Operations Management PDF

Ateneo de Manila University
John Gokongwei School of Management

Project Information Cataloging System (PICS)
Class Project Information and Cover Sheet
Name of Student/s: School Year: 2017-2018 Sem: 1
Aquino, Rayahnna Subject Code: POM105

De Vera, Jireh Course Name: Intermediate Production
Mangabat, Bryan Operations Management
Palacol, Karisse
Teacher: Dr. Roger Sy Siong Kiao
Pua Ng, Kacie
(Information below this line and in this
column for use by Faculty &/or PICS staff
only.)
Grade: Call Number:
Project Title: Functional Area:
Transmission Specialists Inc. - Advanced Operations Management
Cable Services, Inc. (TSI-ACSI): An
Operations Management Audit
Client: Comments:
Transmission Specialists Inc. - Advanced
Cable Services, Inc. (TSI-ACSI)
Industry Category:
Technical Services Outsourcing
Abstract (150 words or less)

Transmission Specialists, Inc. - Advanced Cable Services, Inc. (TSI-ACSI) the cable
segment of the TSI Group whose client is Sky Cable. Being a technical service provider, its
strategy is in its human resources—the technicians that deliver services to Sky Cable’s
subscribers. Today, TSI-ACSI faces the challenge of improving operations as it is only a
few months old, particularly in the scheduling and quality assurance of its technicians.
Author(s)’ Recommended Key Words

Corporate Strategic Review, CSR, Television, Broadcast, Cable, Technical Service
Provider
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Table of Contents
Introduction 1
The Company in Focus 1
The Industry 2
10 Operations Management Decisions 3

Job Design / Human Resources 3
Inventory / Material Requirement 4
Supply Chain Management 4
Service Design 5
Capacity 9
Maintenance 10
Quality Assurance 11
Location 14
Layout 15
Scheduling
Key Findings 167
Recommendations 18
Appendix 21
Appendix 1: Industry Overview 21
Appendix 2: Company Overview 25
Appendix 3: Company TSI-ACSI Team Allocation for each hub 27
Appendix 4: Inventory Request and Check-in (Main Warehouse) 29
Appendix 5: Inventory Request and Check-in (Sub-Warehouse) 30
Appendix 6: Inventory Request and Check-in (Field Service Technician Level) 31
Appendix 7: Inventory Check-out (Main Warehouse) 31
Appendix 8: Inventory Check-out (Sub Warehouse) 32
Appendix 9: Inventory Check-out (Field Service Technician Level) 32
Appendix 10: Inventory Return (From Subscribers to Field Service Technicians to

Sub-Warehouse) 33
Appendix 11: Inventory Return (From Sub-Warehouse to Main Warehouse to Sky

Cable) 34
Appendix 12: Inventory Transfer (from a Field Service Technician to Another Field
Service Technician) 35
Appendix 13. Field Service Technician Handling and Safekeeping of Equipment 35
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Appendix 14: Dispatch Workflow 35
Appendix 15: Workload Capacities per Hub 41
Appendix 16: Attribute Categories 48
Appendix 17: Area Coverage per Hub 49
Appendix 18: North Hub Layout 49
Appendix 19: South Hub Layout 51
Appendix 20: East Hub Layout 52
Appendix 21: Central Hub Layout 53
Appendix 22: Cost-Benefit Analysis with 50% decrease in the number of 53
violations
Appendix 23: Cost-Benefit Analysis with 25% decrease in the number of 55
violations
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Quantitative Methods and Information Technology Department
John Gokongwei School of Management
Transmission Specialists Inc. -

Advanced Cable Services, Inc. (TSI-
ACSI)
An Operations Management Audit
Submitted By:
Rayahnna Aquino
Jireh De Vera
Bryan Mangabat
Karisse Palacol
Kacie Pua Ng
Company and Industry Information
Introduction
Transmission Specialists, Inc. - Advanced Cable Services, Inc. (TSI-ACSI) is
a technical service provider. It is one of the businesses of TSI and provides its
services to Sky Cable’s subscribers, such as installation, repairs, and others. It must
be noted that such services are not core business for Sky Cable, which is why the
company outsources these services from TSI-ACSI in Metro Manila and other
technical service providers in other parts of the Philippines. The TSI-ACSI
technicians, called Field Service Technicians (FSTs) of TSI-ACSI influence
subscribers’ perception of Sky Cable since they deliver the services directly to
subscribers, representing Sky Cable and not TSI-ACSI.
The pressure on Sky Cable by the shift in media consumption from traditional
television to the internet in turn puts pressure on TSI-ACSI to deliver top quality
service in order for Sky Cable to make the most out of the next decade or so left of
its cable segment. Such top quality service, however, is currently blocked by TSI-
ACSI’s operational deficiencies, most notably its lack of service quality assurance
measures and its imprecise time-based scheduling system. These challenges are
especially important to address as customer satisfaction of Sky Cable subscribers
hinges on time-matching (i.e. FST’s on-time arrival at the correct preferred time of
the subscriber for service delivery), delivery of technical service (i.e. solving the
problem of the subscriber correctly), and non-technical customer service (i.e. how
the FSTs interact with the subscriber).
The Company in Focus

TSI-ACSI is one of the businesses of the Transmission Specialists, Inc. (TSI),
which is an offshoot of the ABS-CBN Broadcasting Corporation; TSI’s other business
caters to broadcast and remains to be called TSI. TSI started its operations last 2008
when ABS-CBN, a subsidiary of the Lopez Group of companies, decided that it is a
financially better choice to outsource the operations and maintenance services it
would need for its television and radio transmitters. ABS-CBN decided that it would
be easier if the technical side of its broadcasting business, or the company’s non-
organization function, be obtained from an external party instead. This was preferred
by ABS-CBN instead of managing their own technical services division which was
not a part of their core processes.
TSI is owned and founded by Ruben Jimenez, who was the former Senior
Vice President of the Technical Division of ABS-CBN. Since its creation, ABS-CBN
has remained to be TSI’s exclusive client.
TSI-ACSI, the focus of this paper, was created in 2016 in order to streamline
efforts in the cable industry. Its current exclusive client is Sky Cable, which is a
subsidiary of the Lopez Group of Companies like ABS-CBN is. Unlike TSI, TSI-ACSI
provides Sky Cable with services to its subscribers face-to-face such as installation
(of cable boxes and wires), maintenance, and repairs. TSI-ACSI services Sky Cable
in Metro Manila, with four hubs (from which FSTs are dispatched) in Marikina City,
Quezon City, Paranaque City, and Roosevelt with a total area coverage including:
Pasig, Marikina, Cainta, Antipolo, Taytay, Quezon City, Manila, Caloocan, Malabon,
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Navotas, Valenzuela, Makati, San Juan, Mandaluyong, Taguig, Muntinlupa,
Paranaque, and Las Pinas.
While TSI-ACSI is Sky Cable’s subcontractor for such services, TSI-ACSI’s
true clients are Sky Cable’s subscribers, as they are delivered the service directly—
while being TSI-ACSI employees, the technicians represent Sky Cable when they
deliver services to subscribers. If subscribers are unhappy with the technicians’
service, the dissatisfaction is associated not with TSI-ACSI per se but with Sky
Cable. Thus, it is especially important for TSI-ACSI to focus on raising customer
satisfaction for Sky Cable.
The Industry
The industry of technical service providers is not organized, thus there is a
lack of publicly available information with which the performance of TSI-ACSI can be
compared or with which the future of technical service providers can be forecasted.
At best, the television industry must be examined as TSI-ACSI’s current client, Sky
Cable, is a player in the industry.
In the long run, the television industry faces a great technological challenge:
People are gradually moving from traditional pay television to the internet. Today,
consumers demand to have their needs and wants instantly fulfilled, creating an ‘on-
demand’ economy. TV habits are shifting towards other screens (e.g. smartphones,
tablets, etc.) and to other times. Younger audiences, in particular, are continually
shifting from the live and scheduled-linear TV to over-the-top (OTT) media, which
delivers content online through the internet.1 Those who deliver through OTT include
YouTube, Netflix, and Hulu. 2
People want their media and entertainment delivered to them on demand;
they want it whenever they want it, on whatever device they want it on, whether they
be smartphones, laptops, or televisions. Traditional television bears the brunt of this
shift. Although it may survive in the short term, it faces the threat of facing into
obscurity in the long term.
Because of this threat, Sky Cable is pressured to shift efforts to its internet
segment —Sky Broadband—while making the most out of the decade or so left its
cable segment has. As mentioned, this in turn puts TSI-ACSI under pressure to
provide customer satisfaction to Sky Cable’s subscribers.
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On the other had, Gen Z viewers (under 18) skip OTT (over-the-top) and SVOD (subscription video on
demand) completely, and binge-watch Youtube videos instead.
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Also, audiences in the Asia-Pacific are increasingly watching online videos as spurred by on-demand
options. Emerging markets in Asia pacific have access to broadband TV and paid TV; however, this is largely
reserved for the urban elites, who only comprise a small portion of the population.
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Operations Audit
10 Operations Management Decisions
Job Design / Human Resources
TSI-ACSI has five types of employees of non-managerial employees:
1. Field Service Technician (FST)
FSTs come in pairs called “buddies.” As buddies, the FSTs travel to
subscribers’ addresses (using a van provided by the company) to deliver
services such as troubleshooting (i.e. fixing bad signal) and installation (i.e.
installation of cable box). See Service Design.
FSTs used to be assigned specific services to deliver. That is, there
would be FSTs assigned to installation, others assigned to troubleshooting,
and yet others assigned to other services—not all FSTs had the same skills.
However, in 2017, TSI-ACSI had turned its FSTs hybrid—any FST could now
deliver any service, allowing for more flexibility, which has positive
implications for scheduling. See Scheduling
2. Supervisors
Supervisors are assigned to the four hubs of TSI-ACSI in order to
manage the dispatch of FSTs. They also delegate service orders to FSTs and
make adjustments to the daily schedule based on the FST’s attendance,
subscriber addresses, etc.
3. Inventory Personnel
FSTs bring certain items along with them. Some are items for
subscribers (i.e. cable boxes and cables) and come from Sky Cable while
others are operational equipment (i.e. meters, ladders) and are bought by
TSI-ACSI from suppliers. Inventory personnel are in charge of managing
inventory of the items for subscribers. They coordinate with TSI-ACSI’s main
warehouse, which in turn coordinates with Sky Cable for the replenishment of
such inventories. See Inventory/Material Requirement
4. Security guard
Before FSTs leave the hubs, security guards check if FST’s carry the
right equipment using a tablet provided by TSI-ACSI. After a successful
check, the security guards let FSTs leave the hub premises.
5. Main Warehouse Inventory Personnel

