Role of Statisticians and Quality Professionals - MyAssignmenthelp

Question: Discuss about the Role of Statisticians and Quality Professionals. Answer: Introduction Call centers, according to Mani, Barua and Whinston (2010), are always the first points of contact for clients to an organization and they determine whether clients remain loyal to a company or leave. Nonetheless, approximately 20% of all callers have been found to hang up with their problems unresolved (Kannan, 2003).Goh (2002) argues that most of the initiatives by most companies are well calculated towards improving customer experience. However, M and Antony (2015) expostulate that these initiatives are often positioned in ways so that they are internally motivated, looking at performance and cost. The outcomes of these measures being made use of in scorecards as targets imply that company managers are more often than not focused on ways through which they can better their company output and canvassing about issues like how can uncontrolled calls be minimized to some lower percentage? rather than concentrating on their companies input: what are the complains that our clients are c alling about and how well are their calls first time? (Snee, 2005, p.237). By concentrating on the output, Valdez (2013) notes that most organizations have a lack of performance measures that they employ to help better their call centers so that they can effectively and sufficiently respond to as well as further enhance their customer experience. Although call centers within companies are technically service organizations, they are majorly data centric; they record data regarding performance for some periods of time (Linderman, Schroeder, Zaheer Choo, 2003). The presence of such data in addition to the need to improve business-wise creates a possibility of applying business advancement methodologies that have lately been developed (Mani et al., 2010). Among the present methodologies in place is the Six Sigma. Using the case of BPO Inc., this report will explore the role of the Six Sigma as one of the performance management system both at operational and strategic levels in call cen ters. The report will reflect some of the challenges that are facing call centers. It will also try to understand some of the demands by clients from company and determine the capability of call centers to address the clients demand. Background Study on Call Centers Initially, call centers were built within houses in large organizations (Adams, Gupta, Wilson, 2003). The advantage of this structuring was that it allowed coherent departmental focus on phone services in addition to the fact that it made it cheaper for organizations to handle more calls by fewer people (Antony, 2004). Nonetheless, this structuring led to an increase in targets by the kind of calls/hour. Secondly, it contributed to a high staff turnover since people became demoralized by the tensed environments that were often created in the in-house settings (Linderman et al., 2003). With the advancement in technology, significant changes have been noted. Since 1990s, Customer Relationship Management (CRM), as pointed by M and Antony (2015), has been perceived as synonymous with operations in call centers. The combination of data telephony arrangements that are designed to offer advisors with data they require to meet the need of their clients has made a number of call centers to em ploy CRM (Kannan, 2003). With the advancement in technology, several difficulties have, however, been seen with meeting an organizations operational performance procedures without completely comprehending the needs of their clients and/or the kind of support functions needed (Snee, 2005). Bhargav, Bhardwaj and Rathore (2010) point out that the greatest challenge encountered by call centers is how they can provide an excellent/outstanding client experience while simultaneously bettering productivity. Six Sigma, as pointed out by Shokri (2017), is a well-organized approach to bettering processes, service qualities, and products. Gowen and Tallonn (2005) define Six Sigma (Define, Measure, Analyze, Implement, Control (DMAIC)) as a systematic as well as a well-organized approach for the betterment of organizational strategic processes, new products, along with service development which chiefly depend upon scientific and statistical methods to help reduce customers distinct defect rates. The Six Sigma approach serves to improve an organizations process performance, improve the organizations commercial profitability, and increase the organizations client satisfaction (Valdez, 2013). Six Sigma plays several roles within an organization. Call centers that have employed Six Sigma have the ability to streamline organizational operations, which principally comprises of managing outbound as well as inbound calls (Hahn, Hill, Hoerl Zinkgraf, 2009). Streamlining operations within call centers results in better usage of an organizations available resources (Goh, 2002), minimizes the organizations operational costs (Adams et al., 2003), and improve an organizations efficiencies (Hahn et al., 2009). By improving an organizations external and internal operations, Six Sigma creates room for an organization to enhance their client support and care services (Gowen Tallonn, 2005), a thing that in the long run improves a call centers brand as well as corporate image. This ultimately leads to better acknowledgement of the outsourcing services of a companys call center thus attracting new customers. The need for operation as well as strategic developments of Six Sigma is emphasized by M and Antony (2015) who established