E1E1--E2 (EB)E2 (EB)

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PROJECT KUBERPROJECT KUBER

WELCOME

• This is a presentation for the E1-E2 Core Technology

Module for the Topic: Project Kuber.

• Eligibility: Those who have got the Up gradation to from

E1 to E2.

• This presentation is last updated on 21-3-2011.

• You can also visit the Digital library of BSNL to see this

topic.

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AGENDA

Background and Context

Overview of Project Kuber

Key Activities

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Team Formation for the Project

BACKGROUND AND CONTEXT

• Over the recent past, BSNL’s performance has come

under considerable pressure.

• BSNL has engaged the services of The Boston

Consulting Group (BCG) to help develop an overall

strategy and transformation plan for the organization.strategy and transformation plan for the organization.

• This transformation exercise, called Project SHIKHAR,

will cover development of an overall strategic agenda

across BSNL’s key businesses .

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BACKGROUND AND CONTEXT

BSNL’s key businesses include-

• Customer segmentation

• Sales channel management as well as

• Product management. • Product management.

• It will also look at appropriate strategic initiatives in

operations as well as in Human Resource Management

in order to implement the new strategy effectively.

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FIVE PILOT PROJECTS

Under Project Shikhar ,five pilot Projects have been

identified as high priority include:

Pilot 1: Fixed access growth – referred to as“Project

Udaan”

Pilot 2: PCO retention – referred to as “ Project Dosti”Pilot 2: PCO retention – referred to as “ Project Dosti”

Pilot 3: Mobility sales & distribution – referred to as “Project

Vijay”

Pilot 4: Revenue assurance – referred to as “Project Kuber”

Pilot 5: Cost efficiency – referred to as “Project Sanchay”

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PROJECT KUBER

• As part of Project Shikhar, BSNL had launched a project

on revenue assurance, named as“Kuber” based on the

inputs from BCG.

• A pilot of the project was launched in Pune SSA to detail • A pilot of the project was launched in Pune SSA to detail

out the design and learn from on the ground

implementation.

• Since the launch, the pilot has been very successful,

already resulting in achievement of ~30% of target.

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PROJECT KUBER- OVERVIEW

Revenue Assurance is the process of assessing

And

Preventing revenue leakages across the billing

value chain. value chain.

The billing value chain includes-

• The processes of measurement,

• Billing and

• Collection.

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PROJECT KUBER- OVERVIEW

Through a process of opportunity identification and

prioritization, two initiatives were identified for

immediate roll out:

• Collection of Bad Debt

• Leased Circuits Billing

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PROJECT KUBER- OVERVIEW

Collection of Bad Debt:-

As on 31st March 2008, BSNL had cumulative bad debts

(outstanding grater than 3 months old) of Rs. 4399 crores.

Of the Rs. 4399 crores, 1411 crores of bad debt is less than

2 years old. 2 years old.

The Collections initiative will focus on recovery of these bad

debts through a segmented approach, appointment of

external bad debt collection agencies and increasing

efficiency of internal BSNL team.

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PROJECT KUBER- OVERVIEW

In the pilot held in Pune, the following activities were

conducted:-

• Segmentation of bad debt on the basis of age, account

size and geography

• Assessment and appointment of collection agencies• Assessment and appointment of collection agencies

• Setting up internal teams and processes for support,

monitoring and review

• Creation of internal team for collection of large value

accounts

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PROJECT KUBER- KEY ACTIVITIES

The set of activities that need to be conducted as part of

the Collections Initiative.

Collections:-

• Data collection and analysis

• Collection of account wise data on bad debt for Basic • Collection of account wise data on bad debt for Basic

Services, CMTS and Leased circuits

• Segmentation of data based on age, geography and

account size

• Appointment of external collection agencies

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PROJECT KUBER- KEY ACTIVITIES

• Detailed assessment of collection agencies operating in

the SSA

• Appointment of agencies and signing of contracts

• Creation of internal team for collection of large value

outstanding

• Creation of support, monitoring and review processes

• Setting up support and monitoring team at each SSA

• Setting up system for analysis, links to CSMS etc.

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TEAM REQUIREMENT

Teams are required for Collections Initiative of

Project Kuber program.The activities will be will

be conducted by the teams at three levels:

• Head Office (HO),

• Circle Office (CO) and

• SSA.

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TEAM REQUIREMENT

At Circle Office (CO) and SSA:-

S.No Position

Required

Designation

Circle /

SSA

Full Time /

Part Time Role

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1 Circle Head - Collections

GM (Finance) /

DGM (Finance) Cicle Part Time

Overall head of project;

responsible for delivery

2

Project Manager Circle -

Collections DGM / CAO Cicle Full Time

Manage project at Circle level;

Ensure delivery of milestones

for all SSAs

3

Project Manager SSA -

Collections IFA SSA Part Time

Responsible for execution of

project at SSA level

TEAM REQUIREMENT

• The Project Manager at the Circle level may

appoint support staff as required for tracking the

activities at the SSA level.

