masterclass in resource planning - call centre helper · masterclass in resource planning. ......

13 May, 2015

Masterclass in Resource PlanningBeyond the basic: Exploding some common misconceptions

Introducing John Frehse

John Frehse is an internationally recognised expert in the field of labour management. John's experience covers a wide array of strategic issues - from analytical resource deployment modeling to implementation planning and execution. Specific tactical problems include scheduling and shift management to increasing employee satisfaction, health, morale and performance.

John has authored numerous white papers and articles on cutting-edge labour strategies. Recent works include The 11 Keys to Strategic Scheduling, The Overtime Lie, Death of the 8-Hour Shift, and The Labour Volatility Index. His strategy papers have been awarded the Leading Idea of the Week by Booz Allen multiple times. His articles have earned him placement in the Hall of Fame edition of Industry Week magazine and he serves on the advisory board of HR.com with an emphasis on workforce management practices.

Prior to co-founding Core Practice, John was with Merrill Lynch and Blue Pumpkin (now Verint) as Director of Global Strategic Services.

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Sharing Best Practices from Diverse Industries

Consumer Foods

Power & Mining

Healthcare & Pharma

Automotive

Distribution

Contact Centers

Manufacturing

BHP

beach mold & tool,inc.

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SURVEY QUESTION – WE DO THIS EVERY YEAR, SO BE PATIENT!

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13 May

WHICH DO YOU PREFER?:

A. 8-HOUR SHIFTSB 12-HOUR SHIFTS

8-Hour Shifts - 5 Day Coverage

Work Days 260Days Off 104Weekends Off (Full) 52Longest Break 2 days (52x)Max. Number of Shifts in a Row 5

120-40, Balanced, 1 X 3 Crew, 8-Hour, Fixed, Fixed, Every Weekend Off

Crew/Week Mon Tue Wed Thu Fri Sat Sun Totals

1 8 8 8 8 8 - - 40Avg. 40

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12-Hour Shifts - 5 Day Coverage

Work Days 173Days Off 191Weekends Off (Full) 52Longest Break 6 days (17x)Max. Number of Shifts in a Row 3

120-40, Balanced, 3 X 2-Crew, 12-Hour, Fixed, Rotating, Long Weekend

Crew/Week Mon Tue Wed Thu Fri Sat Sun Totals

1 12 12 12 - - - - 362 - - 12 12 12 - - 363 12 12 - 12 12 - - 48

Avg. 40

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Tip 1: Understand the Costof Overtime v. Idle Time

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Base Wage: £10.00Burden: 35%Pay Ratio: 15%

Calculations:

Straight Time: £10.00True Labour Cost:

x 1.35 x 1.15 = £15.53Overtime: £10.00 x 1.50 x 1.10 = £16.50

Adverse Cost of Idle Time:

Adverse Cost of Time:

£15.53£16.50 - £15.53Adverse Cost of Overtime: = £0.97

Adverse Cost of Straight Time: £0.00

Idle Time is 16 Times More Expensive Than Overtime

Calculating True Labour Cost

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Overtime Perceptions

15.4

62.2

22.428.4

37.833.8

0

20

40

60

80

Working MORE OVERTIME thanyou would like

Working LESS OVERTIME thanyou would like

Working just about the RIGHTAMOUNT of Overtime

Perc

ent

Client Normative Database

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Tip 2: Choose Service Level Wisely

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0%

10%

20%

30%

40%

50%

60%

5 12 18 23 27 32 36 40 44 49 53 57 61 65 69 74 78 83 88 93 98 103 109 115 122 129 137 146 156 168 183 203 235

Time (Seconds)

Like

lihoo

d Ca

ller W

ill H

ang

Up Even the most patient contact start

to abandon en force after about 205 seconds

The “real hurried” group hangs up by the 21st second

The typical contact random abandons up to 130 seconds

Instantaneous Abandon Rates - Hazard Curve

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-

200

400

600

800

1,000

1,200

1,4000% 5% 10%

15%

20%

25%

30%

35%

40%

45%

50%

55%

60%

65%

70%

75%

80%

85%

90%

95%

100%

Desired Service Level

Staff

ing Le

vel R

equir

emen

t Levels of Diminishing Returns

Exponential Gradient of Service Level Improvements

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Tip 3: MatchThe Workforce to the Workload

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Scheduling - Example Iteration No. 1

