sing communication expenses

8/8/2019 sing Communication Expenses

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OPTIMISATION OF

TELECOMMUNICATION

COSTS( PRI + VOIP)

PROJECT LEADER : MR. AJIT JAIN

AHMEDABAD BRANCH

SPONSOR : MR. MOHAN NAIR


2/22

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Optimizing tele-communication cost at all branchesCrack team leader: Mr. Ajit Jain; Sponsor : Mr. Mohan Nair

Initiative Description

Initiative Description

Reduce communication expense at the

branches by installing digital PRI, VOIPs

at branches

Phase 1: Demand assessment

List the present Communication and Data

Transmission needs at a sample branch

Map telecommunication bill between branches in "to"

to "from" format

Identify branches with highest telecom expenses

Phase 2: Create baseline cost structure Estimate the average cost of the various utilities

List the different schemes under which these utilities

are registered

Classify branches in different buckets based on

demand assessment and cost structure

Phase 3: Defining customized solutions

Review all possible options available e.g. BRI from

PRI, FCT, Voice Over IP

Find viable technical solutions with help of GIL

Analyze the options available and cost benefit todefine custom solutions for branches

Phase 4: Pilot at Ahmadabad branch

Phase 5: National rollout and review

Establish the savings based on the Pilot

Implement the solution at 10 other branches

Review for 3 mths, If successful, implement at all

locations

Activity Plan

Time line

15/05/09

30/05/09

15/06/09

30/06/09

15/09/09

15/12/09

: Current stage

Rationale

Rationale

Telecommunication costs can be significantly reduced by:

a. Moving to digital from analogue boxes

b. Installing digital PRIs

c. Hire lease lines for branches with high telecom costs

Savings estimates

Savings estimates

Total telecommunication cost from branches= ~90 lacs

Estimated share to other branches and HO = 40% => 36 lacs

Telecom bill from HO to all branches = 25 lacs

Total telecom bill = 61 lacs

Number of lease lines required to connect all branches = 40

Total cost of lease lines @60,000 per line = 24 lacs/annum

Total savings = 37 lacs

Team members

Team members

Mr. Mohan Nair, Mr. Cyril Lobo, Mr. Anil Joshi, Miss Khurshid F.

Laher.

Commercial Division/ L&D function Wave 1


3/22

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VARIOUS COMMUNICATION & DATA FACILITY AT

BRANCH

Mobile to Mobile

Landline

Fax

RF Connectivity Lease Line

ISDN Lines

Data Transmission

Video Conferencing Internal Communication

Communication between Branch Locations

Communication with HO & Branches

VOIP


4/22

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MAP TELECOMMUNICATION BILL

To prepare a format to capture the

information.

Identify landline communication from

(total bill amount) and expected percentage

of communication from Branch to HO.

Details of Landline.


5/22

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AREAS OF SAVINGS

Landline to Mobile

ISDN Rentals

ISDN Pulse Rate Video Conferencing

Warehouse to Office Landline Communication

Intra-Branch and HO Communication

ISDN Data Communication Cost

Showroom to Office Landline Communication Cost


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SAMPLE CASE OF EXPECTED SAVINGS -

AHMEDABAD BRANCH

S. No. DescriptionMode of

Saving

Expected

Saving p.m.

Installation

CostRemarks

1 Landline to Mobile Installing FCT Rs. 5000/- Rs. 8500/- Installed

2 ISDNBRI Card

Rs. 2400/-

Rs. 45000/- Installed

(6 Lines)

3 ISDN Data Cost

Reducing Pulse

Rate from Rs.

1.10 to Re. 0.65p.

Rs. 6000/-

4HO

CommunicationVOIP Rs. 20000/-

Pending

implementation

TOTAL Rs. 33400/-


7/22

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TIPS FOR REDUCING

TELECOMMUNICATION

EXPENSES WITH THE

AVAILABLE

INFRASTRUCTURE ATBRANCHES


8/22

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Approach to Optimise Tele-communication Costs at Branches

Branch

prioritization

Levers

identification

Target setting and

implementationTracking

Collect data on tele-

communication costs

across all branches

Analyze tele-communication coststo identify top branches

and prioritize

One location multiple

landlines to be covered

under single plan.

Converting landlines to PRI

lines.

