Download - LTE KPIs and Acceptance
Slide titleIn CAPITALS
44 pt
Slide subtitle 20 pt
LTE KPI’s and Acceptance
Slide titleIn CAPITALS
44 pt
Slide subtitle 20 pt
Introduction
Slide title 30 pt
Text 18 pt
Bullets level 2-516 pt
›!"# $%&'()*+,-./0123456789:;<=>?@ABCDEFGHIJKLMNOPQRSTUVWXYZ[\]^_`abcdefghijklmnopqrstuvwxyz{|}~¡¢£¤¥¦§¨©ª«¬®¯°±²³´¶·¸¹º»¼½ÀÁÂÃÄÅÆÇÈËÌÍÎÏÐÑÒÓÔÕÖ×ØÙÚÛÜÝÞßàáâãäåæçèéêëìíîïðñòóôõö÷øùúûüýþÿĀāĂăąĆćĊċČĎďĐđĒĖėĘęĚěĞğĠġĢģĪīĮįİıĶķĹĺĻļĽľŁłŃńŅņŇňŌŐőŒœŔŕŖŗŘřŚśŞşŠšŢţŤťŪūŮůŰűŲųŴŵŶŷŸŹźŻżŽžƒȘșˆˇ˘˙˚˛˜˝ẀẁẃẄẅỲỳ–—‘’‚“”„†‡•…‰‹›⁄€™−≤≥fifl
Why learn about ACCEPTANCE & KPI’s
› Acceptance is part of Business Critical Terms & Conditions
› Control of KPI commitments is control of cash flow and profitability
› Ericsson had 80BSEK locked in Acceptances in 2008
› If all projects finished one day earlier = 500 MSEK/day for Ericsson
Slide title 30 pt
Text 18 pt
Bullets level 2-516 pt
›!"# $%&'()*+,-./0123456789:;<=>?@ABCDEFGHIJKLMNOPQRSTUVWXYZ[\]^_`abcdefghijklmnopqrstuvwxyz{|}~¡¢£¤¥¦§¨©ª«¬®¯°±²³´¶·¸¹º»¼½ÀÁÂÃÄÅÆÇÈËÌÍÎÏÐÑÒÓÔÕÖ×ØÙÚÛÜÝÞßàáâãäåæçèéêëìíîïðñòóôõö÷øùúûüýþÿĀāĂăąĆćĊċČĎďĐđĒĖėĘęĚěĞğĠġĢģĪīĮįİıĶķĹĺĻļĽľŁłŃńŅņŇňŌŐőŒœŔŕŖŗŘřŚśŞşŠšŢţŤťŪūŮůŰűŲųŴŵŶŷŸŹźŻżŽžƒȘșˆˇ˘˙˚˛˜˝ẀẁẃẄẅỲỳ–—‘’‚“”„†‡•…‰‹›⁄€™−≤≥fifl
Scope and objectives
› Explain how Acceptance & KPI’s are impacting business
› Describe Ericsson view on LTE Acceptance principles and KPI’s
› List LTE KPI approach and point to further information
Objectives
Scope
› Customer and Ericsson view on Acceptance and KPI’s -> business Impact
› KPI Based Acceptance
› Understanding the KPI’s
› LTE KPI’s
Slide titleIn CAPITALS
44 pt
Slide subtitle 20 pt
Overview
Slide title 30 pt
Text 18 pt
Bullets level 2-516 pt
›!"# $%&'()*+,-./0123456789:;<=>?@ABCDEFGHIJKLMNOPQRSTUVWXYZ[\]^_`abcdefghijklmnopqrstuvwxyz{|}~¡¢£¤¥¦§¨©ª«¬®¯°±²³´¶·¸¹º»¼½ÀÁÂÃÄÅÆÇÈËÌÍÎÏÐÑÒÓÔÕÖ×ØÙÚÛÜÝÞßàáâãäåæçèéêëìíîïðñòóôõö÷øùúûüýþÿĀāĂăąĆćĊċČĎďĐđĒĖėĘęĚěĞğĠġĢģĪīĮįİıĶķĹĺĻļĽľŁłŃńŅņŇňŌŐőŒœŔŕŖŗŘřŚśŞşŠšŢţŤťŪūŮůŰűŲųŴŵŶŷŸŹźŻżŽžƒȘșˆˇ˘˙˚˛˜˝ẀẁẃẄẅỲỳ–—‘’‚“”„†‡•…‰‹›⁄€™−≤≥fifl
LTE ACCeptance principles› HW should be accepted on delivery. The LTE product HW is tested at the factory
according to Ericsson quality procedure. Normal claims and warranty naturally apply.
› HW Activation Codes should be accepted when the codes are made available to the customer in ELIS, the license management system.
› SW should typically be accepted after successful demonstration in the customer lab, following the Demo Object List (DOL). This should include the mechanisms for both HW Activation Codes, and for SW Feature Activation Licenses.
› Installation services should be accepted when the node has been installed and stand-alone tests have been successfully completed.
› Integration services should be accepted when the node has been configured and integrated into the network, and stand-alone tests have been successfully completed.
› Tuning services should be accepted when tuning service has been completed and documented, ideally on a cluster per cluster basis.
Separate payments for HW, SW and Services !