that the D and C steps in an operational application of the Six Sigma has weaknesses. They argue that the D step (in the DMAIC paradigm) along with its related criteria for choosing Six Sigma may only concentrate upon lower challenges instead of the strategic client based openings, an argument supported by Shokri (2017). Moreover, the C step may be incapable of creating strategically appropriate benefits in a companys strategic projects as a result of their cross-functional nature that overtures ascription of ownership. Issues of Operations Management at BPO Inc. BPO Inc., is a leading healthcare company that is based in the United Arab Emirates (UAE) (Antony, 2004). The company offered its customers with a variety of services ranging from insurance brokerage to management consultancy in more than 100 countries, having more than 50, 000 workers and more than 500 offices (McAdam, Davies, Keogh Finnegan, 2009). BPO Inc. had three distinct divisions: insurance brokerage/risk management, compensation consulting, and human resource consulting. The insurance brokerage/risk management functioned to help the company comprehend as well as evaluate their risk profiles (Heizer, 2016) thereby developing the most appropriate insurance programs/risk management programs that would help them minimize their susceptibility to unavoidable long-term challenges (Bhargav et al., 2010). The organizations human resource division addressed issues that were related to the companys business process design (BPD), management consulting, and human resource outsourcing (H RO) (Kumar, Barua Gaindhar, 2000). Lastly, the organizations compensation consulting division helped in developing effective reward and compensation programs. The companys HRO comprised of a division called the employee benefits outsourcing (EBO). The BPOs EBOs health and welfare service delivery process offered dental, vision, medical and survivor benefit programs for the companys 18 customer companies. BPOs EBO provided administrative duties like providing help to employees who were registering in firm-sponsored benefit schemes, altering benefit options, responding to questions regarding coverages that were initially catered for by the customers HR departments, and updating dependent data regarding their client companies (Karuppan, Dunlap Waldrum, 2016). It is worth noting that their clients employees were always not aware that they were communicating with a third party and not an individual employed within their organizations HR department. As aforementioned, BPO served more than a million client calls on a monthly basis. Owing to this big number, some of their customers felt unsatisfied. According to a study that was done by AA and YE (2007), the companys customer satisfaction (CSAT) levels dropped far below 47% (Ames, Mattucci, MacDonald, Szonyi Hawkins, 1997). For this reason, Allen J. (AJ) Lauren, who was then as the companys executive vice-president, launched an investigation on what was contributing to the fall in their CSAT levels. This was prompted by an email that was sent to him by Sam Regan, who was then serving as the HA (one of the major customers to BPO)s CEO. In the email, Regan stated that he had received a substandard service far below his anticipation. This compelled Regan to call for an audit of HAs transactions with BPO, a thing that really troubled AJ since the business relationship between the companies was at stake. Owing to the fact that the client, HA, was a component of the health care industr y, it was very unacceptable for HA to receive a low CSAT levels from BPO. It is for this reason that this report analyzes the possible causes of the low levels of customer satisfaction so that a customized BPO solution that will assist the company to soar high in performance can be established. Analysis of the Case From the case, it is evident that the BPOs management is up to having a culture of steady improvement with regard to their service provision to their clients. In order to realize this, Ames et al. (1997) point out that a company must continuously recruit as well as coach a team of experts with who will guarantee the organization quality along with efficiency in transforming the business. To be successful, a company must employ the right paradigm. For the case of BPO, the Six Sigma is the most appropriate. This is because when all employees within BPO are coached as Six Sigma experts, they will be able to have a common language as well as a tool kit that can allow them to possess their steady advancements to realize as well as exceed objectives independently (Heizer, 2016). Using the DMAIC model, a detailed assessment of the case was performed and some critical issues were noted in the process affecting the clients BPOs performance. First, there was a cultural as well as linguistic in congruity between the customers clients and the BPOs staff. The customers client base was of an Arab native whereas that of BPO staff, which comprised of five males and five females, was non-natives of Arabia. As such, the parties could not communicate effectively (Antony, 2000). The language barrier between the parties made communication significantly hard for the BPO employees to address the ethnic-specific needs of their clients (Karuppan et al., 2016). The second issue is that there was a dire need for an alignment of the BPOs support staff with the companys average processes that governed the companys functioning or operations. Similarly, the BPO needed an intensive and all-encompassing coaching with regard to BPOs management platform. Third of the critical issues that were noted was that the turnaround