• The Project Manager at the SSA level will

appoint and manage team for executing on-

ground activities.

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PROJECT KUBER- KEY ACTIVITIES

Leased Circuits Billing:-

Telephone and Data circuits are an important business for

BSNL.

In FY 2008, the revenues from this segment were 757 Cr.

Audits have shown significant leakages in the billing of

leased circuits.

The initiative on leased circuits would aim to identify the

circuits that are currently not getting billed and create a

national centralized database of leased circuits.

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LEASED CIRCUIT BILLING

In the pilot held in Pune, the following activities were

conducted:-

• Collection of data on leased circuits from all exchanges

in the SSA.

• Comparison of exchange data with data from billing and

commercial sections.

• Updation of database and issuance of retroactive bills

based on comparisons.

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LEASED CIRCUIT BILLING

The set of activities that need to be conducted as part of

the Leased Circuits Initiatives.

Leased Circuits Billing:-

• Data collection on leased circuits from all exchanges in • Data collection on leased circuits from all exchanges in

all SSAs

• To include all information relevant to the circuits

• Collection of data from billing database

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LEASED CIRCUIT INITIATIVES

• To include circuits that are due for billing.

• Comparison of data from exchanges and billing.

• Getting details on missing circuits from Commercial

section

• Details to include commissioning dates, billing authority

etc.

• Creation of retroactive bills

• To be done by the billing section.

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LEASED CIRCUIT INITIATIVES

Team required for the project:-

Teams are required at three levels for Leased Circuit Billing

Initiative of Project Kuber program.

The activities will be will be conducted at :-

The program will be conducted by teams at three levels:The program will be conducted by teams at three levels:

• Head Office (HO),

• Circle Office (CO) and

• SSA.

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TEAM REQUIREMNT

• At Circle Office and SSA:-

S.No. Position

Required

Designation

Circle /

SSA Role

1 Circle Head – Leased Circuits GM Circle Overall head of project; responsible for delivery

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1 Circle Head – Leased Circuits GM Circle Overall head of project; responsible for delivery

2

Project Manager Circle -

Leased Circuits DGM Circle

Manage project at Circle level; Ensure delivery

of milestones for all SSAs

3

Project Coordinator Circle -

Leased Circuits SDE/JTO Circle

Tracking of activities at SSA level, Assist

Project Manager(Circle)

4

Project Manager SSA -

Leased Circuits GM/DGM SSA

Responsible for execution of project at SSA

level

COLLECTION STRATEGY

Customer segment Typical Products Age of outstanding Collection methodology

Retail

(Small and medium ticket

size accounts)

Basic Services, CMTS

post-paid

3 - 6 months

6 - 12 months

12 – 24 or 36 month

Outsource to collection agencies, prioritizing on size

Appoint different agencies based on areas and age of

outstanding

In-house team for continuous monitoring of performance

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Enterprise Collection

strategy developed on the

basis of customer type &

age of outstanding:

(Large ticket size

accounts)

Basic Services, CMTS

post-paid, Telephone &

data circuits

3 – 36 months Create in-house team for follow up on accounts

Prioritize follow up based on size and age

Weekly monitoring of progress

COLLECTION STRATEGY

Customer segment Typical Products Age of

outstanding

Collection methodology

Govt. & Defense Basic Services,

Telephone & Data

circuits

All outstanding

greater than 3

months

Create in-house team for follow up on accounts

Weekly monitoring of progress

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PROCESS OF TRACKING

Four step process for tracking small and medium size

outstanding accounts:

• Identification of outstanding accounts and segmentation

• Selection of collection agencies and allocation of • Selection of collection agencies and allocation of

outstanding accounts

• Creation of internal teams and systems

• Monitoring and review

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PROCESS OF TRACKING

Process for Large Size outstanding and Govt. & Defense

outstanding accounts:

• Private accounts greater than Rs. 20000 in size, between 3

months and 3 years old

• Government and Defense accounts, of all sizes and age• Government and Defense accounts, of all sizes and age

• The accounts should be divided by the area within the SSA

• One CAO/AO per area should be appointed to follow up

and collect these accounts

• The CAO/AO shall report to the SSA IFA on a weekly basis

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PROJECT KUBER

For successful national roll out ,the initiative of

Project Kuber along with the set of activities have

to be carried out by us immediately.

Project Kuber is a major initiative that has theProject Kuber is a major initiative that has the

potential to recover significant amounts of money,

and is the first step in ensuring tighter controls in

the future.

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For internal circulation of BSNL only