These employees manage inventory at the main warehouse. They
collect inventory requirements of the hubs, coordinate with Sky Cable for
inventory replenishment, and allocate the available inventories at the main
warehouse to the four hubs.
3
The managerial positions in TSI-ACSI include the Technical Services
Department Head, Transmission Services Department Head, Human Resources
Department Head, and the Business and Support Group Department Head.
The following is the headcount of all employees of TSI-ACSI. Non-FST
employees include supervisors, inventory personnel, security guard, and main
warehouse inventory personnel.
Type Headcount
Managerial 4
Non-FST 39
FST 336
Total 379
Table 1. Headcount of TSI-ACSI employees
Inventory / Material Requirement

As mentioned, inventories to be owned by subscribers, such as cable boxes
and cables, come from Sky Cable. The services that involve these inventories
include Drop Servicing and New Installation. The needed inventory, however, comes
from Sky Cable; thus, TSI-ACSI does not pay for them in delivering them to
subscribers. The company faces shortages of such inventories, caused by delayed
deliveries from Sky Cable, which in turn experiences shortages due to their own
supplier’s delays in delivery.
Because TSI-ACSI cannot fully control the delays of Sky Cable, the company
tries to combat the shortages by forecasting using basic EOQ using the forecasted
numbers of srvices (e.g.Drop Servicing and New Installation) per day. Basic EOQ,
however, does not take shortages into account.
Supply Chain Management

Because TSI-ACSI is a service company, it does not have a supply chain per
se as a manufacturing company would. Instead, the supply chain for the
aforementioned subscriber-owned inventories supplied by Sky Cable can be looked
at. [ See Appendices 4 - 12]
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Main Sky Cable Main
warehouse delivers to Warehouse
of TSI-ACSI main distributes to
orders from warehouse the hubs
Figure 1. Inventory Supply Chain
The main warehouse collects inventory requirements from the four hubs. It
then coordinates with Sky Cable for replenishment and, after the deliveries have
been made, allocates the available inventories to the hubs. The presence of a main
warehouse controls hub-to-hub transfers, since Sky Cable is strict about the direct
transfer of inventories from one hub to another. The main warehouse accounts for all
inventories and serves as Sky Cable’s single coordinator in inventory tracking. If any
hub is in need of a number of inventories available at another hub, the hubs involved
the transaction must run the transfer by the main warehouse before the transfer can
be made.The inventory is then received by the hubs, stored in their own on-site
warehouses, and given to the FTEs.
Service Design
Services Offered. The services offered by TSI-ACSI are designed in
agreement with Sky Cable. Such services include:
1. Installation. TSI-ACSI sets up the necessary at-home equipment for the
subscriber, such as cable boxes and cables. The breakdown of the specific
installation jobs is as follows:
a. Cable television (CATV)
b. Broadband (BBAND)
c. Converged
d. Commercial Account
e. Direct-to-Home (DTH)
2. Troubleshooting. TSI-ACSI can fix subscribers’ problems (called fault orders)
on-call such as bad broadband or cable connection and Community Access
Television (CATV) faults.
a. Reconnection
b. Fault servicing CATV
c. Fault servicing Broadband
3. Others.
a. Special Service
b. Disconnection
c. Verification
d. Ceiling/Conduit Job
e. Additional outlet after 1st outlet
4. Maintenance. The company is responsible for regular maintenance of Sky
Cable plants to prevent malfunction. TSI-ACSI responds immediately to
system failure that occurs within the network, and quickly restores service.
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The design of these services is client-driven. That is, the services to be
carried out over the term of the contract are negotiated between both TSI-ACSI and
Sky Cable.
Pricing. Pricing for the services is on a work points basis, a decision driven
by the client as well. Here, TSI-ACSI’s FSTs must meet a certain number of work
points for the company to earn its revenue from Sky Cable, a mechanism employed
so that workers are more efficient. Twelve (12) work points must be reached by each
FST per day, and different completed services are worth a different number of
points, as seen in the table below.
Service Order Type Work Point
INSTALLATION CATV 3.00
INSTALLATION BBAND 3.00
INSTALLATION CONVERGED 4.00
INSTALLATION COMMERCIAL ACCOUNT 4.00
INSTALLATION DTH 3.00
RECONNECTION 2.50
FAULT SERVICING CATV 1.50
FAULT SERVICING BBAND 2.00
SPECIAL SERVICE 1.50
DISCONNECTION 1.00
VERIFICATION 1.00
CEILING/CONDUIT JOB 2.00
ADDITIONAL OUTLET AFTER 1ST OUTLET 1.00

Table 2. Work Point Equivalents per Service Order Type
Services that are not completed earn the FST .80 work points, but only if non-
completion is valid—that is, the FST arrived on time at the right address but the
subscriber to be serviced cancelled, the subscriber moved the delivery time, or TSI-
ACSI had to assign the FST to another address (i.e. to a VIP subscriber) or pull them
out.
The revenue per total work point interval are as follows:
Work Points Rate (VAT inclusive) Rate per point

20 & above 6,250.00 312.50
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19 & above 6,000.00 315.79
18 & above 5,625.00 312.50
17 & above 5,250.00 308.83
16 & above 5,250.00 328.13
15 & above 4,900.00 326.66
14 & above 4,900.00 350.00
13 & above 4,900.00 376.93
12 & above 4,900.00 408.34
11 & above 3,640.00 330.91
10 & above 3,640.00 364.00
9 & above 2,800.00 311.00
8 & above 2488.00 311.00
7 & above 2177.00 311.00
6 & above 1866.00 311.00
5 & above 1555.00 311.00
4 & above 1244 311.00
3 & above 933 311.00
2 & above 622 311.00
1 & above 311 311.00
Table 3. Revenue per total work point interval
TSI-ACSI’s top management has expressed that achieving the 12 work points
per FST is a challenge. However, as will be discussed under Capacity, Sky Cable’s
demand is more than enough for each FST to earn more than 12 work points.
Service delivery process. An overview of the service delivery is as follows:
Figure 2. Service Delivery

Sky Cable receives service orders from its subscribers and asks them their
preferred time of delivery, using AM (9AM-12NN) and PM (1PM-6PM) as intervals.
The service orders for a certain day are then forwarded to TSI-ACSI, which then
dispatches FSTs. The FSTs then deliver the service at the subscriber’s home; upon
dispatch, the FSTs are responsible for contacting the subscriber.
Dispatch process. Zoning in on the dispatch segment of the general service

delivery process, TSI-ACSI has procedures that FSTs must follow. The company is
able to assign its teams to their daily jobs through ETA Direct, which is the dispatch
system of Sky Cable. The system, along with the hub supervisors and other
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employees, constitute a huge part of the dispatch process. [See Appendix 14] Figure
3 is a flowchart of field service technician check-out process, including team check-
out to dispatch and team validation by supervisors.
Figure 2. Dispatch Workflow
At 5 PM on Day 0, Sky Cable transfers Day 1 service orders to TSI-ACSI’s

