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Bpo Inc Case Study

Essay by   •  October 3, 2015  •  Case Study  •  801 Words (4 Pages)  •  1,520 Views

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BPO Inc.

BPO’s Employee Business Outsourcing (EBO) is facing a full audit by an external auditor selected by BPO’s client, HA and a review by BPO’s senior management. EBO business has already started a Six Sigma project to investigate way to improve the efficiency and effectiveness of Health and Welfare Service delivery process.

Measure

Having defined the project goals, following baseline metrics have been established during the Measure phase of Six Sigma.

Performance Metric

Value

CSR Utilization

37%

BA Utilization

74%

Average time on-hold waiting for CSR

1.77 minutes

Average processing time for calls not escalated

11.54 mins

Average elapsed time from escalation to CSR call back

6.7 hours

The typical contractual service level between BPO and its clients was that the BPO staff would answer 80 percent of the calls in 20 seconds or less. In addition, BPO has set an internal metric of handling-time of 6 minutes per call. All the baseline metrics in the above table have an indirect relation to what is contractually agreed with the clients. A more appropriate metric would have been the percentage of customer service representatives (CSR) available to take a call at any given point in time. Although Sam Regan, CEO of HA Inc., did not clearly mention the reason for his dissatisfaction, time it took for CSR to pick up Mr. Regan’s call could have been the reason.

Analysis

Utilization of customer service representatives (CSR) is very low at 37%. Following is the cause-and-effect relationship diagram:

[pic 1]Based on the availability of CSRs from 8am to 8pm and the average number of calls, each CSR has about 29.1 minutes per call on an average which is higher than the maximum time CSR spent on one call at 19.1 minutes. This clearly shows the number of dedicated CSRs can be reduced. Using Process Model, by reducing the number of CSRs from 31 to 20, the efficiency has increased from 37% to 60% while keeping rest of the resources and times constant.

Hour

CSR Availability (mins)

Average Number of calls

Number of Minutes per call

8 - 9 AM

780

30.4

25.66

9 - 10 AM

1590

49.8

31.93

10 - 11 AM

1455

59

24.66

11 - 12 PM

1695

60

28.25

12 - 1 PM

1680

49.4

34.01

1 - 2 PM

1740

57.1

30.47

2 - 3 PM

1710

57.5

29.74

3 - 4 PM

1590

53.9

29.50

4 - 5 PM

1710

51.6

33.14

5 - 6 PM

1035

37.5

27.60

6 - 7 PM

180

11

16.36

7 - 8 PM

180

10.2

17.65

Average

29.10

Min

16.36

Max

34.01

Std Dev

5.60

Another observation is average time available for each call for the period 6PM to 8PM is about 17 minutes which indicates the need to change the work shifts of CSRs so that it is more balanced. Additionally, as identified in the performance metrics, CSRs seems to be putting the customers on hold for about 1.77 minutes on an average although they are not supposed to do that. This indicates not only need for more training on handling of customer calls but also business process training.

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