a lean six sigma approach to traditional it call … · a lean six sigma approach to traditional it...

A Lean Six Sigma Approach to Traditional IT Call Center Staffing

MIT LFM/SDM WebinarSeptember 7, 2007

Habs M. MoyDirector, Business Re-Engineering and Quality

Originally presented atWCBF 3rd Annual Six Sigma in Service & Transactional Environments Conference

Scottsdale, AZOctober 27, 2006

October 27, 2006 2

TopicsTopics

• Company Background

• Balanced Business Scorecard

• IT Customer Service Center (CSC)

• Overall Methodology

• Lean Assessment

• Staffing Analysis and Recommendations

• Takeaways





• Lean Assessment


• Takeaways

October 27, 2006 3

Depository Trust & Clearing Corp.Depository Trust & Clearing Corp.

• Largest post-trade financial services infrastructure organization in the world

• “Cradle-to-Grave”management of securities

• Primary business focus on clearance, settlement and asset servicing for equity and fixed income securities

• Industry owned

• Largest post-trade financial services infrastructure organization in the world

• “Cradle-to-Grave”management of securities

• Primary business focus on clearance, settlement and asset servicing for equity and fixed income securities

• Industry owned

October 27, 2006 4

NYSE / NASD

Mutual Funds

Insurance Companies

Trust Companies

NYSE / NASD

Mutual Funds

Insurance Companies

Trust Companies

Banks

Broker / Dealers

Investment Managers

Securities Firms

Banks

Broker / Dealers

Investment Managers

Securities Firms

DTCC CustomersDTCC Customers

More than 11,000 companies withinthe global financial services industry

October 27, 2006 5

2005 Performance Highlights2005 Performance Highlights

Total number of shares traded: 853 billion

6.8 billion: Total number of transactions processed

$127.5 trillion: Financial obligations eliminated through netting

Value of securities on deposit: $31.2 trillion

Rebates, discounts and interest given back to customers: $528 million

Value of securities settled through DTCC: $1.4 quadrillion

$1.7 trillion: Value of mutual fund transactions processed

October 27, 2006 6

TopicsTopics





• Lean Assessment


• Takeaways





• Lean Assessment


• Takeaways

October 27, 2006 7

Balanced Business ScorecardBalanced Business Scorecard

Stakeholder / Financial Customer / Service Delivery

Strategic Positioning Employee / Learning and Growth

October 27, 2006 8

Customer / Service DeliveryCustomer / Service Delivery

• Meet and Exceed Customer Service Level Expectations

• Improve Customer Cost-Effectiveness

• Maintain Operational Excellence in Customer Critical Processes

• Ensure System/Service Reliability

• Meet and Exceed Customer Service Level Expectations

• Improve Customer Cost-Effectiveness

• Maintain Operational Excellence in Customer Critical Processes

• Ensure System/Service Reliability

October 27, 2006 9

TopicsTopics





• Lean Assessment


• Takeaways





• Lean Assessment


• Takeaways

October 27, 2006 10

Customer Service Center (CSC)Customer Service Center (CSC)

IT Service Centers• New York, NY

• Tampa, FL

Current Staffing• ~ 20 agents

• Fully staffed during core business hours, 0800-1700

• Skeleton staff off hours, weekends and holidays

IT Service Centers• New York, NY

• Tampa, FL

Current Staffing• ~ 20 agents

• Fully staffed during core business hours, 0800-1700

• Skeleton staff off hours, weekends and holidays

Inquiry Demographics• 10,000 inquiries per month

• Phone• Email

• Internal and external inquiries

CSC Customer Satisfaction• 2005 = 60%

• 2006 = 87%

Inquiry Demographics• 10,000 inquiries per month

• Phone• Email

• Internal and external inquiries

CSC Customer Satisfaction• 2005 = 60%

• 2006 = 87%

October 27, 2006 11

Anatomy of a Phone InquiryAnatomy of a Phone Inquiry

Talk Time Wrap-up

Handle Time

Speed to Answer

Abandon Rate

Service Factor

Call initiated Caller selectsfrom menu(s)

Availableagent greets

caller

Agent promptscaller forcontact

information

Discussproblem

Trouble-shootingreq’d?

Troubleshoot

Resolveinquiry?

