311_session_13_waiting_line_management_hiroshi

311_session_13_waiting_line_management_hiroshi - Waiting...

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1 Waiting Line Management BUAD311 Session 13 Hiroshi Ochiumi
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2 Objectives Understanding the phenomenon of waiting Measures of waiting line systems Waiting time, number of waiting orders Impact of variability/uncertainty & utilization rate Risk pooling effect in waiting line
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3 The Importance of Good Service Time has become more valuable in highly developed countries. Customer loyalty is significantly impacted by good service. Technological advances have made possible better and faster service. Providing a level of service acceptable to customers offers a strong competitive advantage.
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4 Laws of Service Laws of service Satisfaction = Perception – Expectation It is hard to catch-up
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5 Customer Satisfaction Actual Waiting Time Time, as measured by a stopwatch, of how long a customer has to wait prior to receiving service. Perceived Waiting Time Amount of time customers believe they have waited prior to receiving service. Has a greater effect on customer satisfaction than actual waiting time.
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6 Principles of Waiting Unoccupied waits feels longer than occupied waits Pre-process waits feels longer than in-process waits Anxiety makes waits seem longer Uncertain waits are longer than known, finite waits Unexplained waits are longer than explained waits Unfair waits are longer than equitable waits
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7 Characteristics of Service Systems The time of the arrival of an order is not known ahead of time The time a telephone call is made is random The service time is not known ahead of time The time a customers spends on the web page of Amazon.com is random The time a customer spends speaking with the teller in the bank is unknown
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This note was uploaded on 06/22/2010 for the course BUAD 311 taught by Professor Vaitsos during the Winter '07 term at USC.

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311_session_13_waiting_line_management_hiroshi - Waiting...

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