Process Model (PM) Project
Prof. C. Mutigwe
A small off-shore Business Process Outsourcing (BPO) center in London provides customer support for credit card and customer account operations of its international client banks in the United States and United Kingdom. This organization employs some Call Center Assistants (CCA) whose responsibility is to answer all the incoming calls and log them. After logging, the call is automatically transferred (based on information logged in by the CCA) to a Customer Service Representative (CSR) for either USA or UK since separate representatives are currently employed for these two countries. The CSR discusses the problem with the customer to gather relevant information and decide whether it is a credit card related problem or customer account related problem (this information is also entered into the system). Based on the customer information, the call is automatically transferred to either a Credit Card Specialist (CCS) for the appropriate country if the inquiry is related to credit card or to an Account Specialist (AS) if it is related to customer account. Although the same AS can handle customer account inquiries for both countries, separate CCS’s are employed for US and UK in order to comply with regulatory requirements in both countries.
In a normal day, it has been observed that 60 calls come to the center every hour, evenly distributed throughout the hour. In addition, it has been observed that 35% of the calls arriving at the center are from the US and 65% from the UK. The calls from each country are evenly distributed (50%) between credit card inquiries and customer account inquiries. The time required for each process step has been optimized.
The following time estimates in minutes are available for various activities of the process:
Logging and answering calls 5
Gathering customer info (US customer) 10
Gathering customer info (UK customer) 8
Responding to US credit card inquiry 10
Responding to UK credit card inquiry 8
Responding to customer account inquiry 12
Note that the decision making for directing the calls is made automatically by the workflow system used to handle the calls, and does not take any extra time in the system. Similarly, there is no additional time required for the calls to exit from the system and there is no move time between various activities.
The number of personnel employed at the center and their hourly costs are following:
RESOURCE Hourly Cost/resource RESOURCE Hourly Cost/resource
CCA 2 $22 AS 2 $40
CSR-US 1 $30 CCS-US 2 $37
CSR-UK 1 $28 CCS-UK 1 $32
PM Project Cover Sheet
Prof. C. Mutigwe
1. Create a model of this process, complete with all appropriate data entered into the model. (Note: Do not use any decision symbols --- the diamond --- in your model.)
2. Simulate the model (for eight hours) and print out the output to a PDF file --- label this Output A. You may have to scan the printed output if you do not have the print to PDF feature.
3. Analyze Output A and answer the following questions: (this page may serve as your cover page for PM Project)
a. What is the efficiency of this process? __________________
b. How many calls are processed during an 8 hour period? __________________
c. What is the average cost of processing a call in this process? __________________
d. Which activity is contributing most to the non-value-added time? _________________
4. Determine one appropriate change to the model data that will improve the performance of the model. Simulate the model and print out the output to PDF --- label this Output B. Circle/highlight the key portion of the output which clearly shows the improved performance, and write on the output (next to the circled/highlighted area) what changes to the data you made to produce the improved performance. (Note: Be sure to calculate and show efficiency after this change.)
5. Analyze Output A again and determine a different change to the model data that will improve the performance of the model. Simulate the model and print out the output to PDF --- label this Output C. Circle/highlight the key portion of the output which clearly shows the improved performance, and write on the output (next to the circled/highlighted area) what changes to the data you made to produce the improved performance. (Note: Be sure to calculate and show efficiency after this change.)
6. Submit your three Process Model package files (.spg) one file each for Output A, Output B, and Output C in Blackboard under the PM Project. When I download your Process Model package files onto my computer I should be able to simulate your models.
7. Note: Follow instructions, and pay attention to detail. Submit your other responses to
1-5 above in a PDF or MS Word file in Blackboard. All
of your work has to be
submitted in Blackboard. I will not accept any work that’s emailed or submitted in paper form.