Fixing of FCT.

Creating awareness of

various pulse rates.

Increase mobile-to-mobile

use with CUG.

Using PRI to BRI card for

ISDN and VC.

Using VOIP.

Create monthly work

plan for each branch

Implement identified

initiatives/levers ineach branch

Monthly reporting from

each identified branch

on the levers

Track the financial

benefit from the

implemented levers

Identify furtheropportunities for tele-communication cost

reduction

14 Apr, 09 01 May, 09 15 May, 09 15 June, 09 30 June, 09

Completed

Near completion

Started


9/22

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Average Tele-communication Costs of Branches

T C C AT

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A = nformation Awaited

nformation flow difficult

being highly technical


10/22

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Top branches account for almost 0 of total

Tele-Communication Costs

Tele-Communication Costs of BranchesTele-Communication Costs of Branches

d

e

d

f

d

g

d

h

d

i d d

Hyderab

ad

MumbaiRanchiGuwahatiBhuwane

shwar

LucknowJaipurNCRTrivandru

m

PatnaKochiRaipurBhopalChandigarh

PuneAhmedab

adDelhi Chennai Kolkatta Bangalor

e

Focus on these branches in first wave

.75 . . 9 . . 5 . . . 3 . . 3 . 9 . IA IA IA IA IA IA IA IA

Tel. Exps.

(Rs Lacs.)

Vishakha

patnami

IA = Information Awaited

Information flow difficult

being highly technical


11/22

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8 categories of levers identified to reduce Tele-Communication Costs

Not all levers will be applicable to all branches, specific levers to be identified for each branch

Commercial leversCommercial levers

Convert all lines into one rental minimum pulse rate withgroup billing

Advantage of total rental as Free Calling Value withminimum pulse rate.

Converting Landlines to PRI Lines Tata offers PRI line with 30 channels at 65 p. pulse rate. Convert to PRI where billing more than Rs. 15000/-. EPABX worth Rs. 3.5 L. offered free.

A

A2

A1

Fixing of FCT Check IP instrument availability. Install FCT card at multiple locations. Cover them under CUG Plan.

A3

Non commercial leversNon commercial levers

Creating awareness of various pulse rates Different usage attract different pulse rate. Matrix to be made and create awareness for

optimising use. Sample matrix given.

Converting ISDN lines to BRI lines Wherever PRI lines available, install PRI to BRI card.Advantage of pulse rate from Rs. 1.10 to Rs. 0.06p. Rental zero (included in PRI rent)* Showroom to office / Video Conferencing.

Increase mobile-to-mobile use with CUG Depending on Service provider, encourage different

businesses to go into one service provider. Maximise mobile-to-mobile use under CUG.

B2

B1

B

A4


12/22

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8 categories of levers identified to reduce Tele-Communication Costs

Not all levers will be applicable to all branches, specific levers to be identified for each branch

Encourage use of mobile for STD Mobile to mobile / mobile to landline, STD rate per

minute is Re. 1/-. STD outside circle Rs. 1.30. Encourage use of mobile for STD.

Installing VOIP Check for statutory compliance. Wherever IP instrument available install VOIP.Arrange for 64 KBPS extra band width. Communicate through VOIP for STD inter-branch /

HO communication.

A6

A5

Commercial levers

A


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8 levers to reduce Tele-Communication Costs

Convert all lines into one rental minimum pulse rate with group billing

Converting Landlines to PRI Lines

Fixing of FCT

Converting ISDN lines to BRI lines

2

3

4

1

TBC

TBC

TBC

TBC

Levers descriptionLevers description Savings estimateSavings estimate

Encourage use of mobile for STD

Installing VOIP

Creating awareness of various pulse rates

Increase mobile-to-mobile use with CUG

5

6

7

8 TBC

TBC

TBC

TBC


14/22


15/22

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Specific levers for each branch being identified currently

