311_session_6_waiting_line_management

311_session_6_waiting_line_management - 1 Waiting Line...

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Unformatted text preview: 1 Waiting Line Management BUAD311 Session 6 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 3 The Importance of Good Service Time has become more valuable. 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. 4 Laws of Service Laws of service Satisfaction = Perception Expectation It is hard to catch-up 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. 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 Characteristics of Queuing System time Servers Customers Where is the uncertainty? ? ? ? ? Customer arrival time (Interarrival time) Service time Interarrival time 8 Characteristics of Queuing Systems The time of the arrival of an order, or interarrival time, 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 This leads to: Idleness of resources Waiting time of customers (orders) to be processed time...
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This note was uploaded on 02/15/2011 for the course BUAD 311 at USC.

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311_session_6_waiting_line_management - 1 Waiting Line...

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