Capacity Planning: Release Id: QTXX-YYY - PPT

Capacity Planning
© 2006, Cognizant Technology Solutions. All Rights Reserved.

The information contained herein is subject to change without notice.
Release Id: QTXX-YYY.ppt / <Ver No.> / <dd/mm/yyyy> C3 Protected

Approach
1. Introduction
2. Need for Capacity Planning
3. Capacity Plan
4. Tools
© 2006, Cognizant Technology Solutions. Confidential

2
Capacity Planning - Definition
•In information technology, capacity planning is the science and art of
estimating the space, computer hardware, software and connection
infrastructure resources that will be needed over some future period of time.
•A typical capacity concern of many enterprises is whether resources will be

in place to handle an increasing number of requests as the number of users or
interactions increase.
•The aim of the capacity planner is to plan so well that new capacity is added
just in time to meet the anticipated need but not so early that resources go
unused for a long period.
•The successful capacity planner is one that makes the trade-offs between the
present and the future that overall prove to be the most cost-efficient.

3
Need for Capacity Planning
It is imperative that there is a loss of
revenue towards improper usage of
manpower, technology, infrastructure etc.
Hence there is a need for a system to curb

the waste of recourses and efficiently manage
it to the betterment of the organization and
show a positive impact on the revenue index
It gives management an upper hand in

efficiently allocating resources (Work Force
Management), reduce infrastructure and
technology cost

4
Capacity Plan
Capacity planning is done on the basis of business type
Voice - Erlang C
Non Voice – Time and motion study

5
Capacity Planning - Tools
Voice – Erlang C
The Erlang distribution is a continuous probability distribution

with wide applicability primarily due to its relation to the
exponential and Gamma distributions. The Erlang distribution
was developed by A. K. Erlang to examine the number of
telephone calls which might be made at the same time to the
operators of the switching stations. This work on telephone
traffic engineering has been expanded to consider waiting times
in queuing systems in general.

6
Capacity Planning - Voice
Factors
1. Client existing volume

2. Forecasted volume
3. Ramp up plan
4. Metrics
5. SLA
6. Seasonal trend
7. Annual Trend
8. Complexity

7

8

9
http://erlang.com/calculator/call/
1. Pull out volume reports of the past 3 months (minimum)
2. Stack it day wise
3. Optional Activity – Check for Normality
4. Calculate 50th percentile(optimistic),75th percentile (realistic) and 90th
percentile (pessimistic) for the data – Hour/Half Hour wise
Note: Some analysts recommend UCL as the figure however I don’t
recommend that since UCL is to counter special cause variations and not
for common cause and will be extremely pessimistic
5. Enter the output in Erlang to determine FTE requirement –

6 Add additional buffers based on other factors – shrinkages
(absenteeism, attrition), Learning curve, complexity etc
Example
6 Prepare scheduling based on above FTE
7. Optional Activity – Work backwards to see if the FTE matches
with the required Abandonment % - (The difference between number of calls
actually received*AHT minus Number of FTE*30 mins)/calls actually received is the AB% - Approx
8. Optional Activity – Week wise scheduling can also be prepared –

In this case do step (3) by stacking all Monday’s, Tuesday’s etc
10
Capacity Planning – Non Voice
Time and motion study
 A time and motion study (or time-motion study) is a
business efficiency technique combining the Time Study
work of Frederick Winslow Taylor with the Motion Study
work of Frank and Lillian Gilbreth (best known through the
biographical 1950 film and book Cheaper by the Dozen. It is
a major part of Scientific management (Taylorism).
 A time and motion study would be used to reduce the
number of motions in performing a task in order to increase
productivity. The best known experiment involved
bricklaying. Through carefully scrutinizing a bricklayer's
job, Frank Gilbreth reduced the number of motions in laying
a brick from 18 to about 5. Hence the bricklayer both
increased productivity and decreased fatigue.

11
Capacity Planning – Non Voice
1. Prepare detailed process flow for all the process
2. Take 3 types of associates in the process – high skilled, medium skilled and low
skilled ( based on historical speed of processing)
Note: Take time study only if historical data of client is available or take time
study after 3-6 months of stable operations.
3. Take minimum 10 samples ( optimistic), 25 samples( realistic) and 50 samples
(pessimistic) of each category of associate
Note: Try to take time study at different time of the day
3. Capture the time taken for each process step
4. Total the time taken for a transaction Data
5. Take average time taken for 30 samples across 3 associates
6. Add 12% for contingency and wear and tear
7. Determine the total volumes expected per month
CAPL
• Based on forecasted volumes
• Based on past trends
8. Total time required in mins – 6*7
9. Time per FTE – 9600(8 hours per day * 20 working days*60 minutes)
10. Number of FTE’s required would be – 8/9
12
13
Case Study - Voice
Estimate the number of resources required
based on the data provided below
 AHT – 300 ( 270 secs ACD+30 secs ACW/AWT)
 Service Levels – 80% in 30 secs
Voice

14
Thank you

15

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Capacity Planning

© 2006, Cognizant Technology Solutions. All Rights Reserved.

Release Id: QTXX-YYY.ppt / <Ver No.> / <dd/mm/yyyy> C3 Protected

2. Need for Capacity Planning

© 2006, Cognizant Technology Solutions. Confidential

•A typical capacity concern of many enterprises is whether resources will be

© 2006, Cognizant Technology Solutions. Confidential

Hence there is a need for a system to curb

It gives management an upper hand in

© 2006, Cognizant Technology Solutions. Confidential

Capacity planning is done on the basis of business type

Non Voice – Time and motion study

© 2006, Cognizant Technology Solutions. Confidential

The Erlang distribution is a continuous probability distribution

© 2006, Cognizant Technology Solutions. Confidential

1. Client existing volume

© 2006, Cognizant Technology Solutions. Confidential

© 2006, Cognizant Technology Solutions. Confidential

© 2006, Cognizant Technology Solutions. Confidential

5. Enter the output in Erlang to determine FTE requirement –

8. Optional Activity – Week wise scheduling can also be prepared –

© 2006, Cognizant Technology Solutions. Confidential

© 2006, Cognizant Technology Solutions. Confidential

© 2006, Cognizant Technology Solutions. Confidential

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