main bucket. Once completed by Sky Cable, the hub’s technical supervisors will then
manually arrange the job orders and distribute the load to each FST. It should be
noted that there is no standardized way for the supervisors to assign the job orders;
assignments are under the discretion of the supervisors. Up until 7PM of Day 1, the
supervisors are able to manually adjust the service order-to-FST assignments
depending on the number of FSTs present. Also, additional service orders can be
received from Sky Cable until 3PM of Day 1.
The FSTs are responsible for completing all ETA parameters (e.g. Activate
Route and Log-in/Log-out) and updating their job orders as ‘Completed’ once
finished. If the FSTs are not able to finish a job order, they update it as ‘Not Done’
which causes the job to return to TSI-ACSI’s main bucket. In addition, orders
received by the hub which the supervisors were not able to assign to the FSTs will
be returned to TSI-ACSI’s main bucket.
The process ends when the job orders are either tagged as ‘Complete’ or are
returned to the main bucket of TSI-ACSI.
Before being dispatched, the FST checks out using the e-ticket app on their
tablets. The e-ticket includes several details about the equipment they will be using
for their job orders; this is filled out by the FSTs using their assigned work tablets.
Once completed, the FST submits the e-ticket trip to the security guard on duty for
validation. Using his own tablet, the security guard then proceeds to cross-check the
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FST’s equipment with what is on their e-tickets. Once the security guard has
determined that the e-ticket trip process is complete, he approves the FST’s e-trip
ticket and dispatches the team, after which the checkout process ends.
For teams whose e-tickets were not approved by the security guard, the
security guard traces the reason of the delay. If the FST was not able to complete
the process due to incomplete data, they go through the e-trip ticket checkout once
again. On the other hand, If the FST determined that they were not able to complete
the process due to internet connection problems, failure to log-on, or the FST is a
new employee who is not listed in the Fleet Monitoring System (FMS), the FST
manually records all information on the security guard’s logbook. Once manually
completed, the FST submits the information to the logistics officer-field service
technician (LO-FST) to process the team’s ticket in the system.
The supervisor cross-checks the team member registered in the ETA Direct
and the Fleet Monitoring System (FMS) data. For teams who were manually
dispatched, the supervisors will coordinate with the respective technical support
team. After checking, the team validation process ends once the information
matches. If the information does not match, the supervisor edits the ETA Resource
information following the data found in the FMS.
For TSI-ACSI to finish services as committed to the subscriber, the supervisor
plans the deployment of each team from the four different hubs. Each team would
have at least one veteran and a tablet. The tablet would, then, show the tasks of
each team. After accomplishment of the service, the team would update the
supervisors through the tablet.
Capacity
The current measurement of workloads per day is based on the old job design
of FSTs, under which they are not hybrid. Workloads are thus computed as the
product of the number teams that can carry out a particular service i and the number
of service i per day; the sum of all of the products across all types of services is the
workload per day. The following table illustrates an example of the workload capacity
for the South Hub (sample workload capacities for other hubs may be seen in
Appendix 15):
SOUTH HUB Mon Tue Wed Thu Fri Sat Sun
Muntinlupa, Paranaque, Las Pinas
Broadband Faults 5 4 5 5 3 4 4 5
CATV Faults 5 5 3 3 4 5 5 5
Special Service 6 4 6 4 5 5 6 6
New Install -TELE 9 7 7 8 9 6 9 8
DTH
DTH 1 1 1 1 0 1 1 1
Daily Team
21 22 21 21 21 25 25
Capacity (ETA)
Expected Daily
202 214 196 198 208 238 244
Workloads
DAY-OFF 26 5 4 5 5 5 1 1
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Table 4. South Hub Workload Capacity
As mentioned, TSI-ACSI’s top management has expressed that there is

difficulty in achieving 12 work points or more. This may be due to either of two
things: 1) Sky Cable does not give TSI-ACSI enough service orders, or 2) there is
enough demand from Sky Cable, but FSTs are not maximized. Based on historical
data, however, it is concluded that the root of the difficulty is not a lack of Sky
Cable’s average daily demand. Based on historical data, on average, FSTs achieve
12.27 work points daily. The more compelling reason for the difficulty in achieving
more than 12 work points emerges to be a failure to maximize FSTs, especially since
historical data supports this. The figure below is the latest chart (of week 2 of
November 2017) that shows the number of FSTs that have achieved less than 12
work points, 12-16 work points, and greater than 16 work points. While 63% of FSTs
achieved 12 or more work points, 37% did not.
Figure 3. Tally of FSTs per work point interval of less than 12 work points, 12-16
work points, and greater than 16 work points
Maintenance
TSI-ACSI conducts their system monitoring of supplies and inventory through
the Material Utilization Report (MUR). Being done on a per hub basis, the MUR
tracks if the materials are insufficient for their future operations and the amount of
inventory the hub wants to order from the main warehouse. It should be noted that
each hub has their own minimum inventory requirement before it can be said that the
count is inadequate.
This report is accomplished by the warehouse custodians of each of the hubs.
Each hub should create a MUR once a week, particularly every Thursday. On the
other hand, the issuance of the hub’s order also happens every Thursday.
As aforementioned, TSI-ACSI’s operations is greatly affected by the amount
of inventory it receives from its client. Even if the custodians regularly submit the
needed MURs, the amount of inventory to be received by the hub is still dependent
on Sky Cable, and on TSI-ACSI’s main warehouse, who allocate the inventory. It
should be noted that most of the hubs already had delays in servicing its clients
given that the amount of inventory they received is less than the amount they
requested for. Since this delay is caused by their client, this is not taken against TSI-
ACSI.
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Quality Assurance
There is a need for better quality assurance, particularly in the follow-through

of TSI-ACSI to its FSTs. This indicates that better Quality Assurance (QA) measures
must be explored. In recommending better QA measures, we use the QA triangle,
which defines QA as having three functions: Defining Quality, Improving Quality,
Measuring Quality. In order to identify the problem of the company with regards to
the implementation of its current QA process, the said framework will be discussed in
the current context if TSI-ACSI’s QA approach.
Defining Quality
TSI-ACSI’s current definition of quality, does not reflect the company’s value
proposition -- to perform service that exceeds their client’s expectations. They define
the quality of their service to be merely “the standard of the service”, as evidenced
by the company’s checklist-type QA standard that was based off on Sky’s own.
Given this, the current approach of the company is focused on their FSTs only
delivering the bare minimum, and not directing them to exceed their customer’s
expectations. Thus, there is a great dissonance between their value proposition--
delivering beyond the expectations of Sky Cable’s subscribers--and how they define
their quality. They are focused on preventing violations rather than improving their
performance.
Measuring Quality
As aforementioned, TSI-ACSI measures the quality of their teams through a
checklist system. Basing off from Sky’s, this system is heavily focused on the
technical and procedural aspects of the FSTs performance. In addition, this implies
that TSI-ACSI is only concerned that their technicians meet the set standards,
overlooking the opportunities of how the technicians can improve the service they
deliver. This doesn’t necessarily provide insight to the QA Team as to how to prevent
their technicians from incurring violations.
It should be noted that TSI-ACSI added two items that are not part of the
original standards set by Sky -- Long Travel Duration (time it takes to get from one
subscriber to another), and Long Work Duration (time it takes to deliver the service).
According to TSI-ACSI, these two attributes had been added as for them to be able
to monitor the ‘efficiency’ of its teams. Yet given this, there seems to be no
consistency given that no time standards have been set by TSI-ACSI for each of the
services it provides. Because of this, the company is having a hard time to ensure
the maximization of their employees’ efficiency.
TSI-ACSI obtains quality data from two main sources: Internal QA Team, and
SKY Cable’s QA Team. It should be noted that TSI-ACSI does not receive any
regular feedback or comments from the subscribers that it serves. In addition, for
installation services done by TSI-ACSI, both the company and its client hold
independent random checkings on field to determine if the installation was properly
done.
Improving Quality
The current QA process that TSI-ACSI is implementing requires the team to
use an internal operating system and manually ‘tick off’ the boxes of the internal QA
checklist. Basically, the teams implement the QA process themselves, while the QA
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team just ensures that what the teams put in the system is consistent with what the
system displays. If violations are found, these are posted in QA Regular Monitoring
Sytem (QA RMS) by the QA Team. Once posted, the supervisors of the involved
teams are notified. It should be noted that there is no standard approach of following
through with the teams with regards to their violations. It is up to the discretion of the
supervisors on how they plan to correct the mistakes of their teams. Given that there
is no standard way of following through, there is not that much urgency present to
correct the violations.
It can be said that this additional QA job that is passed on to the supervisors,
is just one of the multiple jobs that they do daily. The many responsibilities of the
supervisors thus leads them to be overworked.
In incentivizing its FSTs, TSI-ACSI holds a year-end celebration where
awards are given to FSTs who serve the most number of subscribers. From this, it
can already be deduced that the company’s approach to service is solely
quantitative, instead of being both quantitative and qualitative.
Given this, it presents that the main issue of TSI-ACSI under the Quality
Assurance aspect is that the QA team is performing poorly which ultimately, affects
the quality of the service of the FSTs. This is evidenced by the number of FSTs who
have been declared as probationary for the past couple of months. Out of 336 FSTs,
around 138 of those are on probation.
TSI-ACSI’s QA Checklist
As aforementioned, there are no major differences between the QA checklist

