Teller Scheduling and Staffing Tool
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Transcript of Teller Scheduling and Staffing Tool
Retail Banking Productivity Solutions
QueFlowQueFlow
The ultimate teller scheduling tool
By: Raj N. Gaonkar
Retail Banking Productivity Solutions
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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 Information QueFlow Can Provide? 14
Case Study 15- 24
QueFlow Suggestions 25
Contact 26
Table of Contents
Retail Banking Productivity Solutions
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• 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.
• Achieve noticeable savings in teller supervision costs through the automation of customer trend forecasting and teller scheduling. Simultaneously offer better customer service.
• 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.
QueFlow Objectives
Retail Banking Productivity Solutions
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• If the customer arrival rates are controlled and the transaction times are kept
constant, there would be no waiting lines.
• In a branch environment arrival rates and transaction times change continuously
resulting in customer waiting times.
• QueFlow, which is based on Queuing Theory principles is an effective tool for
controlling customer waiting times while minimizing teller costs.
• Queuing Theory is the most commonly used statistical method for predicting
customer arrival and service patterns.
Why Customer Waiting Time?
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• Random customer arrival rates fluctuate constantly
• Transaction mix changes continuously
• Tellers are under utilized during the slow periods
• Waiting line builds up during peak arrivals
• Peak arrival periods are critical to teller scheduling
• A “user friendly” and flexible teller scheduling model is the solution
Teller Scheduling Can Be A Challenge
Retail Banking Productivity Solutions
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$
Customer Universe
Waiting Line Teller Station
Customers Depart
Bank
Are they satisfied
Are They Satisfied?
Retail Banking Productivity Solutions
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Branch Type A
Branch Type D
Branch Type B
Branch Type C
Customer Service QualityC
ust
omer
Foc
us
Sta
nd
ard
s Low HighL
owH
igh
Service Quality By Branch Type
Retail Banking Productivity Solutions
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NUMBER OF TELLERS
Total Cost (per minute of waiting time)
WA
ITIN
G C
OS
TT
EL
LE
R E
XP
EN
SE
QueFlow Teller Scheduling Cost Optimization
Retail Banking Productivity Solutions
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• Customer Population
• Customer Arrival rate
• Customer Service Rate
• Branch Queuing Discipline
• Customer Waiting Time Constraint
• Full Time & Part Time Teller Mix
Factors Affecting Teller Scheduling
Retail Banking Productivity Solutions
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• Identify the fluctuating arrival patterns
• Shift certain customer arrivals to normalize the traffic
• Establish matching service shifts
• Cross-train branch staff to assume peak arrival work load
• Schedule back office functions during non-peaks
Normalizing The Peak Arrivals
Retail Banking Productivity Solutions
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% customers
Waiting time (minutes )
Less than 5% of the customers wait longer than 5.5 minutes
Average Waiting Time: 2.5 minutes
Customer Waiting Time Constraint
Retail Banking Productivity Solutions
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• Historical data from the teller transaction records
• Manual arrival counts
• Automated customer arrival counting devices
• Branch management estimates of arrival trends
QueFlow - Arrival Pattern
Retail Banking Productivity Solutions
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• Average customer service time by customer type
– Priority customer
– Small merchant customer
– P&R Customer
• Average transaction time developed from activity benchmarks
– Check Cashing
– Mixed deposits
• Customer to Transaction Ratio
– Customer sampling
– Management Estimates
• Subject Matter Expert estimates
– Trained teller performance
– Limitations of new tellers
QueFlow – Service Rates
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• What is the forecasted arrival rate?
• What is transaction mix?
• What is the distribution of service times?
• Does a branch need a single line or multiple lines?
• What is the optimum teller utilization ratio?
• What is the recommended customer waiting time?
• How many tellers are required on the window?
• How to schedule shifts and the lunch breaks?
What Information QueFlow Can Provide?
Retail Banking Productivity Solutions
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Big Apple Branch Network
Teller Scheduling
76 Branches
4 Branch Types
490 Tellers
Case Study
Retail Banking Productivity Solutions
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• Branch No. 200
• Teller window service time is from 9am to 4pm
• Only consider teller window activities to generate teller requirement
• Lunch 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
• Current Employee Complement: 25
– Platform: 8
– Customer Service Rep: 2
– FT teller: 9
– PT teller: 6
Branch Information
Retail Banking Productivity Solutions
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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.
QueFlow1 – Teller Cost Optimization
Retail Banking Productivity Solutions
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0.00
2.00
4.00
6.00
8.00
10.00
12.00
Number of Tellers
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 15:30Time
Required Head Scheduled Head
On Duty Schedule 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 15:30Required 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 10.29Scheduled Teller 8 8 8 7 7 7 7 7 10 10 9 11 11 11Waiting 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
Actual Staff: Full Time: 8 Tellers, Part TimeA: 2 Tellers, Part TimeB: 3 Tellers
QueFlow1 Suggests Full Time: 7 Tellers, Part TimeA:1 Teller, Part TimeB: 3 Tellers
QueFlow1 – Optimization Schedule
Retail Banking Productivity Solutions
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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.
Lower teller staff schedule results in a higher customer waiting time.
ProductFlow recommends keeping average waiting time under 5 minutes.
QueFlow2 – Scheduling Existing Teller Staff
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0.00
2.00
4.00
6.00
8.00
10.00
12.00
14.00
Number of Tellers
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 15:30Time
Required Head Scheduled Head
On Duty Schedule 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 15:30Required 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 8.51Scheduled Teller 10 10 10 9 8 10 11 10 11 13 11 11 11 11Waiting 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
Actual Staff: Full Time: 8 Tellers, Part TimeA: 2 Tellers, Part TimeB: 3 Tellers
QueFlow2 allocates existing tellers staff to minimize customer waiting time
QueFlow2 – Existing Teller Staff Scheduling
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FT PTQueFlow1 7 4 71% 1.31 $240,809.40QueFlow2 8 5 58% 0.50 $291,712.20Difference 1 1 -13% -0.81 $50,902.80
Annual Teller CostModel
Scheduled TellersWaiting TimeAvg Utilization
Branch Number – 200
Branch Name – United Nations Branch
Branch Address – 320 East 44th St. New York, NY 10017
Branch Manager – Steven Johnson
Branch Hour – Mon. to Fri. 9am to 4pm
Teller Staff – 9 full-timer; 6 part-timer
QueFlow1 vs. QueFlow2
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Branch Type Number of 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
Waiting Time By Market Segmentation
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Branch Type Current Teller Complement
Proposed Teller Complement
Teller Difference
Upscale 41 44 (3)
Merchant 84 80 4
P & R 331 321 10
Community 34 30 4
Total 490 475 15
Teller Scheduling Across Network
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• Modify customer arrival behaviour.
• Keep resources not serving customers out of sight.
• Segment customers by customer profitability.
• Adopt a long-term perspective of customer satisfaction.
• Provide incentives to friendly tellers.
• Promote cross selling.
ProductFlow Suggestions
Retail Banking Productivity Solutions
25Contact Us
Raj Gaonkar: President 675 Townsend Ave. #111, New Haven, CT 06512, U.S.A.
Phone: 203 467 6380
email: [email protected]