Slide title 30 pt
Text 18 pt
Bullets level 2-516 pt
›!"# $%&'()*+,-./0123456789:;<=>?@ABCDEFGHIJKLMNOPQRSTUVWXYZ[\]^_`abcdefghijklmnopqrstuvwxyz{|}~¡¢£¤¥¦§¨©ª«¬®¯°±²³´¶·¸¹º»¼½ÀÁÂÃÄÅÆÇÈËÌÍÎÏÐÑÒÓÔÕÖ×ØÙÚÛÜÝÞßàáâãäåæçèéêëìíîïðñòóôõö÷øùúûüýþÿĀāĂăąĆćĊċČĎďĐđĒĖėĘęĚěĞğĠġĢģĪīĮįİıĶķĹĺĻļĽľŁłŃńŅņŇňŌŐőŒœŔŕŖŗŘřŚśŞşŠšŢţŤťŪūŮůŰűŲųŴŵŶŷŸŹźŻżŽžƒȘșˆˇ˘˙˚˛˜˝ẀẁẃẄẅỲỳ–—‘’‚“”„†‡•…‰‹›⁄€™−≤≥fifl
LTE Acceptance tips
Not recommended:› Contractual formulations including delay of fraction of payment of
HW/SW coupled to fulfillment of service
› Contractual formulations including liquidated damages (referring to payment of HW/SW) coupled to fulfillment of service
Wrong acceptance approach has:› Effect of tied capital –increases our Employed capital/Net sales ratio
› Effect of lowered margins – increased costs
If we tie up KPI’s with the HW and SW sales we might end up like this...
Slide title 30 pt
Text 18 pt
Bullets level 2-516 pt
›!"# $%&'()*+,-./0123456789:;<=>?@ABCDEFGHIJKLMNOPQRSTUVWXYZ[\]^_`abcdefghijklmnopqrstuvwxyz{|}~¡¢£¤¥¦§¨©ª«¬®¯°±²³´¶·¸¹º»¼½ÀÁÂÃÄÅÆÇÈËÌÍÎÏÐÑÒÓÔÕÖ×ØÙÚÛÜÝÞßàáâãäåæçèéêëìíîïðñòóôõö÷øùúûüýþÿĀāĂăąĆćĊċČĎďĐđĒĖėĘęĚěĞğĠġĢģĪīĮįİıĶķĹĺĻļĽľŁłŃńŅņŇňŌŐőŒœŔŕŖŗŘřŚśŞşŠšŢţŤťŪūŮůŰűŲųŴŵŶŷŸŹźŻżŽžƒȘșˆˇ˘˙˚˛˜˝ẀẁẃẄẅỲỳ–—‘’‚“”„†‡•…‰‹›⁄€™−≤≥fifl
CASH FLOW Scenario
Upfront 15%
HW 75%
Delivery
SW75%
Delivery
Services 75%
MonthlyProgress
Final Acceptance 10%
Recommended Terms
10%
75%
15%
PenaltiesDiscounts
!High riskBad Cash flowCost blow out
KPI Based Acceptance Terms
Upfront 15%
HW x%
Delivery
SWy%
Delivery
Services z%
Progress
Final Acceptance 10%
KPITargets
25% plus
50% or less
KPI linkedpayment risk
Slide title 30 pt
Text 18 pt
Bullets level 2-516 pt
›!"# $%&'()*+,-./0123456789:;<=>?@ABCDEFGHIJKLMNOPQRSTUVWXYZ[\]^_`abcdefghijklmnopqrstuvwxyz{|}~¡¢£¤¥¦§¨©ª«¬®¯°±²³´¶·¸¹º»¼½ÀÁÂÃÄÅÆÇÈËÌÍÎÏÐÑÒÓÔÕÖ×ØÙÚÛÜÝÞßàáâãäåæçèéêëìíîïðñòóôõö÷øùúûüýþÿĀāĂăąĆćĊċČĎďĐđĒĖėĘęĚěĞğĠġĢģĪīĮįİıĶķĹĺĻļĽľŁłŃńŅņŇňŌŐőŒœŔŕŖŗŘřŚśŞşŠšŢţŤťŪūŮůŰűŲųŴŵŶŷŸŹźŻżŽžƒȘșˆˇ˘˙˚˛˜˝ẀẁẃẄẅỲỳ–—‘’‚“”„†‡•…‰‹›⁄€™−≤≥fifl
Execution Acceptance Invoice/Collection
CAPITALEMPLOYED
TIME
UnbilledSales
BilledReceivables
Inventory
ITO days: 83 days Account Receivables, DSO: 115 days
Overdue
Revenue recognition
First invoice sent
Total: >80BSEK
Contract terms & conditions, project closure, and billing, key areas to address
“CASH OUT!”
“CASH IN!”
Operators are using complex acceptance procedure with unrealistic KPIs ...
