Reducing Operation Cost of Airtel Kenya
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This presentation discusses the main objective of reducing the operation cost of Airtel Kenya by 20%. It explores the background of the department, industry highlights, and the use of SAS for data analysis. The findings of preliminary research, solutions, and recommendations are also provided.
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Business Analytics
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CTU
ABED AZZAM
IP4
CTU
ABED AZZAM
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TABLE OF CONTENTS
ABSTRACT
BACKGROUND OF DEPARTMENT
INDUSTRY HIGHLIGHTS
SAS
FINDINGS OF PRELIMINARY RESEARCH
CONCLUSION
SUMMARY
RECOMMENDATIONS
REFERENCES
ABSTRACT
BACKGROUND OF DEPARTMENT
INDUSTRY HIGHLIGHTS
SAS
FINDINGS OF PRELIMINARY RESEARCH
CONCLUSION
SUMMARY
RECOMMENDATIONS
REFERENCES
ABSTRACT
Main objective of the project is to reduce the operation cost of
the Airtel Kenya.
New vice president of operations want to reduce the operation
cost 20 %.
Airtel Kenya is a leading communication service provider.
The company provides cellular communication throughout the
country.
Main objective of the project is to reduce the operation cost of
the Airtel Kenya.
New vice president of operations want to reduce the operation
cost 20 %.
Airtel Kenya is a leading communication service provider.
The company provides cellular communication throughout the
country.
BACKGROUND OF DEPARTMENT
I am Project manager of Airtel Kenya.
I am working in the company since the last five years
My roles and responsibilities
Involves the process of design the operations
Organize the needs for the operations
Use the resource to make the final output
Series of activities from supplier to customer
I am Project manager of Airtel Kenya.
I am working in the company since the last five years
My roles and responsibilities
Involves the process of design the operations
Organize the needs for the operations
Use the resource to make the final output
Series of activities from supplier to customer
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INDUSTRY HIGHLIGHTS
Consider V-firm clothes manufacturing company.
The company currently faces some issues
Average output of clothes
Higher production costs etc.
Improve production rate and reduce the production cost by 20%
Consider V-firm clothes manufacturing company.
The company currently faces some issues
Average output of clothes
Higher production costs etc.
Improve production rate and reduce the production cost by 20%
Solution
Solutions they followed
Automation process
Adoption of the BI system and using the technologies for decision
making is more common.
Use BI systems for data mining etc.
Helps to the manager to make the right decision at the right time.
Uses different data mining tools like SAS, SAP etc.
Solutions they followed
Automation process
Adoption of the BI system and using the technologies for decision
making is more common.
Use BI systems for data mining etc.
Helps to the manager to make the right decision at the right time.
Uses different data mining tools like SAS, SAP etc.
SAS DATA MINING
SAS stands for Statistical Analysis System
Used for advanced analytics, data management and multivariate
analysis etc.
Helpful for analysing the dataset
Excellent visualisation of the insights of the dataset
SAS stands for Statistical Analysis System
Used for advanced analytics, data management and multivariate
analysis etc.
Helpful for analysing the dataset
Excellent visualisation of the insights of the dataset
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SAS TOOLS AND FEATURES
Strong data analysis capabilities
Highly flexible 4th generation programming language
Supports different types of datasets for the analysis
provides data security by data encryption algorithms
Easy to learn interface
Strong data analysis capabilities
Highly flexible 4th generation programming language
Supports different types of datasets for the analysis
provides data security by data encryption algorithms
Easy to learn interface
FINDINGS OF PRELIMINARY
RESEARCH
SAS software is used for the data analysis
Analyzed the previous year data related to the costs
Contains information about the cost spent by the different
departments
Results are shown as graphs and plots for easy understanding
RESEARCH
SAS software is used for the data analysis
Analyzed the previous year data related to the costs
Contains information about the cost spent by the different
departments
Results are shown as graphs and plots for easy understanding
Comparison of cost spent for
Labor wages and error repair
S a l e s Ma r ke ti n g Pr o d u c t
Ma n a g e m e n t
Or d e r p r o c e ssi n g T r a n sa c ti o n
p r o c e ssi n g
0.00
1,000,000.00
2,000,000.00
3,000,000.00
4,000,000.00
5,000,000.00
6,000,000.00
7,000,000.00
Labour costs error repair costs
Labor wages and error repair
S a l e s Ma r ke ti n g Pr o d u c t
Ma n a g e m e n t
Or d e r p r o c e ssi n g T r a n sa c ti o n
p r o c e ssi n g
0.00
1,000,000.00
2,000,000.00
3,000,000.00
4,000,000.00
5,000,000.00
6,000,000.00
7,000,000.00
Labour costs error repair costs
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Pearson correlation between
Process error and error repair
costs
Process error and error repair
costs
Revenue generated by various
departments
61%17%
22%
Revenue
Sales Marketing Product Management Order Processing Transaction Processing
departments
61%17%
22%
Revenue
Sales Marketing Product Management Order Processing Transaction Processing
Who is responsible for cost?
