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An Empirical Analysis of the Queuing Theory and Customer Satisfaction:

Application in Small and Medium Enterprises A Case Study of Croc Foods
Restaurant

Thesis  in  SSRN Electronic Journal · January 2013

DOI: 10.2139/ssrn.2348304

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 AN EMPIRICAL ANALYSIS OF THE QUEUING THEORY AND CUSTOMER

SATISFACTION: APPLICATION IN SMALL AND MEDIUM ENTERPRISES – A

CASE STUDY OF CROC FOODS RESTAURANT

WELLINGTON GARIKAI BONGA1

ABSTRACT
Fundamental business principles are very critical to the growth and survival of the business. Waiting

in line or queue causes inconvenience to customers and economic costs to firms. Queuing theory is a

mathematical approach to the study of waiting in lines/queues. The study presents the results of a

study that evaluates the effectiveness of a queuing model in identifying the restaurant queuing system

efficiency parameters. It uses Little’s Theorem to analyze data collected from Croc Foods Restaurant

in Beitbridge over a three-week period. The study showed that on average 60 customers arrive every

hour and the service rate is 84 customers per hour. Using the Queuing Theory calculator, the system

utilization factor was 71.43%, the probability of zero customers waiting 0.2857, average number of

customers waiting 1.782 and average waiting time 0.0298 hours. The study compared the single

server model against multi-server model and concluded that M/M/1 model was not the best for Croc

Foods restaurant.Using a questionnaire of 171 respondents, the study found out that about 43.3% of

customers are not satisfied about the nature of waiting lines and about 69% customers have at least

turned away at regular occasions due to the queues. The long term value of existing customers should

not be overlooked; constant check for their changing needs and improvement in the time spent when

serving them has been emphasized by the study.

1
Bonga Wellington Garikai is a PhD Economics student with Atlantic International University based in
Zimbabwe. He has published various articles in the areas of Development, Taxation and Finance. Can be
contacted at sirwellas@gmail.com. January 2014.

Electronic copy available at: http://ssrn.com/abstract=2348304

 INTRODUCTION

Small Business survival depends heavily on developing good strategy, principles and tactics.

The importance of strategy and principles should well be understood. Fundamental principles

that ensure success in a competitive business environment should be applied. To understand

principles and violate them is terribly risky. To fail to know the principles and operating

without them is simple ignorance, and this might lead to company failure. In good times,

business do come easily, that is, company sales presentation and marketing may be less

effective but they still get results. However, surviving hard times requires going back full

circle to the fundamental principles of business.2

Small and Medium Enterprises (SMEs) are important to almost all economies in the world,

but especially to those in developing countries and, within that broad category, especially to

those with major employment and income distribution challenges. On the “static” front,

SMEs contribute to output and to the creation of “decent” jobs; on the dynamic front they are

a nursery for the larger firms of the future, are the next and important step up for expanding

micro enterprises, they contribute directly and often significantly to aggregate savings and

investment, and they are involved in the development of appropriate technology.

SMEs have been heavily supported and many policies have been set to create a conducive

environment for their operations. However, there still exist many problems that the SMEs

face and the question is why the SMEs still face such problems. The common problems that

the SMEs face include absence of adequate finance and timely banking finance, limited

2
Fundamental principles include regular financial checks, managing customers and sales training among
others.Good customer service will always help to differentiate a company from its bigger competitors.

Electronic copy available at: http://ssrn.com/abstract=2348304

capital and knowledge, technological constraints, low production capacity, ineffective

marketing strategies, identification of new markets and follow up with various agencies to

resolve problems. The study seeks to introduce another dimension of relevant factors based

on simple rules for development that has been neglected by many authors.

Company competitiveness is determined by the strength and steadiness of the possessed

competitive advantages, (Porter, 1993). In the last two decades, companies which are

successful in cost and quality based competitions, are looking for other factors that can help

them gain further competitive advantage. Time has turned into a strategic resource and as a

consequence, its importance has become equivalent to the significance of money,

productivity and innovation (Stalk, 1988). Consequently, time based competition nowadays

spreads among leading companies, thus time has turned into a strategic resource.

In today’s competitive business environment, the modern society is progressively turning

into a service dominating one. Customer satisfaction and service operation capabilities have

shown to provide an organization a competitive advantage in the marketplace, and this has

consequently led to an increasing importance in service operations management. As a result,

waiting has drawn great attention to all business operation management specialists.

Customers of today have also developed a system of comparing the service level offered by

various companies apart from the product quality.

