Capacity Planning

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Capacity Planning

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© 2006, Cognizant Technology Solutions. Confidential

Approach

1.1. IntroductionIntroduction

2.2. Need for Capacity PlanningNeed for Capacity Planning

3.3. Capacity PlanCapacity Plan

4.4. ToolsTools



•In information technology, capacity planning is the science and art of estimating the space, computer hardware, software and connection infrastructure resources that will be needed over some future period of time.

•A typical capacity concern of many enterprises is whether resources will be in place to handle an increasing number of requests as the number of users or interactions increase.

•The aim of the capacity planner is to plan so well that new capacity is added just in time to meet the anticipated need but not so early that resources go unused for a long period.

•The successful capacity planner is one that makes the trade-offs between the present and the future that overall prove to be the most cost-efficient.

Capacity Planning - Definition



Need for Capacity Planning

It is imperative that there is a loss of revenue towards improper usage of manpower, technology, infrastructure etc.

Hence there is a need for a system to curb the waste of recourses and efficiently manage it to the betterment of the organization and show a positive impact on the revenue index

It gives management an upper hand in efficiently allocating resources (Work Force Management), reduce infrastructure and technology cost



Capacity planning is done on the basis of business type

Capacity Plan

Voice - Erlang C

Non Voice – Time and motion study



Voice – Erlang C

Capacity Planning - Tools

The Erlang distribution is a continuous probability distribution with wide applicability primarily due to its relation to the exponential and Gamma distributions. The Erlang distribution was developed by A. K. Erlang to examine the number of telephone calls which might be made at the same time to the operators of the switching stations. This work on telephone traffic engineering has been expanded to consider waiting times in queuing systems in general.



Factors

Capacity Planning - Voice

1. Client existing volume2. Forecasted volume3. Ramp up plan4. Metrics5. SLA6. Seasonal trend7. Annual Trend8. Complexity









Capacity Planning - Voicehttp://erlang.com/calculator/call/

1. Pull out volume reports of the past 3 months (minimum)

2. Stack it day wise

3. Optional Activity – Check for Normality

4. Calculate 50th percentile(optimistic),75th percentile (realistic) and 90th percentile (pessimistic) for the data – Hour/Half Hour wise

Note: Some analysts recommend UCL as the figure however I don’t recommend that since UCL is to counter special cause variations and not

for common cause and will be extremely pessimistic

5. Enter the output in Erlang to determine FTE requirement –

6 Add additional buffers based on other factors – shrinkages (absenteeism, attrition), Learning curve, complexity etc

6 Prepare scheduling based on above FTE

7. Optional Activity – Work backwards to see if the FTE matches with the required Abandonment % - (The difference between number of calls actually received*AHT minus Number of FTE*30 mins)/calls actually received is the AB% - Approx

8. Optional Activity – Week wise scheduling can also be prepared – In this case do step (3) by stacking all Monday’s, Tuesday’s etc

Example



Capacity Planning – Non Voice

A time and motion study (or time-motion study) is a business efficiency technique combining the Time Study work of Frederick Winslow Taylor with the Motion Study work of Frank and Lillian Gilbreth (best known through the biographical 1950 film and book Cheaper by the Dozen. It is a major part of Scientific management (Taylorism).

A time and motion study would be used to reduce the number of motions in performing a task in order to increase productivity. The best known experiment involved bricklaying. Through carefully scrutinizing a bricklayer's job, Frank Gilbreth reduced the number of motions in laying a brick from 18 to about 5. Hence the bricklayer both increased productivity and decreased fatigue.

Time and motion study



Capacity Planning – Non Voice1. Prepare detailed process flow for all the process

2. Take 3 types of associates in the process – high skilled, medium skilled and low skilled ( based on historical speed of processing)

Note: Take time study only if historical data of client is available or take time study after 3-6 months of stable operations.

3. Take minimum 10 samples ( optimistic), 25 samples( realistic) and 50 samples (pessimistic) of each category of associate

Note: Try to take time study at different time of the day

3. Capture the time taken for each process step

4. Total the time taken for a transaction

5. Take average time taken for 30 samples across 3 associates

6. Add 12% for contingency and wear and tear

7. Determine the total volumes expected per month

• Based on forecasted volumes

• Based on past trends

8. Total time required in mins – 6*7

9. Time per FTE – 9600(8 hours per day * 20 working days*60 minutes)

10. Number of FTE’s required would be – 8/9

Data

CAPL





Case Study - Voice

Estimate the number of resources required based on the data provided below

AHT – 300 ( 270 secs ACD+30 secs ACW/AWT) Service Levels – 80% in 30 secs

Voice



Thank you

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Capacity Planning

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