What Is Shrinkage And Its Formula?

What is occupancy formula?

Your property occupancy rate is one of the most important indicators of success.

It is calculated by dividing the total number of rooms occupied by the total number of rooms available times 100..

How can you prevent shrinkage?

Here are some simple steps you can take to prevent retail inventory shrinkage from putting a dent in your business’s bottom line.Hire carefully. … Crack down on theft. … Rethink your store layout. … Be proactive about fraud prevention. … Avoid costly administrative errors.

What is SLA in BPO?

A well-written service level agreement (SLA) stands as a critical component of the relationship between a client and a BPO (Business Process Outsourcing) provider.

What causes shrinkage in food?

Porosity is the main driving factor that can influence material shrinkage significantly. When the volume reduction of the food material is exactly equal to the volume of the removed water during drying, it is known as ideal shrinkage. If this occurs, no pore formation can be considered in the product.

What is AP weight and EP weight?

This meal’s turkey weighs 20 pounds raw and untouched. This information is the as purchased (AP) weight. After cooking, removing the skin, and removing the meat from the bones, we’re left with 9 pounds of edible meat. This is the edible portion (EP) weight.

What is the formula of shrinkage?

Shrinkage is another way of expressing what used to be called Utilisation. Utilisation is simply the number of hours that employees are available to work on their primary task (measured hours), divided by the total paid hours. So a Shrinkage Figure of 30% equates to a Utilisation figure of 70%.

How do you calculate food shrinkage?

Calculating Shrinkage Divide the weight of the waste by the total weight of the product to find the amount of shrinkage. Multiply the result by 100 to convert it from a decimal to a percentage. If you are working with a cooked food product, you must weigh the final product and calculate the yield percentage.

What is an acceptable level of inventory shrinkage?

An acceptable level of inventory shrinkage is less than 1%.

How is SLA calculated?

The number of calls answered within the threshold divided by the number of calls that had a service level event minus the number of calls that were abandoned before exceeding the service level threshold. Calls abandoned before the service level threshold expired are removed from this calculation.

What is the formula of attrition in BPO?

In order to calculate the attrition rate, you just take the number of attritions (or employees who left the company), divided by the average number of employees, and then multiplied by 10. For example, if you had 47 agents leave in a year, with an average of 340 employees, your attrition rate would be 13.82%.

What is WFM shrinkage?

Call center shrinkage is the number of agents actively taking calls divided by the number of agents who are not available for any reason. Those reasons can include: External Shrinkage Factors: Holidays & vacations.

What is BPO shrinkage?

Shrinkage can be defined as the time for which people are paid during which they are not available to handle calls. … There are many reasons that can cause shrinkage – and it has to be taken into account when scheduling the required number of agents to meet call volumes.

How is AHT calculated?

To calculate average handle time, add total talk time with total hold time, then add ACW. Lastly, divide that by the total number of calls to get the AHT.

What is AHT in WFM?

In the simplest terms, AHT is the average time it takes to handle a call or transaction from start to finish – from call initiation, to hold time, to talk time, and all the way through to any related tasks an agent must perform post-phone call to resolve that call. … That is your average handle time.

How do I manage shrinkage in BPO?

Top Tips for Improving Contact Centre ShrinkageFactor shrinkage into your staffing requirements. … Avoid inflating the base staffing figure by the shrinkage percentage. … Track unexplained absences closely to maximise productivity. … Forecast down to 15- or 30-minute intervals. … Don’t just write down 10% and keep your fingers crossed. … Don’t flat line shrinkage across the year.More items…•