Agent providesticket number

to caller

End call

End call Completeticket

Y

YN

N

Close ticketCompleteticket

October 27, 2006 12

Effectiveness & Efficiency MetricsEffectiveness & Efficiency MetricsAssessments Factors of Measurement Efficiency or

EffectivenessAverage abandonment rate EffectivenessFirst call resolution EffectivenessAverage speed of answer EfficiencyAverage time in queue EffectivenessService level - center's ability to achieve its call answer goal EffectivenessAverage calls per agent shift EfficiencyAverage time before abandonment n/aAverage talk time Efficiency

Other Operational Metrics Efficiency or Effectiveness

After-call work time EfficiencyAnnual turnover EfficiencyComplaints percentage Effectiveness

Efficiency Metrics Agent-centric measurements that deliver interaction optimization by measuring agents' productivity Productivity

Effectiveness MetricsCustomer-centric measurements that deliver business optimization by providing a view of the quality of the customer's experience

Quality

Source: (1) Operations Council, Primary Research Brief: Call Center Capacity Planning , Corporate Executive Board, June, 2005

Direct Causal Agents - accurately predict caller satisfactionCorrelative but non-causal agents - do not necessarily represent direct causal relationships to customer satisfactionNot statistically significant - exhibit no statistically significant correlation to customer satisfaction

October 27, 2006 13

CSC PerformanceCSC Performance

Jan-

05

Feb-

05

Mar

-05

Apr

-05

May

-05

Jun-

05

Jul-0

5

Aug-

05

Sep-

05

Oct

-05

Nov

-05

Dec

-05

Jan-

06

Feb-

06

Mar

-06

Apr

-06

May

-06

Jun-

06

Total Calls / 100 Service Factor 20s * 100 Average Handle Time / 10

Days Unavailable Abandon Rate * 1000 Average Speed of Answer

2005 2006

October 27, 2006 14

Benchmarking*Benchmarking*

• Length of Time for First Level Calls• Mean: 5.4 min• Median: 4 min

• Abandonment Rate• Target

• Mean: 3.5%• Median: 3.0%

• Actual• Mean: 5.2%• Median: 4.0%

• Average Speed to Answer• Target: 21.1% between 21-30 sec, 23.3% between 10-20 sec• Actual: 58% 20 seconds or less (Financial Services)

• Availability (% of time on phone + call wrap-up + email)• 77%

• Length of Time for First Level Calls• Mean: 5.4 min• Median: 4 min

• Abandonment Rate• Target

• Mean: 3.5%• Median: 3.0%

• Actual• Mean: 5.2%• Median: 4.0%

• Average Speed to Answer• Target: 21.1% between 21-30 sec, 23.3% between 10-20 sec• Actual: 58% 20 seconds or less (Financial Services)

• Availability (% of time on phone + call wrap-up + email)• 77%

* HDI 2005 Practices & Salary Survey, Help Desk * HDI 2005 Practices & Salary Survey, Help Desk Institute, 2006.Institute, 2006.

October 27, 2006 15

TopicsTopics





• Lean Assessment


• Takeaways





• Lean Assessment


• Takeaways

October 27, 2006 16

Overall MethodologyOverall Methodology

Lean Assessment

• Observed two supervisors and 7 agents randomly selected by

Lean Assessment

• Observed two supervisors and 7 agents randomly selected by

Site: NY and FL Shift: First/Second

Experience: High/Low Performance: Variable

Days of Week: MTWThF

Staffing Analysis

• Reviewed overall trends from Jan05 –Jun06

• Analysis based on Jan06-Jun06 volumes & metrics

Staffing Analysis

• Reviewed overall trends from Jan05 –Jun06

• Analysis based on Jan06-Jun06 volumes & metrics

October 27, 2006 17

TopicsTopics





• Lean Assessment


• Takeaways





• Lean Assessment


• Takeaways

October 27, 2006 18

Opportunities to Eliminate WasteOpportunities to Eliminate Waste

Overproduction

Waiting

Defects

Extra Processing

Transportation

Inventory

• Mismatch between ticket and call workflow

• Multiple blank tickets open

• System response lag • Variability in second level support

• Retyping• Legacy fields• Follow-up on open tickets

Motion

7 Types

of Waste

• Ticket workflow

October 27, 2006 19

Existing 5S PracticesExisting 5S Practices

Sort

Straighten

Shine

Standardize

Sustain

• Standard call flow• Goals for average handle time

• Training and background material available online

• Training program for new hires• Click2Coach and agent quality score sheet• Sametime instant messaging for on call consultation

