Please help me with the following question re:the labor utilization for each 30 minute period is, and what numbers were used to figure it out.

Case study is attached (photos)

1. Analyze the case data and current schedule, and answer the following "baseline" questions. What's the labor utilization for each 30-minute period given the current staffing plan?

Greyhound Frequent Flyer Call Center Case Study "I'm an accounting major, not an opera- ased tions expert," yelled just-promoted Bob tes Barthrow, the executive vice president of the Greyhound Frequent Flyer Call Center, during a senior-level manage- ment meeting. "Bob, Horizon Airlines [HA] is going to stop doi op doing business with us if we don't provide better call center 55 service. We need to maximize service and minimize costs! So, find a solution to HA's service problems or we are all out of a job," stated Adam Bishop, the CEO of Greyhound Call Center Ser- vices (GCCS). Bob retreated to his office and closed the door. As he sat in his chair, he thought about the many meetings he had participated in where managers promised great customer service but could not deliver it. Upon fur- HA and GCCS categorized incoming calls into four ther reflection, he came to the conclusion that to categories as follows: promise great customer service you first must know how to analyze resource capacity and develop good 1. Redeem calls: The customer wants to redeem schedules. He pulled out his old college operations frequent flyer points for future airline flights. management textbook and began reading. He also did 2. Problem resolution: The customer wants to a Google search on the topic and found several articles correct point debits and credits, flights, personal to read. He planned on building an electronic spread- information, and so on. sheet analysis of the situation. 3. Manage accounts: The customer wants to split, Small and mid-sized airlines outsourced a va- combine, transfer, delete, rename, and/or update riety of peripheral services to GCCS, such as billing the frequent flyer account(s). and credit card management, baggage and customer 4. Travel advice: The customer asks for travel advice. flight claims management, reservations, loyalty pro- GCCS and HA provide "limited travel consulting grams, and call center management. HA accounted for service and advice." GCCS CSRs are trained to be 9 percent of GCCS revenues. HA customers had no nice yet tell the customer they do not provide full idea the HA frequent flyer program was outsourced travel service, and refer customers to other travel to GCCS. GCCS managed separate call centers for agencies. several airlines, each with its own dedicated staff and Average standard times for HA's call mix is shown office space. GCCS customer service representatives in Exhibit 14.9. Bob wanted to get a standard service (CSRs) who worked in the HA call center were trained by both GCCS and individual airlines such as EXHIBIT 14.9 Greyhound Frequent Flyer Call Mix HA. GCCS provided all CSRs with service manage- Standard Time Percentage of ment training and mentors, and CSR performance was electronically monitored. HA trained the CSRs Type of HA Call Per Call (Seconds) Total Call (%) 115 61% by including airline tours and free flights so the CSRs Redeem 175 25% would know the airline and its culture, and especially Problem Resolution 240 8% its frequent flyer program. HA CSRs were trained to Manage Accounts 180 6% handle 20 service upsets most likely to be described Travel Advice Greyhound case data is also available in an Excel spreadsheet at OM Online. by incoming customer calls. CHAPTER 14: Operations Scheduling and Sequencing 309rate in the same units of measure used for other airlines, at least a 7-hour workday plus 1 hour for lunch or and that was calls per CSR per 30 minutes. Average HA- ner and at least one 15-minute break per worked GCCS call center demand rounded to the nearest inte- Any workday less than FTE is considered part ger for the last 10 Mondays is shown in Exhibit 14.10. employment (PTE). Bob thought a