that is being implemented by both TSI-ACSI and SKY Cable, aside from the Long
Duration category added by TSI-ACSI. The checklist is composed of the following
categories: Wrong Declaration, Unvisited Service Order, Non-Compliance with the
Technical Standards, Long Duration, and Fraud. For installation services, a
component specifically for that type of service is considered. Each category has
assigned attributes. [See Appendix 16]
It should be noted that the violations committed in any of these attributes and
categories, do not necessarily share the same weight. The QA team classifies these
attributes depending on the graveness and intention of the action committed. These
violations can be classified as a minor violation, major violation, or as a severe
violation. Corresponding violations for each attribute are not assigned given that the
violation type is dependent on the context of how the violation was incurred. These
cases are investigated by the internal QA Teams of both TSI-ACSI and SKY Cable.
Pareto Chart
Given this and the actual data of the internal QA team over the past seven (7)
months, the group decided to create a Pareto chart as to determine what attributes
and categories cause majority of the company’s violations.
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Figure 4. Pareto Chart for the Violations by the Company
From Figure 4, it can be determined that attributes that are the major drivers
are the following in order:
1. Non-Compliance with the technical standards: Incomplete/No
Checklist
2. Unvisited Service Order: Can not locate
3. Non-Compliance with the technical standards: No File
Attachment
4. Non-Compliance with the technical standards: Failed
Parameters
Fish Bone Method
Through the Pareto chart, the group was able to determine the main drivers of
the high occurrences of the FSTs violations. In order to deep-dive or gain more
insight as to what particular aspects cause the violations among the four determined
attributes, a root cause analysis through the use of the Fish Bone Method was used.
13
Figure 5. Fish Bone Analysis
After identifying that the major problem of TSI-ACSI is the rapid increase of
the violations of its FSTs, the group determined five major causes of the problem,
namely: Incomplete/No Checklist, Can not locate, No File Attachment, Failed
Parameters, and No Follow through. Besides from determining the possible causes
of the high instances of the main attributes (first four), the group also decided that it
would be best to consider the reasons of the supervisor’s lack of taking corrective
actions for their FSTs violations.
Summarizing all the reasons that were listed down, the main causes of the
high occurrences of violations can be attributed to the following: (1) Attitude of the
FSTs, (2) Training and Development Problem, and (3) External Factors. For the first
cause, it can be said that some FSTs might have committed the violation on purpose
because of personal reasons (e.g. laziness, conflict with the supervisor).
This aspect of the entire service process of the FSTs is not covered by the
current QA checklist process, and is only brought upon the attention of the
supervisors, or even QA team, if the attended subscriber makes a call himself about
a possible dissatisfaction with the service of the FSTs.
For a problem with the FSTs’ training and development, the current QA
process does not fully ensure that the FSTs are properly equipped with the right
amount of information about the services they are providing. Given that the
supervisors are the one responsible for following through with their teams and are
not required to follow any standard process to implement this, there is a great
possibility that the supervisors do not really take into consideration the gravity of
properly coaching or following through with their teams once called out. Furthermore,
the current QA process is very reactive in the sense that the involved parties will only
act if their client reprimands them for a violation or complaint. The very nature of the
process could have become more proactive if these issues, which are not purely
technical, are incorporated in a properly standardized and implemented training and
development approach.
Lastly, the causes of some of these violations can be attributed to external
factors that are out of the FSTs’ and company’s control. Examples of these factors
include the nature of the subscriber’s area, lack of time to service due to traffic,
wrong data obtained from SKY and even an error in the system itself.
Location
As mentioned, TSI-ACSI is divided into four different hubs in order to cover all
of Metro Manila [See Appendix 17]. The four hubs are located in Marikina City (East
Hub), Roosevelt Avenue (North Hub), Manila (Central Hub) and Sucat, Paranaque
City (South Hub). Below are the coverage areas of each hub:
14
East Hub North Hub
● Antipolo ● Caloocan
● Cainta ● Malabon
● Mandaluyong ● Manila
● Marikina ● Navotas
● Pasig ● Obando
● Pateros ● Quezon City
● Quezon City ● Valenzuela
● Taytay
Central Hub South Hub
● Makati ● Las Pinas

● Mandaluyong ● Makati
● Manila ● Muntinlupa
● Pasig ● Paranaque
● Pateros ● Pasay
● Quezon City ● Pateros
● San Juan ● Pasig
● Taguig
Table 5. Area Coverage per Hub
Layout
Though there are variations in the lot size, the four hubs of TSI-ACSI share a
similar layout consisting of parking space for FST vehicles (which comprises most of
the lot of each hub) and a satellite office [See Appendices 18-21]. The layout of the
central hub is seen below:
15
Figure 6. Central Hub Layout
The meeting and general working areas are crucial to the daily tasks of the
hub supervisors given that the areas enable them to establish proper alignment and
to manage the overall operations, respectively. As for the small room that serves as
the hub’s warehouse, the inventory personnel ensure that the inventory of their
client, which is used by their teams, is properly stored, well-maintained and
consistent with the inventory count. This is crucial for both the hub’s and the
company’s operations since TSI-ACSI’s inventory handling directly affects their
relationship with their client.
Based on observation, the current layouts of the east and central hubs are
quite problematic in terms of the efficiency of dispatch due to the construction within
the hubs. This, however, is only a temporary problem for the hubs since the final
layouts allow for a smoother outflow and inflow of vehicles to and from the hub.
Despite the central hub being the largest hub and having only one entrance/exit
gate, this is not a problem because the size of their gate allows for the movement of
2 vehicles at a time.
Scheduling
The company makes use of a software created using Oracle in the scheduling
of FSTs. As mentioned, the software is loaded with service orders for a certain day
by Sky Cable at 5PM of the day before. Supervisors check the loaded service orders
and make adjustments. Such adjustments are made because the software creates a
schedule based solely on time preferences by subscribers; the software disregards
the distance from one address to the next, which is an important factor in saving not
only time, but travel costs. If scheduling is optimized, not only will revenues be
maximized, but customer satisfaction will increase as well (i.e. on-time arrival and
service delivery of an FST).
The adjustments made to the schedule by the supervisors are based on a rule
of thumb, heavily reliant on their knowledge of the areas. Moreover, service orders
may be passed on from one hub to another based on convenience or on the amount
of load of a certain hub. After the schedule is adjusted, supervisors assign work
assignments to the FST buddies. Once the work assignments are finalized, the
different teams receive their respective assignments on their tablets. The teams also
request for a screenshot of their full list of work assignments, because the tablet only
displays one job order at a time. Job orders that have not been fulfilled by the end of
the day are carried over and given priority for the next day’s schedule.
Key Findings
The biggest threat to TSI-ACSI is that should it fail to bring in customer
satisfaction for their service delivery, they could be dropped by Sky Cable as a
technical service subcontractor. Exacerbating this threat are TSI-ACSI’s top current
operational problems: its poor maximization of FST efficiency to achieve 12 or more
16
work points per day and a lack of quality assurance measures to ensure that FSTs
are completing the services correctly on a technical level and are engaging with
customers properly. Below is a table that shows a summary of TSI-ACSI’s issues
based on the earlier audit of the ten operations management decisions, as well as
their priority scores based on a set of Balance Scorecard criteria.
Key Problem Areas Financial Perspectives Customer Perspective Internal Processes Learning and Growth TOTAL
Cost Increase in Customer Customer Productivity Internal Product / Employee

Reduction Sales Loyalty Satisfaction & Efficiency Management Process Impact
System Innovation
Scheduling does not 4 5 5 4 5 5 5 5 4.7

optimize revenue and
customer satisfaction
The QA team is performing 3 5 5 5 5 5 5 5 4.6
poorly, affecting the quality
of the service of the FSTs.
37% of FSTs still do not 4 5 4 4 5 5 5 4 4.5
achieve 12 or more work
points despite sufficient
demand from Sky Cable.
Continuous shortage of 4 5 3 3 4 5 3 2 3.9
inventories from Sky Cable.
Strictness of Sky Cable with 3 4 3 4 4 5 4 2 3.65
inventory transfers from hub
to hub.
Whether or not to do 3 3 3 3 4 3 3 3 3.15
preventive maintenance for
vehicles.
Table 6. Balanced Scorecard of TSI-ACSI’s Issues

The first and third most pressing issues are similar enough that they can be
combined. Thus, the most pressing operational issues TSI-ACSI faces are directly
involved with the growth of customer satisfaction and can be summarized as follows:
1) the current scheduling method does not maximize revenue and customer
satisfaction (by time-matching) per day given the work points system, 2) the lack of
proper implementation of quality assurance measures leads to a failure to improve
FST’s performance both technically and non-technically in view of maximizing
customer satisfaction.
Recommendations
In order to address the top two most pressing operational issues mentioned
under Key Findings, a three-part recommendation is proposed: a) improved
inventory forecast, b) a Vehicle Routing Problem (VRP) model to optimize the
scheduling of FSTs, and c) improved quality assurance process.
Inventory Forecast
17
The previous model doesn’t capture cases wherein SKY Cable can’t provide
them the necessary inventory, thus, a new model to account for these is needed.
The new model would be formed based on that presented in the article, Optimal
Replenishment Cycle in an EOQ Model with Defective Items by MO Jiang-tao, LU
Yue-li, LI Zhong-hui, LIANG Li. Instead of using the basic Economic Order Quantity
(EOQ) model, the company would adopt the model used in the article. The article’s
model takes into consideration cases wherein shortage of supply happens which
captures more the situation TSI is in. The company would use y* = 2DK/h⋅ 1/λ to get
the order quantity, where y* represents the optimal order quantity, D denotes the
demand rate, K is the ordering cost, h is the Holding Cost per Unit per Year and λ is
the shortage factor. In addition to that, in order for the company to get the optimal
reorder point, the company would use T*=2K/(hD)⋅(1−μ)2/λ wherein T* denotes the
reorder point, and μ represents the expected shortage.
New Scheduling Method

The VRP model is an MILP (mixed integer linear programming) that creates a
schedule based on distance and time, accommodating flexible time windows (i.e. an
FST is allowed to arrive early or leave late from an address, depending on a
subscriber’s preference).
New Quality Assurance Approach

TSI-ACSI should improve their quality assurance approach through a two-
phase plan. TSI-ACSI should redefine their definition for quality, then TSI-ACSI
should implement a new approach to measuring the quality of service their
technicians rendered, and improving quality in cases of poor quality service.
Redefine Quality
TSI-ACSI’s new definition for quality should reflect their value proposition—
going above and beyond customer’s expectations. Our proposed definition for quality
is: “The standard of the service done, and the standard of how the service is
delivered should exceed customer expectations.”
New approach to Quality Measurement

