In Ethiopia, the introduction of telecommunications service stretches back to the Emperor Menelik II during that the commencement of the telephone line installation from Harar to Addis Ababa. He firstly introduced it in his compound in 1890 A.D. and then it became public in 1903 E.C. and inter-urban network was expanded in all other directions from the capital and many important centers in the Empire were interconnected by landlines to facilitate long-distance communications with the help of intermediate operators acting as verbal human repeaters. under the ministry of Post, Telegraph and Telephone. In 1945 E.C. by the proclamation of 131/45, the telecom operator once again became under the government of Ethiopia telecommunication Board. For the third time, Ethiopian Telecommunications Corporations was formed in 1989 E.C. by proclamation No. 10/1989. Finally, France telecom overtook the management role of Ethiopian telecom operator for two years in order to enhance services and infrastructure by boosting knowledge transfer. Then the current “Ethiotelecom” replaced the former Ethiopian Telecommunications Corporation by Proclamation No. 691/2010 (Gebreyesus, 2013). 1.2 Organizational reform 1890: - Central Administration of Telephone and Telegraph System of Ethiopia 1907: - The central office of Post, Telegraph and Telephone (PTT) System of Ethiopia 1910: - Ministry of Post, Telegraph and Telephone (PT&

1. AMBO UNIVERSITY
School of post graduate studies
Department of Accounting and Finance
MBA in Finance
Program CEP at Ashewa Meda
Assignment of Technological and Production Management
Prepared by Bahiru Altaye
ID No. PGE/39673/12
Submitted to Dr. Bekele Gebisa
Academic year 2013
Burayu Ethiopia

2. II
Table of contents
Contents
Table of contents .......................................................................................................................................ii
1. Introduction........................................................................................................................................1
1.1 Historical background of Ethiotelecom...............................................................................................1
1.2 Organizational reform........................................................................................................................1
1.3 Technological Evolution in Ethiotelecom .........................................................................................1
2. Overall Operations Management of Ethiotelecom...........................................................................3
3. Ethiotelecom Organizational Capacity Management (for capital and/or labor)........................5
4. General Facility Management of Ethiotelecom..............................................................................6
5. Quality management system of Ethiotelecom ................................................................................8
6. Gaps observed in the operations management system of Ethiotelecom ....................................10

3. 1
1. Introduction
1.1 Historical background of Ethiotelecom
In Ethiopia, the introduction of telecommunications service stretches back to the Emperor
Menelik II during that the commencement of the telephone line installation from Harar to Addis
Ababa. He firstly introduced it in his compound in 1890 A.D. and then it became public in 1903
E.C. and inter-urban network was expanded in all other directions from the capital and many
important centers in the Empire were interconnected by landlines to facilitate long-distance
communications with the help of intermediate operators acting as verbal human repeaters.
under the ministry of Post, Telegraph and Telephone. In 1945 E.C. by the proclamation of
131/45, the telecom operator once again became under the government of Ethiopia
telecommunication Board. For the third time, Ethiopian Telecommunications Corporations was
formed in 1989 E.C. by proclamation No. 10/1989. Finally, France telecom overtook the
management role of Ethiopian telecom operator for two years in order to enhance services and
infrastructure by boosting knowledge transfer. Then the current “Ethiotelecom” replaced the
former Ethiopian Telecommunications Corporation by Proclamation No. 691/2010
(Gebreyesus, 2013).
1.2 Organizational reform
1890: - Central Administration of Telephone and Telegraph System of Ethiopia
1907: - The central office of Post, Telegraph and Telephone (PTT) System of Ethiopia
1910: - Ministry of Post, Telegraph and Telephone (PT&T)
1952: - The Imperial board Telecommunication of Ethiopia (IBTE)
1973: - Recruited promising young Ethiopian to fill various senior positions
1975: - The Provisional Military of Socialist Ethiopian Telecommunication Services
1996: - Ethiopian Telecommunication Corporation (ETC)
2010: - Ethiotelecom has got its current status since 29th November 2010 as a part of Ethiopia’s
2005/06 – 2009/10 GTP following the federal government’s decision to focus on improving
telecom services, taking them as key to national development.
1.3 Technological Evolution in Ethiotelecom
1906-Long distance voice communication with the assistance /Operator
1952-Telegraph Service and Dire Dewa -Djibouti telegraph service started