Slide titleIn CAPITALS
44 pt
Slide subtitle 20 pt
KPI BASED ACCEPTANCE
Slide title 30 pt
Text 18 pt
Bullets level 2-516 pt
›!"# $%&'()*+,-./0123456789:;<=>?@ABCDEFGHIJKLMNOPQRSTUVWXYZ[\]^_`abcdefghijklmnopqrstuvwxyz{|}~¡¢£¤¥¦§¨©ª«¬®¯°±²³´¶·¸¹º»¼½ÀÁÂÃÄÅÆÇÈËÌÍÎÏÐÑÒÓÔÕÖ×ØÙÚÛÜÝÞßàáâãäåæçèéêëìíîïðñòóôõö÷øùúûüýþÿĀāĂăąĆćĊċČĎďĐđĒĖėĘęĚěĞğĠġĢģĪīĮįİıĶķĹĺĻļĽľŁłŃńŅņŇňŌŐőŒœŔŕŖŗŘřŚśŞşŠšŢţŤťŪūŮůŰűŲųŴŵŶŷŸŹźŻżŽžƒȘșˆˇ˘˙˚˛˜˝ẀẁẃẄẅỲỳ–—‘’‚“”„†‡•…‰‹›⁄€™−≤≥fifl
Why ARE CUSTOMERS DEMANDING KPIS ?
It’s not just about performance – IT’S CONTROL AND COST!
TO CONTROL...
RISKS COSTS
› Internal pressure
› Don’t understand the technology -> LTE !
› Force Ericsson to fix their performance issues
› Avoid risk, shift risk to Ericsson
› Own cash flow issues
› Extra services at no cost
› Penalties, discounts or things for free
› Avoid paying Ericsson
Slide title 30 pt
Text 18 pt
Bullets level 2-516 pt
›!"# $%&'()*+,-./0123456789:;<=>?@ABCDEFGHIJKLMNOPQRSTUVWXYZ[\]^_`abcdefghijklmnopqrstuvwxyz{|}~¡¢£¤¥¦§¨©ª«¬®¯°±²³´¶·¸¹º»¼½ÀÁÂÃÄÅÆÇÈËÌÍÎÏÐÑÒÓÔÕÖ×ØÙÚÛÜÝÞßàáâãäåæçèéêëìíîïðñòóôõö÷øùúûüýþÿĀāĂăąĆćĊċČĎďĐđĒĖėĘęĚěĞğĠġĢģĪīĮįİıĶķĹĺĻļĽľŁłŃńŅņŇňŌŐőŒœŔŕŖŗŘřŚśŞşŠšŢţŤťŪūŮůŰűŲųŴŵŶŷŸŹźŻżŽžƒȘșˆˇ˘˙˚˛˜˝ẀẁẃẄẅỲỳ–—‘’‚“”„†‡•…‰‹›⁄€™−≤≥fifl
Ericsson Driving Forces
› Profitability, ability to fulfill contract
› Cash flow, timely invoicing
› Separate payment terms for HW, SW, and Services
› Close contract with clear responsibility, scope and acceptance criteria
› Control of contract fulfillment
› Additional sales
Slide title 30 pt
Text 18 pt
Bullets level 2-516 pt
›!"# $%&'()*+,-./0123456789:;<=>?@ABCDEFGHIJKLMNOPQRSTUVWXYZ[\]^_`abcdefghijklmnopqrstuvwxyz{|}~¡¢£¤¥¦§¨©ª«¬®¯°±²³´¶·¸¹º»¼½ÀÁÂÃÄÅÆÇÈËÌÍÎÏÐÑÒÓÔÕÖ×ØÙÚÛÜÝÞßàáâãäåæçèéêëìíîïðñòóôõö÷øùúûüýþÿĀāĂăąĆćĊċČĎďĐđĒĖėĘęĚěĞğĠġĢģĪīĮįİıĶķĹĺĻļĽľŁłŃńŅņŇňŌŐőŒœŔŕŖŗŘřŚśŞşŠšŢţŤťŪūŮůŰűŲųŴŵŶŷŸŹźŻżŽžƒȘșˆˇ˘˙˚˛˜˝ẀẁẃẄẅỲỳ–—‘’‚“”„†‡•…‰‹›⁄€™−≤≥fifl
Contractual Acceptance directive
1. Acceptance should have a defined scope, procedure and timetable agreed in advance,
2. To be based upon objective and measurable criteria
3. KPI based acceptance should be limited to network and technology consulting part of rollout contracts and limited to KPIs defined in the KPI library at the Acceptance Gateway.
4. If products or parts are put into operation, automatic final acceptance of such parts
Reference: Business Critical Terms&Conditions documents
Slide title 30 pt
Text 18 pt
Bullets level 2-516 pt
›!"# $%&'()*+,-./0123456789:;<=>?@ABCDEFGHIJKLMNOPQRSTUVWXYZ[\]^_`abcdefghijklmnopqrstuvwxyz{|}~¡¢£¤¥¦§¨©ª«¬®¯°±²³´¶·¸¹º»¼½ÀÁÂÃÄÅÆÇÈËÌÍÎÏÐÑÒÓÔÕÖ×ØÙÚÛÜÝÞßàáâãäåæçèéêëìíîïðñòóôõö÷øùúûüýþÿĀāĂăąĆćĊċČĎďĐđĒĖėĘęĚěĞğĠġĢģĪīĮįİıĶķĹĺĻļĽľŁłŃńŅņŇňŌŐőŒœŔŕŖŗŘřŚśŞşŠšŢţŤťŪūŮůŰűŲųŴŵŶŷŸŹźŻżŽžƒȘșˆˇ˘˙˚˛˜˝ẀẁẃẄẅỲỳ–—‘’‚“”„†‡•…‰‹›⁄€™−≤≥fifl
ContracTual considerations and mu’s
› Contractual Considerations: The MU shall always strive to follow the Acceptance Principles (Acceptance Approach and the Business Critical Terms and Conditions).
