Pareto Analysis
Prepared by: Yiannis Giannopoulos
Individual assignment
Operations management
NYU Skopje
Table of contents
Executive summary 2
Introduction of the company 3
Description of current situation 3
Possible solutions 5
Description of the proposed technique or planned change 6
Description of the new situation in the company 8
Justification of proposed solutions with cost based analyses 10
Implementation plan 12
Conclusion and recommendations 13
References 14
Pareto analysis for improving ISDN service
1. Executive Summary
The national telecom provider, MakTel, faces poor sales of ISDN service for several years. Although the service was introduced e years ago, utilization is less than 50%. Poor sales of the ISDN arise from quality of the service delivery.
Applying Pareto analysis about failures in the service delivery shows that the main problem is poor quality of network terminals and unqualified technicians (uneducated) for provisioning of the ISDN service.
By reducing the number of suppliers, replacement of all terminals from two vendors that count for 80% of all faults and establishing a commitment of long-term partnership with the best vendors the quality of the service will increase. The other improvement relies on the employees. Well educated, empowered and rewarded employees will deliver excellent quality.
Justification of proposed solution shows that in the period of one year the company will have benefit, which will be increased in the next years. An implementation plan is given. An education for technicians for provisioning and customer orientation will be organized in a period of a month. Meanwhile, the procurement department should conclude partnership programs with two vendors only, and operation teams should replace terminals from two vendors that count for 80% of total faults in terminals at the end of September.
Continuous measuring, reviewing and improvement of
Individual assignment
Operations management
NYU Skopje
Table of contents
Executive summary 2
Introduction of the company 3
Description of current situation 3
Possible solutions 5
Description of the proposed technique or planned change 6
Description of the new situation in the company 8
Justification of proposed solutions with cost based analyses 10
Implementation plan 12
Conclusion and recommendations 13
References 14
Pareto analysis for improving ISDN service
1. Executive Summary
The national telecom provider, MakTel, faces poor sales of ISDN service for several years. Although the service was introduced e years ago, utilization is less than 50%. Poor sales of the ISDN arise from quality of the service delivery.
Applying Pareto analysis about failures in the service delivery shows that the main problem is poor quality of network terminals and unqualified technicians (uneducated) for provisioning of the ISDN service.
By reducing the number of suppliers, replacement of all terminals from two vendors that count for 80% of all faults and establishing a commitment of long-term partnership with the best vendors the quality of the service will increase. The other improvement relies on the employees. Well educated, empowered and rewarded employees will deliver excellent quality.
Justification of proposed solution shows that in the period of one year the company will have benefit, which will be increased in the next years. An implementation plan is given. An education for technicians for provisioning and customer orientation will be organized in a period of a month. Meanwhile, the procurement department should conclude partnership programs with two vendors only, and operation teams should replace terminals from two vendors that count for 80% of total faults in terminals at the end of September.
Continuous measuring, reviewing and improvement of
References: 1. Berry Leonard, (1980), Service marketing is different. Business magazine May-June 1980, p.451 2. Committed to Quality (2003), [online], British Telecom, Available on http://www.bt.com/quality/together.html, [Accessed 9 May 2003] 3. Heskett James (1987), Lessons in the service sector. Harvard Business Review March-April 1987, p.119 4. Heather Clancy (1995), Resellers find new industry growing from seeds of ISDN, Computers Resellers News, 8/7/95 Issue 642, p.53 7. Kotler Philip, Gary Armstrong et al. (2002), Principles of Marketing. Third European edition, Prentice Hall 8. Kovac Ron (2000), ISDN: Still viable choice 11. Porter Michael (1998), Competitive Strategy. The Free Press, New York 12. Slack Nigel, Chambers et al (2001) Operations Management, Third Edition Prentice Hall, Harlow, England 13. Taguchi Genichi and Clausing Don, (1990), Robust Quality, January-February 1990, Harvard Business Review