Setup: Actual customer forecast (no unusual spikes or abnormalities) Service goal: 80% answered in 20 seconds Prefer overstaffing and maximizing overall service level No preferences nor assignment rules Goal – create a schedule that meets the weekly service level goal

Iteration 1

• All full time 8-hour shifts, 5 days per week • Consistent start times on hour interval only• Consistent off phone periods with fixed start times:• Break – 2:00 Lunch – 4:00 Break – 6:00• Two days off in a row where one must be a weekend

Number of FTEs Forecasted Service LevelsIteration Forecast Required Monday Tuesday Wednesday Thursday Friday Saturday Sunday Weekly

1 310 249 75 83 88 91 72 63 65 80

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Iteration 2

• All full time 8-hour shifts, 5 days per week • Consistent start times on hour interval only• Consistent off phone periods with fixed start times:• Break – 1:45-2:15 Lunch – 4:00-5:00 Break – 6:30-7:15• Two days off in a row where one must be a weekend


1 310 249 75 83 88 91 72 63 65 80

2 304 249 78 85 92 92 73 60 62 80

Same as iteration 1 except the break and lunch times are expanded

Cumulative Cost Savings (Assuming £37,916 per FTE): £227,496


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Iteration 3

• All full time 8-hour shifts, 5 days per week • Shifts start on any 30-minute interval• Consistent off phone periods with fixed start times:• Break – 1:45-2:15 Lunch – 4:00-5:00 Break – 6:30-7:15• Two days off in a row where one must be a weekend


1 310 249 75 83 88 91 72 63 65 80

2 304 249 78 85 92 92 73 60 62 80

3 302 249 78 86 91 93 71 58 59 80


Same as iteration 2 except shifts can start on any 30-minute interval (consistent start times every day)


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Iteration 4

• All full time 8-hour shifts, 5 days per week • Shifts start on any 30-minute interval• Consistent off phone periods with fixed start times:• Break – 1:15-2:30 Lunch – 3:30-5:00 Break – 6:45-7:30• Two days off in a row where one must be a weekend


1 310 249 75 83 88 91 72 63 65 80

2 304 249 78 85 92 92 73 60 62 80

3 302 249 78 86 91 93 71 58 59 80

4 300 249 79 83 85 87 70 54 60 80


Same as iteration 3 except shifts increase start windows for off phone periods


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Iteration 5

• Four 10-hour shifts or five 8-hour shifts• Shifts start on any 30-minute interval• Consistent off phone periods with fixed start times:• Break – 1:15-2:30 Lunch – 3:30-5:00 Break – 6:45-7:30• Two days off in a row where one must be a weekend


1 310 249 75 83 88 91 72 63 65 80

2 304 249 78 85 92 92 73 60 62 80

3 302 249 78 86 91 93 71 58 59 80

4 300 249 79 83 85 87 70 54 60 80

5 293 249 79 82 84 86 72 60 61 80


Same as iteration 4 except assign new WP to all agents – four 10-hour shifts per week


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Iteration 6

• Four 10-hour shifts or five 8-hour shifts• Shifts start on any 30-minute interval• Consistent off phone periods with fixed start times:• Break – 1:15-2:30 Lunch – 3:30-5:00 Break – 6:45-7:30• Two days off in a row


1 310 249 75 83 88 91 72 63 65 80

2 304 249 78 85 92 92 73 60 62 80

3 302 249 78 86 91 93 71 58 59 80

4 300 249 79 83 85 87 70 54 60 80

5 293 249 79 82 84 86 72 60 61 80

6 280 249 81 80 78 75 77 65 64 80

Cumulative Cost Savings (Assuming £37,916 per FTE): £1,137,480

Same as iteration 5 except 10-hour employees no longer require a weekend day off


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Iteration 7

• Four 10-hour shifts or five 8-hour shifts• Shifts start on any 30-minute interval• Consistent off phone periods with fixed start times (except for

weekends)• Break – 1:15-2:30 Lunch – 3:30-5:00 Break – 6:45-7:30• Two days off in a row


2 304 249 78 85 92 92 73 60 62 80

3 302 249 78 86 91 93 71 58 59 80

4 300 249 79 83 85 87 70 54 60 80

5 293 249 79 82 84 86 72 60 61 80

6 280 249 81 80 78 75 77 65 64 80

7 269 249 81 80 78 75 77 71 73 80


Same as iteration 6 except remove the consistency requirement for Saturday and Sunday


