Collection capacity planning

COLLECTION CAPACITY PLANNING MODEL

Collection Capacity Plan Model

#Telecallers (FTE)

Required

Productivity Assumption

& Adjustment

Volume

Factor

Call

Intensity

Inventory

ForecastInput :Inventory forecast prepared by Loss Forecasting Team

Process :- Assign volume factor to total

inventory.- Input call intensity desired- Make necessary adjustment factor

which affects productivity- Make productivity & successful

collection activity assumptions

Output:Number of Telecallers (FTE) required in the group for collection activity

Calculation Jan Feb Mar Apr

a) Flow Forecast Account Volumes Input 8,149 8,430 8,225 8,247

b) Inventory Factor Queue Volume Input 0.99 0.99 0.99 0.99

c = a * b 8,080 8,360 8,156 8,178

d) Inventory Factor Assigned Accounts Input 0.61 0.61 0.61 0.61

e = d * c 4,958 5,127 5,004 5,017

f) Desired Contact Intensity Input 3.17 3.09 3.07 3.45

g = f * c 25,591 25,858 25,020 28,251

h) Reviews h = j*t 94,401 94,823 95,219 101,873

i) Per Queued i = h / c 12 11 12 12

j) Per Day j = k*(w/t) 4,968 4,741 4,761 4,851

k) Per Hour Input 55 55 55 55

l) Contacts l = g 25,591 25,858 25,020 28,251

m) Contact Rate m = n / j 27.1% 27.3% 26.3% 27.7%

n) Per Day n = l / t 1,347 1,293 1,251 1,345

o) Per Hour Input 15 15 14 15

p) Promise to Pay p = o * q 15,002 15,240 14,708 16,605

q) Promise to Pay Rate Input 58.6% 58.9% 58.8% 58.8%

r) Kept PTP r = p * s 7,500 7,603 7,339 8,291

s) Kept Promise to Pay Rate Input 50.0% 49.9% 49.9% 49.9%

INVENTORY MANAGEMENT

c) Avg Daily Queue Volume

e) Avg Daily Assigned Volume

REQUIRED CONTACTS

g) Desired Monthly Contacts

PRODUCTIVITY MANAGEMENT

Key Drivers

Budget 2009

Forecast number of account in the inventory pool. This number is provided by Loss Forecast team, taken as input.




c = a * b 8,080 8,360 8,156 8,178


e = d * c 4,958 5,127 5,004 5,017


g = f * c 25,591 25,858 25,020 28,251

h) Reviews h = j*t 94,401 94,823 95,219 101,873

i) Per Queued i = h / c 12 11 12 12

j) Per Day j = k*(w/t) 4,968 4,741 4,761 4,851


l) Contacts l = g 25,591 25,858 25,020 28,251


n) Per Day n = l / t 1,347 1,293 1,251 1,345




r) Kept PTP r = p * s 7,500 7,603 7,339 8,291





REQUIRED CONTACTS



Key Drivers

Budget 2009

Forecast number of account in the inventory pool. This number is provided by Loss Forecast team, taken as input.Factor of inventory queue. As one customer might have two accounts, number of customer to be called might be lower. The factor ranges from 0-1. 1 indicates that all accounts are distinct, hence number of account is the same as number of customer.




c = a * b 8,080 8,360 8,156 8,178


e = d * c 4,958 5,127 5,004 5,017


g = f * c 25,591 25,858 25,020 28,251

h) Reviews h = j*t 94,401 94,823 95,219 101,873

i) Per Queued i = h / c 12 11 12 12

j) Per Day j = k*(w/t) 4,968 4,741 4,761 4,851


l) Contacts l = g 25,591 25,858 25,020 28,251


n) Per Day n = l / t 1,347 1,293 1,251 1,345




r) Kept PTP r = p * s 7,500 7,603 7,339 8,291





REQUIRED CONTACTS



Key Drivers

Budget 2009

Average volume of accounts after considering customer level volume




c = a * b 8,080 8,360 8,156 8,178


e = d * c 4,958 5,127 5,004 5,017


g = f * c 25,591 25,858 25,020 28,251

h) Reviews h = j*t 94,401 94,823 95,219 101,873

i) Per Queued i = h / c 12 11 12 12

j) Per Day j = k*(w/t) 4,968 4,741 4,761 4,851


l) Contacts l = g 25,591 25,858 25,020 28,251


n) Per Day n = l / t 1,347 1,293 1,251 1,345




r) Kept PTP r = p * s 7,500 7,603 7,339 8,291





REQUIRED CONTACTS



Key Drivers

Budget 2009

Factor to assign account inventory. Value ranges from 0-1. 1 indicates that all accounts will be assigned to Collectors. In practice, there are accounts which will not be called by Telecallers as based on statistical analysis, these accounts are relatively low risk, and the delinquency status is temporary and will go back to normal even though there’s no call from the bank.