4. 2
1979 -1987-The largest satellite dish (32 M Radius), The second largest satellite dish, the
smallest largest but highly sophisticated satellite dish (32 M Radius) and Installed radio stations
for international and domestics services
1988-Launched International communication through Sululta Earth Satellite Station positioned
to three different directions
1989-Digital exchanges and Digital exchanges installed
1997-Digital microwave, fiber cable communication systems, & fiber cable communication
systems initiated
1999- Internet service and Internet service introduced.
2003-Mobile service and Mobile service launched.
2004-Roaming service and Roaming service launched
2007-Broadband multimedia service and Broadband multimedia service launched
2015- NGN, 3G & DWDM
Next Generation Fixed, Third Generation (3G) network and dense wavelength division
multiplexing (DWDM) based on Optical fiber transmission introduced
2020-4G/LTE and LTE advanced introduced in selected areas of Addis Ababa
Vision: To be a world-class telecom service provider
Mission
 Connect Ethiopia through state of the art telecom services
 Provide high quality, innovative and affordable telecom products and services that enhance
the development of our nation and ensure high customer satisfaction
 Build reputable brand known for its customers’ consideration
 Build its managerial capability and man power talent that enables Ethiotelecom to operate
at international level
 Support community and environmental development
Values
 Be committed to understand, meet and exceed the telecom needs and expectations of the
country at large and of customers in particular.
 Respect customers and recognize that the revenue generated allows ethiotelecom to operate.
 Recognize employees of ethiotelecom as most valuable assets and create conducive
working environment that allows them to develop and grow.
 Be committed to high-level performances. Customer service quality, organizational
excellence and continuous improvement of quality of services.

5. 3
 Be ethical and honest in all assignments.
 Be accountable to all stakeholders.(https://www.ethiotelecom.et/about-us/ )
2. Overall Operations Management of Ethiotelecom
As ethiotelecom Operations Management is defined as the management function responsible
for all activities directly concerned with giving services, making a product, collecting various
inputs and converting them into desired outputs through operations. The company structure
used more than 17 different divisions namely Customer Services Division, Finance Division,
Human Resources Division, Internal Audit Division, Legal Division, Security Division,
Information Systems Division, Network Division, Quality & Process Division, Enterprise
Division, Residential Sales Division, Marketing & Communications Division, Sourcing
division, Operation and maintenance division, Fleet & Facilities Division and etc. All these
divisions operate or work together to provide telecommunication services to its customers.
Ethiotelecom is an integrated telecommunications solutions provider operating in Ethiopia. It
offers: internet, data, VAS and voice services. Currently, Ethiotelecom is serving its customers
by providing different telecom alternatives via their mobile phones. Among these are: mobile
internet, prepaid, postpaid and roaming services. The mobile internet service enables your
mobile phone, tablet or mobile broadband modem to access the Internet while you are moving.
The company have also introduced post-paid mobile services with the latest technology (GSM,
CDMA, WCDMA and 4G/LTE) which enables customers to get more options to do their work
easily. Pre-paid mobile service is a normal mobile service offered through ethiotelecom’s SIM
cards with advance payments. Roaming services enable mobile users to get different telecom
services while traveling outside the country with the help of ethiotelecom SIM
cards(https://www.ethiotelecom.et/mobile/)
The achievements and the reform process the company passed through are stepping stones to
be competitive in the future telecom market. The achievements and the reform transformed the
company to a better position in comparison with the previous budget year that ended with
positioning the company in a risk zone by its Board. The leadership has exerted extra effort and
commitment with full ownership to achieve the company’s target despite challenging business
environment. (https://www.ethiotelecom.et/2018-19-efy-p/ )
The operations management work to optimize the use of limited resources the capital and labor
to accomplish the objects via the strategy. The company is using the motto called BRIDGE.
The BRIDGE strategy of ethiotelecom for 2020 to 2023 represents:

6. 4
 Best customer experience,
 Reputable Brand,
 Innovative products or services and technology excellence,
 Develop people oriented learning organization,
 Growth in financial capacity and
 Excellence in operation
It is well depicted in the below figure.
Figures 1: Ethiotelecom Motto
Organizational structure link together with the company strategy, systems, shared values,
employees’ skills and styles of work and different staff will provide effective and sufficient
telecom services. These interconnections play great roles for smooth flow information in all
direction the company.
Figure 2: Ethiotelecom strategy linkage
The operations management integrates different tools like BSC, TQM, JIT, QC, and elements
of the management system with the company’s strategy.

