to know that Ninth Sense wishes to be our client. We
have attached the invoice you requested along with this mail. Hope you
will consider our proposal.
Regards,
Chippi & Sreeraj
Managing Directors
CS Inc.

CS Inc.
Address: Room 2905-2909, Chuangshiji
Square No1, Jiefang Avenue Hankou
Xiamen, China

Bill To: Ninth Sense

Address: Ninth Sense, Palarivattom,
Kochi, Kerala, India, Pin- 682025

Phone:

+86-9526246423, +86-9496267746

Email:

anishchippi@gmail.com ; sreeraj5155@gmail.com

Phone: 9645125718 ; 9847630049

Invoice #: 15712
Invoice Date: 23-11-2014

Email: hariprasad_ninthsense@gmail.com

Invoice For:

Item #

Description

Qty (Nos) Unit Price (Rs)

Discount

Price (Rs)

Compressor

1100

1000

1100000.00

Refrigerator door

1100

750

825000.00

Shelves

1100

700

770000.00

Ice maker

1100

750

825000.00

Temperature Controller

1100

1500

1650000.00

Chiller

1100

300

330000.00

Drain Pan

1100

500

550000.00

Power Supply

1100

2000

2200000.00

Video/Control Board

1100

1000

1100000.00

10

Inverter Board

1100

1000

1100000.00

11

Remote Receiver

1100

500

550000.00

12

LVDS Cable Bundles

500

1000

500000.00

Tcon Board

1100

4500

4950000.00

Bluetooth

1100

115

126500.00

13

Invoice Subtotal (Rs)

16576500.00

Tax Rate

10.00%

Sales Tax

1,657,650.00

Other
Make all checks payable to CS Inc.
Total due in 45 days. Overdue accounts subject to a service charge of 2% per month.

Deposit Received
TOTAL (Rs)

18234150.00

4. PRICE QUOTED BY VENDORS

The invoices received from Blue Diamond and CS Inc.
quoted the following prices.
Company Name
Blue Diamond
CS Inc.

Price Quoted (Rs)

33854480.00
18234150.00

5. NEGOTIATED PRICE
The vendors were contacted over phone and tried to
negotiate with them on the price. The negotiation attempt done by
Operations Department with Blue Diamond was successful and they
agreed to send a revised invoice. The price quoted in the revised invoice
of Blue Diamond is shown below.

Company Name
Blue Diamond

Price Quoted (Rs)

8045180.00

From the two invoices received, purchasing components

from Blue Diamond was found to be profitable for the company. The
revised invoice of Blue Diamond is shown below.

6. FLOW OF THE RAW MATERIALS

The shipment from vendors will reach the Cochin Port in containers
of size 20 inches x 17 inches. From the port, the components will be
transported in vans to the warehouse near the assembly section.

Blue Diamond
Address: Room No.1007 Block A Hongxi
Center Eco-Business No.2 Tiyu Road,
Beijing, China

Bill To: Ninth Sense

Address: Ninth Sense, Palarivattom,
Kochi, Kerala, India, Pin- 682025

Phone:

+86-8281229625

Email:

neeth021@gmail.com

Phone: 9645125718 ; 9847630049

Invoice #: 407485
Invoice Date: 29-11-2014

Email: hariprasad_ninthsense@gmail.com

Invoice For:

Item #

Description

Qty (Nos) Unit Price (Rs)

Discount

Price (Rs)

Compressor

1100

154

169400.00

Refrigerator door

1100

840

924000.00

Shelves

1100

316

347600.00

Ice maker

1100

249

273900.00

Temperature Controller

1100

526

578600.00

Chiller

1100

149

163900.00

Drain Pan

1100

129

141900.00

Power Supply

1100

699

768900.00

Video/Control Board

1100

308

338800.00

10

Inverter Board

1100

1009

1109900.00

11

Remote Receiver

1100

599

658900.00

12

LVDS Cable Bundles

500

1509

754500.00

Tcon Board

1100

295

324500.00

Bluetooth

1100

690

759000.00

13

Invoice Subtotal (Rs)

7313800.00

Tax Rate

10.00%

Sales Tax

731,380.00

Other
Make all checks payable to Blue Diamond.
Total due in 45 days. Overdue accounts subject to a service charge of 2% per month.

Deposit Received
TOTAL (Rs)

8045180.00

6.1 Assembling Operations

The Operations Department makes the assembling plan after getting the
requirements from Marketing. Accordingly, Raw Materials (RM) and
Packing Materials (PM) are issued from the vendor. After the batch has
been prepared, a bulk components sample is given to the Quality Control
Department for conducting In-Process Control (IPC) test.