Waiting in lines seems to be part of our everyday life, for example, at the hospital, filling

station, bus stop, restaurant, supermarkets, banks or in the canteen. Queues form when the

demand for a service exceeds its supply (Kandemir-Cavas and Cavas, 2007). For many

patients or customers, waiting in lines or queuing is annoying (Obamiro, 2003) or negative

Electronic copy available at: http://ssrn.com/abstract=2348304

experience (Scotland, 1991). The unpleasant experience of waiting in line can often have a

negative effect on the rest of a customer’s experience with a particular firm. The way in

which managers address the waiting line issue is critical to the long term success of their

firms (Davis et al, 2003).Waiting causes not only inconvenience, but also frustration to

people’s daily lives. Often, customers may be discouraged from pursuing valuable services

by a sheer length of the waiting line. At other times, waiting might even cause the customer

to delay or miss important events.

Queuing has become a symbol of inefficiency of many SMEs in the country and Beitbridge is

not an exception. Managing the length of the line is one of the challenges facing most

canteens. A few of the factors that are responsible for long waiting lines or delays in

providing service include lack of passion and commitment to work on the part of the staff

(Belson1988) and overloading of available workers among others.

In order to reduce the time spent in waiting systems, one solution would be to supplement the

checkout clerks, but this is not always the most economical strategy to improve services. One

of the factors influencing consumers' perception on service quality is the efficiency of waiting

systems. The waiting time is inevitable in the case of random requests. Thus, providing the

capacity for a sufficient service is needed, but it is involving high costs. This is the premise

from which the queuing theory starts in designing service systems (Alecu, F., 2004).

This study is based on the understanding that most of these difficulties can be managed by

using queuing model to determine the waiting line performance such as: average arrival rate

of customers, average service rate, system utilization factor, cost of service and the

probability of a specific number of customers in the system. The purpose of this study is to

4
provide insight into the general background of queuing theory and its associated terminology,

and how queuing theory can be used to model canteen business. The resultant performance

variables can be used by the policy makers to increase efficiency, improve the quality of care,

as well as decrease cost in organizations and services.

The determination of how long a customer should wait for a product or service has long been

a major concern for service management specialists who bear the trade-off between

minimizing operation costs incurred in optimizing the configuration of a queue system, as

well as, minimizing the cost of waiting of the customers. As the current economies

progressively changing into a service dominated one, it is essential to thoroughly understand

the know-how to effectively deal with waiting lines so as to improve customer satisfaction of

the service being offered.

Traditionally, a queue is studied in the perspective of operations research, using mathematical

models to determine the efficiency of the queue under particular settings. However, it has

been shown that it solves only part of the problem, the efficiency of the process, while the

application of these results to real-world service operational settings is restricted because it

does not take human factors into consideration.Since waiting involves people, time, and

environment, it is vital to also incorporate issues related to both the social and psychological

perspectives in order to reduce the negative impact of waiting on customer satisfaction and

perceived quality.

Examination is for Croc Foods restaurant in Beitbridge town. Croc Foods is centrally located

in the town, and is one of the oldest restaurants in the town. Population has been increasing in

the town over the years but the growth of Croc Foods is questionable given the increasing

5
potential demand. Rather what has been noticed is the increasing number of other new food

outlets, which poses threats to the mentioned restaurant.

1.1 BACKGROUND OF THE STUDY

Loyal customers are the key to business growth. When it comes to business growth, there are

two simple options to choose from; go looking for new customers to buy company products

and services, or holding onto the customers the company already have and making it easier

for them to buy again and again.The long term value of existing customers is frequently

overlooked by business owners. These customers are often taken for granted and virtually

ignored when it comes to marketing. In contrast, an enormous amount of marketing time,

effort and money is spent trying to attract new customers.However for several very good

reasons, the best place to start – for any business wanting to grow – is with the customers you

already know and who already know you.

1.1.1 MINISTRY OF SMALL AND MEDIUM ENTERPRISE DEVELOPMENT

In an effort to consider the SME sector for development purposes, the government have set

up a ministry that takes care of issues pertaining to their development. Through this ministry

SME policies are made, that enables the sector to operate in a conducive environment. The

vision for the ministry is to be the nerve centre for economic growth through development of

SMEs and its mission statement is to create and maintain enabling environment that promotes

vibrant SME sector. However apart from what this ministry offers, the sector remains

constrained in some way.

The functions of the ministry are;

6
1. Implement SME policy.

2. Formulate policies for SME development.

3. Develop legal and regulatory framework for SME development.

4. Promote, coordinate and monitor innovative financing schemes for SMEs.

5. Provide skills and management training that support entrepreneurship and small business

growth.