7. 5
3. Ethiotelecom Organizational Capacity Management (for capital and/or labor)
The ethiotelecom company has more than 16,000 permanent employees and more than 30,000
contract employees’ staffs in all zones, regions corporate of the country. The human resources
of the company are the main input, which are required to play important role in achieving the
operational objectives of the company. With this large number of employees, Ethiotelecom
have an effective and efficient employees’ performance management system that enables them
to achieve the strategic objectives of management system of the company. Currently, the
company has been launching many new different branches at different areas and regions to
maximize the capital cost of the ethiotelecom to increase its wealth or share value in the market
if privatizations initiated by government is under gone. The company has been building many
different network towers for expansions of service to effectively and efficiently serve its
customers. To manage all these additional branches and expansions, the company needs many
human labor and huge capital.
To upgrade the knowledge of the employees, Ethiotelecom is continuously investing on
trainings, orienting to enhance its employees ‟s knowledge and behavior’’ by ethiotelecom
excellence academy. And also provide sponsors for Bachelor degree education for all
permanent employees who did not hold bachelor degree and who has willingness to learn will
apply and master program for core division of the company like networks areas and IS
(information systems). Since education helps societies through aiding economic growth and
building human capital. Replacing human capital is expensive to organizations because of the
process of hiring, training, and developing, which incur costs or pays the company too much.
In other words, this is a strategic approach to appropriately target, determine, develop, and apply
human capital retention initiatives has impact on organizational success. Employee retention is
beneficial for employee and the company alike
Work-life balance: programs benefit both employees and Ethiotelecom. The company was
implementing the programs can provide workers with relief from non-work concerns through
(a) Flexible work arrangement programs (b) Flexible work schedule programs,
(c) Health and wellness programs (d) Paid time-off programs, and
(e) Job sharing programs (f) Provide different telecom service benefit like voice, data, and etc.
Ethiotelecom rewards and recognize employees two times per year on semiannual meet and
annual meet at each division. Provide annual bonus base employees BSC performance.
Because rewarding and recognition system is an important tool that management can use to

8. 6
channel employee motivation in desirable ways. In other words, reward systems attract people
to join particular companies, help in retention, and motivate people to perform at higher levels
4. General Facility Management of Ethiotelecom
Currently facility division of Ethiotelecom include fleet operation fuel and lubricant, facility
insurance, fleet maintenance, and civil works. The facility work is to facilitate the operation of
the company as a whole in facility concerns. Since every organization relies on a mix of
functions and services to provide the support essential to its core business operations. Ensuring
that this support is available in the right form, at the right quality and for the right cost is the
domain of facilities management.
The facility layout used by Ethiotelecom are fixed-position layout for installing BTs (building
network Towers), process-oriented layout for functional operation of each network transaction
(process of services quality). The company used smart and branded office layout style in almost
all ethiotelecom office. Ethiotelecom have many ware house starting from central warehouse
to medium shop mini warehouse where to store sellable products and others supportive
materials for operations. The materials in the Warehouses are arranged in locator numbers and
Items numbers. total the company uses different facility layout forms according to the nature
of the division materials and requirements. Because of that proper facilities layout enable higher
utilization of space, equipment, and people, improved flow of information, materials, or people,
improved employee morale and safer working conditions and improved customer/client
interaction.
Figure 3: Fixed Network facility layout and population settlement (BTs)

9. 7
Facilities management is an organizational function which integrates people, place and process
within the built environment with the purpose of improving the quality of life of people and the
productivity of the core business. Facilities management can be provided in-house, that is by
employees of the ‘consumer’ organization, or it can be outsourced, meaning that roles and
activities are fulfilled via a contract awarded to a specialist third-party. Whether in-house (own
force) or outsourced, the job of the facilities manager is typically quite diverse.
The role of facility management varies widely from organization to organization, but an FM’s
in ethiotelecom job cover a range of areas such as: catering and hospitality, cleaning, security
, reception services, building maintenance (often shorthanded as ‘m&e’, mechanical and
electrical services, but basically everything from ensuring the lifts work to managing the air-
conditioning), fabric maintenance (keeping everything from furniture to floors and walls in
good repair), environmental services, such as waste management and recycling, health and
safety of employees and relocations and moving people internally within a building.
These activities are often taken into two categories: ‘hard FM’ and ‘soft FM’. Hard FM relates
to anything to do with a building, essentially M&E and fabric maintenance, whereas soft FM is
anything to do with people, such as catering, cleaning, security, health and safety etc.
Facilities management’s objectives
Facilities management is a support service, contributing to the effective and efficient delivery
of an organization’s strategic and operational goals while providing a safe and comfortable
work environment on a day-to-day basis. A good workplace helps to make people feel well,
energized, productive and enthusiastic; a poor one can be frustrating, inhibiting of
productivity, stressful and even illness-inducing. Within a Ethiotelecom, facilities management
is more than part of a secretary’s or office manager’s role.
The procurement options
The primary responsibility for a facilities management in ethiotelecom is providing and
managing a range of services to his or her 'customers', that is, the employees within or outside
the organization. Increasingly, some or even all of these services are outsourced; in other words,
purchased from and delivered by external suppliers – a practice that has grown and developed
in parallel with the rise of facilities management over the life span of the company
From a starting point of single-service contracts (typically, maintenance, cleaning or security),
each handled by a specialist supplier, the outsourcing concept broadened over the years to
encompass 'bundled’ services - cleaning and security, for example, delivered by a supplier with
skills and resources in both areas.