From a checklist system, TSI-ACSI should measure he quality of their service
through a rating system, using the same set of criteria. For the new system, a
calibration will be set to guide the quality assurance team when to rate the quality of
a service as high or low. A rating system would mean that TSI-ACSI is not only
18
checking whether their technicians have rendered the bare minimum, but also
checks whether their technicians have rendered a service beyond the protocols set
by Sky Cable, and what is expected from them.
New approach to Quality Improvement

TSI-ACSI should consider a ‘Training and Development’ (TD) unit under the
quality assurance (QA) team. An QA-TD officer will be assigned per hub, and the
QA-TD officers will be responsible for the corrective actions that should be taken by
the involved technicians, and the hub if necessary. The creation of the QA-TD unit
will relieve supervisors of the responsibility of taking corrective actions to improve the
skill of the technicians to provide better quality service. Supervisors will then be able
to focus on other responsibilities.
Cost-Benefit Analysis
A cost-benefit analysis was conducted in order to determine whether the
decision to implement the new approach for quality assurance is financially sound.
The following numbers based on historical data of TSI-ACSI
● Cost per minor violation = 750.00 pesos

● Cost per major violation = 12,500.00 pesos
● Average number of violations per month = 116
Assumptions have also been made for the cost-benefit analysis, namely:
● Salary per auditor = 25,000.00 pesos

● Decrease in number of violations = 50%
● New average number of violations = 70
Using the aforementioned numbers, the Cost-Benefit Analysis with 50% decrease in
the number of violations [See Appendix 22] shows that implementing the proposed
quality assurance approach is a better investment that maintaining the current QA
approach. Assumptions have been made more conservative to see whether
implementing the new approach will still remain the trump strategy, namely:
● Decrease in number of violations = 25%

● New average number of violations = 93
Even if the assumptions were more conservative, Cost-Benefit Analysis with

25% decrease in the number of violations [See Appendix 23] shows that
implementing the proposed quality assurance approach is still the trump strategy for
TSi-ACSI.
Further Suggestions for Sky
19
It has also been noted that both the quality standards of Sky Cable and TSI-
ACSI do not mention anything about interpersonal skills or soft skills of the
technician. TSI-ACSI can consult with Sky and advise the corporate to include
interpersonal skills in the quality standards, as interpersonal skills are part of the
service being rendered.
TSI-ACSI should also advise Sky Cable corporation to create a customer
satisfaction ration for their subscribers, since Sky Cable currently does not provide a
platform for their subscribers to provide feedback. The customer satisfaction ratings
will be process by the internal QA-TD team, and correctives actions will be taken as
necessary. The proposed customer feedback will positively pressure the field service
technicians to do better and provide better quality service.
20
Appendix
Appendix 1: Industry Overview
Television Industry Background
Television is a medium used to disseminate information using radio
frequencies. Television delivers content that is either news, entertainment, or
otherwise that uses moving pictures and sound3. The television content or
programming takes the form of channels such as Channel 2, The History Channel,
the Disney Channel. These channels are distributed to consumers in different ways:
terrestrial, cable, and satellite or DTH. In terrestrial or broadcast television, signal
(i.e. the shows, movies) is transmitted through radio waves from terrestrial
transmission facilities and received by antenna; this makes the distance of the
consumer from a transmitter an important factor. Terrestrial television is free TV and
is used to deliver content by broadcast networks such as ABS-CBN and GMA in the
Philippines; this means that anyone with a television and antenna can watch ABS-
CBN Channel 2 and GMA Channel 7 without having to pay the networks any
amount.
Cable television delivers content through cables, either coaxial or optic fibres
with the latter providing faster signal transmission. Satellite television feeds
consumers content directly from satellites orbiting Earth, which is why it is
considered direct-to-home (DTH); the signal is received by a satellite dish, which is a
parabolic-shaped disc set up outdoors. 4 Cable and satellite television, unlike
terrestrial television, are pay TV. Cable and satellite television operators distribute
content by cable networks such as, in the Philippine context, the TV5 and the Disney
Channel; consumers would need to subscribe to the services of cable or satellite
operators or providers and pay a fee to be able to watch these channels.
The signals that are transmitted in the terrestrial television and cable
television aforementioned can take two forms: analog or digital (satellite television is
already digital). Digital signal, to put it simply, provides much clearer pictures than
analog5. Analog, however, is easily susceptible to distance (i.e. a consumer with an
antenna lives too far away from the station broadcasting the signal) and weather (i.e.
rain), leaving viewers with poor quality images.
Digital, on the other hand, is binary. It is bound above by 1 and bound below
by 0; because of its finite range, it can deliver more crisp images and is not as
susceptible to distance as analog signals, precisely because the encoded binary
information can precisely match that of the images being delivered. Digital also
requires less bandwidth than analog, allowing networks to multicast—air content on
more than one channel.
Decades ago, analog had ruled the television industry. Several countries had
made the shift from analog to digital television because of the many benefits of the
latter such as the United States, Japan, the United Kingdom, and others. In April of
2011, the National Telecommunications Commission (NTC) of the Philippines had
3
"Television," Vault, http://www.vault.com/industries-professions/industries/television.aspx.
4
"The various methods of TV transmission," Tecnicontrol ,
http://www.tecnicontrol.pt/en/wiki/item.html?id =81-the-various-methods-of-tv-transmission.
5
21
set a deadline for networks to make a full shift from analog to Digital Terrestrial
Television (DTT) broadcasting by December of 20156. The shift would adopt the
Japanese ISDB-T standard for DTT, ideal because the Philippines, like Japan, is an
archipelago prone to natural calamities 7. Adopting the standard would allow
television viewers to have clearer and more high definition viewing experiences and
would be stable for information dissemination in times of calamity 8. Moreover, DTT
would still be free television, similar to the old terrestrial television service; DTT,
however would be much better quality and thus a great added benefit to television
viewers.
However, there has since been a delay in the migration, due to the challenges
that broadcast and cable networks faced in adjusting to the digital shift, and the new
deadline has been moved to 2023. The most prominent of these challenges is the
question of whether the Philippines was ready, as a good portion of viewers owned
television sets that were not equipped to handle digital signals.
Nonetheless, networks in the Philippines in both broadcast and for cable had
already begun the shift some half-decade ago. In 2014, the around 90% of the
households of the Philippines still use analog television sets.9 However, in a survey
conducted by Kantar Media released last 2017, 72% of the television sets in the
country are “digitally-enabled,” with only 28% of households using analog television,
showing a significant shift from analog to television.10 The broadcast duopoly are
also starting to offer digital services. ABS-CBN, for example, came out with the ABS-
CBN TV Plus service, which comes with a blackbox capable of converting digital
signals so that the viewer’s analog television set could receive the transmission.
GMA Network has also been working on their own digital service, although it is still in
development11.
These digital services would provide viewers with the networks’ own
channels; should viewers want to have cable channels, they would still need to buy
cable services. Cable providers have also moved into digital television with Cignal by
PLDT and Sky Direct by Sky Cable Corporation12.
Technical service providers such as TSI provide networks with technicians
and engineers that will monitor their transmission facilities. While the norm among
broadcast networks is to have an in-house technical service division, cable and
satellite networks outsource services from technical service providers; this is
understandably so, as cable and satellite networks have subscribers that pay for the
6
The Manila Times, "NTC sets ground for shift to digital TV," October 29, 2013,
http://www.manilatimes.net/ntc-sets-ground-for-shift-to-digital-tv/48911/.
7
http://www.gov-online.go.jp/pdf/hlj/20100901/20-21.pdf
8
Ena Luigi V. Magay-Goyanko, "Digital broadcasting: The future of Philippine television," Business
World: Suits the C-Suite, May 18, 2015, , http://www.sgv.ph/digital-broadcasting-the-future-of-philippine-
television -by-ena-luigi-v-magay-goyanko-may-18-2015/.
9
Babe Romuladez, "Analog TV sets soon to be obsolete," Philstar Global, December 23, 2014,
http://www.philstar.com/business/2014/12/23/1405622/analog-tv-sets-soon-be-obsolete.
10
"More Metro Manila viewers watch TV on Digital TV, Cable, and Satellite," LionhearTV, October 06,
2017, , http://www.lionheartv.net/2017/10/metro-manila-viewers-watch-tv-digital-tv-cable-satellite/.
11
Amojelar, Darwin G. "GMA Network spending P800m to roll out digital service." Manila Standard. May
23, 2017,http://manilastandard.net/business/corporate/237447/gma-network-spending-p800m-to-roll-out-digital-
service.html.
12
M.Y. Sonjay. "SkyCable Nears 1M Pay TV Subscribers as SkyDirect DTH Hits 112,000 Mark." Tech the
Truth, October 30, 2017, https://techthetruth.wordpress.com/2017/03/20/sky-cable-nears-1m-pay-tv-subscribers-
as-sky-direct-dth-hits-112000-mark/.
22
cable service. Outsourcing these services saves costs, which is especially important
for cable and satellite networks given the low ARPU.13
Changing Consumer Behavior

