Electronic Recharge Operational Problems in Zain-Ksa

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Operations Management
Electronic Recharge Operational problems in Zain-KSA

Introduction & Background:2
Alarming Operations Processes:2
1.Monitoring and follow-up:2
2.Terminal Delivery and Activation:4
3.Long and inefficient processes4
1)GAP Analysis6
Comparing the results in the first 2 years with the KPIs, we can find the following Gaps:6
E-Recharge percentage was far below targets6
Number of deployment terminals is too few.6
The percentage of active terminals is below expectations.6
2)The Theory of Swift and Even Flow:7
3)Quality and Conformance:7
1.Set the quality objectives of this particular operation (E-Recharging)8 2.Identify the Quality characteristics.8
3.Monitoring and Controlling.9
4.Identify the Quality gaps.9
Cause and Effect analysis:10
5.Improving and Consideration of Change (Quick Fixes):13

Introduction & Background:
Zain-KSA is the third mobile operator in the kingdom of Saudi Arabia which started its operations in Aug 2008 after almost 18 months of obtaining the license. Zain-KSA is a member of an international Telecom group “Zain formerly known as MTC” that owned 22 operators in the Middle East and Africa. The competitors in Saudi Arabia are 2 giant companies in the industry and they already reached 80% as penetration percentage in the Saudi Market. The dominant products of Zain in Saudi Market as a third entrant are the prepaid packages and accordingly, the prepaid recharge vouchers are considered as the 1st revenue stream for it.

Within the official launch of its services, Zain launched its recharging services with the traditional plastic scratch vouchers in four denominations (10, 20, 50 and 100 Saudi Riyal SAR). One of the strategic directions of Zain management was to launch the electronic recharge services (e-Top Up and e-vouchers) which will save money and give better visibility of the distribution network at the same time; however they couldn’t provide this service within the launch time due to a failure of the operational system and business model. Finally Zain was able to provide its e-Top Up and e-vouchers after 3 month of the commercial launch.

The e-recharge was planned to be 60% of total recharges in the 1st year and 80% in the 2nd year. The 1st year actual result was below 10% and the 2nd year was below 30%. Alarming Operations Processes:

1. Monitoring and follow-up:
These are a set of processes that should present the business cycle and operations of e-recharge. The only defined process out of this set was the order process “Retailer Airtime Upload”. From the hereunder process we can understand that financial side was the only important aspect, however many other monitoring and follow-up aspects were neglected i.e. minimum stock level monitoring, Retailers’ distribution process including routes and segmentation , etc (Zain.sa.intranet). The process where well defined and structured, which means that the operations team had the knowledge; however they did not invest this knowledge to cover the missing operations processes.

SN| Activity| Owner| Description|
1.     | Check the order against sales plan target| Zain Retailer Account Manager| Check the request based on the target and on the sales plan produced from the system reports.| 2.     | Forward the order to finance| Zain Retailer Account Manager| If the request that is based on the target and on the sales plan is approved, send the request to the Finance department.| 3.    | Issue order invoice| Finance| Receive the request from Zain Retailer Account Manager. Issue an order invoice for the request and send it to the Sales Support Centre (SSC).| 4.    | Check retail partner payment history and credit limit| Sales Support Centre (SSC)| Receive the order invoice from the Finance department. Ensure that the retail partner payment history and credit limit are acceptable. | 5.    | Reject retail...
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