Questions and Answers > annotated_Sof-Optics Inc. University of Alberta OM 422_ Draw a process-flow

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1. Draw a process-flow diagram for Sof-Optics. What do you think is the bottleneck resource?

As observed from Oct 21-23, the total number of calls per day was 1,164.3, which is higher than the effective capacity of the team of 1,091 calls per day, as calculated in part 2.

Combined with the observed 136.3 abandoned calls, this indicates capacity has been reached, and the CSR process is likely the bottleneck in the system. Given that sales are projected to double in the next year, CSR will continue to be the bottleneck process and further exacerbate inefficiencies in the system.

The production was not the bottleneck of Sof-Optics, because the plant was producing 2,000 lens per day, well under the capacity of 6,000 per day. If sales volume went up 2 times for FY81, the production still had enough capacity, and Sof-Optics had no difficulty in attracting sufficient workers if necessary.

2. What is the capacity of a CSR? Theoretical Capacity Expected call duration per CSR: 0.6(85) + 0.15(120) + 0.15(220) + 0.05(450) + 0.03(125) + 0.02(120) = 130.65 s/call Capacity of one CSR = (60 s/min)(60 min/hr)(7.5hr/workday)/(1 customer /130.65s) = 207 calls/workday/person Theoretical Team Capacity = (207 calls/person)*(8 person/team) = 1,656 Calls/Day.

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Theoretical Team Capacity per hour Start time

End time

Effective number of CSRs on duty

CSR capacity (calls/hr)

6:00

7:00

2

55.10907

7:00

8:00

4

110.21814

8:00

9:00

5

137.772675

9:00

10:00

7

192.881745

10:00

11:00

6.5

179.104478

11:00

12:00

6

165.32721

12:00

13:00

4.5

123.995408

13:00

14:00

6

165.32721

14:00

15:00

7

192.881745

15:00

16:00

6

165.32721

16:00

17:00

4

110.21814

17:00

18:00

2

55.10907

Effective Capacity The CSR team had 8 employees with different Time on Job (Months). Based on Exhibit 5, the effective capacity of each CSR is calculated in below table.

Effective capacity of the whole CSR team = 1,091 Calls/Day Employee

Months on Job (Months)

Performance Standards (Calls/Day)

A

16

159

B

1

114

C

5

150

D

19

159

E

2

123

F

1/2

68

G

32

159

H

6

159

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3. Describe two possible interventions that could improve the operations at Sof-Optics. a. Establish priority of calls as below: i. Order > New Account Creation > Status Check > Lens Care Supply Order > Misc. Cal ii. This priority system will help grow revenues while minimizing bottlenecks in the system b. Consignment system: From Exhibit 9-A it can be seen that majority of Sof Optics orders are for more than 1 lens per week. Having a consignment system not only helps with inventory planning, it also helps minimize the load on the CSR system as fewer customers will call in to place orders. c. New CSR hires: One additional CSR may be added to reduce the number of abandoned calls per day (see Exhibit 8)

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