Links Simulation: Section C - Firm 5

LINKS SIMULATION
SECTION C - FIRM 5
Ankit Chopra | Anshu Shroff | Deepak Verma | Hitesh Kakrani | Preeti Agarwal | Rushikesh
Decision areas
Governing principles
Service Design
Increase Customer satisfaction , Increase Employee

productivity
Service Operation
Reduce Employee turnover, Accommodate unfulfilled orders,

Reduce CSR cost/call
Marketing
Increase Market share, Decrease unfulfilled orders, demand

increase
Forecasting
To reduce forecasting costs

Inputs: unfilled orders, market spending, baseline forecast and
size and variability of demand in each region for each service
Information Technology
Increase customer and employee satisfaction
Operational KPIs
Firm 5 - KPIs
150
100
50
0
Fill Rate %
Forecasting Accuracy %
CSR Turnover %
CSR Cost/Call
Financial KPIs
15
10
5
0
-5
-10
-15
-20
Customer KPIs
35
30
25
20
15
10
5
0
-5
Net Income to Revenue %

Change In NetInc:Revenue %
Change in Market Share %

Customer Satisfaction %
QUARTER 4
Decision areas
Decisions taken
Rationale
Service Design
Service design change not permitted
Service
Operation
1. Hiring for region 1 & region 3 needs

to be increased
2. time allocation for 5-2 is increased
as compared to 5-1
1. Service 5-1 has 509 unfulfilled orders in East

region(3). Service 5-2 has 382 unfulfilled orders
in Central region (1)
Marketing
Service 1- Marketing spending

decreased by $20000, Positioning
unchanged 37
Service 2- Positioning changed to 17,
Marketing spend increased by $20000
1. 1. Service 1 - to be able to meet unfilled orders,

The spend allocated to advertising was reduced
2. Service 2 - To promote the new premium
positioning of Service 2. More emphasis on
advertising (PULL)
Forecasting
Baseline Trend forecast + 8-10% of

increased marketing expenditure +
unfilled orders
1. Based on sales trend for last 3 quarters

2. Market Spending was increased , assumed 8-10
% sales increase because of increased market
spending
3.Unfilled orders in quarter 3 were also taken in
account
Information
Technology
Telecom Support in Region 1 started

Industry Employee Satisfaction was
Region 1 because it wasnt the lowest or the highest

sales volume
Fill Rate %
101
1.5
100
1.0
99
0.5
Firm
0.0
Industry Best
Quarter 1
Quarter 2
Quarter 3
Quarter 4
Firm
98
97
Industry Best
96
-0.5
Industry Average
95
Industry Average
-1.0
Industry Worst
94
Industry Worst
-1.5
-2.0
93
92
91
Quarter 1
Quarter 2
Quarter 3
Quarter 4
QUARTER 5
Decision areas
Decisions taken
Rationale
Service Design
1. Configuration left unchanged for

Major account
2. Technical & Service skills training
increased by 1hour
3. SAS decreased by a day
4. Made Scheduling style to a 2 hour
window
1. To improve service quality for Household

accounts
2. To increase CSR productivity to compensate loss
of CSR capacity due to increased SAS
Service
Operation
1. Salary increased by 25$

2.Assuming that salary increase will
reduce turnover rates and no unfilled
order exist for Q4, hiring decision of 9
people who leave firm in any case,
every quarter.
3. Service Time allocation changed
1. To take care of turnover rates.

2. To take care of sales volume differences in
Central region and Eastern Region
Marketing
Service 1 Price of service decreased

to 140 , Marketing Spend increased by
120000
Service 2 Marketing spend increased
by 130000
Service 1 household customers were less

sensitive about price. With a decrease of price of 10
units gross margin decreased by 2% & expected
gain in market share is 4.3%
Service 2 Still focus on enhancing the position .
Marketing spend on advertising increased further
Forecasting
1. Moving weightage average

2. Accommodated any change in
market spending and price
Based on observation moving weighted average

was found to be better means of forecasting, any
specific variability of demand in each region was
Net Income To Revenue %

