SERVICE OPERATIONS MANAGEMENT

TELECOM INDUSTRY

Presented By- Sharanjot Kaur (063046)

Jeet Ankit Singh (211061)

Lovika Jain (211073)

Ritika Pruthi (211113)

Arjun Kapoor (211173)

Business Environment

ISVs

Semiconductor vendors

ODM/EMS

Mobile platform providers

OEMs

Technology providers

Operators

Media

Enterprises

Consumers

Handset industry

Enterprise

Operations and media

Processes in a Telecom Industry

• New User registration: Done via centers, grocery shops etc

• Customer grievance handling process: They have a customer care number for all their services, and it can be dialed from anywhere in India. Huge customer care employees support for smooth functioning and processes

• Recharge process: Multiple interfaces like grocery shops, websites, chemists

• Billing process: Offices, dedicated billing kiosks, executive’s bill collection, online bill payment

SERVICE QUALITY GAP

Service Quality Customer’s Perception Customer’s Expectations

= -

Call Service Facility Price Communication

• Call Forwarding

• Call Waiting• Call Quality• Voice Clarity

in call.

• Short Message service• Mobile

Entertainment• New

Technology use

• Call Rate• Promotional

Offers• Product

Range

• Call Quality• Call Drop

Rate•Geographical

Coverage

SERVICE DIMENSIONS

SERVICE DIMENSIONS

Customer Care

Service Provider

• Complaint Redressal System• Complaint

Resolution• Time duration

for waiting.• Easy

accessibility

• Customer Relations

• Innovativeness• Restoration

Capabilities• Reliability

• Responsiveness

SMOOTHENING OF DEMAND

Night calling plans are a perfect example in telecom industry for smoothening of demand where the traffic is intended to get shifted .

Sim Quick

EnquiryWork station agent 2

Work station agent 1Buffer EnquiryQueue

Buffer completed enquiry

Enquiry ( entrance call ) : The point where people come into the model. Taking the example of customer care, enquiry is the entrance point.

Buffers : The point where people or parts are held for queuing purposes. Here in telecom customer care center enquiry calls are in queue and then completed calls are exits where people leave the model

Workstations : The point where work is performed on people in spate names and with appropriate distribution of work time

Results for 5 simulations

Queue Management

• Virtual queuing technique • Suited to environments with longer service times as the effect of a slow approach

by a customer has a minor effect on the total time spent by the service staff on that particular customer

• The preferred choice when the service provider wants to identify customers before approaching the staff for preparations.

QFD

SCM in Telecom

Taguchi Loss in Telecom

Arrival Rate : 12 customer per hourService Rate : 16 customer per hour

In addition, assume that if a customer waits 20 minutes that his/her cost of dissatisfaction is $40.00. The $40.00 is costs associated with this instance of customer dissatisfaction. First, calculate the constant K. K = R/(USL-T)2

= 40/(20/60-0)2

= 360

Using the equation derived earlier results in the following Taguchi cost,

Average Time in Line (minutes) 11.25

Taguchi Cost per person (Cq) $ 33.75

Taguchi Cost per hour $ 405.00

Service CapacityNEEDS CHALLENGES

To reduce the risk of capacity constraints impacting business

Obtaining forecasts of business demand growth

To identify capacity requirements for growth in business demand

Evaluating risk presented by new services and applications

Minimize costs Dealing with large amounts of data

Protect revenue Delivering results and conclusions in a timely manner

Provide necessary information for accurate capacity plan

Presenting results in a concise way

Availability of quality staff

Capacity Planning - Telecom

• Problem:– To determine the bandwidth required to satisfy certain

demand without incurring excessive costs to maintain installed and potentially unused capacity

• Solution:– Forecast– Safety stock against possible demand fluctuations– Capacity planning (modelling). Eg: increasing equipment,

staffing for the number of calls and customers while keeping costs in consideration.

DEA• MTNL, Reliance and Tata Teleservices have shown the lowest efficiency levels

• Therefore there is tremendous scope for improvement in resource utilization in these firms. These results have significant managerial implications for the inefficient firms since they come to know how far they are lagging behind the efficient players

• Firms with narrow focus on specific service (e.g. wireless for Hutch, now taken over by Vodafone) or smaller part of the industry value system (e.g. Bharti with narrowing focus on customer front through innovative model of outsourcing most of operations, including core network) can have better efficiency in the short run.

DEA

Variation of Telecom Efficiency across various Telecom Circles

DEA

Technical Efficiency Frontier

THANK YOU