• N/A

• N/A

October 27, 2006 20

Total Productive Maintenance in PlaceTotal Productive Maintenance in Place

Overall Equipment Effectiveness (OEE)• Availability (1 - Shrinkage)

• Performance Efficiency (Average Handle Time)

• Quality Rate (eSurvey)

Preventative MaintenanceClick2Coach• Supervisor reviews 10 calls per month per agent

• Agents rated using quality scorecard

Overall Equipment Effectiveness (OEE)• Availability (1 - Shrinkage)

• Performance Efficiency (Average Handle Time)

• Quality Rate (eSurvey)

Preventative MaintenanceClick2Coach• Supervisor reviews 10 calls per month per agent

• Agents rated using quality scorecard

October 27, 2006 21

TopicsTopics





• Lean Assessment


• Takeaways





• Lean Assessment


• Takeaways

October 27, 2006 22

Is CSC Staffed Appropriately ?

Staffing Analysis FrameworkStaffing Analysis Framework

Erlang C Staffing

Calculator

Calls Offered per HourAverage Handle Time (AHT)*

Wait Time

Agents Required (1 – Shrinkage)÷ =

Shrinkage Adjusted Agents

Required* Average Handle Time = Talk Time + Wrap* Average Handle Time = Talk Time + Wrap--upup

October 27, 2006 23

Shrinkage FactorsShrinkage Factors

• Vacation, Personal Days, Holidays• Sick• FMLA• Meetings• Coaching and Mentoring• Project Work• Training• Breaks• Administrative Non-Phone Activity

• Vacation, Personal Days, Holidays• Sick• FMLA• Meetings• Coaching and Mentoring• Project Work• Training• Breaks• Administrative Non-Phone Activity

2727--30%30%

October 27, 2006 24

020

040

060

080

010

0012

0014

0016

0018

0020

0022

00

Call Arrival PatternCall Arrival Pattern

9:30 – 11:00 AM

2:00 – 4:00 PM

Core Hours8:00 – 5:00 PM

Peak Hours

Voice of the Business

Heavier call volumes on Mondays

What does the data say ?

October 27, 2006 25

Average Calls Per DayAverage Calls Per Day

700600500400300

Median

Mean

600580560540520500

A nderson-Darling Normality Test

V ariance 3530.93Skewness -0.10410Kurtosis -1.15719N 21

Minimum 445.00

A -Squared

1st Q uartile 505.00Median 555.003rd Q uartile 603.00Maximum 651.00

95% C onfidence Interv al for Mean

530.09

0.51

584.19

95% C onfidence Interv al for Median

511.37 602.00

95% C onfidence Interv al for S tDev

45.46 85.81

P-V alue 0.176

Mean 557.14StDev 59.42

95% Confidence Intervals

Summary for Total Calls OfferedDay of Week = Mon

Worksheet: Calls Per Day

700600500400300

Median

Mean

540520500480460


V ariance 6874.88Skew ness 0.815974Kurtosis 0.462522N 26

Minimum 386.00

A -Squared



470.70

0.47

537.68


465.55 526.45


65.03 114.46

P-V alue 0.224



Summary for Total Calls OfferedDay of Week = Tue


700600500400300

Median

Mean

480470460450440


V ariance 2277.52Skew ness 1.19749Kurtosis 3.28034N 26

Minimum 374.00

A -Squared



442.92

0.48

481.47


437.90 477.45


37.43 65.88

P-V alue 0.212



Summary for Total Calls OfferedDay of Week = Wed


700600500400300

Median

Mean

540520500480460


V ariance 6874.88Skewness 0.815974Kurtosis 0.462522N 26

Minimum 386.00

A -Squared



470.70

0.47

537.68


465.55 526.45

95% C onfidence Interv al for StDev

65.03 114.46

P-V alue 0.224



Summary for Total Calls OfferedDay of Week = Tue


700600500400300

Median

Mean

460440420400


V ariance 5447.94Skew ness 0.399457Kurtosis -0.230159N 26

Minimum 301.00

A -Squared



399.65

0.39

459.27


388.45 445.70


57.89 101.89

P-V alue 0.360



Summary for Total Calls OfferedDay of Week = Fri


557

504

451429

462

Mon Tue Wed Thu Fri

* Day of week variances and means of half hourly * Day of week variances and means of half hourly call volumes between 0800call volumes between 0800--1230 are not statistically 1230 are not statistically different.different.

