© Richard Welke 2002 CIS 4120 Fa13: Define/Innovate BP’s Richard Welke Director, CEPRIN Professor, CIS Robinson College of Business Georgia State University.

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© Richard Welke 2002 CIS 4120 Fa13: Define/Innovate BP’s Richard Welke Director, CEPRIN Professor, CIS Robinson College of Business Georgia State University Atlanta, GA Session 7: AH-7: Simulation exercise

CIS4120Fa13 AH-8 Simulation on INNOV8 © Richard Welke 2013 AH-7: Customer service scenario Step one Import the.bpm for INNOV-8 from Course wiki 2

CIS4120Fa13 AH-8 Simulation on INNOV8 © Richard Welke 2013 Associated scenario & process owner PTBS After, Inc. Provides customer service (two types) Some they service themselves Some they outsource to another organization (NFLEX) Each have different costs, service rate times, etc. Process owner’s issue What’s the best criteria and therefore split to use between in-house and NFLEX customer service? Givens: Servicing rate Cost of providing the two customer services (per hour) Question to answer Optimal split between the two service organizations Given an overall ROI formula 3

CIS4120Fa13 AH-8 Simulation on INNOV8 © Richard Welke 2013 The “Givens” and the Question Arrival rate of customer service requests Assume Poisson distribution with arrival rates of Mean (negative exponential): 0.21 Collect called info Number of servers: 1 Call handling time (fixed; non-variable): 1 min. Split between AfterInc and NFLEX NFLEX: 39% Assume Service time distributions of in-house and NFLEX that are normally distributed with mean and standard deviations of: In-house: Mean: 3.8 Standard deviation: 1.0 NFLEX: Mean: 4.1 Standard deviation: 1.0 Assume current split between in-house and NFLEX decision (business rules) gateway of: In-house: 39 % NFLEX: 61 % We’ll assume the automated task take one second (fixed) What’s the average end-to-end customer processing time with this scenario? 4

CIS4120Fa13 AH-8 Simulation on INNOV8 © Richard Welke 2013 At-home exercise (AH-7) Begin exploring the “response surface” of alternative possibilities Note: This is non-linear (more or less of something won’t necessarily improve the overall outcome) Within the “objective function” begin to explore the “best” solution for the process owner You have until 15 minutes before the end-class to state your team’s best solution so far Best demonstrable solution “wins” 5