16.0
120
14.0
100
12.0
Firm
10.0
Industry Best
8.0
Industry Best
60
Industry Average
Industry Average
6.0
Industry Worst
4.0
40
Industry Worst
20
2.0
0.0
Quarter 1
Firm
80
Quarter 2
Quarter 3
Quarter 4
Quarter 1
Quarter 5
Quarter 2
Quarter 3
Quarter 4
Quarter 5
Fill Rate %
3.0
101
2.0
100
99
1.0
Firm
98
Firm
0.0
Industry Best
97
96
Industry Best
-1.0
Industry Average
95
Industry Average
-2.0
Industry Worst
94
93
Industry Worst
Quarter 1
-3.0
-4.0
Quarter 2
Quarter 3
Quarter 4
Quarter 5
92
91
Quarter 1
Quarter 2
Quarter 3
Quarter 4
Quarter 5
QUARTER 6
Decision areas
Decisions taken
Rationale
Service Design

both household & major accounts
1. Overall service quality & productivity were almost

unchanged from 4th quarter
Service
Operation
1. Salary increased by 25$ instead of

more hires
2.Service Time allocation changed
1. To keep turnover rates in control ~ 10%

2. to take care of sales volume differences in region
1 for service 5-1 & 5-2
Marketing
Service 1 Marketing spending

increased by 30000, No change in
promotional mix
Service 2 Marketing Spend remains
same
To maintain the market share
Forecasting

2. Accommodated change due to
increased marketing spending
Moving weightage average was a better fit

Any specific variability of demand in each region
was continuously monitored
Unfilled orders in quarter 5 were also taken in
account
Information
Technology
Same

20.0
120
15.0
100
10.0
5.0
0.0
Quarter 1
Quarter 2
Quarter 3
Quarter 4
Quarter 5
Quarter 6
Firm
80
Industry Best
60
Industry Average
40
Industry Worst
-5.0
Firm
Industry Best
Industry Average
Industry Worst
20
0
Quarter 1
-10.0
Quarter 2
Quarter 3
Quarter 4
Quarter 5
Quarter 6
Fill Rate %
3.0
102
100
2.0
98
Firm
1.0
Firm
96
0.0
Industry Best
94
Industry Best
-1.0
Industry Average
92
Industry Average
90
-2.0
Industry Worst
Quarter 1
-3.0
-4.0
Quarter 2
Quarter 3
Quarter 4
Quarter 5
Quarter 6
Industry Worst
88
86
84
Quarter 1
Quarter 2
Quarter 3
Quarter 4
Quarter 5
Quarter 6
QUARTER 7
Decision areas
Decisions taken
Rationale
Service Design

Major account
2. Technical & Service skills training
increased by 1hour
3. SAS decreased by a day
1. To improve service quality for Household

accounts
2. To increase CSR productivity to compensate loss
of CSR capacity due to increased SAS
Service
Operation

more hires
3. Service 5-3 kept inactive

1 for service 5-1 & 5-2 and unfulfilled orders
Marketing
No Change
Forecasting

Information
Technology
Same
Moving weighted average was a better fit

20.0
15.0
Firm
10.0
Industry Best
5.0
Industry Average
0.0
Quarter 2
Industry Worst
Quarter 3
Quarter 4
Quarter 5
Quarter 6
Quarter 7
-5.0
-10.0
100
90
80
70
60
50
40
30
20
10
0
Quarter 2
Firm
Industry Best
Industry Average
Industry Worst
Quarter 3
Quarter 4

102
3.0
100
Firm
1.0
Industry Best
0.0
Quarter 2
-1.0
-2.0
Quarter 3
Quarter 4
Quarter 5
Quarter 6
Quarter 7
Quarter 6
Quarter 7
Fill Rate %
4.0
2.0
Quarter 5
98
Firm
96
Industry Best
94
Industry Average
92
Industry Average
Industry Worst
90
Industry Worst
88
-3.0
86
-4.0
84
Quarter 2
Quarter 3
Quarter 4
Quarter 5
Quarter 6
Quarter 7
QUARTER 8 & 9
Decision areas
Decisions taken
Rationale
Service Design
1. Service call duration changed from

more than minimum to maximum for
household segment
Major account
3. Service 3 configured for household
segment
1. To improve service quality