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Iteration 8

• Four 10-hour shifts or five 8-hour shifts• Shifts start on any 30-minute interval• Consistent off phone periods with fixed start times (expect for

weekends)• Break – 1:15-2:30 Lunch – 3:30-5:00 Break – 6:45-7:30• Two days off in a row (does not need to be on weekends)


3 302 249 78 86 91 93 71 58 59 80

4 300 249 79 83 85 87 70 54 60 80

5 293 249 79 82 84 86 72 60 61 80

6 280 249 81 80 78 75 77 65 64 80

7 269 249 81 80 78 75 77 71 73 80

8 257 249 83 79 77 78 82 81 80 80


Same as iteration 7 except remove the weekend day off requirements


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Iteration 9

• Four 10-hour shifts or five 8-hour shifts• Shifts start on any 30-minute interval• Non-consistent off phone periods with fixed start times (expect

for weekends)• Break – 1:15-2:30 Lunch – 3:30-5:00 Break – 6:45-7:30• Two days off in a row (does not need to be on weekends)


4 300 249 79 83 85 87 70 54 60 80

5 293 249 79 82 84 86 72 60 61 80

6 280 249 81 80 78 75 77 65 64 80

7 269 249 81 80 78 75 77 71 73 80

8 257 249 83 79 77 78 82 81 80 80

9 253 249 81 80 79 82 80 83 78 82


Same as iteration 8 except remove consistency requirement for off phone periods


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Iteration 10

• Four 10-hour shifts or five 8-hour shifts• Shifts start on any 30-minute interval – non-consistent • Non-consistent off phone periods with fixed start times (expect

for weekends)• Break – 1:15-2:30 Lunch – 3:30-5:00 Break – 6:45-7:30• Two days off in a row (does not need to be on weekends)


5 293 249 79 82 84 86 72 60 61 80

6 280 249 81 80 78 75 77 65 64 80

7 269 249 81 80 78 75 77 71 73 80

8 257 249 83 79 77 78 82 81 80 80

9 253 249 81 80 79 82 80 83 78 82

10 252 249 79 81 82 85 82 80 81 81


Same as iteration 9 except remove consistency requirement for start times


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Tip 4: Drive Future Agent Behaviour By Analysing

Current Practices

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25

1 1

39

55

45 43

55

77

3

0

10

20

30

40

50

60

70

80

90

Sun Mon Tue Wed Thu Fri Sat

Num

ber o

f Sic

k D

ays

Sum of Sick Excused Sum of Sick Unexcused

At Least 40% More Than Any Other Day

Employees Get Sick More Often on Fridays

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1819

12

8

109

15

21

24

19

10

12

0

5

10

15

20

25

30

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Num

ber o

f Sic

k D

ays

Sick Days Average

September is 63% higher than the average

September is the Least Healthy Month

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123

96

118

185

124

220

245

208

103 98

126

186

0

50

100

150

200

250

300

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Num

ber o

f Vac

atio

n D

ays

Vacation Days Average

Migrate Vacation to the Low Season

Vacation Distribution by Month

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63.4%

55.8% 54.7% 54.4%

78.4%

58.6%

52.4%

46.7% 45.6% 47.4%

52.1%

60.0%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Enough time off Quality time off Fits in with yourfamily/social life

Flexible schedule Predictableschedule

Effective training

Perc

enta

ge o

f Res

pond

ents

Client Normative Database

Scheduled Time Off:

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Tip 5: Uncover Hidden Costs

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Hidden Costs of Current Scheduling

No Cost Analysis of Service Level Lost Revenue Opportunities Sub-optimal Use of Capital and Facilities Missed Consolidation Opportunities High Overtime & Idle/Open Labour Time High level of Schedule Inflexibility Employee Attrition/ Absenteeism Low Schedule Adherence Difficulty Matching Changing Workloads Agent KPIs Not Aligned with Business Drivers Inefficient Use of Breaks and Lunches Skill Imbalance Missed In/Outbound Blending Opportunities Improper use of Part Time vs. Full Time Staffing Incompatible Work and Pay Rules Excessive Management Time Spent Scheduling Low Employee Morale / Poor Quality of Life Other ________________________________

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Thank You!

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masterclass in resource planning - call centre helper · masterclass in resource planning. ......

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