planned (target) CSR labor utilization He planned to use a four-step analysis approach, of 90 percent provided adequate safety capacity. The Step 1 being demand analysis. Exhibit 14 current HA-GCCS CSR staff schedule is shown in these data. Step 2 was to compute and explain the log Exhibit 14.11. Full-time employee (FTE) policies require setting a standard service time in calls/CSR/30 mins EXHIBIT 14.10 Greyhound Frequent Flyer Call Center Demand Data (These data are available in an Excel worksheet in the OM6 Data Workbook) Number of Number of Busy Number of Abandon Calls by Signal Calls Not Customer* Taken+ Total Calls Time Period Calls Taken 6:30 15 0 15 0 16 7:00 16 0 7:30 45 4 0 49 0 65 8:00 60 5 8:30 62 6 IN 70 9:00 71 4 1 76 0 9:30 77 5 82 10:00 84 11 4 99 10:30 75 8 11:00 81 4 11:30 69 - w w 86 88 76 12:00 79 2 OWNO 81 12:30 66 3 71 1:00 80 4 87 1:30 76 00 90 2:00 92 6 105 2:30 85 3:00 73 4 80 3:30 78 B3 4:00 67 W W OT - 97 75 4:30 62 5:00 54 WO - OOD 64 55 5:30 51 -NAN ONO - 53 6:00 37 6:30 37 48 7:00 53 42 7:30 0 42 32 8:00 26 32 8:30 2 22 28 9:00 19 0 23 0 0 19 Totals Average 1,744 58.1 103 50 1,897 Std Deviation 22.9 3.4 2.8 1.7 63.2 Minimum 15 2.0 26.6 Maximum 92 11 0 15 7 105 customer who gets a busy signal because all incoming trunk phone lines are busy cannot get into the GCC up. What is true demand? * An abandon call means the customer gets into the GCCS call center system but then hangs up for some undetermined reason. to the GCCS system and therefore hangs 310 PART THREE: Managing Operations and SurStep 3 involved analyzing staff (resource) capacity and using the following equation: Utilization () = Demand rate per unit of time undetermined reason) or busy signal call to be estimated Service rate per unit)(Number of servers) at $21. This was his best estimate of the cost per call for poor customer service. If you know any three of the four variables in this equation, you can solve for the fourth variable. Step 4 required a revised detailed staff schedule to meet de- Decisions Bob decides to answer the following ques- tions and present answers to Adam next week. He knows mand to be developed given the target number of CSRs his accounting principles, but if he is to be promoted, per time period for a given service rate, and an assump- he must also demonstrate to management that he can tion on the target labor utilization rate. He planned to analyze a process and successfully manage it. explain and justify all of his logic and assumptions in a written report to be presented to other managers and his Case Questions for Discussion direct reports . 1. Analyze the case data and current schedule, and Bob also found a year-old study on the cost of poor answer the following "baseline" questions. What's service for another airline serviced by GCCS, which labor utilization for each 30-minute period given the found the cost of an abandon (customer hangs up for current staffing plan? Is the main problem lack of staff capacity or poor scheduling, or both? Can you support your answer with numerical analysis? EXHIBIT 14.11 Greyhound Current CSR Staff Schedule (This Excel worksheet is available in the OMG Data Workbook) X Exhibit 13.23 HA-GCCS CSR Staff Scheduleadsx - Microsoft Excel Home Insert Page Layout Formulas Review View Add-Ins - O X File " ( -5 X A1 G H M 0 W N Service Rep 6:30 7:00 8:30 9:30 10:00 10:30 11:00 11:30 12:00 12:30 PM 1:00 1:30 (Lunch) (Lunch (Lunch) (Lunch) amman (Lunch) (Lunch) awwwrun (Lunch) (Lunch) emmer (Lunch) (Lunch) mmm (Lunch) (Lunch) (Lunch) [Lunch) (Lunch) (Lunch) -[Lunch) 90 150 150 150 150 210 210 180 16 Avail CSR (Min) 180 17 Current # CSRs 60 60 3 18 Target # CSRs 20 19 Short/Excess (J+) 6:00 8:30 Totals 21 22 Service Rep 2:30 3:00 3:30 4:00 4:30 5:00 5:30 6:00 6:30 7:00 7:30 ( - ) (Dinner) (Dinner) (Dinner) (Dinner) comeas antakenotes (Dinner) (Dinner) 120 120 BREFI (- )-.mancomes." Dinner) (Dinner)- 120 150 150 120 120 330 210 135 35 Avail CSR (Min) 300 4.5 36 Current # CSRs 315 10.5 11 80 1 100% 37 Target # CSRs 39 38 Short/Excess (19) 14 4 > > Sheet1 /Sheet2 Sheet3