2. 2. CSR service skills & technical training was
kept at previous level as productivity has fallen
down in previous quarter
Service
Operation

more hires
3. CSR allocation to region 3 for service
5-3 through hiring extra 30 CSRs and
time allocation

1 for service 5-1 & 5-2 and unfulfilled orders
3. In order to start service 5-3, Small demand is
expected as hardly any difference in service
configuration. Slight difference in positioning
exists though.
Marketing
No change
Forecasting

Information
Technology
Same
Moving weighted average was a better fit

20.0
15.0
Firm
10.0
Industry Best
5.0
Industry Average
0.0
Quarter 4
Quarter 5
Quarter 6
Quarter 7
Quarter 8
Quarter 9
Industry Worst
-5.0
100
90
80
70
60
50
40
30
20
10
0
Quarter 4
-10.0
Firm
Industry Best
Industry Average
Industry Worst
Quarter 5
Quarter 6
100
8.0
98
6.0
Firm
4.0
Industry Best
2.0
Industry Average
90
0.0
Industry Worst
88
-4.0
Quarter 9
102
10.0
Quarter 4
Quarter 8
Fill Rate %
-2.0
Quarter 7
Quarter 5
Quarter 6
Quarter 7
Quarter 8
Quarter 9
Firm
96
94
Industry Best
92
Industry Average
Industry Worst
86
84
Quarter 4
Quarter 5
Quarter 6
Quarter 7
Quarter 8
Quarter 9
Decrease in Market share & Customer Satisfaction - due

to region 3
Change in Customer Market share
45
10
40
in percentage
Change in customer satisfaction
35
30
25
in Percentage 20
2
0
Q4
-2
15
Q5
Q6
Q7
Q8
Q9
10
5
0
Q4
-4
R1
R2
R3
Q5
R1
Q6
R2
Q7
R3
Q8
Q9
WHAT WE COULD HAVE DONE BETTER

Decision
Service Operations : CSR hiring could have been increased to take care of service 5-3 in
further quarters. CSR allocation for regions 1 & 2 could have been done in Q 8 & 9 to take
care of new orders generated.
Service design of 5-3 could have been changed in terms of design, price and positioning
for region 3 only.
Price
Sensitivity of
Region 3
THANK YOU

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LINKS SIMULATION

Increase Customer satisfaction , Increase Employee

Reduce Employee turnover, Accommodate unfulfilled orders,

Increase Market share, Decrease unfulfilled orders, demand

To reduce forecasting costs

Increase customer and employee satisfaction

Net Income to Revenue %

Change in Market Share %

Service design change not permitted

1. Hiring for region 1 & region 3 needs

1. Service 5-1 has 509 unfulfilled orders in East

Service 1- Marketing spending

1. 1. Service 1 - to be able to meet unfilled orders,

Baseline Trend forecast + 8-10% of

1. Based on sales trend for last 3 quarters

Telecom Support in Region 1 started

Region 1 because it wasnt the lowest or the highest

Change in Market Share %

1. Configuration left unchanged for

1. To improve service quality for Household

1. Salary increased by 25$

1. To take care of turnover rates.

Service 1 Price of service decreased

Service 1 household customers were less

1. Moving weightage average

Based on observation moving weighted average

Net Income To Revenue %

Change in Market Share %

1. Configuration left unchanged for

1. Overall service quality & productivity were almost

1. Salary increased by 25$ instead of

1. To keep turnover rates in control ~ 10%

Service 1 Marketing spending

To maintain the market share

1. Moving weightage average

Moving weightage average was a better fit

Net Income To Revenue %

Change in Market Share %

1. Configuration left unchanged for

1. To improve service quality for Household

1. Salary increased by 15$ instead of

1. To keep turnover rates in control ~ 10%

1. Moving weightage average

Moving weighted average was a better fit

Net Income To Revenue %

Change in Market Share %

1. Service call duration changed from

1. To improve service quality

1. Salary increased by 25$ instead of

1. To keep turnover rates in control ~ 10%

1. Moving weightage average

Moving weighted average was a better fit

Net Income To Revenue %

Change in Market Share %

Decrease in Market share & Customer Satisfaction - due

Change in Customer Market share

Change in customer satisfaction

WHAT WE COULD HAVE DONE BETTER

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