Sales Marketing Product
Management
Order
Processing
Transaction
Processing
0.00
10,000,000.00
20,000,000.00
30,000,000.00
40,000,000.00
50,000,000.00
60,000,000.00
Spendings Revenue
Sales Marketing Product
Management
Order
Processing
Transaction
Processing
0.00
10,000,000.00
20,000,000.00
30,000,000.00
40,000,000.00
50,000,000.00
60,000,000.00
Spendings Revenue
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Who is responsible for cost?
Sales department spends huge money on employee salary
The company has nearly 600 employees.
The average salary of the employees is $500000
They also spent 2 million dollars
Sales department spends huge money on employee salary
The company has nearly 600 employees.
The average salary of the employees is $500000
They also spent 2 million dollars
Excess costs
Inventory and error repairing costs
Increase in these costs reduces the profit.
Avoid these completely is not practically feasible.
The reduction is the only way to resolve these issues.
Among them, error repairing costs are more dangerous than
inventory costs.
Inventory and error repairing costs
Increase in these costs reduces the profit.
Avoid these completely is not practically feasible.
The reduction is the only way to resolve these issues.
Among them, error repairing costs are more dangerous than
inventory costs.
Suggestions for sales department
Strict rules and monitoring system deployment is suggested to
reduce the error
Maximum number of errors per employee must smaller than 2
per month
If it exceeds they must be punished.
1st penalty is a verbal warning
2nd Written warning
3rd termination
Strict rules and monitoring system deployment is suggested to
reduce the error
Maximum number of errors per employee must smaller than 2
per month
If it exceeds they must be punished.
1st penalty is a verbal warning
2nd Written warning
3rd termination
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SUMMARY OR CONCLUSION
Company spends huge money for error repair costs.
Most of the cost spent to the similar set of problem solving.
A single department spent huge amount of money for error
repairing
Suggested to conduct analysis & redefine the process and
operations,
Company spends huge money for error repair costs.
Most of the cost spent to the similar set of problem solving.
A single department spent huge amount of money for error
repairing
Suggested to conduct analysis & redefine the process and
operations,
RECOMMENDATIONS
Automate & Refine business activities
Outsourcing
carry out make or buy decisions before taking decisions
make decisions based on facts
Always go with facts don't give room for emotions and other
kinds of stuff
Automate & Refine business activities
Outsourcing
carry out make or buy decisions before taking decisions
make decisions based on facts
Always go with facts don't give room for emotions and other
kinds of stuff
REFERENCES
Advanced visualization and visual analytics: general discussion.
(2014). Faraday Discuss., 169, 245-264. doi: 10.1039/c4fd90020k
Dimauro, C., & P.P. Macciotta, N. (2010). A Tutorial for Microarray Data
Analysis with SAS-STAT Software. Current Bioinformatics, 5(2), 89-108.
doi: 10.2174/157489310791268441
Gunst, R. (2003). Regression and ANOVA: An Integrated Approach Using
SAS Software. Technometrics, 45(2), 170-171. doi:
10.1198/tech.2003.s159
Khademi, A. (2018). Complex Survey Data Analysis with SAS. Journal Of
Statistical Software, 84(Book Review 2). doi: 10.18637/jss.v084.b02
Liu, W. (2010). Survival analysis using SAS software package. Journal Of
Chinese Integrative Medicine, 8(5), 489-493. doi:
10.3736/jcim20100515
Advanced visualization and visual analytics: general discussion.
(2014). Faraday Discuss., 169, 245-264. doi: 10.1039/c4fd90020k
Dimauro, C., & P.P. Macciotta, N. (2010). A Tutorial for Microarray Data
Analysis with SAS-STAT Software. Current Bioinformatics, 5(2), 89-108.
doi: 10.2174/157489310791268441
Gunst, R. (2003). Regression and ANOVA: An Integrated Approach Using
SAS Software. Technometrics, 45(2), 170-171. doi:
10.1198/tech.2003.s159
Khademi, A. (2018). Complex Survey Data Analysis with SAS. Journal Of
Statistical Software, 84(Book Review 2). doi: 10.18637/jss.v084.b02
Liu, W. (2010). Survival analysis using SAS software package. Journal Of
Chinese Integrative Medicine, 8(5), 489-493. doi:
10.3736/jcim20100515
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