6.2 Handling Of Rejected Materials And Product

According to standard operating procedures, all incoming and
outgoing materials which do not conform to the specified requirements
are identified and segregated.
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7. REGISTERS TO BE MAINTAINED
Inventory Register

Format of Inventory Register

Inventory List
Reorder
Estimated Quantity Reorder
Quantity in
Time in
Discontinued?
Inventory ID Name Description Where Warranty Unit Price Condition
Value in Stock Level
Reorder
Days

8. STOCK MANAGEMENT

Intermec Janus JR2020RF and JR2010RF hand-held computers will

be placed at each receiving dock with the material handlers. An Intermec
9181 base radio will be controlled by a networked computer station
already in place via Intermec 9180 RF concentrator. This would receive
communications from the Intermec Janus. Unique bar-code identification
numbers were given to each storage location section and package of
product.
The employee uses a Janus hand-held computer to scan the product
and destination within the factory. If raw material is left after a particular
job is completed, the remainder is scanned as available inventory as it is
returned to a storage location. The operator need only enter the new
quantity. All information is verified by the program as it is entered, then
the inventory master file on the network is automatically updated in real
time.
10

9. AUDITING
Considering the fact that our company is a startup company, it is
sufficient to conduct the auditing process once every year. The details of
top 5 auditing firms in Kochi is listed below.

Name

LEGACY PARTNERS
LLP
A S Narayana Swami &
Co
Hariharan L
G Natesan & Co
Chartered Accountants
Menon & Menon

Place

Phone Number Rating

(Out
of 5)
Kaloor
+(91)5
9562244410
Market Road +(91)-4844.5
2383602
Jos Junction
+(91)4.2
9446870027
Kadavanthara +(91)-4844.5
4049469
P T Usha Road +(91)-4843
2362910

11

10. PRODUCT FEATURES

As per the marketing research report obtained from the marketing
department, the design for the OVIEE TV was derived. It was derived
basically from the customer needs, competitors design market conditions
and incorporating the vision of 9th SENSE Company.
The OVIEE TV has the following key features:
65-inch 4K native resolution screen; Tri-luminous color system; passive
3D playback with 4 pairs of glasses included; SEN online platform;
multimedia playback via USB and DLNA and its unique oval shape.

Figure: OVIEE TV

10.1 What is the OVIEE TV?

The OVIEE TV is basically the point where 4K resolution (aka Ultra
HD) gets serious. Not because the other 4K TVs weve seen to date
havent already dazzled us with their 4K capabilities, but because with its
65-inch screen, living room friendly design and Rs. 20000 price tag
indicate we're getting a lot closer to 4K TVs inching towards the
mainstream designs than ever before in the history of technology.
12

Does this mean you'll walking down to your local store and walking
way with a 4K TV soon? At Rs. 20000 obviously not, but the OVIEE goes
out of its way to deliver a full-on premium living room experience, rather
than just being a drab rectangle that happens to have more pixels in it than
usual. It is, in other words, indicative of the kind of TV that will be
affordable for most people in a two years or so, and which some brave
souls might consider even now.

10.2 OVIEE- Design

Its design is spectacular. The jet-black frame around the screen is
beautifully polished, while the open-frame, chrome-like circular desktop
stand is remarkably small, deflecting practically none of your attention
from the mighty 65-inch screen. Also eye-catching is the silver
Intelligence Centre box hanging from the TVs bottom, which contains
the TVs uber-powerful processing chips and also changes the color of the
light it emits in line with which source youre watching.
By far the most striking thing about the design, though, is the array
of open speakers that sit flush with the glass screen in two glinting black
extension wings. The way these speakers have been sculpted onto the
TVs glassy finish is visually spectacular. But more important is their
potential to deliver an audio experience miles beyond anything wed
customarily expect from a flat TV.

13

10.3 OVIEE - Speakers

For starters, theyre front mounted, meaning their sound will project
straight out toward you rather than having to be fired down as happens
with most flat panel TVs. Also there are three separate drivers on each
side, including dedicated tweeters. Separating the speakers out in this way
will help the TV to deliver far greater power without disrupting clarity
than any conventional TV speaker array ever could. Last but not least
where the speakers are concerned, they use new Magnetic Fluid design
created to enable slim speaker enclosures to deliver the sort of audio range
and dynamics only previously possible with large box speakers.

10.4 OVIEE - Connections

The OVIEEs rear contains an interesting roster of connections,
including highlights of four v1.4 HDMIs, three USBs, a LAN and builtin Wi-Fi. Why is any of this especially interesting? Because the HDMIs
arent built to the still unratified HDMI 2.0 standard, and so cant be
absolutely guaranteed to be able to deliver every 4K / Ultra HD format
that might emerge in the coming years. All we can say with absolute
certainty is that the HDMI v1.4 standard should deliver 4K images up to
30fps, as it does now.
It should thus be able to cope with the 24fps movie transfers
currently employed with the 2K HD Blu-ray format. But there could
potentially be issues with future 4K Ultra HD broadcasts if they happen
and opt for a 50/60Hz format, or 4K Blu-Rays if directors want to use
faster frame rates, or even potentially 4K gaming if somehow next-gen
gaming platforms start being able to deliver 4K experiences at 60Hz.

14

Pretty much everything weve just discussed above is pure

speculation, of course. But thats the point - right now nobody really
knows how things are going to turn out. It could be that the HDMIs on the
OVIEE dont prove to be a serious limitation at all.

10.5 OVIEE- Smart TV

The OVIEE benefits from the latest much-improved interface complete with control via Android apps and an included second
streamlined remote with NFC support so you can sync NFC-enabled
products to the TV just by tapping them to the remotes rear.
The OVIEE also plays a huge range of video, music and photo files
from networked PCs or inserted USB drives, and provides access to online
platform.

15