c = a * b 8,080 8,360 8,156 8,178


e = d * c 4,958 5,127 5,004 5,017


g = f * c 25,591 25,858 25,020 28,251

h) Reviews h = j*t 94,401 94,823 95,219 101,873

i) Per Queued i = h / c 12 11 12 12

j) Per Day j = k*(w/t) 4,968 4,741 4,761 4,851


l) Contacts l = g 25,591 25,858 25,020 28,251


n) Per Day n = l / t 1,347 1,293 1,251 1,345




r) Kept PTP r = p * s 7,500 7,603 7,339 8,291





REQUIRED CONTACTS



Key Drivers

Budget 2009

Final number of accounts to be assigned to Telecallers




c = a * b 8,080 8,360 8,156 8,178


e = d * c 4,958 5,127 5,004 5,017


g = f * c 25,591 25,858 25,020 28,251

h) Reviews h = j*t 94,401 94,823 95,219 101,873

i) Per Queued i = h / c 12 11 12 12

j) Per Day j = k*(w/t) 4,968 4,741 4,761 4,851


l) Contacts l = g 25,591 25,858 25,020 28,251


n) Per Day n = l / t 1,347 1,293 1,251 1,345




r) Kept PTP r = p * s 7,500 7,603 7,339 8,291





REQUIRED CONTACTS



Key Drivers

Budget 2009

Desired intensity to contact customer. This number indicates how frequent to contact one customer on monthly basis. Multiplication factor to number of accounts




c = a * b 8,080 8,360 8,156 8,178


e = d * c 4,958 5,127 5,004 5,017


g = f * c 25,591 25,858 25,020 28,251

h) Reviews h = j*t 94,401 94,823 95,219 101,873

i) Per Queued i = h / c 12 11 12 12

j) Per Day j = k*(w/t) 4,968 4,741 4,761 4,851


l) Contacts l = g 25,591 25,858 25,020 28,251


n) Per Day n = l / t 1,347 1,293 1,251 1,345




r) Kept PTP r = p * s 7,500 7,603 7,339 8,291





REQUIRED CONTACTS



Key Drivers

Budget 2009

Total number of call to be made during the month




c = a * b 8,080 8,360 8,156 8,178


e = d * c 4,958 5,127 5,004 5,017


g = f * c 25,591 25,858 25,020 28,251

h) Reviews h = j*t 94,401 94,823 95,219 101,873

i) Per Queued i = h / c 12 11 12 12

j) Per Day j = k*(w/t) 4,968 4,741 4,761 4,851


l) Contacts l = g 25,591 25,858 25,020 28,251


n) Per Day n = l / t 1,347 1,293 1,251 1,345




r) Kept PTP r = p * s 7,500 7,603 7,339 8,291





REQUIRED CONTACTS



Key Drivers

Budget 2009

Assumption on telecaller productivity :- Number of call made in one hour- Number of successful call (contact with customer) in one hour




c = a * b 8,080 8,360 8,156 8,178


e = d * c 4,958 5,127 5,004 5,017


g = f * c 25,591 25,858 25,020 28,251

h) Reviews h = j*t 94,401 94,823 95,219 101,873

i) Per Queued i = h / c 12 11 12 12

j) Per Day j = k*(w/t) 4,968 4,741 4,761 4,851


l) Contacts l = g 25,591 25,858 25,020 28,251


n) Per Day n = l / t 1,347 1,293 1,251 1,345




r) Kept PTP r = p * s 7,500 7,603 7,339 8,291





REQUIRED CONTACTS



Key Drivers

Budget 2009

Assumption on successful collection activity :- Promise to Pay Rate : % of contacted customer who makes promise to pay- Kept Promise to Pay Rate : % of #Promise to Pay which is kept by customer (customer

makes payment after the call).


