Retail Banking Productivity 8olutions

QueFlow QueFlow
7he ultimate teller scheduling tool
8y: Raj h. Caonkar
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Contents Page#
QueFlow Objective 3
Why Customer Waiting Time? 4
Teller Scheduling can be a challenge? 5
Are They Satisfied? 6
Service Quality by Branch Type 7
QueFlow Teller Scheduling Cost Optimization 8
Factors Affecting Teller Scheduling 9
Normalizing the Peak Arrivals 10
Customer Waiting Time Constraint 11
QueFlow Arrival Pattern 12
QueFlow Service Rates 13
What nformation QueFlow Can Provide? 14
Case Study 15- 24
QueFlow Suggestions 25
Contact 26
TabIe of Contents
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W Provide bank's management team and branch administration with a powerful and
timely teller scheduling tool that delivers desired customer service at a minimal
cost.
W Achieve noticeable savings in teller supervision costs through the automation of
customer trend forecasting and teller scheduling. Simultaneously offer better
customer service.
W Schedule right number of full/part time tellers at the right times across the entire
branch network. Cross train tellers, teller supervisor and customer service reps
to utilize all resources efficiently and cost-effectively.
":eFIow Objectives
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W f the customer arrival rates are controlled and the transaction times are kept
constant, there would be no waiting lines.
W n a branch environment arrival rates and transaction times change continuously
resulting in customer waiting times.
W QueFlow, which is based on Queuing Theory principles is an effective tool for
controlling customer waiting times while minimizing teller costs.
W Queuing Theory is the most commonly used statistical method for predicting
customer arrival and service patterns.
C:stomer aiting Time?
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W Random customer arrival rates fluctuate constantly
W Transaction mix changes continuously
W Tellers are under utilized during the slow periods
W Waiting line builds up during peak arrivals
W Peak arrival periods are critical to teller scheduling
W A "user friendly and flexible teller scheduling model is the solution
TeIIer Sced:Iing Can Be A CaIIenge
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C:stomer Universe
aiting Line TeIIer Station
C:stomers Depart
Bank
Are te satisfied
Are Te Satisfied?
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Branch Type A
Branch Type D
Branch Type B
Branch Type C
Customer Service Quality
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Low High
Service ":aIit B Branc Tpe
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&# OF TLL#S
Total Cost (per minute oI waiting time)
":eFIow TeIIer Sced:Iing Cost Optimization
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W Customer Population
W Customer Arrival rate
W Customer Service Rate
W Branch Queuing Discipline
W Customer Waiting Time Constraint
W Full Time & Part Time Teller Mix
Factors Affecting TeIIer Sced:Iing
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W dentify the fluctuating arrival patterns
W Shift certain customer arrivals to normalize the traffic
W stablish matching service shifts
W Cross-train branch staff to assume peak arrival work load
W Schedule back office functions during non-peaks
ormaIizing Te Peak ArrivaIs
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c:stomers
aiting time (min:tes )
ess than 5% of the
customers wait longer
than 5.5 minutes
Average aiting Time: 2.5 min:tes
C:stomer aiting Time Constraint
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W istorical data from the teller transaction records
W Manual arrival counts
W Automated customer arrival counting devices
W Branch management estimates of arrival trends
":eFIow - ArrivaI Pattern
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W Average customer service time by customer type
Priority customer
Small merchant customer
P&R Customer
W Average transaction time developed from activity benchmarks
Check Cashing
Mixed deposits
W Customer to Transaction Ratio
Customer sampling
Management stimates
W Subject Matter xpert estimates
Trained teller performance
imitations of new tellers
":eFIow - Service Rates
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W What is the forecasted arrival rate?
W What is transaction mix?
W What is the distribution of service times?
W Does a branch need a single line or multiple lines?
W What is the optimum teller utilization ratio?
W What is the recommended customer waiting time?
W ow many tellers are required on the window?
W ow to schedule shifts and the lunch breaks?
at Information ":eFIow Can Provide?
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Big AppIe Branc etwork
TeIIer Sced:Iing
76 Branches
4 Branch Types
490 Tellers
Case St:d
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W Branch No. 200
W Teller window service time is from 9am to 4pm
W Only consider teller window activities to generate teller requirement
W unch time is between 10:30 am and 2:30 pm
FT teller gets 1 hour lunch break
PT teller A gets 30 min lunch break
PT teller B has no lunch break
W Current mployee Complement: 25
Platform: 8
Customer Service Rep: 2
FT teller: 9
PT teller: 6
Branc Information
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Provides an optimal teller scheduling solution for a recommended customer waiting
time constraint.
ProductFlow recommends that the customer waiting time should be linked to
customer segmentation.
