Capacity Planning

IT AS4R Program

Oct 2012

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Background & Objective

Problem StatementLack of service demand forecasting in 4R Global IT AS results in

Un-utilized capacity when actual volume is less than planned volume Conflict in prioritization of services when volume spikes beyond 5% level Challenge in resource planning Low morale of consultants

Best PracticeDemand management is a critical aspect of service management. Poorly managed demand is a source of risk because

of uncertainty in demand. Excess capacity generates cost without creating value (ITIL® V3)

ProposalSetup Service Demand process with

Forecast based on past volume trends, future visibility of projects and business changes (demand for changes including Service requests)

Plan resource capacity based on projected demand Track actual volume against the demand forecast Setup a tactical governance to prioritize the services when volume fluctuates beyond the capacity

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Volume forecast mechanism

Efforts forecast at sub-Knowledge for each of the ServicesDescription Efforts

(in hours)Total Efforts

(in hours)

Projected efforts per month   1500 (based on past volume and known cyclical trends eg. QEC, YEC.)    

Add: Expected increase in efforts    

- from future visibility of projects 125   - Business changes (including Service requests where applicable) 100 225

    1725

Less: Expected efforts reduction due to     - 1st level handover 100   - Problem Management activity including PIPs 75 (175)

Expected future efforts per month   1550

* Data above is only a sample and not representing any Product

List of services

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List of Services and Capacity Planning template

(Per month)Services (at Product level)

Efforts per month (Based on historical

data)

Expected efforts out of

future visibility of projects

Expected efforts out of

Business changes

Expected efforts reduction due to

1st level hand over

Expected efforts reduction due to

PM activity including PIPs

Future expected

Efforts

(A) (B) (C ) (D) (E ) (A+B+C-D-E)

Incidents (effort in hours)            

ASA (efforts in hours)            

B2R (efforts in hours)            

CRs (efforts in hours)            

PM (efforts in hours)            

Early Build involvement (efforts in hours)            

Knowledge Up skilling (efforts in hours)            

Total            

Note: Services are arranged in priority of importanceKnowledge Up-skilling is TCS internal

Monthly Capacity Planning for all services at Sub-Knowledge area level:

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Service Demand Process Flow

Service Demand Process Flow:

Roles Process Steps ->

Service Integrator

Service Lead

SAP Service Manager

Tactical Governance Team

1.2) Project the efforts and prepare the capacity plan & share with SAP

SM

1.6) Prioritize and advises for shift the capacity

between services

1.3) Review the plan and provide feedback

1.5) Compare with actual effort utilization

1.7) Manages to handle additional activities, shift the capacity or Increase /

Decrease the capacity based on scenario

1.4) Update plan with feedback comments

Scenario 3

1.1) Service Integrator to provide input based on

future visibility of projects and business changes

Scenarios are explained in more detail in next slides..

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Capacity Scenario – when incidents volume reduced

* ASA: Additional Support Activities, B2R: Build to Run Transition, CR: Change Requests, PM : Problem Management, EBE: Early Build Engagement, KU : Knowledge up skilling

Capacity planned

KU

EBE

SR

B2R

PM

ASA

Incidents

Projected volume (incidents)

Scenario 1: When incidents volume is less than the demand forecast, team will focus on future Service Requests, B2R, PM, etc. to utilize the capacity.Scenario 2: If the incidents volume reduction is permanent and no demand / visibility for any other services, capacity will be reduced, if the trend continues for more than 2 months.

Month 1 Month 2 Month 3

Effo

rts

in (

hour

s)

© 2011 SAP AG. All rights reserved. 9SAP AG TCS Internal

Capacity Scenario – when incidents volume increased

* ASA: Additional Support Activities, B2R: Build to Run Transition, CR: Change Requests, PM : Problem Management, EBE: Early Build Engagement, KU : Knowledge up skilling

Capacity planned

KU

EBE

SR

B2R

PM

ASA

Incidents

Projected volume (incidents)

Scenario 3: When incidents volume is high (during QEC / RD), refer tactical governance team to prioritize and shift the capacity – Movement of capacity from other services (eg. PM or KU) to Incidents handling

Month 1 Month 2 Month 3

Effo

rts

in (

hour

s)

© 2011 SAP AG. All rights reserved. 10SAP AG TCS Internal

Capacity Scenario – when demand exceeds capacity

* ASA: Additional Support Activities, B2R: Build to Run Transition, SR: Change Requests, PM : Problem Management, EBE: Early Build Engagement, KU : Knowledge up skilling

Capacity planned

KU

EBE

SR

B2R

PM

ASA

Incidents

Projected volume (incidents)

Scenario 3: When Incidents and SR volumes has increased and total demand is more than capacity, refer tactical governance team to prioritize the services.Scenario 4: If the volume increase is consistent, additional capacity to be brought in. Minimum 3 months needed for bringing in additional capacity.

Month 1 Month 2 Month 3

Effo

rts

in (

hour

s)

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Advantages and Next Steps

Advantages of Demand forecasting process as part of New Operating Model:

Service Integrator in New Operating Model will help in: In forecasting the volume better Enabling team to Handle more SRs Better work content for consultants

Next Steps: Sign-off of Demand forecasting process Create a Tactical layer to enable prioritization Roll-out Demand forecasting process

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Thank You!