Today, consumers demand to have their needs and wants instantly fulfilled,
creating an ‘on-demand’ economy. Such an economy is revolutionizing the
commercial and consumer behavior. TV habits are shifting towards other screens
(e.g. smartphones, tablets, etc.) and to other times. Younger audiences, in particular,
are continually shifting from the live and scheduled-linear TV to over-the-top (OTT)
media, which delivers content online through the internet. 14 Those who deliver
through OTT include YouTube, Netflix, and Hulu. 15 OTT can be broken down into
three revenue models: subscription-based services (SVOD), free and ad-supported
services (AVOD), and transactional services (TVOD).16
It is also important to note that consumers are increasingly becoming
platform-agnostic with only content selection, cost, and convenience in their
minds.17Particularly, in the Philippines, subscribers of cable television exhibit
preference for low subscription rates among others.18
Another key behavior observed in consumers is their pursuit of a platform
where they can access and automatically synchronise their content between multiple
device types. This leads one of the main directions in technological development in
consumer electronics, which is multiscreen content through the integration of mobile
and in-home content. Additionally, consumers gain greater utility from their
smartphones, for pay-as-you-go and phone-only purchases are dominant across
emerging markets.19
The Rise of Telecom

The rise of on-the-go streaming and increase in smart devices (smartphones,
tablets, etc. ) also leads to the rise of internet usage. In the Philippines, specifically,
there is a surge in ICT demand; thus, presenting a great opportunity for telephone
companies in the country especially in terms of providing internet access. The
currently available internet speed stand highly in contrast with such a high rate of
usage given this rise of technologies being increasingly dependent on internet
access. This rise in demand for the internet leads to a battle between the duopoly of
Smart and Globe in terms of offering faster and more readily available internet
access to its consumers. While Smart has faster LTE (4G) speed, Globe's LTE
13
ADI Media Pvt LTd “Stable Communications Infrastructure Enables Growth”, Telecom & Networking
Communications Today.
14
On the other had, Gen Z viewers (under 18) skip OTT (over-the-top) and SVOD (subscription video on
demand) completely, and binge-watch Youtube videos instead.
15
Also, audiences in the Asia-Pacific are increasingly watching online videos as spurred by on-demand
options. Emerging markets in Asia pacific have access to broadband TV and paid TV; however, this is largely
reserved for the urban elites, who only comprise a small portion of the population.
16
Patel, S. (2015). What is OTT, or Over-the-Top?. [online] Digiday. Available at:
https://digiday.com/media/what-is-over-the-top-ott/ [Accessed 10 Nov. 2017].
17
"Ooyala, State of the Broadcast Industry 2017." http://go.ooyala.com/rs/447-EQK-225/images/ Ooyala-
State-Of-The-Broadcast-Industry-2017.pdf, 2017.
18
Marasigan, Lorenz. "Dream TV sees entry of Sky Cable into DTH market a ‘major’ setback." Business
Mirror, July 5, 2015. https://businessmirror.com.ph/dream-tv-sees-entry-of-skycable-into-dth-market-a-major-
set back/.
19
We can see how TSI group’s clients are addressing this changing consumer behavior through the service
bundles they provide to their providers. Case in point, Sky Cable provides its clients with the ability to choose
bundles that best fit their TV and internet subscription needs.
23
connections are more readily available. In addition, the government has also
undertaken steps to address this increasing demand in internet connectivity, which
include the TV White Space Technologies and the Philippines Competition Act 20
Traditional Television on the Edge

While the changes in consumer demand for internet has sparked promise in
the growth of the telecommunications industry, such changes bring with them the
decline in television.
Although the television appliance has been developed to allow internet access
so that consumers can stream their desired internet content, the device is less
convenient and more expensive than smaller and more cost-efficient digital devices
such as smartphones. Millenials and generation Z kids, especially, prefer to spend
their time on these smaller devices and are likely to never watch traditional television
at all.
This movement from watching traditional television to streaming on
smartphones and laptops has pushed broadcast and cable networks to move into
OTT and modify their revenue models. They now offer their channels through mobile
or computer applications, such as ABS-CBN’s iWant TV. Making their channels
available through the internet has allowed local broadcast networks to tap
consumers abroad.
Moving to the internet has made it all the more attractive for broadcast and
cable networks to develop a business in or partner with an internet service. An
example is ABS-CBN’s The Filipino Channel, which is available in DTH and online.
Not only are broadcast networks starting to adapt to changing consumer
behavior, but they are also redesigning their services to provide a personalized
experience for their viewers. Channel providers serve tailor-fit TV content to a user
that suits their own personal taste. Advertisements and commercials are
personalized as well, fit to the interests of the viewer. To provide a curated
experience to their users, media services are increasingly relying on customer data.
Channel providers are investing on data mining and data analytics to be better
familiar with their viewers.
20
Penalosa, Rodolfo R. The Philippines Telecom Status & Situation, http://iiee.org.ph/wp-content/uploads/
2015/12/FR4_IIEE-_The-Philippines-Telecom-Situation.pdf.
24
Appendix 2: Company Overview
Company Background
Transmission Specialists, Inc. (TSI) entered as an offshoot of ABS-CBN
Broadcasting Corporation, a subsidiary of the Lopez Group of companies. Initially a
division within ABS-CBN, TSI Group started its operations last 2008 when ABS-CBN
decided that it would be a financially better choice to outsource the operations and
maintenance services needed for its transmitters, especially since these are not part
of their core business.
Since separation from ABS-CBN, TSI has been owned by Ruben Jimenez
who was the Senior Vice President of the Technical Division of ABS-CBN
Broadcasting. TSI’s first employees had also come from ABS-CBN, and the
broadcasting firm gave laid-off workers the option to work for TSI. The firm was set
up to be a contractor for technical services.
“TSI is the first in the Philippines to provide independent and

professional technical operations and maintenance services to
broadcast networks.”
-Danny De Guzman, Human Resources Head
The company envisions itself to be “the best experts in RF [Radio Frequency]

in the Philippines and in the Region.” Their mission is “to ensure broadcast
transmission based on agreed standards; to provide consultancy services on
broadcast/[radio frequency] transmission; [and] to effect expansion plans.” Aside
from these vision and mission statements, the company also has dream statements
and pillars.
From 2008 to 2012, TSI had only been serving terrestrial or broadcast
television, with its exclusive client being ABS-CBN. TSI had been monitoring and
repairing ABS-CBN’s radio transmitters nationwide. In 2012, Sky Cable Corporation
(also a Lopez Group subsidiary) had availed of the TSI’s services for its cable
business, Sky Cable, this time focusing on direct-to-consumer services such as
cable box installation, repair, and disconnection. In March of 2017, TSI had decided
to create a division dedicated to the cable business and named it TSI-ACSI
(Advanced Cable Services, Inc.); its broadcast business would remain to be named
TSI and the parent company would be called TSI Group. Contract renewals between
TSI and ABS-CBN occur every two years, while contract renewals between TSI-
ACSI and Sky Cable occur every year.
Business Model, Objectives and Strategies

As mentioned, the TSI Group is a technical service contractor. It leverages
itself on its strong training for technicians and engineers in transmission technology
knowledge and skills. This training is designed by the company’s training group,
incorporating knowledge and skills gained in seminars abroad that tackle trends and
best practices in transmission.
Its current customers segments are broadcast and cable networks that rely
heavily on transmission technology services but do not regard these as core
businesses. Such services include monitoring and repairs of transmission facilities
for the broadcast business; installations, repairs, and disconnections of cable boxes
25
of subscribers for the cable business. The TSI Group also provides project
management services in the set-up of transmission facilities nationwide. Overall, the
services could be collapsed into one header: efficient network operations and
upkeep.
In addition to strong human resources, the TSI Group also leverages its
services with its proprietary operational technology such as the Network Monitoring
System (NetMon) that has two functions. Another piece of proprietary technology is
their TSI Cables Operation Monitoring System.21 It is a system that monitors the
status of the plants of Sky in case of repair.
The TSI Group’s revenue model differs per business. Its TSI business earns
revenue through a cost-plus system; that is, ABS-CBN would pay TSI in an amount
equal to the costs incurred in the provision of services to ABS-CBN plus a certain
margin. The margin would have to be agreed upon by both TSI and ABS-CBN before
contract signing. This leads to the company’s stable positive net income as seen in
the audited financial statements. TSI-ACSI on the other hand, shifted to a work
points system from a cost-plus system, which depends on the productivity of the field
technicians. For TSI-ACSI to get paid, their employees need to earn a particular
number of work points, which are assigned to the different services carried out by
TSI-ACSI’s technicians. TSI-ACSI and Sky Cable agree upon the sum of work points
to be met prior to contract signing.
The company’s currently identified goal is to strengthen its TSI-ACSI
business. It aims to achieve this through partnerships for systems integration with
equipment suppliers integration with suppliers to obtain less costly equipment,
systems improvement through benchmarking to deliver higher quality services, and
development of employees in both technical and social skills.
The TSI Group has also considered moving into technical service provision for
telecommunications, although there have been no definite plans made for this yet.
21
Created by its IT department.
26
Appendix 3: Company TSI-ACSI Team Allocation
for each hub
Total
Teams
NORTH HUB 47 Mon Tue Wed Thu Fri Sat Sun
Quezon City (District 1)
Manila
CATV Faults 7 5 7 6 4 6 7 7
Caloocan, Malabon, Navotas, Valenzuela (PCC)
CATV Faults 8 5 7 7 5 8 8 8
DTH
DTH 1 0 1 1 1 1 1 1
Destiny Plant
Destiny Plant 2 2 2 2 2 2 2 2
Daily Team Capacity (ETA) 36 39 40 36 40 47 44

Expected Daily Workloads 432 460 472 424 472 556 520
DAY-OFF 47 11 8 7 11 7 0 3
Total
Teams
EAST HUB 26 Mon Tue Wed Thu Fri Sat Sun
Marikina
Pasig
CATV Faults 6 5 5 5 4 5 6 6
Cainta, Antipolo, Taytay (PCC)
CATV Faults 2 2 1 2 2 1 2 2
DTH
DTH 1 1 1 1 1 0 1 1
Destiny Plant