10. 8
Total facilities management is another alternative, in which the provider takes on
responsibility for the delivery and management of all required service lines. It solutions can be
sourced from FM specialists or from diversified contractors, who will generally meet as much
of the need as possible from their own resources. It labels demands a bit of caution, however,
as there is no standard definition and it is used in different ways by different companies.
5. Quality management system of Ethiotelecom
Quality: Make a great product or deliver a great service. It affects customer satisfaction. Quality
is the characteristic of products or services that bear an ability to satisfy the stated or implied
needs.
Service quality: the degree and direction of discrepancy between the consumers‟ perceptions
and expectations, or the extent to which a service meets or exceeds customer expectation.
Quality management is the act of overseeing all activities and tasks that must be accomplished
to maintain a desired level of excellence. This includes the determination of a quality policy,
creating and implementing quality planning and assurance, and quality control and quality
improvement. It is also referred to as total quality management (TQM).
 In ethiotelecom the important organizational requirements for achieving a successful
quality management system include the following:
a. Customer focus: The first principle “customer focus” is very important. Everyone will agree
that an organization depends on its customers, and that the organization cannot exist unless
there are clients who buy its products and services.
b. Leadership: Laboratory leaders must be fully committed to implementation of the system, and
these leaders will also need vision, team-building and motivational skills, good communication
techniques, and the ability to use resources responsibly.
c. Organizational structure: The structure of the organization should be clearly defined, and this
should be reflected by a functional organizational chart with clear assignment of responsibility.
d. Planning process: Skills for planning are needed, and planning should address a time frame,
responsibility for conducting the activities, the availability and use of human resources,
management of workflow and financial resources.
e. Implementation: Implementation requires that a number of issues must be addressed by the
management staff. These include management of projects and activities, directing resources to
accomplish plans, and ensuring that timelines are met and goals achieved.

11. 9
f. Monitoring: As components of the quality management system are put in place, processes for
monitoring will be needed to ensure that the system is working, and that benchmarks and
standards are being met. This element is essential is continuous improvement.
 To continue with the quality of services the company uses tools like TQM, QC, BSC,
OLA, and elements of the management system
a. Total quality management (TQM)
Quality management is the act of overseeing all activities and tasks needed to maintain a desired
level of excellence. Quality management includes the determination of a quality policy, creating
and implementing quality planning and assurance, and quality control and quality improvement.
TQM requires that all stakeholders in a telecom business work together to improve processes,
products, services and the culture of the company itself. Total quality management is “to obtain
total quality by involving everyone’s daily commitment. The objective of TQM is to improve
continuously each and every activity in the company, focusing on the customer. The call center
should use more professional and individual approach towards customers. This is a tool for
advisors to ensure more empathy to customers.
b. Quality Circle (House Keeping - 5S’s)
The five steps of housekeeping as identified by Imai are: Seiri (sort), Seiton (straighten), Seiso
(shine), Seikestu (standardize) and Shistuke (sustain). This System is one of several popular
and simple-to-follow management tools, designed to improve workplace efficiency through
facility organization.
c. Balanced scorecard (BSC)-is a strategic performance measurement tool that links a company’s
long-term vision and strategy to Customer metrics, financial targets, internal processes and
organizational development. As the company BSC primarily serves as a system to improve
telecommunications service quality and support long-term survival, besides that, it also used as
to reduce goal uncertainty in the organization, enhance customer focus, create a common
language on how to improve telecommunications service quality, and support strategy
implementation. The former aims to monitor organizational outcomes and correct faults from
standards of performance and thereby ensure the achievement of organizational strategies and
goals, while the latter aims to define, communicate, and reinforce basic values, purpose, and
direction for the organization in order to encourage opportunity-seeking behavior. BSC is used
in performance evaluation. Performance evaluation is linked to rewarding. Incentive, such as
to give variable salary payment to employees with level of evaluation.

12. 10
Figure 4: BSC Model
d. Operational Level agreement(OLA): The company has been using operation level agreement
for smooth communication, efficient and effective integration among divisions of services
requester for their division deliver the resource for day to day operation and other tasks.
Figure 5: Operational Level agreement
6. Gaps observed in the operations management system of Ethiotelecom
Ethiotelecom is serving its customers by providing different telecom alternatives via their
mobile phones. There is not alternatives company giving such like service to society to compare
select still now due lack options all peoples use ethiotelecom service since the government
monopolize all telecom service in the country. There are huge resources in the company but not
well utilized to provide service for the society. There is problem of facility layout on building
and site selection for BTs. The product and service quality of work life are irregular. There is
quality and process division that set standard of operation for all division but still there is no
quality of service for all customers. Even there is no 4G network service others than Finfinne.
There is problem in BSC performance evaluation while it is linked to reward employees even
though strategy is well to measure performances of the workers.