Odd semester presentation on progress for the project entitled 'Analysis of service sector supply chains in the telecommunication sector'

1. Analysis of service supply
chains in the
telecommunication sector
Project Supervisor: Dr. Cherian Samuel
By- Ashish Sethi - 10406EN004
Anchit Patni - 10106EN009
Krati Parakh - 10106E023
Dube Dheeraj Prakashchand - 10106EN043

2. Timeline
Literature Review
(August)
Study of System Dynamics
(September)
Learning Vensim and STELLA
(September-October)
Telecom Sector Survey and Model
Development
(October-November)

3. Supply chain management
• Sequence of processes involved in the production and distribution of
a commodity
• Basic activities involved in supply chain management:
1.
2.
3.
4.
5.
Procurement of raw materials
Production of parts
Assembly
Delivery
Marketing
• Need for managing the supply chain:
1.
2.
3.
Integral parts of a firm’s strategy
Lower the cost
Increasing the contribution margins
Everyone is a customer as well as a supplier

4. •
Types of supply chains:
1.
Inventory supply chains
•
2.
Examples – automobiles, FMCGs
Service oriented supply chains
•
•
In the service sector: Examples - mortgages, insurance policies and
home health care
Not in the service sector: Example - equipment manufacturers

5. Relevance of service oriented
supply chains
•
•
•
•
Largest contributor to the GDP
Relative lack of research in service supply chains
Demand for customized goods and services
Rise of e-commerce

6. System Dynamics
Analyzing how structural changes in one part of a system might affect the
behavior of the system as a whole.
• System: A collection of elements
• System structure: Relationships and connections
• System behavior: The way in which system elements vary with time
• Feedback: Result of actions taken on an element trail back to the element
itself, which may be positive or negative
• Stocks and flows
• Delays

7. Supply-Demand-Price Model

8. Simulation results
Equilibrium inventory level
Equilibrium price
Equilibrium (a) inventory and (b) price levels with stepped input

9. Comparing (1) - without step and (2) - with step input
Sensitivity Analysis for Price Change Delay (1-5 weeks, 2-10 weeks, 3-15 weeks)

10. The Telecom
Sector

12. Source: www.equitymaster.com

13. Consumer Redressal System
• Point of First Contact: BPOs
Calls
Queries
Complaints
(50%)
(50%)
Network
VAS
(25%)
(20%)
Sales and
Marketing
(15%)
Billing
Courier
(25%)
(10%)

14. Network Related Problems
• Hardware malfunction or fiber cuts
• Requires electronic and manual investigation
• Resolution by vendors
• Inadequate capacity to handle traffic
• Economic analysis
• Tradeoff between costs of construction of new site and loss of
potential and existing customers
• Risk because of legal and bureaucratic hurdles

16. Model Equations

17. Assumptions
• DT = 1/25 hours
• Average call duration = 3*DT ≈ 5 mins
• Delays at the BPO, SPOC and Company SPOC = 0.25 hours, or
15 minutes.
• Delay at technical department = 2 hours.
• Average delay to resolve by the vendor = 5 hours (fiber cuts)
• Fraction of FTR = 0.4
• Fraction of TDR = 0.2

18. Simulating the model

22. Future Direction
• Improving the NPR model
• Sensitivity analysis
• Integration of supply chains relating different
departments
• Outsourcing

23. Thank
You!