Calculates an effective full time and part time teller mix that agrees with the
customer arrival pattern.
Schedules teller shifts, lunch breaks and back office functions.
Provides "On window schedules for cross trained non-tellers.
":eFIow1 - TeIIer Cost Optimization
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9:00 9:30 10:00 10:30 11:00 11:30 12:00 12:30 13:00 13:30 14:00 14:30 15:00 15:30
Time
Required ead Scheduled ead
On D:t Sced:Ie 9:00 9:30 10:00 10:30 11:00 11:30 12:00 12:30 13:00 13:30 14:00 14:30 15:00 15:30
Required Teller 7.16 7.25 6.96 6.96 6.76 6.76 6.86 6.76 9.61 9.8 8.14 8.33 10.29 10.29
Scheduled Teller 8 8 8 7 7 7 7 7 10 10 9 11 11 11
Waiting Time 1.65 1.1 0.91 1.14 0.91 1.83 4.5 1.37 0.72 1.74 0.96 0.44 0.53 0.6
Act:aI Staff: F:II Time: 8 TeIIers, Part TimeA: 2 TeIIers, Part TimeB: 3 TeIIers
":eFIow1 S:ggests F:II Time: 7 TeIIers, Part TimeA:1 TeIIer, Part TimeB: 3 TeIIers
":eFIow1 - Optimization Sced:Ie
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Provides the most effective teller schedule for the existing teller staff.
Desired schedule is obtained by adjusting teller staffing level and the full time
and part time teller mix.
ower teller staff schedule results in a higher customer waiting time.
ProductFlow recommends keeping average waiting time under 5 minutes.
":eFIow2 - Sced:Iing Existing TeIIer Staff
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9:00 9:30 10:00 10:30 11:00 11:30 12:00 12:30 13:00 13:30 14:00 14:30 15:00 15:30
Time
Required ead Scheduled ead
On D:t Sced:Ie 9:00 9:30 10:00 10:30 11:00 11:30 12:00 12:30 13:00 13:30 14:00 14:30 15:00 15:30
Required Teller 7.16 6.58 6.22 5.75 5.41 6.31 7.23 5.95 7.94 9.54 7.38 7.33 8.24 8.51
Scheduled Teller 10 10 10 9 8 10 11 10 11 13 11 11 11 11
Waiting Time 0.65 0.48 0.42 0.46 0.56 0.45 0.5 0.38 0.5 0.52 0.46 0.44 0.53 0.6
Act:aI Staff: F:II Time: 8 TeIIers, Part TimeA: 2 TeIIers, Part TimeB: 3 TeIIers
":eFIow2 aIIocates existing teIIers staff to minimize c:stomer waiting time
":eFIow2 - Existing TeIIer Staff Sced:Iing
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FT PT
QueFlow1 7 4 71% 1.31 240,809.40
QueFlow2 8 5 58% 0.50 291,712.20
Difference 1 1 -13% -0.81 50,902.80
Annual Teller Cost
Model
Scheduled Tellers
Waiting Time Avg Utilization
Branch Number 200
Branch Name United Nations Branch
Branch Address 320 ast 44
th
St. New York, NY 10017
Branch Manager Steven Johnson
Branch our Mon. to Fri. 9am to 4pm
Teller Staff 9 full-timer; 6 part-timer
":eFIow1 vs. ":eFIow2
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Branch Type Number oI
branches
Customer Waiting Time
Distribution
Average Waiting
Time
Upscale 4 Under 2 min: 90
Over 2 min:10
1.15 min
Merchant 11 Under 2 min: 30
2 min- 4 min: 60
Over 4 min: 10
3.05 min
P & R 55 Under 2 min: 35
2 min- 4 min: 55
Over 4 min: 10
2.10 min
Community 6 Under 4 min: 90
Over 4 min: 10
3.30 min
aiting Time B Market Segmentation
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Branch Type Current Teller
Complement
Proposed Teller
Complement
Teller DiIIerence
Upscale 41 44 (3)
Merchant 84 80 4
P & R 331 321 10
Community 34 30 4
Total 490 475 15
TeIIer Sced:Iing Across etwork
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W Modify customer arrival behaviour.
W eep resources not serving customers out of sight.
W Segment customers by customer profitability.
W Adopt a long-term perspective of customer satisfaction.
W Provide incentives to friendly tellers.
W Promote cross selling.
Prod:ctFIow S:ggestions
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Contact Us
Raj Gaonkar: President
675 Townsend Ave. #111,
ew Haven, CT 06512, U.S.A.
Pone: 203 467 6380
emaiI: raj.gaonkar76@gmaiI.com