DAY-OFF 26 5 6 3 7 4 0 1
27
.
Total
Teams
CENTRAL HUB 50 Mon Tue Wed Thu Fri Sat Sun
Makati 1
CATV Faults 2 2 1 2 1 2 2 2
Makati 2
CATV Faults 1 1 1 1 1 0 1 1
Makati 3
CATV Faults 2 1 2 1 2 2 2 2
San Juan
CATV Faults 3 2 1 3 3 3 3 3
Mandaluyong
CATV Faults 1 1 1 1 0 1 1 1
Taguig
CATV Faults 2 1 2 2 2 1 2 2
DCI
DCI 2 2 2 1 1 2 2 2
Others
Special Project / Fiber 7 6 7 4 6 5 7 7
Daily Team w (ETA) 37 40 41 41 41 50 50

DAY-OFF 50 13 10 9 9 9 0 0
28
Total
Teams
SOUTH HUB 26 Mon Tue Wed Thu Fri Sat Sun
CATV Faults 5 5 3 3 4 5 5 5
DTH
DTH 1 1 1 1 0 1 1 1
Destiny Plant

DAY-OFF 26 5 4 5 5 5 1 1
GRAND TOTAL: ETA DAILY

115 121 125 117 124 148 144
TEAM CAPACITY
GRAND TOTAL EXPECTED
1262 1320 1344 1268 1370 1614 1578
WORKLOADS (ETA)
GRAND TOTAL: DESTINY
8 9 9 9 10 10 9
DAILY TEAM CAPACITY
96 108 108 108 120 120 108
WORKLOADS (Destiny)
GRAND TOTAL: DAY-OFF 149 34 28 24 32 25 1 5
29
Appendix 4. Inventory Request and Check-in (Main Warehouse)
Appendix 5. Inventory Request and Check-in (Sub-Warehouse)
30
Appendix 6. Inventory Request and Check-in (Field Service Technician Level)
Appendix 7. Inventory Check-out (Main Warehouse)
31
Appendix 8. Inventory Check-out (Sub Warehouse)
Appendix 9. Inventory Check-out (Field Service Technician Level)
32
Appendix 10. Inventory Return (From Subscribers to Field Service Technicians
to Sub-Warehouse)
33
Appendix 11. Inventory Return (From Sub-Warehouse to Main Warehouse to
Sky Cable)
34
Appendix 12. Inventory Transfer (from a Field Service Technician to Another
Field Service Technician)
Appendix 13. Field Service Technician Handling and Safekeeping of

Equipment
35
Appendix 14: Dispatch Workflow
ETA Direct - Dispatch Workflow
Objective
The objective of the operations review for the ETA Direct - dispatch workflow
is to comply with the standard dispatch procedure of Sky Cable and to detect and
rectify discrepancies in ETA update and tagging.
Scope
The scope of the operations review includes the following:
1. Headquarters identifies job orders intended for dispatch
2. Headquarters tags job orders to teams for dispatch and monitoring of
memo text to verify if Sky Cable has special instructions for dispatch
3. Regular review and frequent monitoring of all dispatch to ensure on time
servicing
Definition of Terms
Herewith are the definition of terms:
1. ETA Direct – it is the dispatch system of Sky Cable.
2. FST – Field Service Technician
3. Headquarters – area field office
Procedures Involved
PROCEDURE POINT PERSON DETAILS

Dispatch In ETA, Sky Cable will transfer job orders
‘Fault and for dispatch the following day to Company
Sky DFG/IFG
Service’ TSI-ACSI’s main bucket. This will start at
Orders 5pm of Day 0.
Identify the job On the same day, Technical Supervisor will
orders from pick-up their respective job orders from
ETA at Area/HQ Supervisors ETA main bucket to prepare the dispatch at
Company TSI- 8pm onwards. This is to assign the load
ACSI’s bucket per team for the next day service.
Once transferred to HQ bucket, Tech.
Validate job
Supervisor reviews the loads to be
orders
Area/HQ Supervisors assigned to FST teams. As much as
intended for
possible strategize to accomplish the load
area dispatch
efficiently.
Initial tagging Technical Sups, initially tag the job orders
of job orders based on the number of expected allocated
Area/HQ Supervisors
to allocated teams per Headquarters. (Cut-off is 8pm of
teams Day 0).
Technical Sups finalizes the tagging of job
Final tagging orders based on the number of actual team
of job orders present for the day by 7am of Day 1.
Area/HQ Supervisors
to allocated Tagging of dispatch must be finalized and
teams completed by 12 noon. Additional job
orders will be accommodated until 3pm
36
through ETA.
Are all job Supervisors check if all job orders in the

orders Area/HQ Supervisors basket are tagged.
tagged?
Once all job orders are determined to be
Receive job Field Service
tagged, the FST views on his table the first
orders Technician
job order he needs to accomplish.
FST checks job orders after every
accomplishment and shall be responsible
in completing all ETA parameters like:
Monitor ETA
a. Activate route
Dispatch and
Field Service b. Log-in/Log-out or Time start/Time
proceed to job
Technician end
orders as
c. Closure notes entries about status
scheduled
of service
d. Shared geographical location
e. Get geographical location
Is the job FST determines the status of his assigned
Field Service
order job order, whether it is complete or not.
Technician
complete?
Once the job order is determined to be
Update ETA
Field Service complete, the FST updates the status of
as
Technician the job order as ‘Completed’ on his tablet,
‘Completed’
and the process ends.
Review If not all job orders are tagged, the tech
Tech
unattended admin escalates unattended (untagged) job
Admin/Supervisor
job orders orders to supervisor for review.
Supervisor shall handle immediately all
unattended job orders with coordination to
tech admin for final dispatch to team.
Supervisor mat transfer/move job orders to
Company TSI-ACSI return bucket due to
the following reasons:
a. No Admin on weekend & holiday
Dispatch
Tech b. Affected by plant trouble
remaining
Admin/Supervisor c. Visited many times
load
d. Unable to locate address many
times
e. Correct address with unknown
subscribers many times
f. No requirements during install
Once the remaining load are either
dispatched or returned, the process ends.
Once the job order is determined to be
incomplete, the FST updates the status of
Update ETA Field Service
the job order as ‘Not Done’ on his tablet.
as ‘Not Done’ Technician
The job order is returned to the Company
TSI-ACSI's main bucket.
37
Field Service Technician Check-out Process
Objective
The objective of the operations review for the Field Service Technician Check-
Out Process is to establish discrepancies between ETA and FMS, and be able to
correct these discrepancies.
Scope
The scope of the operations review includes the following:
1. Field service technicians check-out through the e-ticket trip process
2. Security guard on duty checks the completeness of check-out details
3. Field service technicians are dispatched
4. Team validation by the supervisors
Definition of Terms
Herewith are the definition of terms:
1. ETA Direct – it is the dispatch system of Sky Cable.
2. FST – Field Service Technician
3. Headquarters – Area Field Office
Procedures Involved
Team Check-out to Dispatch
Before being dispatched, the FST checks-
Check-out
out using the e-ticket applications on their
using E-trip
Field Service tablets. They indicate various details, such
ticket
Technician as field assignment, current status of their
application on
vehicles, and equipment and tools they
their tablets
currently have.
E-trip ticket Field Service The field service technician underoges the
process Technician e-trip ticker process via their tablets.
Field Service The FST determines whether they were
Done?
Technician able to complete the e-trip ticket process.
Submit e-trip Once the FST determines the e-ticket trip
ticket to Field Service process is complete, the FST submits the
security guard Technician e-ticket trip to the security guard on duty for
on duty validation.
Check and The security guard on duty verifies the
validate details the FST has input on the e-trip
details on ticket by cross-checking the details stated
Security Guard
vehicles, in the e-trip ticket.
tools, and
equipment
E-trip ticket The security guard undergoes the e-trip
Security Guard
process ticket process via their tablets.
Is the process The security guard determines whether the
Security Guard
complete? e-ticket trip process is complete.
Once the security guard has determined
Approve e-trip that the e-ticket trip process is complete,
Security Guard
ticket the security guard approves the FST’s e-
trip ticket and dispatches the team. The
38
process ends once the FST is dispatched.
After approving the e-trip ticket, the

Dispatch team Security Guard security guard dispatches the team, and
the check-out process ends.
If the FST determined that they were not
able to complete the e-trip ticket process,
Reason for he then determines the reason for why they
Field Service
not being were not able to complete the process. If
Technician
done? they were not able to complete the process
due to incomplete data, they go through
the e-trip ticket process again.
If the FST determined that they were not
Record able to complete the process due to
manually of internet connection problems, failure to log-
Field Service
information on on, or the FST is a new employee who is
Technician
Guard’s not listed in FMS, the FST manually
logbook records all information on the security
guard’s logbook.
After recording the information manually,
Submit to LO- Field Service the FST submits their information to the
FST Technician logistics officer-field service technician (LO-
FST).
LO-FST receives the information from the
E-mail about
FST, and e-mails tech support about the
manual
LO-FST manual process. After the information has
dispatch to
been received and e-mailed, the FST is
tech support
dispatched, and the process ends.
In the event that the security guard has
determined that the e-ticket trip process is
Advise team
not yet complete, he advises the FST team
to edit and
Security Guard to edit their information and complete the
complete the
process. Once they are finished editing,
process
they submit their e-ticket trip to the security
guard again for validation.
Team Validation by Supervisors

