Airtel Kenya: Detailed Research Report on Cost Inflow and Outflow

This report presents research findings for Airtel Kenya, focusing on cost reduction strategies within the company. The research identifies high operational costs, particularly within the sales department, as a key area for improvement. Recommendations include deploying automation systems to reduce errors and the number of employees required, implementing stricter rules and regulations to minimize mistakes, and redefining the organization's communication channels to improve efficiency. The anticipated benefits of these suggestions include a 20% reduction in operational costs and improved overall company performance. Data mining tools were used to analyze cost spending datasets, revealing that a significant portion of the company's expenditure is allocated to employee wages, especially within the sales department, where error rates are also high. The report suggests that addressing these issues through automation, stricter regulations, and improved communication can lead to significant cost savings and enhanced performance for Airtel Kenya.

Airtel Kenya
Research suggestions Memo
To: Vice President of Sales, Airtel Kenya.
From: Project Manager, Airtel Kenya.
Date: 18 - June - 2019
Subject: To submit the findings of the research carried out on the cost inflow and outflow on
different departments.
Purpose
The main purpose of this research process is to identify the present situation of the
company and find the better way to reduce the operational cost by 20%.
Background
In the last two years, the company’s performance is reduced because of higher
operational costs wastages. Higher operational cost reduced the profit. Also, some problems are
noticed in the employee’s side. The number of errors is also increased. Last month alone only
3000 plus error transactions are made by the sales departments.
Research Methodology and tools used
Here the data mining tools are used for analyzing the cost spending datasets.
Findings summary
From the research conducted following things are founded. The company spent a huge
amount on employee wages. Sales department spent a huge amount on salary. Sales department
has nearly 600 employees. Average salary of the sales department employee is $ 500000. It is far
higher than all other employees. Even they won’t performing well. In the last month alone they
made 3000 plus mistakes. Sales department employees do mistakes more frequently. Nearly 2
million dollars are spent on error repairing costs last year.
Recommendations
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Airtel Kenya
Deploy automation system – In most of the places, there is a scope for automation.
Deployment of the automation system in the sales department helps to reduce the errors.
Automation system reduces the number of employees required. It increases the
performance of the entire department.
Deploy strict rules and regulations to reduce the number of errors – Deploy strict rules
and regulations for reducing the mistakes. Set the maximum limit for the errors per
month as 2. If any employee exceeds this limit we must punish them. At the first time,
they must be warned orally. If it happens again we go for written warning. If an employee
doesn’t correct his mistake we may terminate that employee.
Redefine the organization communication channel – Punishing employees not only helps
to correct the problem. Our team founded that the current communication process is not
an effective system. Most of the errors are happened because of the poor communication
between employees.
Anticipated Benefits
Following these suggestions helps to improve the performance of the company. Helps to
reduce the operational cost by 20%.
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