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CALL CENTERS (CENTRES) - Faculty of Industrial Engineering and ...

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Keywords: Multiserver exponential queues, Ab<strong>and</strong>onments, Nash equilibrium, Call centers<br />

(Appears also in Section III.)<br />

92. Mockus, Jonas. “Call centers” in A Set <strong>of</strong> Examples <strong>of</strong> Global <strong>and</strong> Discrete Optimization: Applications,<br />

Jonas Mockus (Editor). Dordrecht: Kluwer Academic, 2000, part 3, ch. 15.<br />

93. Pinedo, Michael L., Sridhar Seshadri <strong>and</strong> J. George Shanthikumar. Call centers in financial services:<br />

Strategies, technologies <strong>and</strong> operations, in Creating Value in Financial Services: Strategies,<br />

Operations, <strong>and</strong> Technologies, Edward L. Melnick, Praveen R. Nayyar, Michael L. Pinedo,<br />

Sridhar Seshadri (Eds.). Boston: Kluwer Academic Publishers, 2000, Chapter 18: 357–388.<br />

Abstract. Call centers are becoming more important in financial services. They are <strong>of</strong> importance<br />

to retail banking operations, credit card operations <strong>and</strong> mutual fund organizations. A<br />

significant part <strong>of</strong> the dynamics <strong>of</strong> call centers in financial services is similar to call centers in<br />

other industries. Analyzing both static <strong>and</strong> dynamic aspects <strong>of</strong> managing call centers, we discuss<br />

necessary service, security <strong>and</strong> database requirements for call centers in financial services firms.<br />

We also analyze the differences between call centers in financial services <strong>and</strong> call centers in other<br />

industries such as airlines. These differences center around the more extensive database requirements<br />

necessary to h<strong>and</strong>le each call, as well as the fact that customers <strong>of</strong> financial institutions<br />

tend to be more captive than customers <strong>of</strong> airlines.<br />

Acknowledgement: The abstract was taken from the introduction <strong>of</strong> the book.<br />

94. Pinker, E. <strong>and</strong> R. Shumsky. The efficiency-quality trade<strong>of</strong>f <strong>of</strong> cross-trained workers, Manufacturing<br />

<strong>and</strong> Service Operations Management, 2 (1), Winter 2000, 32–48.<br />

Abstract. Does cross-training workers allow a firm to achieve economies <strong>of</strong> scale when there is<br />

variability in the content <strong>of</strong> work, or does it create a work force that performs many tasks with<br />

consistent mediocrity? To address this question we integrate a model <strong>of</strong> a stochastic service system<br />

with models for tenure- <strong>and</strong> experience-based service quality. When examined in isolation,<br />

the service system model confirms a well-known “rule <strong>of</strong> thumb” from the queueing literature:<br />

Flexible or cross-trained servers provide more throughput with fewer workers than specialized<br />

servers. However, in the integrated model these economies <strong>of</strong> scale are tempered by a loss in<br />

quality. Given multiple tasks, flexible workers may not gain sufficient experience to provide<br />

high-quality service to any one customer, <strong>and</strong> what is gained in efficiency is lost in quality.<br />

Through a series <strong>of</strong> numerical experiments we find that low utilization in an all-specialist system<br />

can also reduce quality, <strong>and</strong> therefore, the optimal staff mix combines flexible <strong>and</strong> specialized<br />

workers. We also investigate when the performance <strong>of</strong> the system is sensitive to the staffing<br />

configuration choice. For small systems with high learning rates, the optimal staff mix provides<br />

significant benefits over either extreme case (a completely specialized or completely flexible work<br />

force). If the system is small <strong>and</strong> the rate <strong>of</strong> learning is slow, flexible servers are preferred. For<br />

large systems with high learning rates, the model leans toward specialized servers. In a final set<br />

<strong>of</strong> experiments, the model analyzes the design options for an actual call center.<br />

Keywords: Queues: Approximations, Service quality, Learning curves, Cross-training, Worker<br />

turnover; Personnel<br />

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