The Service Operations of Waiting Lines attempts to remind us that customer needs should be met while they are waiting to be serviced. Also, there is a tremendous reduction in profit by requiring a customer to wait too long. When is too long? That is in the mind of the customer.
Customers Waiting in Lines - Service Operations - Yolanda Williams
Service Operations and Waiting LinesYolanda WilliamsOperations Mgmt
An Overview of Service Operations Service Response Logistics Waiting… Discuss the psychology of waiting. Laws of Service. Describe how queues are managed. Describe the essential features of a queuing system.Purpose and Objectives
3What are services? Many services are pure services, offering few or no tangibleproducts to customers. Others may have end products with a larger tangible component(e.g., restaurants & repair facilities). Customers are often involved in the production of the service. Services may provide state utility - they do something to thingsowned by the customer (e.g., store supplies & repair machines).
4More on Services Services cannot be inventoried. Services have high levels of customer interactions. Services are decentralized due to inability toinventory & transport services
5Service DeliveryService delivery systems (a continuum) with mass produced, low-customer contact systems at one end and highly customized,high-customer-contact systems at the other.Front of the House Back of the House
6An Overview of Service Operations- Cont.Service Strategy Development:1. Cost LeadershipStrategy-The Low CostProvider – May require large capitalinvestment in automated, state-of-the artequipment and significant efforts in the areasof controlling and reducing costs.2. DifferentiationStrategy- Service that isconsidered unique. Differentiation is createdas companies listen to customers.3. Focus Strategy- Serve a narrow niche betterthan other firms
7Service Response LogisticsService Response Logistics (SRL)The management and coordination of the organization’s activities while a serviceis being performed for customers.1. Service capacity The number of customers per day the firm’s service system isdesigned to serve.2. Distribution channels Distribution channels involve traditional methods & new channels thatincorporate new Internet technologies3. Service quality Customer satisfaction--depends on ability to deliver what customerswant, meet customers’ perceptions and satisfying customers varyingexpectations.4. Waiting times
Psychology of Waiting That Old Empty Feeling: Unoccupied time goes slowly A Foot in the Door: Pre-service waits seem longer that in-service waits The Light at the End of theTunnel: Reduce anxiety with attention Excuse Me, But I Was First: Social justice with First Come First Serve queue discipline They Also Serve,Who Sit and Wait: Avoids idle service capacity
Cultural Attitudes “Americans hate to wait. So business is trying a trick ortwo to make lines seem shorter…” The NewYorkTimes Standing in line – at the bank, the market, the movies –is the time-waster everyone loves to hate. Stand in justone 15-minute line a day, every day, and kiss goodbye toalmost four days of idle time by year’s end.—Kathleen Doheny
0123456Stoplights JunkMail MissingObjectsHousework WaitinginLineIn a life time, the averageAmericanwill spend--YearsWe are waiting…
Approaches to Controlling Customer Waiting Animate: Disneyland distractions, elevatormirror, recorded music Discriminate: Avis frequent renter treatment(out of sight) Automate: Use computer scripts/ voice promptsto address 75% of questions Obfuscate: Amusement park/ Airport stagedwaits
Waiting… Waiting in lines does not add enjoyment Waiting in lines does not generate revenueWaiting lines are non-value added occurrences
Cost to provide waiting space Loss of business Customers leaving Customers refusing to wait Loss of goodwill Reduction in customer satisfaction Congestion may disrupt other businessoperationsImplications of Waiting Lines
14What is a Queue? A queue is a waiting line. A queuing system involves customers arriving forservice who sometimes have to wait. Queuing analysis provides: Summary measures for assessing a queuing systemin terms of customers and time. A way to balance the costs of providing service andcosts of congestion.
Queue Theory Queuing theory: Mathematical approach to the analysis ofwaiting lines. Importance of Queuing Analysis: Servicing customers can be costly. Retail environments are plagued with customer congestion.Managing that has benefits. Goal of queuing analysis is to minimize the sum of two costs Customer waiting costs Service capacity costs
Components of the Queuing SystemCustomerArrivalsServersWaiting LineServicing SystemExitQueue or
The Queuing SystemQueue DisciplineLengthNumber of Lines &Line StructuresService TimeDistributionQueuingSystem
Essential Features of Queuing SystemsDepartureQueuedisciplineArrivalprocessQueueconfigurationServiceprocessRenegeBalkCallingpopulationNo futureneed forservice
Queue ConfigurationsMultiple Queue Single queueTake a NumberEnter3 4826 101211579
Assume a drive-up window at a fast food restaurant.Customers arrive at the rate of 25 per hour.The employee can serve one customer every two minutes.Assume constant arrival and service rates.Determine:A) What is the average utilization of the employee?Queue Analysis Example
= 25 cust / hr=1 customer2 mins (1hr / 60 mins)= 30 cust / hr= =25 cust / hr30 cust / hr= .8333A) What is the average utilization of theemployee?
29Managing Wait Times - QuantityConsists of the management of actual waiting time & perceivedwaiting time.Need to know: Average arrival rate of the customers Order in which customers will be serviced Average service rate of providers How long will customers wait Ways to make customers wait even longer withoutlowering their perceptions of service quality
Laws of Service – Perception Maister’s First Law:Customers compare expectations with perceptions. Maister’s Second Law:Is hard to play catch-up ball. Skinner’s Law:The other line always moves faster. Jenkin’s Corollary:However, when you switch to another other line, theline you left moves faster.
31Managing Wait Times - QualityManaging Perceived Waiting TimesOften, demand exceeds expectations & capacity. Keep Customers Occupied Start the Service Quickly Relieve Customer Anxiety Keep Customers Informed Group Customers Together Design a Fair Waiting System “Underpromise & Overdeliver”
Other Quality Approaches Reduce perceived waiting time Magazines in waiting rooms Radio/television In-flight movies Filling out forms Derive benefits from waiting Place impulse items near checkout Advertise other goods/services
Remember Me I am the person who goes into a restaurant, sits down, and patientlywaits while the wait-staff does everything but take my order. I am the person that waits in line for the clerk to finish chatting withhis buddy. I am the one who never comes back and it amuses me to see moneyspent to get me back. I was there in the first place, all you had to do was show me somecourtesy and service.The Customer
Topics for Discussion Suggest diversions that could make waiting lesspainful. Give a bad and good waiting experience, andcontrast the situations with respect to the aestheticsof the surroundings, diversions, people waiting, andattitude of servers. Suggest ways that management can influence thearrival times of customers. What are the benefits of a fast-food employee takingyour order while waiting in line? Are there any benefits to making the customer wait?