› Restriction: If the MU deviates from the Acceptance Principles, it should clearly state the deviations and estimate the risks and associated impact on the business case for the contract. – Deviations from the Acceptance Principles must be presented to the LTE Deal
Strategy meeting, pre-SDP2. – The MU is responsible to secure required input, Price Governance, material (PPT,
Xls ) – Set up of this meeting is done by contacting Christer Gustafsson or Linda Lindberg
(manager EAB/FRP).
Slide title 30 pt
Text 18 pt
Bullets level 2-516 pt
›!"# $%&'()*+,-./0123456789:;<=>?@ABCDEFGHIJKLMNOPQRSTUVWXYZ[\]^_`abcdefghijklmnopqrstuvwxyz{|}~¡¢£¤¥¦§¨©ª«¬®¯°±²³´¶·¸¹º»¼½ÀÁÂÃÄÅÆÇÈËÌÍÎÏÐÑÒÓÔÕÖ×ØÙÚÛÜÝÞßàáâãäåæçèéêëìíîïðñòóôõö÷øùúûüýþÿĀāĂăąĆćĊċČĎďĐđĒĖėĘęĚěĞğĠġĢģĪīĮįİıĶķĹĺĻļĽľŁłŃńŅņŇňŌŐőŒœŔŕŖŗŘřŚśŞşŠšŢţŤťŪūŮůŰűŲųŴŵŶŷŸŹźŻżŽžƒȘșˆˇ˘˙˚˛˜˝ẀẁẃẄẅỲỳ–—‘’‚“”„†‡•…‰‹›⁄€™−≤≥fifl
Acceptance activities (typical)
QualifySales
Opportunities
CreateProposal
Close Deal Contract
Management Contract
Handshake
RiskFull Track
SDP 4SDP 1 Risk SDP 2 Risk SDP 3
Critical Phase
Work outyour strategy
Prepareoffer/
contract/Strong wanted position
NegotiateRefineAgree
Work out the details –
Keep it simple – Keep costs
down
Execute –Look for ways
to save andclose out +
add on sales!
Ability to influence
Correction Cost
Slide title 30 pt
Text 18 pt
Bullets level 2-516 pt
›!"# $%&'()*+,-./0123456789:;<=>?@ABCDEFGHIJKLMNOPQRSTUVWXYZ[\]^_`abcdefghijklmnopqrstuvwxyz{|}~¡¢£¤¥¦§¨©ª«¬®¯°±²³´¶·¸¹º»¼½ÀÁÂÃÄÅÆÇÈËÌÍÎÏÐÑÒÓÔÕÖ×ØÙÚÛÜÝÞßàáâãäåæçèéêëìíîïðñòóôõö÷øùúûüýþÿĀāĂăąĆćĊċČĎďĐđĒĖėĘęĚěĞğĠġĢģĪīĮįİıĶķĹĺĻļĽľŁłŃńŅņŇňŌŐőŒœŔŕŖŗŘřŚśŞşŠšŢţŤťŪūŮůŰűŲųŴŵŶŷŸŹźŻżŽžƒȘșˆˇ˘˙˚˛˜˝ẀẁẃẄẅỲỳ–—‘’‚“”„†‡•…‰‹›⁄€™−≤≥fifl
ACR
Strategy
Payments
Satisfaction
KAM
CSR
SystemSolution
ServiceSolution
CFR
Cash Flow
Delivery
Execution
Ensure link betweenTerms of Payment and Acceptance Procedure. (Particularly Cashflow)
Ensure link betweenTerms of Payment and Acceptance Procedure. (Particularly Cashflow)
Align Services (SoW) and Solution with Acceptance Commitment incl. KPIs
Align Services (SoW) and Solution with Acceptance Commitment incl. KPIs
Ensuring KPI Based Acceptance is integrated in total Acceptance Procedure
Ensuring KPI Based Acceptance is integrated in total Acceptance Procedure
Core 3 – ResponsibilityKPI Based Acceptance
• Overall Decision• Ensure Acceptance risks areunderstood by team and pushfor flow between solution and Acceptance• Promote use of KPI Champion
• Overall Decision• Ensure Acceptance risks areunderstood by team and pushfor flow between solution and Acceptance• Promote use of KPI Champion
KPI Based Acceptance Champion KPI Based Acceptance Champion