time for BPO lagged for more than seven days in contracting their clients after discharges. Fourth, BPOs staff only worked for five days weekly (Monday-Friday). Moreover, they only worked between 9 am and 5 pm. The five days of work per week and the 9-5 working hours per day posed a considerably significant challenge for the clients who desired contacting BPO. In addition to the above mentioned issues, it was also noted that the clients always wanted to ensure that they were conversing with Arabian agents. For this reason, they often sought for the last names of the BPOs staff before they could proceed to make plain their issues (AA YE, 2007). It was also noted that BPOs female clients would not provide their individual contacts for purposes of communication. Instead, they would only give the contact of their male members of their families. It was noted that most of the calls that were unresolved on the very first call required some research by the personnel on duty. The service providers at BPOs call center were largely judged depending on their availability to answer calls or not. According to McAdam et al. (2009), this significantly role played in limiting the time the BPO experts could dedicate to researching the issues that were not open. Also, clients whose questions were unanswered within the very few days would again call back. Ku mar et al. (2000) argue that this had the effect of increasing the volume of calls that were received. This exaggerated the total number of calls that the company was unable to resolve. For this reason, several entries being made in the companys computer system for one and the same problem. Recommendations After identifying the above critical issues that were likely affecting BPOs CSAT levels and performance, a team of experts working for the company should consider implementing the following measures which will help the company scale higher regarding their CSAT levels. First, BPO should check on its service timings. The company should consider increasing its support time by a period of four hours. They should also make their staff be available for work from 7 am to 7 pm so that they can be able to attend to more clients. Antony (2000) explains that the spread of time during which calls can be made to call centers reduces congestion that is often experienced in call centers. In the companys attempt to fit within the working hours of the United Arab Emirates, the company should consider changing their number of working days from Sunday to Thursday as opposed to Monday to Friday. They should also introduce multiple shifts so that they can be able to cater for the time demand globally. The second possible solution regards local BPO agents. For effective communication with their clients, BPO should consider hiring a team of Arabs who will be able to speak effective with their fellow Arab natives. This will eliminate a situation of cultural gap that has characterized they service provision to their clients (AA YE, 2007). Additionally, BPO should develop a support infrastructure. BPO should enhance its infrastructure by including email, internet, and best-of-breed facilities that will efficiently help in handling operations (Antony, 2000). These initiatives will significantly reduce BPOs team turnaround time. Another possible solution way through which BPO can regain its reputation is by having value added support services. BPO should consider extending its usual 24 hour call support to allow for access processing needs often seen during peak seasons. The BPO agents should be given tailored last names so that they will be able to suit their callers nation (AA YE, 2007). Ethnic explicit provisions should unambiguously be created so that a record of rebuttals from complains raised by clients can be taken note of. Ensuring that the companys support officials have a good grasp of the problem that they are working to overcome will also help the company advance a step further. It is also helpful that the client, Regan, gives a comprehensive information regarding the process that led to his reaction. This will help the BPOs CSR staff to design a way of reacting to such cases in the future. A further examination of the case calls for the employment of another set of options. First, BPO should split its call center team into two different sections: the lower division and upper division. This will allow for a quick scan of a problem in case of any (Snee, 2005). It will also ensure there is limited over-reliance of the two teams since each team will be working to realize their distinct objectives (AA YE, 2007). Similarly, within each division, the company should ensure that there those who deal with calls while others deal with research aimed at bettering the companys service provision standards. These divisions will work jointly to help the organization know and address the issues surrounding their customer satisfaction. BPOs representatives should also have the culture of visiting the divisions of the call center. When visiting, they should carry with them daily parameters that are designed to help the company realize its success. These metrics should be daily collected, evaluated, and reported to a central point where experts will make recommendations and plan for a better future (Mani et al., 2010). In case there is noted a significant drop in the first-call resolution, an immediate follow-up action should be launched. This strategy will ensure that all groups are kept under check. Moreover, the companys IT professionals should establish a computer system that should be used as well as the fields that should not be used in the monitors. This