Delwarca Case

Delwarca Case Solution
Group 1
Names
Case Background:
Delwarca is a supply chain management software provider to global corporate clients. It contains four units
namely Software Development, Field Support, Critical Support and Remote Support used for customer
support.
Remote Support Unit was fully staffed from 8:00 AM to 8:00 PM, Monday to Friday and had the following
type of employees:
Delwarca had scheduled breaks in such a way that the telephone coverage never drops low and there was
no call volume seasonality. Still they had long customer waiting times and to mitigate that, John introduced
a new incoming call procedure, named “Rapid ID”.
Charts: Vivek
Q1. Mridula
Q2. Shubham
Q3. Shubham
Q4. Zeeshan
Q5. Vivek
Q1. What is the capacity utilization of the Remote Support Unit, and how is this affecting
waiting times? and possibly: perform a M/M/S queuing analysis of Associates before and
after Rapid ID. What is the weighted average time for customers served by Associates?
Pre-Rapid Post Rapid
Associates Sr Associates Associates Sr Associates
Arrival Rate (Calls/Hour) 11.32 8.71 8.46 10.18
Processing Time (mins/call) 30.2 20.01 29.4 24.1
Utilization 0.81 0.71 0.71 0.88
Waiting Time (System) 42.68 29.30 37.04 56.61
Waiting Time (Queue) 12.48 9.29 7.64 32.51
In Pre-Rapid ID procedure, the arrival rate for associates is more than senior associates which increases
utilization and waiting time in queue. In Rapid ID, the percentage calls resolved by senior associates is
more, hence the waiting time is more than associates
The total demand for the Associates is around 135.8 calls and for Sr Associates is 104.46 calls during the
pre-rapid ID procedures.
Activity Cycle Time for Associates = AT/No. of Associates
= 11*60/84 = 7.85min
Activity Cycle Time for Sr Associates = AT/No. of Sr Associates
= 11*60/49 = 13.46min
Average capacity utilization is calculated as
Q2. What would be he effect on capacity utilization of improving the productivity of the
least productive two Associates and two Senior Associates to the current Rapid ID
average?
As per condition given in the problem, we replaced two least productive associates and senior
associates with avg. 29.4 min and 24.1 min time respectively.
New avg. minutes per call for associates considering improved conditions = 26.2 minutes
New avg. minutes per call for senior associates considering improved conditions = 19.9 minutes
Entity Call time Call time

for for Senior
Associate Associate
Before 32.2 24.1
After 26.2 19.9
% Change
Q3. What is the labour cost per call taken by Associates and Senior Associates? What is the cost per
resolved call by Associates and Senior Associates?
The annual salaries for associates and senior associates have been given in the case.
Salary for associates is given as $40000-66000 per year with overheads of 26%. We will take the average
value of $53000 and add the overheads. Calculating this, the average salary for an associate is $ 66780.
Similarly, the average salary for Senior associates is $ 98400.
Calculation for number of calls taken and resolved:
Pre-Rapid ID:
The office functions for 5 days per week. Taking 52 weeks in a year, the total calls per year = 52*5*174.1
= 45266.
In pre-rapid scenario, associates attend 78% of calls and senior associates attend 60% of the calls (including
calls that have been forwarded from associates). Therefore, calls taken per year by associates is 35307.48
and calls taken per year by senior associates is 27159.6. Total 12 associates and 7 senior associates worked
during this period. Hence, the average number of calls taken per year by an associate and a senior associate
is 2942.29 and 3879.94 respectively.
40% of total calls have been resolved by associates and 60% by senior associates. This brings the average
number of calls resolved by an associate and senior associate to 1508.87 and 3879.94 respectively.
We calculated cost per call and cost per resolved call by dividing salary figures with the total number of
calls attended by associates and senior associates.
Rapid ID:
The cost per call and cost per resolved call can be calculated for the Rapid ID system using the same method.
In the Rapid ID system, 2 associates have been appointed as directors to divert the calls. This will reduce
full-time associates to 11 while Senior associates have increased to 8. Above mentioned calculations can
be understood by following tables:
Pre-Rapid ID
Avg. Overhead Total No. of Total Total Cost per Cost per
emp. calls in calls call resolved
year resolved call
in year
Associates 53000 0.26 66780 12 2942.29 1508.87 $22.70 $44.26
Senior 80000 0.23 98400 7 3879.94 3879.94 $25.36 $25.36

Associates
Rapid ID
Avg. Overhead Total No of Total Total Cost Cost per

employe calls in calls per call resolved
es year resolved call
in year
Associates 53000 0.26 66780 11 2399.56 1555.272 $27.83 $42.94
73
Senior 80000 0.23 98400 8 3971.50 3971.50 $24.78 $21.68

Associates
Q4. Why do you think system performance in terms of waiting time changed as it did? Why did customer
behavior change as it did?
Entity Utilization Utilization Resolution Cost per Cost per Calls No of

of of Senior Time by call resolved directed calls
Associates Associates Senior call directly
Associates to
A SA A SA associates
Before
Value
After
Value
%
Change
Reasons for Change

System Performance
• Utilization of Associates decreased while that of Senior Associates increased.
• Calls directed directly to Associates decreased from 78% to 54%.
• Calls resolved by Associates decreased from 40% Pre-Rapid ID to 35% Post Rapid ID.
• Total system wait time to get to talk to Senior Associates increased by more than 100%.
• Even though Senior Associates are less in number than Associates, they were resolving majority
(65%) of the issues.
Customer Preference
• Requests asking for specific Sr Associate increased from 22% to 28% after Rapid ID.
• Additionally 19% of all calls was directed from Associates to Sr Associates and 18% were
directed directly to Sr Associates.
• Customers preferred going to Sr Associates as they felt that their issues can be resolved by them.
• Sr Associates also dealt with follow up work or status checks.
Q5) What would you recommend to Jack McKinnon? Or, if you were Jack McKinnon, what would you
continue to do and what should you stop doing?
• Associates should be appropriately trained to decrease the bottleneck of senior associates

• The capacity utilization can be increased by directing a greater number of calls to associates
• Less productive associates and senior associates could be removed
• Employees who are most capable of handling and resolving the issues of customers should be
assigned at times when most calls are made
• Field and Critical employees should not promote any senior associates in front of the client
• Associates and Senior associates can be categorized by their strong areas. The resolution time
could then be reduced by directing calls to that particular area expert

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Delwarca Case Solution

Associates Sr Associates Associates Sr Associates

Arrival Rate (Calls/Hour) 11.32 8.71 8.46 10.18

Processing Time (mins/call) 30.2 20.01 29.4 24.1

Utilization 0.81 0.71 0.71 0.88

Waiting Time (System) 42.68 29.30 37.04 56.61

Waiting Time (Queue) 12.48 9.29 7.64 32.51

Activity Cycle Time for Associates = AT/No. of Associates

Activity Cycle Time for Sr Associates = AT/No. of Sr Associates

Average capacity utilization is calculated as

Entity Call time Call time

Senior 80000 0.23 98400 7 3879.94 3879.94 $25.36 $25.36

Avg. Overhead Total No of Total Total Cost Cost per

Senior 80000 0.23 98400 8 3971.50 3971.50 $24.78 $21.68

Entity Utilization Utilization Resolution Cost per Cost per Calls No of

Reasons for Change

• Associates should be appropriately trained to decrease the bottleneck of senior associates

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