Slide titleIn CAPITALS
44 pt
Slide subtitle 20 pt
Understanding the KPI’s
Slide title 30 pt
Text 18 pt
Bullets level 2-516 pt
›!"# $%&'()*+,-./0123456789:;<=>?@ABCDEFGHIJKLMNOPQRSTUVWXYZ[\]^_`abcdefghijklmnopqrstuvwxyz{|}~¡¢£¤¥¦§¨©ª«¬®¯°±²³´¶·¸¹º»¼½ÀÁÂÃÄÅÆÇÈËÌÍÎÏÐÑÒÓÔÕÖ×ØÙÚÛÜÝÞßàáâãäåæçèéêëìíîïðñòóôõö÷øùúûüýþÿĀāĂăąĆćĊċČĎďĐđĒĖėĘęĚěĞğĠġĢģĪīĮįİıĶķĹĺĻļĽľŁłŃńŅņŇňŌŐőŒœŔŕŖŗŘřŚśŞşŠšŢţŤťŪūŮůŰűŲųŴŵŶŷŸŹźŻżŽžƒȘșˆˇ˘˙˚˛˜˝ẀẁẃẄẅỲỳ–—‘’‚“”„†‡•…‰‹›⁄€™−≤≥fifl
Basic facts – KPI’s
› Operator thinking: More KPI’s, Operator is getting more control
› Ericsson thinking: More KPI’s, higher costs, longer procedure, risk for delays in payment and penalties
› LTE is new, we can expect a lot of KPI’s since operators want to protect themselves
› We can be active and suggest KPI’s, rather than wait for them - We know what we are doing
› Right support is provided from the LTE start – look at the Acceptance gateway– What KPI’s and what values to discuss– Acceptance method
Slide title 30 pt
Text 18 pt
Bullets level 2-516 pt
›!"# $%&'()*+,-./0123456789:;<=>?@ABCDEFGHIJKLMNOPQRSTUVWXYZ[\]^_`abcdefghijklmnopqrstuvwxyz{|}~¡¢£¤¥¦§¨©ª«¬®¯°±²³´¶·¸¹º»¼½ÀÁÂÃÄÅÆÇÈËÌÍÎÏÐÑÒÓÔÕÖ×ØÙÚÛÜÝÞßàáâãäåæçèéêëìíîïðñòóôõö÷øùúûüýþÿĀāĂăąĆćĊċČĎďĐđĒĖėĘęĚěĞğĠġĢģĪīĮįİıĶķĹĺĻļĽľŁłŃńŅņŇňŌŐőŒœŔŕŖŗŘřŚśŞşŠšŢţŤťŪūŮůŰűŲųŴŵŶŷŸŹźŻżŽžƒȘșˆˇ˘˙˚˛˜˝ẀẁẃẄẅỲỳ–—‘’‚“”„†‡•…‰‹›⁄€™−≤≥fifl
WHAT IS IMPACTING KPI VALUES ?
TARGETS
PRE-CONDITIONSHOW TO
MEASURE
CONDITIONS
EXCLUSIONS
PROCESSES
Slide title 30 pt
Text 18 pt
Bullets level 2-516 pt
›!"# $%&'()*+,-./0123456789:;<=>?@ABCDEFGHIJKLMNOPQRSTUVWXYZ[\]^_`abcdefghijklmnopqrstuvwxyz{|}~¡¢£¤¥¦§¨©ª«¬®¯°±²³´¶·¸¹º»¼½ÀÁÂÃÄÅÆÇÈËÌÍÎÏÐÑÒÓÔÕÖ×ØÙÚÛÜÝÞßàáâãäåæçèéêëìíîïðñòóôõö÷øùúûüýþÿĀāĂăąĆćĊċČĎďĐđĒĖėĘęĚěĞğĠġĢģĪīĮįİıĶķĹĺĻļĽľŁłŃńŅņŇňŌŐőŒœŔŕŖŗŘřŚśŞşŠšŢţŤťŪūŮůŰűŲųŴŵŶŷŸŹźŻżŽžƒȘșˆˇ˘˙˚˛˜˝ẀẁẃẄẅỲỳ–—‘’‚“”„†‡•…‰‹›⁄€™−≤≥fifl
Common mistakeReverse engineering
Often only KPI targets are stated in the contract
TARGETS
PRE-CONDITIONSHOW TO
MEASURE
CONDITIONS
EXCLUSIONS
PROCESSES
Slide title 30 pt
Text 18 pt
Bullets level 2-516 pt
›!"# $%&'()*+,-./0123456789:;<=>?@ABCDEFGHIJKLMNOPQRSTUVWXYZ[\]^_`abcdefghijklmnopqrstuvwxyz{|}~¡¢£¤¥¦§¨©ª«¬®¯°±²³´¶·¸¹º»¼½ÀÁÂÃÄÅÆÇÈËÌÍÎÏÐÑÒÓÔÕÖ×ØÙÚÛÜÝÞßàáâãäåæçèéêëìíîïðñòóôõö÷øùúûüýþÿĀāĂăąĆćĊċČĎďĐđĒĖėĘęĚěĞğĠġĢģĪīĮįİıĶķĹĺĻļĽľŁłŃńŅņŇňŌŐőŒœŔŕŖŗŘřŚśŞşŠšŢţŤťŪūŮůŰűŲųŴŵŶŷŸŹźŻżŽžƒȘșˆˇ˘˙˚˛˜˝ẀẁẃẄẅỲỳ–—‘’‚“”„†‡•…‰‹›⁄€™−≤≥fifl
Kpi’S AND PROJECT TYPES
› In Large Rollout Projects where we have a lot of risks, unknowns and dependancies and where services are small part - Minimise KPI risks and costs
› In Standalone projects where we have mostly services, and we have control - Use KPIs as business driver
KPIs can result in good business !