6. Facilitate linkages between large scale enterprises and SMEs.

7. Business Consultancy services to SMEs.

8. Ensure that infrastructural facilities are provided for SMEs.

9. Research into investment and marketing opportunities for SMEs.

10. Develop and maintain data base for SMEs.

11. Administer the SME Empowerment fund.

12. Liase with sector ministries involved in the promotion of SMEs.

13. Provide financial, administrative and human resource management and support services.

Given such functions of the ministry, it can be seen that a lot is being offered to the SMEs

and hence a vibrant sector should be reaped from such efforts. These in practical terms have

proved to be something else given that many SMEs are still struggling and not many are

turning into large corporations. This poses for a further study into the additional factors

hindering growth of SMEs, if these have been determined, they will strengthen function

number 7 and to some extent 5 of the ministry.

1.1.2 SME ASSOCIATION OF ZIMBABWE

The main goal of the SME Association of Zimbabwe is to transform SMEs into large

corporations. It is not a profit making body and is owned by its members who are

7
entrepreneurs. It was formed out of the realisation that there is a gap in terms of the

representation and support of SMEs that want to grow and become large corporations. The

Business Directory has more than 700 SMEs registered. The association achieve its goal of

SME development through providing core support services.

The core support services include;

• Markets and Branding. Accessing markets has been a big challenge and marketing

costs are very exorbitant. The association therefore assist in searching for markets and

brand creation for SME products.

• Funding. Post-dollarisation SMEs faced a number of obstacles in accessing funds.

One critical requirement being collateral security. The association have been fighting

hard for SMEs to get funding.

• Training and Development. This is one of the critical requirements for effective

operation. This is mainly done through seminars arranged by the association.

• Lobbying and Advocacy. Creating a conducive environment for SME formation and

growth.

• Infrastructure, Environment and Decentralisation. Ensuring that SMEs have proper

work infrastructure, engaging various stakeholders.

As can be noticed the Association is striving to enhance a successful SME sector. Through its

influence it has made it known that SMEs account of 50% of Gross Domestic Product

according to the Finance Ministry figures. 2013 First quarter Monetary Policy indicated that

Banking institutions are required to orient their portfolios such that loans to the SME sector

should constitute at least 30% of the total loan book. However, while the study acknowledge

8
such policies it still points out that some dimension of SME support should be introduced and

emphasised, that is obedience to fundamental principles of business should be encouraged.

1.1.3 A GLIMPSE ON CROC FOODS RESTAURANT

1.1.3.0 OPERATING TIME

Croc Foods Restaurant opens from 0700 hours to 2200 hours, however business hours are

from 1000 hours to 2000 hours, making it 10 hours every day of the week, with other hours

left for preparations and cleaning. Peak business is experienced during lunch time.

1.1.3.1 CUSTOMER SERVING PROCEDURE

Customers arrives, places and pays for the order at the till desk. The customer then obtains a

receipt for the order; customer moves to the serving window and surrenders the receipt, then

waits for the order to be delivered. From there the customer gets the order and goes to the

tables to enjoy the meal and finally the customer leaves if through with the meal. Basically,

the customer joins the queue to the till desk and automatically joins again the queue to the

serving window. For most customers the serving style is on a first come first served bases.

However, some customers places orders through the telephone and just come to collect and

this reduces queue sizes. Some customers get executive treatment, and do not follow queues,

the criteria not economically explained.

The system at Croc Food Restaurant can be shown diagrammatically as follows;

9
Figure 1: Queuing System for Croc Foods
System

Till and Serving

window

Customer

leaves

Waiting line
Order taking

Source: Edited from Williams (2003).

From Figure 1 previous page it is shown that the waiting line is a single channel3. Customers

who visit the restaurant join the queue or follow the channel when there is no queue, until

they leave the facility.

The cashier is one, waiters are normally two, but sometimes may be one, there are other four

workers preparing food and the serving queue is one. The conclusion therefore is that a single

channel system and hence an M/M/1 model is the one being used by Croc Foods Restaurant4.

Customers have been observed coming in groups, pairs and single, with individual customers

being the majority. Arrivals occur randomly and independently of other arrivals, such that the
3
Only one channel is to be followed by every customer who visit the restaurant.
4
M/M/1 is a common terminology in Operations Research referring to single channel.

10
estimation of an arrival occurrence is difficult to determine. Hence, the Poisson distribution is

the best solution to describe the arrivals pattern, Cernia et al (2010).

1.1.4 COST OPTIMIZATION OF QUEUING SYSTEMS

The amount of time customers must spend waiting can significantly influence their

satisfaction, Davis and Vollman (1990). Even if the product quality differs, there is a

significant weight that is attached on serving time and this can determine where the customer

chooses to get the service. There are costs associated with waiting for the service although

they are difficult to measure. Hence there is need to optimise the whole process. Figure 2

below shows the optimization process.

Figure 2: Costs Optimization of Queuing Systems

Source: Adapted from Kandemir-Cavas and Cavas (2007), page 34.

As shown in Figure 2 previous page, there is a trade-off between the costs of customers

waiting time and the cost of providing a faster service (moving towards zero customer

waiting time). Hence there is a certain level of service that optimises the cost of serving the

customers. Companies should strive to determine and operate at such a point.

