Cost of Rework

Written by Bernard Lichvar


Continued from page 1

Asrepparttar quality magazine stated,repparttar 106321 second most targeted quality cost expenditure is rework. Managers need to review all ofrepparttar 106322 internal support processes in order to determine if resources are performing similar functions such as creating training plans, quality processes etc. Another area to perform quality appraisal is repeat contacts forrepparttar 106323 same customer request due to multi channel environment. Ask yourself this question “Have I ever emailed a company requesting service and within a short period of time later calledrepparttar 106324 company again because did not receive a response within a reasonable time period?” If you have, then how many thousands of customers have donerepparttar 106325 same thing? Here is a recommendations.

1.First, Determinerepparttar 106326 importance of this issue is in one of your contact centers. The advocates should conduct a survey for approximately two weeks askingrepparttar 106327 customer if they sent an email requestingrepparttar 106328 same information and/or other information via email inrepparttar 106329 past 24 to 36-hours. a.Create a simple tick sheet to mark yes b.Talley them up atrepparttar 106330 end ofrepparttar 106331 day to determinerepparttar 106332 impact c.Determine if this situation has a definite impact on your budget. If so, initiate a system requirement to allow advocates access to both email and call applications. You will also need to create a process to handle these call types.

How much will this suggestion potentially reduce your cost?

Assumptions: ·One email handled by CompanyX costs about $2.31 ($.33/minute * 7 minutes/email) ·One call handled by CompanyX costs about $4.20 ($.42/minute * 10 minutes / call) ·Call handle time increases by 3 minutes nowrepparttar 106333 call costs $5.46 ($.42/minute * 13 minutes/call) ·1000 calls a day

Call Volume Cost if call advocates work emails at a rate of 15% per thousand. ·15% of 1000 is 150 ·150 x 5.46 (cost/minute handling emails) = $819.00 ·850 x 4.2 (cost/minute NOT handling emails)= $3,570.00 ·Total cost per thousand calls = $4,389.00

Normal Call volume cost without working emails ·1000 x 4.2 = 4,200

Cost Difference ·Cost $189.00 more per thousand calls

Email reduction due to voice advocate responding to emails. ·150 x 2.31 = 346.5

Bottom-line -- you save approximately $157.5 per thousand calls based on advocates working 150 emails.

Savings per 1,000 calls = $157.50 Savings per 10,000 calls = $1575.00 Savings per 100,000 calls = $15,750.00 Savings per 1,000,000 calls = $157,500.00

It may be worth investigating to determinerepparttar 106334 seriousness ofrepparttar 106335 issue within your contact center.

Summary

The above article provided an overview of organization rework costs, causes for rework, and ways to avoid project rework. An example of a potential cause for increase contact center cost was also provided. The next article will address training delivery cost within an organization.



Twenty-seven years of management experience encompassing all aspects of information Management: Project Leadership, Requirement Analysis, Budgeting, Network Design and Implementation, Technology Evaluation and Selection, Training, Quality Assurance, Contract Specification and Monitoring, Software Development and Team Building.


How to Avoid Nasty Business Surprises

Written by David Brewster


Continued from page 1

"That sounds way too complicated!" I hear you cry. It needn't be. Chances are most ofrepparttar basic analysis you need can already be done by your computer.

For example, almost every business these days captures basic information about their sales in their bookkeeping software. With a couple of clicks, you can generate a simple report which will tell you what percentage of total sales has come from each customer and/or each product or service you sell. (If you don't know how, ask your bookkeeper or accountant).

Armed with this simple information you might revisit your approach to marketing (how can we attract more ofrepparttar 106320 bigger customers?), to customer service (are we looking afterrepparttar 106321 right people?), to product/service range (isrepparttar 106322 effort needed to managerepparttar 106323 small products worth it?), and so on.

This sort of simple analysis is best learnt by doing. With practice, you will start to ask yourself "what information could help me with this decision?" and get quicker at finding that information.

You will gain a better understanding, and more control, of your business. You will shun perception in favour of facts. And you will have fewer expensive surprises.

(Discover how to find your business' deepest secrets using simple analysis. Visit: http://www.businesssimplification.com.au/actions/analysis.htm)

© David Brewster, August 2002 http://www.BusinessSimplification.com.au; mailto:feedback@businesssimplification.com.au

David Brewster helps people in small business who are struggling with their workloads and would like to separate themselves from the daily grind. He helps develop strategies which reduce wasted effort and allow effective delegation without reduction in quality or service.


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