Slide titleIn CAPITALS
44 pt
Slide subtitle 20 pt
LTE KPI’s
Slide title 30 pt
Text 18 pt
Bullets level 2-516 pt
›!"# $%&'()*+,-./0123456789:;<=>?@ABCDEFGHIJKLMNOPQRSTUVWXYZ[\]^_`abcdefghijklmnopqrstuvwxyz{|}~¡¢£¤¥¦§¨©ª«¬®¯°±²³´¶·¸¹º»¼½ÀÁÂÃÄÅÆÇÈËÌÍÎÏÐÑÒÓÔÕÖ×ØÙÚÛÜÝÞßàáâãäåæçèéêëìíîïðñòóôõö÷øùúûüýþÿĀāĂăąĆćĊċČĎďĐđĒĖėĘęĚěĞğĠġĢģĪīĮįİıĶķĹĺĻļĽľŁłŃńŅņŇňŌŐőŒœŔŕŖŗŘřŚśŞşŠšŢţŤťŪūŮůŰűŲųŴŵŶŷŸŹźŻżŽžƒȘșˆˇ˘˙˚˛˜˝ẀẁẃẄẅỲỳ–—‘’‚“”„†‡•…‰‹›⁄€™−≤≥fifl
LTE kpi AcceptanceTypes of Acceptance
› The scope of a contract will determine the type of acceptance used
› Four different types of acceptance are proposed in this document– Product (Supply) Acceptance– Proof of Concept Acceptance– Network (or Cluster) Acceptance– Stability Acceptance
› A network contract may stipulate more than one of these types of acceptance
› It is desirable to minimise the acceptance testing – it can be consuming and costly
KPI’s handling will depend on the type of Acceptance
Slide title 30 pt
Text 18 pt
Bullets level 2-516 pt
›!"# $%&'()*+,-./0123456789:;<=>?@ABCDEFGHIJKLMNOPQRSTUVWXYZ[\]^_`abcdefghijklmnopqrstuvwxyz{|}~¡¢£¤¥¦§¨©ª«¬®¯°±²³´¶·¸¹º»¼½ÀÁÂÃÄÅÆÇÈËÌÍÎÏÐÑÒÓÔÕÖ×ØÙÚÛÜÝÞßàáâãäåæçèéêëìíîïðñòóôõö÷øùúûüýþÿĀāĂăąĆćĊċČĎďĐđĒĖėĘęĚěĞğĠġĢģĪīĮįİıĶķĹĺĻļĽľŁłŃńŅņŇňŌŐőŒœŔŕŖŗŘřŚśŞşŠšŢţŤťŪūŮůŰűŲųŴŵŶŷŸŹźŻżŽžƒȘșˆˇ˘˙˚˛˜˝ẀẁẃẄẅỲỳ–—‘’‚“”„†‡•…‰‹›⁄€™−≤≥fifl
There are 4 KPI recommended for use in LTE acceptance
Session Setup Success Rate
Session Abnormal Release Rate– ONLY used for drive tests with short calls
or
Minutes per Abnormal Release– Used for stats based KPI & drive tests with long calls
DL User Throughput
UL User Throughput
Recommended KPIFor use in LTE Acceptance
1
2
3
4
Slide title 30 pt
Text 18 pt
Bullets level 2-516 pt
›!"# $%&'()*+,-./0123456789:;<=>?@ABCDEFGHIJKLMNOPQRSTUVWXYZ[\]^_`abcdefghijklmnopqrstuvwxyz{|}~¡¢£¤¥¦§¨©ª«¬®¯°±²³´¶·¸¹º»¼½ÀÁÂÃÄÅÆÇÈËÌÍÎÏÐÑÒÓÔÕÖ×ØÙÚÛÜÝÞßàáâãäåæçèéêëìíîïðñòóôõö÷øùúûüýþÿĀāĂăąĆćĊċČĎďĐđĒĖėĘęĚěĞğĠġĢģĪīĮįİıĶķĹĺĻļĽľŁłŃńŅņŇňŌŐőŒœŔŕŖŗŘřŚśŞşŠšŢţŤťŪūŮůŰűŲųŴŵŶŷŸŹźŻżŽžƒȘșˆˇ˘˙˚˛˜˝ẀẁẃẄẅỲỳ–—‘’‚“”„†‡•…‰‹›⁄€™−≤≥fifl
Recommended KPIRecommended Location for KPI Measurement
No Recommended KPIControlled
Environment Golden Cluster
Network
(Cluster)
Drive TestCounters / Statistics
1 Session Setup Success Rate X X X X
2a Session Abnormal Release Rate X X X
2b Minutes per Abnormal Release X X
3 DL User Throughput X X X
4 UL User Throughput X X X
Product (Supply) /Proof of Concept
Acceptance
NetworkRollout
Acceptance
NetworkStability
Acceptance
Slide title 30 pt
Text 18 pt
Bullets level 2-516 pt
›!"# $%&'()*+,-./0123456789:;<=>?@ABCDEFGHIJKLMNOPQRSTUVWXYZ[\]^_`abcdefghijklmnopqrstuvwxyz{|}~¡¢£¤¥¦§¨©ª«¬®¯°±²³´¶·¸¹º»¼½ÀÁÂÃÄÅÆÇÈËÌÍÎÏÐÑÒÓÔÕÖ×ØÙÚÛÜÝÞßàáâãäåæçèéêëìíîïðñòóôõö÷øùúûüýþÿĀāĂăąĆćĊċČĎďĐđĒĖėĘęĚěĞğĠġĢģĪīĮįİıĶķĹĺĻļĽľŁłŃńŅņŇňŌŐőŒœŔŕŖŗŘřŚśŞşŠšŢţŤťŪūŮůŰűŲųŴŵŶŷŸŹźŻżŽžƒȘșˆˇ˘˙˚˛˜˝ẀẁẃẄẅỲỳ–—‘’‚“”„†‡•…‰‹›⁄€™−≤≥fifl
