26/03/2018

Management
Science
Decision Making processes

Framed by: Prof. Yasmina Chaoui

Hamza Mhabra & Nouaman El Mouden

MAROC TELECOM
Contents
INTRODUCTION & OBJECTIVE ........................................................................ 2

EXECUTEVE SUMMARY .................................................................................. 2

Maroc telecom Presentation:......................................................................... 3

I-) Determining the Breakeven Point Using Excel’s Goal Seek Tool ................. 5

II-) A Marketing example: .............................................................................. 8

III-) Project Management ............................................................................... 8

VI-) Transportation Model Example Computer Solution : ............................. 12

Conclusion: .................................................................................................. 14

References : ................................................................................................. 15
INTRODUCTION & OBJECTIVE
The purpose of this report is to identify situations for Maroc Telecom company,
in which management science methods or models are used, in addition to
analyze one of these situations deep enough to make suggestions for
improvement. The focus of this reports on the decision- making process and the
role of management science in this process.

EXECUTEVE SUMMARY
This report is about how management science is enhancing managers – me
included-abilities to make better decisions. First, we will present our company
Renault and in addition our business unit. Second, we will take some situations
in which using management science tools enhanced our decision-making
process skills.
First, we will use Excel Goal Seek Tool to determine the breakeven points
through which we can decide. Second situation is planning, scheduling, and
controlling the branch activities decisions in which we used (PERT/CPM) Tool to
have the optimal solution for the use of the available recourses. The third
situation is assignment situation in which we enhanced with the quantitative
analysis of their effectiveness in the assigned tasks to decide, who is most
effective and where.
Situation number four in which we obtain and maintain high service quality
through use of resources available, we used management science quantitative
analysis to decide the most economical routes for branch vehicles through which
we can save time, money, and achieve target. In these situations, tools of
management science proved to be strong support to my decision-making
process.
Maroc telecom Presentation:
1- What is Maroc Telecom:
Itissalat Al-Maghrib (IAM), also known as Maroc Telecom, is a public limited
company with a Management Board and a Supervisory Board. Born in 1998,
after the demise of the National Office of Posts and Telecommunications
(ONPT), Maroc Telecom is the incumbent and, to date, the leading global
telecommunications operator in Morocco.
Maroc Telecom is organized into General Management around its business lines
and services. To these structures are added the departments responsible for
Human Resources, International Development, Monitoring and strategic
monitoring of subsidiaries, Communication, Sponsorship and Events, Quality
and Information Security and Control general
Maroc Telecom provides a presence throughout the national territory through
a decentralized organization that has eight Regional Directorates in Rabat,
Casablanca, Marrakech, Agadir, Settat, Fez, Tangier and Oujda and guarantees
responsiveness and proximity to its customers and its partners.
For the distribution of its products and services, Maroc Telecom relies on a large
distribution network consisting of a direct network of nearly 440 commercial
agencies and an indirect network comprising more than 75,000 resellers.
2- organizational chart:
I-) Determining the Breakeven Point Using Excel’s Goal Seek Tool
Break-Even Analysis:
 Used to determine the number of units of a product to sell or produce
that will equate total revenue with total cost.
 The volume at which total revenue equals total cost called the break-
even point.
 Profit at break-even point is zero.
Example: Cars Company (Renault):
Fixed Costs: cf= $
Variable Costs: cv= $
Price: p= $ per pair
The Break-even Point is: v=cf / (p−cv)
we faced the problem of low revenue payphones and we must decide why this
payphone is low revenue? How to identify low revenue payphone? When to
move or close low revenue payphone? And knowing the breakeven point for
each can help me taking the most profitable decisions in terms of where,
when, how, and why installing or removing a low revenue payphone.
Management science tools help as answering all these questions.
With Windows QM
With Excel :
For our company , we take all information in the site of IAM , we have 3 analysis : first one of local
and mobile recall, the second the national recall and the third one is international recall . We do
calculate the break even point for each one .

For payphones with bad revenue having the same commercial and economical
environments, using the calculated breakeven points for all kinds of calls helps
me to decide which payphone to remove.
II-) A Marketing example:

This is our marketing example for iam , there are a lot of type of
advertising like television commercials, radio commercials and news
paper and each one has his cost and total exposure. For our example
the total exposure is 417000.

III-) Project Management

The most important or practical situation I am facing in the branch is how I
manage to plane, schedule, and control the branch activities and resources,
using management science methods (PERT/CPM for this situation) assist me as
Branch Manager to have answers for, what is the time required for completing
my target? What start, and finish dates should be scheduled or set for each
activity? Which are the critical activities? In addition, how long can non-critical
activities be delayed before they become critical? The tables below show how I
manage to answer these questions with simple mathematical calculations.
 Project network
Prepare
drawing

Location Digging Civil Both Installation Pay

survey permit work installation and cabling phone

Lines Lines Line

request return received

Lines
creation
Where:
ES: Earliest start time for an activity.
LS: Latest start time for an activity.
EF: Earliest finish time for an activity.
LF: Latest finish time for an activity.

Maroc Telecom Critical Path is: A, B, C, H, I, J, K

Solving the problem using management science software we obtain the
following results.
 mean (expected time): T = (a+4m+b)/6
 variance: V= ((b-a)/6)2
Now it is obvious that with the resource we have been facing a problem of not
achieving my monthly target on time. PERT assist me identifying the weakness
of the project.
 The critical path is : A-C-H-I-J-K => after calculating the variance for each
activity we conclude that the activity who has a number different of 0 it's
the critical path.
 Variance of project completion time is = 19.43 => for A=0,44 C=18,77
H=0.11 I=0 J=0.11 K=0 the sum of this activity it's equal to 19.43
VI-) Transportation Model Example Computer Solution :

we do transportation in 3 different place. and we have for each city different demand and supply.

The solution: Transportation result =>

Shipments with costs:

For the result of transportation the cost in rabat is 1800$ , casablanca 1375$ and for kenitra 700$
and for the total is 3875.
Conclusion:
Looking at previous situations and result, we shall notice the following points:

For the first situation, it is obvious that the decision-making process is based on
the best-expected monitory value. This provides individual improvement per
payphone, but it does not insure the improvement of the global revenue or what
does the effect offer locating payphone or moving this payphone to a new
location on both the old and the new location. For that, our recommendation is
to have some constrains for relocation decision, so, we must start by analyzing
the revenue in a global form and not per payphone, to determine first why the
revenue is not good, this is on monthly basis. it is obvious that management
science effectively helps to plan, schedule, and control the branch activities in a
way that optimizes the branch resources, both qualitative and quantitative
analysis are fruitful for this situation. so, using management science tools for
more quantitative analysis increased the decision-making effectiveness and put
much better position to make the best possible decisions.

References :
 https://www.iam.ma/Lists/TelechargementFinance/Attachments/432/M
arocTelecom DocumentReference-2006_en.pdf
 https://www.iam.ma/Lists/TelechargementFinance/Attachments/895/Fi
nancial%20Report%20H1%202016_EN.pdf
 http://www.managementhelp.org