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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
Timeline
Literature Review
(August)

Study of System Dynamics
(September)

Learning Vensim and STELLA
(September-October)
Telecom Sector Survey and Model
Development
(October-November)
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
•

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
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
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
Supply-Demand-Price Model
Simulation results

Equilibrium inventory level

Equilibrium price

Equilibrium (a) inventory and (b) price levels with stepped input
Comparing (1) - without step and (2) - with step input

Sensitivity Analysis for Price Change Delay (1-5 weeks, 2-10 weeks, 3-15 weeks)
The Telecom
Sector
Source: www.equitymaster.com
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%)
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
Model Equations
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
Simulating the model
Future Direction
• Improving the NPR model
• Sensitivity analysis
• Integration of supply chains relating different
departments
• Outsourcing
Thank
You!

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Analysis of Service Supply Chains in the Telecom 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
  • 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)
  • 11.
  • 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
  • 15.
  • 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
  • 19.
  • 20.
  • 21.
  • 22. Future Direction • Improving the NPR model • Sensitivity analysis • Integration of supply chains relating different departments • Outsourcing