Recommended KPI – exampleSession Setup Success Rate
98.00%
99.0%99.3%
99.50%
97.50%
98.00%98.25%
98.50%
96.00%
96.50%
97.00%
97.50%
98.00%
98.50%
99.00%
99.50%
100.00%
L10A L10B L11 L12 =>
Lab / Controlled
Field / Drive test
Comments and Recommendations for Acceptance:› SSSR should be tested using terminals which have undergone IODT with Ericsson› Short calls are recommended for field test acceptance› Lab and Controlled environment testing is to be undertaken in good radio conditions
(RSRP > -85dBm, SINR > 6dB)› Exclusions should be included for drive testing where the setup failure is caused by
a factor beyond Ericsson’s control (eg. No coverage due to radio network design constraints)
Slide title 30 pt
Text 18 pt
Bullets level 2-516 pt
›!"# $%&'()*+,-./0123456789:;<=>?@ABCDEFGHIJKLMNOPQRSTUVWXYZ[\]^_`abcdefghijklmnopqrstuvwxyz{|}~¡¢£¤¥¦§¨©ª«¬®¯°±²³´¶·¸¹º»¼½ÀÁÂÃÄÅÆÇÈËÌÍÎÏÐÑÒÓÔÕÖ×ØÙÚÛÜÝÞßàáâãäåæçèéêëìíîïðñòóôõö÷øùúûüýþÿĀāĂăąĆćĊċČĎďĐđĒĖėĘęĚěĞğĠġĢģĪīĮįİıĶķĹĺĻļĽľŁłŃńŅņŇňŌŐőŒœŔŕŖŗŘřŚśŞşŠšŢţŤťŪūŮůŰűŲųŴŵŶŷŸŹźŻżŽžƒȘșˆˇ˘˙˚˛˜˝ẀẁẃẄẅỲỳ–—‘’‚“”„†‡•…‰‹›⁄€™−≤≥fifl
Throughput KPIHigh Level Summary: Acceptance Process
DL Throughput (EPA 5Hz) vs SNR 10MHz
0
10000
20000
30000
40000
50000
60000
70000
80000
-5 0 5 10 15 20 25 30 35 40
SNR (dB)
Th
rou
gh
pu
t (k
bp
s)
Simulation value
Maximum Acceptance Value
Note: Graph is only an example, real values should be calculated using Coverage and Dimensioning
Guideline
› Special methodology for the KPI User throughputs
› Applications, measurement methods, exclusions explained
› Theoretical max value calculations (based on NW configuration) vs. Practical value
› Throughput KPI’s are well documented
› Safe way for Ericsson to take lead in the KPI negotiations
Slide title 30 pt
Text 18 pt
Bullets level 2-516 pt
›!"# $%&'()*+,-./0123456789:;<=>?@ABCDEFGHIJKLMNOPQRSTUVWXYZ[\]^_`abcdefghijklmnopqrstuvwxyz{|}~¡¢£¤¥¦§¨©ª«¬®¯°±²³´¶·¸¹º»¼½ÀÁÂÃÄÅÆÇÈËÌÍÎÏÐÑÒÓÔÕÖ×ØÙÚÛÜÝÞßàáâãäåæçèéêëìíîïðñòóôõö÷øùúûüýþÿĀāĂăąĆćĊċČĎďĐđĒĖėĘęĚěĞğĠġĢģĪīĮįİıĶķĹĺĻļĽľŁłŃńŅņŇňŌŐőŒœŔŕŖŗŘřŚśŞşŠšŢţŤťŪūŮůŰűŲųŴŵŶŷŸŹźŻżŽžƒȘșˆˇ˘˙˚˛˜˝ẀẁẃẄẅỲỳ–—‘’‚“”„†‡•…‰‹›⁄€™−≤≥fifl
Optional KPIFor use in LTE Acceptance
There are 6 optional KPI for possible use in LTE acceptance:
Simultaneous Connected Users per RBS
Intra LTE HO Success rate
Round Trip Time (RTT)
Terminating Session Success Rate (Paging)
Control Plane Latency (Idle to Active)
Cell Availability
9
8
7
6
5
10
Slide title 30 pt
Text 18 pt
Bullets level 2-516 pt