Validate team Supervisors cross-checks the team
member member registered at ETA and team
registered at member tied-up to FMS data.
Supervisors
ETA and tied-
up to FMS
data
Coordinate In the event that a team is manually
with tech dispatched, the supervisors will coordinate
Supervisors
support for with tech support for concerns of manual
concerns of dispatch.
39
manual
dispatch
The supervisor then checks whether the
Does it
Supervisor information matches. If the information
match?
matches, the team validation process ends.
Edit ETA If the information does not match, the
resource supervisor edits the ETA resource
information Supervisor information, following the data found in the
following data FMS.
from FMS.
40
Appendix 15: Workload Capacities per Hub
Total
Teams
NORTH HUB 47 Mon Tue Wed Thu Fri Sat Sun
Quezon City (District 1)
Manila
CATV Faults 7 5 7 6 4 6 7 7
Caloocan, Malabon, Navotas, Valenzuela (PCC)
CATV Faults 8 5 7 7 5 8 8 8
DTH
1 0 1 1 1 1 1 1
Destiny Plant
2 2 2 2 2 2 2 2
41
DAY-OFF 47 11 8 7 11 7 0 3
Total
Teams
EAST HUB 26 Mon Tue Wed Thu Fri Sat Sun
Marikina
Pasig
CATV Faults 6 5 5 5 4 5 6 6
Cainta, Antipolo, Taytay (PCC)
CATV Faults 2 2 1 2 2 1 2 2
42
DTH
1 1 1 1 1 0 1 1
Destiny Plant
2 2 2 2 2 2 2 2
DAY-OFF 26 5 6 3 7 4 0 1
Total
Teams
CENTRAL HUB 50 Mon Tue Wed Thu Fri Sat Sun
Makati 1
CATV Faults 2 2 1 2 1 2 2 2
43
Makati 2
CATV Faults 1 1 1 1 1 0 1 1
Makati 3
CATV Faults 2 1 2 1 2 2 2 2
San Juan
CATV Faults 3 2 1 3 3 3 3 3
Mandaluyong
CATV Faults 1 1 1 1 0 1 1 1
44
Taguig
CATV Faults 2 1 2 2 2 1 2 2
DCI
2 2 2 1 1 2 2 2
Others
Special Project / Fiber 7 6 7 4 6 5 7 7
Daily Team w (ETA) 37 40 41 41 41 50 50
DAY-OFF 50 13 10 9 9 9 0 0
45
Total
Teams
SOUTH HUB 26 Mon Tue Wed Thu Fri Sat Sun
CATV Faults 5 5 3 3 4 5 5 5
DTH
1 1 1 1 0 1 1 1
Destiny Plant
2 1 2 2 2 2 2 1
DAY-OFF 26 5 4 5 5 5 1 1
GRAND TOTAL: ETA

115 121 125 117 124 148 144
DAILY TEAM CAPACITY
GRAND TOTAL EXPECTED 132 126 137 161 157

1262 1344
WORKLOADS (ETA) 0 8 0 4 8
46
GRAND TOTAL: DESTINY
8 9 9 9 10 10 9
DAILY TEAM CAPACITY

96 108 108 108 120 120 108
WORKLOADS (Destiny)
GRAND TOTAL: DAY-OFF 149 34 28 24 32 25 1 5
47
Appendix 16: Attribute Categories
Category Attribute Legend

Misdeclaration F
Wrong declaration of Service of Service Order Status J
Wrong
Declaration Wrong declaration of material usage Q
Declaration of disconnected accounts with no physical

R
disconnection done
Can not locate B
Unvisited
Service Unvisited subscriber E
Order
Unvisited service order H
Incomplete/No Checklist A
No File Attachment C
Failed Parameters D
Non - Substandard installation G

Compliance
with the Removal of HPF I
technical No hard copy L
standards
Excessive Text N
Late remit S
Not wearing uniform/ID T

Long LongTravel K
Duration Long Work M
For Installation: Uncompleted/Unvisited Installation due to lack of
Install. O
materials
Fraud P
Fraud
Restitution for the same amount illegally collected by team U
48
Appendix 17: Area Coverage per Hub
49
Appendix 18: North Hub Layout
50
Appendix 19: South Hub Layout
51
REPUBLIC OF THE PHILIPPINES
DEPARTMENT OF INTERIORS AND LOCAL GOVERNMENT
LAND/USE ZONING
LINE AND GRADE
ARCHITECTURAL
Appendix 20: East Hub Layout
STRUCTURAL
SANITARY
ELECTRICAL
MECHANICAL
CONTRACTOR ENGINEER PROJECT TITLE OWNER SITE MANAGER/CHECKED BY : OWNER MANAGER/CHECKED BY: SHEET CONTAINS SHEET NO.
TRANSMISSION SPECIALISTS INC. PERSPECTIVE

237 Connecticut St., East Greenhills
Mandaluyong City 1556 VICINITY MAP
TEL (63) 917-830-2470
(632) 705-1986
REG. NO. PTR NO. LOCATION (632) 632-3624
(632) 571-3137 SITE ENGINEERING HEAD REGISTERD ENGINEER SITE DEVT., PLAN
TIN ISSUED ON
ISSUED AT
52
Appendix 21: Central Hub Layout
53
Appendix 22: Cost-Benefit Analysis with 50%
decrease in the number of violations
Current Quality Assurance Approach Proposed Quality Assurance Approach
Cost Benefit Cost Benefit
Cost 54,344.29 N/A 0 Salary of 100,000.00 Cost saved, 27172.14

incurred, Training and minor
minor Development violations
violations Quality
Auditors
Cost 253,440.48 Cost saved,

incurred, major 126720.24
major violations
violations
SUBTOTAL (307,784.76) 0 (100,000.00) 153,892.38
TOTAL (307,784.76) 53,892.38
54
Appendix 23: Cost-Benefit Analysis with 25%
decrease in the number of violations
Current Quality Assurance Approach Proposed Quality Assurance Approach
Cost Benefit Cost Benefit
Cost 54,344.29 N/A 0 Salary of 100,000.00 Cost saved, 13586.07

incurred, Training and minor
minor Development violations
violations Quality
Auditors
Cost 253,440.48 Cost saved, 63360.12

incurred, major
major violations
violations
SUBTOTAL (307,784.76) 0 (100,000.00) 76,496.19
TOTAL (307,784.76) (23,053.81)
55

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Ateneo de Manila University

John Gokongwei School of Management

Class Project Information and Cover Sheet

Name of Student/s: School Year: 2017-2018 Sem: 1

Aquino, Rayahnna Subject Code: POM105

Abstract (150 words or less)

Author(s)’ Recommended Key Words

The Company in Focus 1

10 Operations Management Decisions 3

Appendix 1: Industry Overview 21

Appendix 2: Company Overview 25

Appendix 3: Company TSI-ACSI Team Allocation for each hub 27

Appendix 4: Inventory Request and Check-in (Main Warehouse) 29

Appendix 5: Inventory Request and Check-in (Sub-Warehouse) 30

Appendix 6: Inventory Request and Check-in (Field Service Technician Level) 31

Appendix 7: Inventory Check-out (Main Warehouse) 31

Appendix 8: Inventory Check-out (Sub Warehouse) 32

Appendix 9: Inventory Check-out (Field Service Technician Level) 32

Appendix 10: Inventory Return (From Subscribers to Field Service Technicians to

Appendix 11: Inventory Return (From Sub-Warehouse to Main Warehouse to Sky

Appendix 13. Field Service Technician Handling and Safekeeping of Equipment 35

Appendix 15: Workload Capacities per Hub 41

Appendix 16: Attribute Categories 48

Appendix 17: Area Coverage per Hub 49

Appendix 18: North Hub Layout 49

Appendix 19: South Hub Layout 51

Appendix 20: East Hub Layout 52

Appendix 21: Central Hub Layout 53

Appendix 22: Cost-Benefit Analysis with 50% decrease in the number of 53

Appendix 23: Cost-Benefit Analysis with 25% decrease in the number of 55

John Gokongwei School of Management

Transmission Specialists Inc. -

The Company in Focus

5. Main Warehouse Inventory Personnel

Inventory / Material Requirement

Supply Chain Management

Figure 1. Inventory Supply Chain

Service Order Type Work Point

INSTALLATION CATV 3.00

INSTALLATION BBAND 3.00

INSTALLATION CONVERGED 4.00

INSTALLATION COMMERCIAL ACCOUNT 4.00

INSTALLATION DTH 3.00

FAULT SERVICING CATV 1.50

FAULT SERVICING BBAND 2.00

SPECIAL SERVICE 1.50

CEILING/CONDUIT JOB 2.00

ADDITIONAL OUTLET AFTER 1ST OUTLET 1.00

The revenue per total work point interval are as follows:

Work Points Rate (VAT inclusive) Rate per point

Table 3. Revenue per total work point interval

Service delivery process. An overview of the service delivery is as follows:

Figure 2. Service Delivery

Dispatch process. Zoning in on the dispatch segment of the general service

Figure 2. Dispatch Workflow

At 5 PM on Day 0, Sky Cable transfers Day 1 service orders to TSI-ACSI’s

As mentioned, TSI-ACSI’s top management has expressed that there is

There is a need for better quality assurance, particularly in the follow-through

As aforementioned, there are no major differences between the QA checklist

Fish Bone Method

Central Hub South Hub

● Makati ● Las Pinas