Class 6 - PowerPoint PPT Presentation

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Class 6

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In reality only a limited number of people can be put on hold (this ... What is the hourly loss because of callers not being able to get through? OM&PM/Class 7a ... – PowerPoint PPT presentation

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Title: Class 6


1
Operations Management Performance Modeling
  • 1 Operations Strategy
  • 2 Process Analysis
  • 3 Lean Operations
  • 4 Supply Chain Management
  • 5 Capacity Management in Services
  • Class 6b Capacity Analysis and Queuing
  • Class 7a Applications
  • Specialization vs. Flexibility
  • Analysis of service systems Sof-Optics
  • 6 Total Quality Management
  • 7 Business Process Reengineering

2
Example 2 MBPF Calling Center limited buffer
size
  • In reality only a limited number of people can be
    put on hold (this depends on the phone system in
    place) after which a caller receives busy signal.
    Assume that at most 5 people can be put on hold.
    Any caller receiving a busy signal simply calls
    a competitor resulting in a loss of 100 in
    revenue.
  • of servers c
  • buffer size K
  • What is the hourly loss because of callers not
    being able to get through?

3
Example 3 MBPF Calling Center Resource Pooling
  • 2 phone numbers
  • MBPF hires a second CSR who is assigned a new
    telephone number. Customers are now free to call
    either of the two numbers. Once they are put on
    hold customers tend to stay on line since the
    other may be worse..
  • 1 phone number pooling
  • both CSRs share the same telephone number and the
    customers on hold are in a single queue

4
Example 4 MBPF Calling Center Staffing
  • Assume that the MBPF call center has a total of 6
    lines. With all other data as in Example 2, what
    is the optimal number of CSRs that MBPF should
    staff the call center with?

5
Process Structure Resource Capabilities Specia
lization Vs. Flexibility
  • Aggregation
  • single server averaging 10 minutes for service.
    Poisson arrivals with a mean of 5/hr.
  • Specialization
  • Service divided into two segments (one server at
    each segment), each averaging 5 minutes
  • Flexibility
  • Second server added, with each server performing
    entire service

6
Sof-Optics, Inc. Managing the operations of a
customer service department
7
Capacity Management at Sof-Optics
8
Call Centers
  • In U.S. 10B, gt 70,000 centers, gt 3M people (gt3
    of workforce)
  • Most cost-effective channel to serve customers
  • Strategic Alignment
  • accounting 90 are cost centers, 10 are revenue
    centers
  • role 60 are viewed as cost, 40 as revenue
    generators
  • staffing 60 are generalists, 40 specialists
  • Trend more towards profit centers revenue
    generators
  • Trade-off low cost (service) vs. high revenue
    (sales)

Source O. Zeynep Aksin 1997
9
Levers for Reducing Flow Time
  • is to decrease the work content of (only ?)
    critical activities,
  • and/or move it to non critical activities.
  • Reduce waiting time
  • reduce variability
  • arrivals service requests
  • synchronize flows within the process
  • increase safety capacity
  • lower utilization
  • Pooling
  • Match resource availability with flows in and out
    of process

10
E.g. Analysis of Service Systems
  • Divide day into blocks based on arrival rates
  • For each block evaluate performance measures
    given current staffing
  • Quantify financial impact of each action
  • Workforce training reduces mean and variability
    of service time
  • Work flexibility from workforce pools available
    capacity
  • Time flexibility from workforce better
    synchronization
  • Retain experienced employees increased safety
    capacity
  • Additional workforce Increases safety capacity
  • Improved Scheduling better synchronization
  • Incentives to affect arrival patterns better
    synchronization
  • Decrease product variety reduces variability of
    service time
  • Increase maximum queue capacity
  • Consignment program, fax, e-mail etc.

S
D
11
Framework for Process Flow Management
Flow Chart Process
Identify Bottlenecks Maximal Flow Rate
Identify Critical Path Minimal Flow Time
mean
Macro Average Performance
Process Re-Design
No
Competitive?
Demand Pattern
Yes
Micro Variability Performance
Demand Supply Mgt
No
Competitive?
variability
Continuous Improvement
Yes
12
Class 7a Learning objectives
  • Capacity Management under Uncertainty
    (variability)
  • the merits of safety capacity
  • Demand and Supply Management.

13
Automatic Call Distributors
  • A telephone call to a hospital in Southern
    California triggered this recorded message
    Thank you for calling. All our lines are busy
    at the moment, your call will be answered in the
    order in which it was received. Please have your
    hospital membership card ready. If you wish to
    schedule an eye appointment, call .... If you
    wish to schedule a physical examination, call
    .... If you wish to make an appointment with
    the family practice department, call .... If
    this is a life-threatening situation, call ...

Source Service America by Albretch and Zemke.
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