›!"# $%&'()*+,-./0123456789:;<=>?@ABCDEFGHIJKLMNOPQRSTUVWXYZ[\]^_`abcdefghijklmnopqrstuvwxyz{|}~¡¢£¤¥¦§¨©ª«¬®¯°±²³´¶·¸¹º»¼½ÀÁÂÃÄÅÆÇÈËÌÍÎÏÐÑÒÓÔÕÖ×ØÙÚÛÜÝÞßàáâãäåæçèéêëìíîïðñòóôõö÷øùúûüýþÿĀāĂăąĆćĊċČĎďĐđĒĖėĘęĚěĞğĠġĢģĪīĮįİıĶķĹĺĻļĽľŁłŃńŅņŇňŌŐőŒœŔŕŖŗŘřŚśŞşŠšŢţŤťŪūŮůŰűŲųŴŵŶŷŸŹźŻżŽžƒȘșˆˇ˘˙˚˛˜˝ẀẁẃẄẅỲỳ–—‘’‚“”„†‡•…‰‹›⁄€™−≤≥fifl
quiz
LTE Acceptance StrategyQuiz
(continue to the next slide to start the Quiz)
PROPERTIESOn passing, 'Finish' button: Goes to Next SlideOn failing, 'Finish' button: Goes to Next SlideAllow user to leave quiz: At any timeUser may view slides after quiz: At any timeUser may attempt quiz: Unlimited times
Slide titleIn CAPITALS
44 pt
Slide subtitle 20 pt
Summary
Slide title 30 pt
Text 18 pt
Bullets level 2-516 pt
›!"# $%&'()*+,-./0123456789:;<=>?@ABCDEFGHIJKLMNOPQRSTUVWXYZ[\]^_`abcdefghijklmnopqrstuvwxyz{|}~¡¢£¤¥¦§¨©ª«¬®¯°±²³´¶·¸¹º»¼½ÀÁÂÃÄÅÆÇÈËÌÍÎÏÐÑÒÓÔÕÖ×ØÙÚÛÜÝÞßàáâãäåæçèéêëìíîïðñòóôõö÷øùúûüýþÿĀāĂăąĆćĊċČĎďĐđĒĖėĘęĚěĞğĠġĢģĪīĮįİıĶķĹĺĻļĽľŁłŃńŅņŇňŌŐőŒœŔŕŖŗŘřŚśŞşŠšŢţŤťŪūŮůŰűŲųŴŵŶŷŸŹźŻżŽžƒȘșˆˇ˘˙˚˛˜˝ẀẁẃẄẅỲỳ–—‘’‚“”„†‡•…‰‹›⁄€™−≤≥fifl
Summary – LTE Acceptance & KPI’s
› KPI’s are often financial driver, rather than technical› Keep it simple, minimize number of KPI’s› Consult "LTE Acceptance Toolbox" for overall
procedure› For KPI’s listing (Recommended and Optional), and
their definitions consult "Acceptance KPIs - methods and values"
› KPI Target values are last in chain - consequence of pre-conditions
› Special care is given to the throughput related KPI’s – systematic and structured approach
› Negotiate with customer › For more information about KPI Based Acceptance
please contact Graham Allen or Marius Sirbu
Slide titleIn CAPITALS
44 pt
Slide subtitle 20 pt
references
Slide title 30 pt
Text 18 pt
Bullets level 2-516 pt
›!"# $%&'()*+,-./0123456789:;<=>?@ABCDEFGHIJKLMNOPQRSTUVWXYZ[\]^_`abcdefghijklmnopqrstuvwxyz{|}~¡¢£¤¥¦§¨©ª«¬®¯°±²³´¶·¸¹º»¼½ÀÁÂÃÄÅÆÇÈËÌÍÎÏÐÑÒÓÔÕÖ×ØÙÚÛÜÝÞßàáâãäåæçèéêëìíîïðñòóôõö÷øùúûüýþÿĀāĂăąĆćĊċČĎďĐđĒĖėĘęĚěĞğĠġĢģĪīĮįİıĶķĹĺĻļĽľŁłŃńŅņŇňŌŐőŒœŔŕŖŗŘřŚśŞşŠšŢţŤťŪūŮůŰűŲųŴŵŶŷŸŹźŻżŽžƒȘșˆˇ˘˙˚˛˜˝ẀẁẃẄẅỲỳ–—‘’‚“”„†‡•…‰‹›⁄€™−≤≥fifl
REFERENCES › LTE Acceptance toolbox
› Business Critical Terms & Conditions
› LTE Acceptance approach – HW, SW, Services Acceptance
› KPI Based Acceptance.
› LTE KPI recommendations and values for rollout projects Acceptance KPIs - methods and values
› Network Rollout Projects - KPI Tendering&Contracting
› Price Governance material (PPT, Xls )
Slide title 30 pt
Text 18 pt
Bullets level 2-516 pt
›!"# $%&'()*+,-./0123456789:;<=>?@ABCDEFGHIJKLMNOPQRSTUVWXYZ[\]^_`abcdefghijklmnopqrstuvwxyz{|}~¡¢£¤¥¦§¨©ª«¬®¯°±²³´¶·¸¹º»¼½ÀÁÂÃÄÅÆÇÈËÌÍÎÏÐÑÒÓÔÕÖ×ØÙÚÛÜÝÞßàáâãäåæçèéêëìíîïðñòóôõö÷øùúûüýþÿĀāĂăąĆćĊċČĎďĐđĒĖėĘęĚěĞğĠġĢģĪīĮįİıĶķĹĺĻļĽľŁłŃńŅņŇňŌŐőŒœŔŕŖŗŘřŚśŞşŠšŢţŤťŪūŮůŰűŲųŴŵŶŷŸŹźŻżŽžƒȘșˆˇ˘˙˚˛˜˝ẀẁẃẄẅỲỳ–—‘’‚“”„†‡•…‰‹›⁄€™−≤≥fifl