will help in capturing research information as well as notes, which may be used for purposes of reorganization of the company. Lastly, unresolved calls should be forwarded to the organizations management within a span of four days. Conclusion Not only are call centers ubiquitous, they are also major determinants of customers satisfaction. The performance of organizations call centers have the potential of breaking or making an organizations customer loyalty indexes. Thus, it is only by improving/perfecting what is needed by the clients, hedging around those requirements, and gathering measurements on the major factors that an organization is able to remain competitive. Otherwise, a company is doomed to collapse. The success of a call center will then be realized by call attendants responding well to calls, resolving questions from their clients, and minimizing the hold time. Nevertheless, if these key metrics are taken alone, with no or little consideration of other customer-influencing service level parameters, an organization can still fail. The analysis further leads to the deduction that the Six Sigma paradigm has been crafted to help organizations address issues surrounding operational and strategic levels, while sim ultaneously upholding the DMAIC approach. This paradigm makes use of the concept of systems thinking to make sure that the implications of changes that are made at any given level within an organization are well understood at all other levels within an organization. Rightly applied, the methodology serves to improve both localized as well as internal performance parameters by use of operational DMAIC. Moreover, the application of the paradigm allows for the making and measuring of changes from the perspective of the clients. By allowing an organization to know what customers regard as important and recognizing as well as removing the hurdles to offering these important things, organizations call centers are able to resolve clients complaints. Considering the BPO, it is worth noting that if the above recommendations are carefully integrated, then the business relationship between HA and BPO will continue, even on a better tone. References AA, S., YE, P. (2007). Operations Management for MBAs JR Meredith SM Shafer.The Journal of the Operational Research Society, 10(8), 1120. Adams, C., Gupta, P., Wilson, C. (2003). Six Sigma Deployment. Butterworth-Heinemann: Woburn, MA. Ames, A. E., Mattucci, N., MacDonald, S., Szonyi, G., Hawkins, D. M. (1997). Quality loss functions for optimization across multiple response surfaces. Journal of Quality Technology, 29 (19), 339-346. Antony, J. (2000). Multi-response optimization in industrial experiments using Taguchis quality loss function and principal component analysis. Quality and Reliability Engineering International, 16, 3-8. Antony, J. (2004). Six Sigma in the U.K. service organizations: Results from a pilot survey. Managerial Auditing Journal, 19(8), 10061013. Bhargav, A. M., Bhardwaj, A. Rathore, A. P. S. (2010). Six Sigma Methodology Utilization in Telecom Sector for Quality Improvement-A DMAIC Process. International Journal of Engineering Science and Technology, 2(12), 2010, 7653- 7659 Goh, T. N. (2002). A strategic Assessment of Six Sigma, Quality and Reliability Engineering International. Quality and Reliability Engineering International, 18(2), 403410. Gowen, I. R., Tallon, W. J. (2005). Effect of technological intensity on the relationships among Six Sigma design, electronic-business, and competitive advantage: A dynamic capabilities model study.Journal of High Technology Management Research,16, 59-87. Hahn, G. J., Hill, W. J., Hoerl, R. W., Zinkgraf, S. A. (2009). The impact of Six Sigma improvementA glimpse into the future of statistics. American Statistician, 53(3), 208 215. Heizer, J. (2016).Principles of Operations Management: Sustainability and Supply Chain Management, Global Edition. [N.p.]: Pearson. Kannan, N. (2003). Leveraging Lean Six Sigma in Business Process Outsourcing. Retrieved on 27th September, 2017 from https://www.sourcingmag.com/content/c060522a.asp. Karuppan, C. M., Dunlap, N. E., Waldrum, M. R. (2016).Operations Management in Healthcare: Strategy and Practice. New York, NY: Springer Publishing Company. Kumar, P., Barua, P.B. and Gaindhar, J.L. (2000). Quality optimization (multi-characteristics) through Taguchis technique and utility concept. Quality and Reliability Engineering International, 16(3), 475-85. Linderman, K, Schroeder, R, Zaheer, S, Choo, A. (2003). Six Sigma: A goal-theoretic perspective. Journal of Operations Management, 2(12), 193203. M., V. S., Antony, J. (2015). Six-sigma for improving Top-Box Customer Satisfaction score for a banking call centre.Production Planning Control,26(16), 1291. Mani, D., Barua, A., Whinston, A. (2010). An empirical analysis of the impact of information capabilities design on business process outsourcing performance.MIS Quarterly,34(1), 39-62. McAdam, R., Davies, J., Keogh, B., Finnegan, A. (2009). Customer-orientated Six Sigma in call center performance measurement.International Journal of Quality Reliability Management, 19(6). 516. Shokri, A. (2017). Quantitative analysis of Six Sigma, Lean and Lean Six Sigma research publications in last two decades.International Journal of Quality Reliability Management,34(5), 598. Snee, R. D. (2005). Leading business improvement: A new role for statisticians and quality professionals. Quality and Reliability Engineering International, 21(11), 235242. Valdez, K. (2013).Customer Satisfaction: 189 Most Asked Questions: What You Need to Know. [Brisbane, Australia]: Emereo Publishing.