t) Business Days Operation is Open Input 19 20 20 21

u) Full Time Equivalent Daily Hours Paid Input 7.0 7.0 7.0 7.0

v) Full Time Equivalent Monthly Hours Paid v = t * u 133 140 140 147

w) FTE Productive Hours Required for Contacts w = g / o 1,713 1,728 1,732 1,853

x) Daily Productive FTE Required x = w / v 12.88 12.34 12.37 12.60

y) Productive FTE Required as % y = x/(x+z) 79.9% 79.2% 79.3% 79.6%

z) Daily Non-Productive FTE Required z = sum(ab..ah) 3.24 3.24 3.24 3.24

aa) Non-Productive FTE Required as % y = z/(x+z) 9.2% 9.2% 9.2% 9.2%

ab) Absence Input 0.33 0.33 0.33 0.33

ac) Vacation Input 0.33 0.33 0.33 0.33

ad) New Hire Training Input 0.00 0.00 0.00 0.00

ae) Meeting Input 0.00 0.00 0.00 0.00

af) Coaching Input 0.00 0.00 0.00 0.00

ag) Down Time Input 0.00 0.00 0.00 0.00

ah) Other (Breaks) Input 2.58 2.58 2.58 2.58

ai) Daily Total Telecalling FTE Required ai = x + z 16.12 15.58 15.61 15.84

aj) Direct Supervisor FTE of this Telecalling Staff Input 2 2 2 2

ak) Supervisor to FTE Ratio ak = ai / aj 8 8 8 8

al) Total FTE Required al = ai + ak 18.1 17.6 17.6 17.8

am) Account to Collector Ratio am = c / ai 627 677 659 649

an) Success Rate an = a22*q26*s28 8% 8% 8% 8%

ao) Contact Pull Through ao = an * l 2,033 2,073 1,928 2,299

OPERATIONAL MANAGEMENT

STAFFING MANAGEMENT

SUCCESS MEASURES

Key Drivers

Budget 2009

Operational Management Input :- Number of working days in a month- Number of working hour/telecaller/day (# Working hour equivalent to one employee)The multiplication of these two variables results in total working hour per employee per month










ab) Absence Input 0.33 0.33 0.33 0.33



ae) Meeting Input 0.00 0.00 0.00 0.00












STAFFING MANAGEMENT

SUCCESS MEASURES

Key Drivers

Budget 2009

Calculated #FTE Productive Hour required to make all the contact desired.Based on assumption on FTE/day, Daily productive FTE required is obtained










ab) Absence Input 0.33 0.33 0.33 0.33



ae) Meeting Input 0.00 0.00 0.00 0.00












STAFFING MANAGEMENT

SUCCESS MEASURES

Key Drivers

Budget 2009

Adjustments made to include non productive time spent by Telecallers (loss of productive hours). This includes absence, training, vacation, meeting, coaching, system down time and other factors which cause Telecallers being not productive during the working hours.










ab) Absence Input 0.33 0.33 0.33 0.33



ae) Meeting Input 0.00 0.00 0.00 0.00












STAFFING MANAGEMENT

SUCCESS MEASURES

Key Drivers

Budget 2009

Total Telecaller (FTE) required having considered non-productive hours is calculated by considering both productive and non-productive hours and number of supervisor required which is calculated based on span of control input.










ab) Absence Input 0.33 0.33 0.33 0.33



ae) Meeting Input 0.00 0.00 0.00 0.00












STAFFING MANAGEMENT

SUCCESS MEASURES

Key Drivers

Budget 2009

Account to Collector Ratio (ACR) is a measure on average number of account worked by a Telecaller in a month. This number should not vary much. A high ACR ratio might indicate understaffing while lower ACR might indicate lower productivity.










ab) Absence Input 0.33 0.33 0.33 0.33



ae) Meeting Input 0.00 0.00 0.00 0.00












STAFFING MANAGEMENT

SUCCESS MEASURES

Key Drivers

Budget 2009

Success Rate is a measure of successful collection activity. This measure is calculated from Contact Rate * Promise To Pay * Kept Promise. 8% success rate means that out of 100 calls made, 8 of them are resulting in customer payment.

Documents

Collection capacity planning