Higher call volume on Mondays

What is the impact of higher call volumes ?

October 27, 2006 26

Average Abandonment RateAverage Abandonment Rate80

0

830

900

930

1000

1030

1100

1130

1200

1230

1300

1330

1400

1430

1500

1530

1600

1630

1700

Mon Tue Wed Thu Fri

* Variances of daily half hourly abandon rates are equal * Variances of daily half hourly abandon rates are equal between 0800between 0800--1230, but the Monday mean is statistically 1230, but the Monday mean is statistically different from the remaining days of the week.different from the remaining days of the week.

Higher Abandonment Rates on Monday Mornings

October 27, 2006 27

Average Speed to Answer (ASA)Average Speed to Answer (ASA)80

0

830

900

930

1000

1030

1100

1130

1200

1230

1300

1330

1400

1430

1500

1530

1600

1630

1700

Mon Tue Wed Thu Fri

* Day of week variances of half hourly ASA are equal * Day of week variances of half hourly ASA are equal between 0800between 0800--1230, but the Monday mean is statistically 1230, but the Monday mean is statistically different from the remaining days of the week.different from the remaining days of the week.

Longer Speed to Answer on Monday Mornings

October 27, 2006 28

800

830

900

930

1000

1030

1100

1130

1200

1230

1300

1330

1400

1430

1500

1530

1600

1630

1700

Mon Tue Wed Thu Fri

Average Handle Time (AHT)Average Handle Time (AHT)

* Average Handle Time = Talk Time + Wrap* Average Handle Time = Talk Time + Wrap--upup

Handle Time Does Not Vary with Day of Week

October 27, 2006 29

Impact on Staffing Analysis ?Impact on Staffing Analysis ?

• Statistically significant difference between Mondays vs. Tuesdays – Fridays• Average abandonment rate• Average speed to answer

• Perform staffing analysis with appropriate average call volumes• Mondays• Tuesdays – Fridays

• Statistically significant difference between Mondays vs. Tuesdays – Fridays• Average abandonment rate• Average speed to answer

• Perform staffing analysis with appropriate average call volumes• Mondays• Tuesdays – Fridays

October 27, 2006 30

Results: FTE Gap on Monday MorningsResults: FTE Gap on Monday Mornings

Hour 30.4% 27.0%

800 -1.5 -1.0900 -2.7 -1.91000 -2.2 -1.41100 -3.2 -2.41200 -1.9 -1.21300 -1.4 -0.81400 0.6 1.21500 -1.4 -0.81600 -1.0 -0.51700 -2.7 -2.3

FTE GAP @ xx.x% Shrinkage

Hour 30.4% 27.0%

800 -0.1 0.4900 0.1 0.81000 -0.8 -0.11100 -0.4 0.31200 -0.4 0.21300 0.0 0.51400 0.6 1.21500 -1.4 -0.81600 -1.0 -0.51700 -2.7 -2.3

FTE GAP @ xx.x% Shrinkage

Mondays Tuesdays - Fridays

October 27, 2006 31

RecommendationsRecommendations

• Maintain current staffing level• Part time solution may not be viable for one day a week• Statistical significance <> business significance

• Leverage opportunities identified in lean assessment as requirements for• 2007 upgrade of call tracking system• ITIL implementation, e.g. operating level agreements

• Revisit staffing analysis

• Maintain current staffing level• Part time solution may not be viable for one day a week• Statistical significance <> business significance

• Leverage opportunities identified in lean assessment as requirements for• 2007 upgrade of call tracking system• ITIL implementation, e.g. operating level agreements

• Revisit staffing analysis

October 27, 2006 32

TopicsTopics





• Lean Assessment


• Takeaways





• Lean Assessment


• Takeaways

October 27, 2006 33

TakeawaysTakeaways

• Lean assessment is integral to• Process analysis• Process excellence

• Numbers alone do not tell the entire story

• Project success depends on• Sponsor and management support• Setting expectations• Open and honest feedback from the line

• Lean assessment is integral to• Process analysis• Process excellence

• Numbers alone do not tell the entire story

• Project success depends on• Sponsor and management support• Setting expectations• Open and honest feedback from the line

October 27, 2006 34

Questions ?Questions ?

Habs Moy

Phone: 212.855.1000

Email: [email protected]

Habs Moy

Phone: 212.855.1000

Email: [email protected]

a lean six sigma approach to traditional it call … · a lean six sigma approach to traditional it...

Documents