Utilization calculation

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Telecom/Reporting Analyst

Outsource callcenter

Utilization calculation
I'm pretty positive that my client's utilisation target is insane, but I need a mathematical formula to show her so. Can you please help?
The facts:
  • We do technical support for them, our AHT is 12 minutes (client wants it to be 10 minutes)

  • we need a <10% abandon rate (SL threshold is not really a concern, use 3 minutes as an idea).

  • The client is looking for an 85% utilisation and

  • 15% non-utilised includes 40 minutes of allowed breaks (2*15 minute scheduled breaks, 1*10 minute bathroom)



Utilisation per hour is basically Handle time/sign on time.

Basic maths shows this to be improbable since it only allows 32 minutes of waiting for calls... but can anyone provide me with the Utilisation % Erlang calculation?
I can find the number of Agents vs. Service Level calculation, but I'm not seeing utilisation.
Thanks!!

Business Analyst

Sutherland Global Services

Utilization calculation
Hi Marianne,

Here is the calculation for utilisation:


Utilisation (% of time an agent is occupied with any productive or billable activities) is calculated as follows:

Utilisation (%) = (Total logged-in time/ Total Shift time) x 100



It can also be:(Total talk time + Total Hold Time + Total Wrap + Available Hours) / Paid Hours

This is the only acceptable formula as per COPC.

Feel free to ask me if you have more questions.

Thanks,
Ravi

Helper

Call Centre Helper

Utilization (or utilisation) is often called occupancy.
Utilization (or utilisation) is often called occupancy.

There is an article on the difference between the two:
https://www.callcentrehelper.com/difference-occupancy-utilisation-132518.htm

We have written an article on How to Calculate Utilisation
https://www.callcentrehelper.com/calculate-utilisation-140027.htm

We have also written a good article on How to Calculate Occupancy
https://www.callcentrehelper.com/agent-occupancy-89603.htm

WFM & Business Telephony Manager

Healthcare Insurance

Utilisation
Marianne,

It's insane!

Not withstanding the general technical problems, you're going to have a HUGE attrition rate.

Long term running at anything over 70 is asking for problems.

Trying to push the AHT from 720 > 600 is going to drive it up even more!

Given the long AHT it implies a fairly high level of technical knowledge to be able to deal with a call, not just direct enquiries etc...

Have they considered the fact that the recruitment and training costs are going to go through the roof?

Ravi, What's COPC? There are various ways of working out utilisation. No one method is 100% Correct, dependant on your view point!

Regards

DaveA

Business Analyst

Sutherland Global Services

Utilization calculation
Dave,

COPC is a quality standard like ISO 9001 etc, but is meant for BPO/Call centres only. You may get more details about them on their website

- Ravi

WFM & Business Telephony Manager

Healthcare Insurance

COPC
As far as I can see it's a private company.

Whilst they set their own opinion of what is right and have a very knowledgeable panel be very wary of any one saying "THIS IS THE ONLY CORRECT WAY".

Not an international standard. I'd really not like to compare it to ISO 9xxx

As I said , opinions vary.

Regards

DaveA

Headcount Planning Analyst

PayPal

Utilization calc
Hi Marianne

32 mins of available time as part of the time that an agent spends on the phones (8 hours minus 40 mins breaks) equates to availability of 7% (32/(8*60-40)).

Using this as an upper threshold and the AHT of 12 minutes and a wide assumption on service level to match your abandonment rate you'd need to be receiving over 11,000 calls per week in order to reach a 93% occupancy rate (inverse of availability). So your argument could be that you don't receive enough calls to drive that type of efficiency.

Given the info you've sent I guess you handle about 4,000 calls at the minute and have 40-odd FTE?

Also the 10% abandonment rate and the AHT are linked. A high abandonment rate target will encourage calls to queue, which will mean that it is much more likely that an agent will get a calll straight after answering another. Agents really can only work comfortably up to an occupancy of around 85%. Trying to get them to be more efficient generally has two impacts - longer AHT's, reduced on phone time.

Agents will naturally do this whenever they feel under pressure to give themselves a break from handling one call after another. Try looking at the AHT when the agents aren't under pressure, when availability is is around the 15% - 25% mark and see if it is lower.

Eamon

Planning

Outsourcing

Time Utilisation Diagram
"Using this as an upper threshold and the AHT of 12 minutes and a wide assumption on service level to match your abandonment rate you'd need to be receiving over 11,000 calls per week in order to reach a 93% occupancy rate (inverse of availability). So your argument could be that you don't receive enough calls to drive that type of efficiency."

And the client argument will be that you are overstaffed!

I would draw a Time Utilisation Diagram for this particular client, whilst you can have varied opinions these are meaningless when confronted with mathematical facts.


Headcount Planning Analyst

PayPal

Overstaffed
Hi Steve

That's not Marianne's problem.

Her client is saying that they should get a higher utilisation out of the current team, not that they need more staff.

It appears to be a lack of understanding of what is possible given the circumstances under which the team currently run i.e. to hit service level (<10% abandonment), against the number of calls and the average handling time requires availability beyond the client's current expectations.

Wouldn't the "mathematical fact" of a Time Utilisation Diagram simply show them graphically what they already know?

Eamon

Planning

Outsourcing

Eamon
Mathematics are not opinion and are undisputable. Let me put it another way if I may.
If a client gave you a pint pot and asked you to fill it with a pint and a half of liquid what would be the best way to demonstrate the fact that what they are asking for is not doable? Fill it with a pint and ask them for suggestions on where to put the rest would be my approach followed by a suggestion around giving me a bigger vessel.
The time utilisation model when prepared properly can be your pint pot.

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