BranchesBranches

DELHI

CHENNAI

KOLKATTA

BANGALORE

AHMEDABAD

PUNE

CHANDIGARH

BHOPAL

RAIPUR

KOCHI

PATNA

TRIVANDRUM

One rentalOne rental

Landlines to

PRI Lines

Landlines to

PRI Lines

Fixing

FCT

Fixing

FCT

Use Mobile

for STD

Use Mobile

for STD

Installing

VOIP

Installing

VOIP

Awareness of

Pulse Rates

Awareness of

Pulse Rates

Mobiles under

CUG

Mobiles under

CUG

ISDN to

BRI Lines

ISDN to

BRI Lines

Illustrative For discussion only

Commercial Levers Non-Commercial Levers


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BHUWANESHWAR

GUWAHATI

RANCHI

MUMBAI

HYDERABAD

VISHAKAPATNAM

Specific levers for each branch being identified currently

BranchesBranches

NCR

JAIPUR

LUCKNOW

One rentalOne rental

Landlines to

PRI Lines

Landlines to

PRI Lines

Fixing

FCT

Fixing

FCT

Use Mobile

for STD

Use Mobile

for STD

Installing

VOIP

Installing

VOIP

Awareness of

Pulse Rates

Awareness of

Pulse Rates

Mobiles under

CUG

Mobiles under

CUG

ISDN to

BRI Lines

ISDN to

BRI Lines

Illustrative For discussion only

Commercial Levers Non-Commercial Levers


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HIGHLIGHTS OF MINUTES OF MEETING WITH

MR. CYRIL LOBO

1. Installation of FCT with the existing EPABX will reduce the cost forpeople dialling from Landline to Mobile, specially the back officepeople. In the long run, it may be also beneficial to provide mobiles toback office persons, who interact with either sales or warehouseteams regularly.

2. Wherever possible install PRI to BRI card, wherever ports areavailable, to do away with ISDN lines, specially used for connectivitybetween 2 locations in the same branch, like showrooms.

3. At length it was discussed on the benefits of VOIP for which logicalpartitioning will be required to be done at HO and which your team hasindicated is possible to do.

4. The infrastructure and hardware required to implement VOIP isavailable at Mumbai, but depending on the model of EPABX, hardwarewill have to be installed at branches for making it compatible.


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MR. CYRIL LOBO

5. With GIL a oint meeting will be held with your team, which Mr. Mohan Nair will co-

ordinate for the technical help required to spare the lease line bandwidth or go in for

additional band width.

. To start with in the coming week or two, two ma or branches like Delhi, Chennai and

one medium sized branch like Ahmedabad can be taken as a sample for installation of

VOIP.

All of us have ointly agreed that this can bring in good savings and reduction in

telecom expenses.

. With the calling rates from mobile-to-mobile coming down, it was also discussed that

negotiations with Tata should be done to reduce their pulse rate from Rs. 0. 5 p. to

atleast Rs. 0.30 p.

8. Reliance has launched their new product with high speed, Broadband Plus and we

should look into the possibility of getting a static IP address for suitability for data

communication between two locations within the same branch.


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MR. CYRIL LOBO

. To negotiate with Reliance people, a team at Mumbai / Ahmedabad, for possibility of

having the Broadband Plus connectivity at lower hardware cost and fixed charges for

unlimited use.

10. It was suggested that for Ahmedabad we can buy one or two sample hardware of

Broadband Plus and then experiment for various utilities.

11. It was also discussed that it is possible to connect VOIP if IP EPABX is not available

through digital phones, like warehouse to office, but whether we will be able to restrict

these calls getting diverted to conference in another service providers services is to be

reviewed.

The details prepared of various options to this cost by Ahmedabad branch should be

circulated and explained more in detail to all concerned.

12. If Tata agrees to pool the billing of showroom and office, and if office billing is more

than Rs. 50,000/-, then PRI connection at showroom can also be thought of.

13. The BRI port can also be used for video conferencing.


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LOGICAL PARTITIONING LEGAL

Circular from the Secretary of

Communication giving clearance of

logical partitioning

making VOIP legal.


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HIGHLY TECHNICAL

Branches unable to give correct information.

Suggestion :

1. Appoint technical person

(Person in Ahmedabad identified and ready to

work at 3 of Hardware cost, travel and stayextra)

2. E & E to co-ordinate.


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TECHNICAL TERMS

BRI - Basic Rate Interface ( 4 Kbps)

PRI - Primary Rate Interface ( 4x30+128 Kbps for

Digital)

VPN - Virtual Private Network

ISDN - Inter Server Digital Net

FCT - Fixed Cellular Terminal

VOIP - Voice Over IP

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