11
1.2 STATEMENT OF THE PROBLEM

SMEs have been supported by government for them to grow, however, it has been seen that

they are increasing in numbers and doing same function, few of them are growing into larger

firms. Apart from common challenges, the author has a feeling that basic planning is really

lacking on the part of the firms. Planning efficiency is to be tested through the use of the

Queuing theory. This is because a chased customer creates demand elsewhere hence no

expansion of the firm if such continues. The long term value of existing customers is

frequently overlooked by business owners.

Despite ofits entire growth still SMEs are not giving their maximum and the rate of failure is

very high (Hussain et al., 2010). Most of the SMEs in Zimbabwe are in low growth trap and

in fact 19% of the SMEs are less than 5 years old and only 4% survive beyond 25 years

(Khawaja, 2006). It becomes important to identify those factors that critically contribute to

the success and failure of SMEs, and this has been done by many authors. This study

therefore wishes to check and observe how the SMEs attend to basic business principles for

decision making process with reference to the management of queues and suggest ways to

enhance customer satisfaction through queue management.

With reference to waiting lines, it has been observed that customers after joining the queue

may be seen leaving without being served. Losing customers this way may be unhealthy to

the growth of the firm. Hence service delivery should be well planned. Customers may seek

other better and faster places for the same service. Hence the importance of existing

customers should be appreciated.

12
Waiting causes not only inconvenience, but also frustration to people’s daily lives. Often,

customers may be discouraged from pursuing valuable services by a sheer length of the

waiting line. At other times, waiting might even cause the customer to delay or miss

important events.

1.3 OBJECTIVES OF THE STUDY

The objectives of the studyare;

• To determine if the fundamental business principles are being employed.

• To determine the percentage of satisfied and unsatisfied customers to the status quo.

• To use the Queuing Model to determine the waiting line performance such as: average

arrival rate of customers, average service rate, system utilization factor, and the

probability of a specific number of customers in the system.

• To comment on efficiency of the firm according to the Queuing Theory.

• To determine ways to manage queues to avoid customer lose.

The resultant performance variables can be used by the policy makers to increase efficiency,

improve the quality of care, as well as decrease cost in organizations and services. This may

help improve customer handling so that existing customers are more satisfied and new

customers created through references.

1.4 RESEARCH QUESTIONS

The research questions of the study can be stated as follows:

• Are fundamental business principles of customer satisfaction being followed?

13
 • What is the percentage of satisfied and unsatisfied customers in relation to serving

time?

• What are the magnitudes of efficient parameters from Queuing model and what do

they say about waiting lines and customer satisfaction level?5

• What is the best queueing model for Croc Foods restaurant that yields best levels of

customer satisfaction?

1.5 HYPOTHESIS OF THE STUDY

Due to the nature of the study three hypotheses can be put in place;6

1. H0: Fundamental Business Principles of Customer Satisfaction are being followed to

reap optimal results.

H1: Fundamental Business Principles of Customer Satisfaction are not being followed

to reap optimal results.

2. H0: M/M/1 model is the best queuing model for Croc Foods restaurant.

H1: There are other better models that can be employed by Croc Foods restaurant.

3. H0: Increasing efficiency (status quo) can raise customer satisfaction.

H1: There is a negative relationship between efficiency and customer satisfaction.

1.6 SIGNIFICANCE OF THE STUDY

Companies to grow they need to be perfect in basic decision making. Fundamental business

principles pertaining to customers should be well followed. Decision on time management is

5
Efficiency Parameters include; 1. Average waiting time, 2.Average arrival rate of customers, 3.Average service
rate, 4.System utilization factor and 5.Probability of specific number of customers in the system.
6
A similar study by Opera-Nadi (2005) has six (6) hypotheses, this comes as a result of the nature of the study.
The hypotheses were all equally tested.

14
vital. Those companies which have been successful in cost and quality based competitions,

are now looking for other factors that can help them gain further competitive advantage. And

consequently, time based competition is spreading among leading companies.

The author is not aware of other researches that have been carried out in Zimbabwe based on

decision making using Queuing Theory. Hence the study is of relevance since it will add to

existing literature on decision making processes with particular reference to Small and

Medium Enterprises.

David Maister, a business author and consultant, noted that people feel more anxious if they

don't know how long they have to wait. Restaurant customers may be annoyed when they

realize they have to wait, but if your hostess gives them some idea of how long the wait will

be, they are more likely to relax. Hence the study will explore the average serving time that

can be given to potential clients on request.

It is worth mentioning that queuing models are not the end in itself in decision making, they

are just the beginning of the structuring of decision making framework. Therefore decision

making process is the backbone of any company. With poor decisions a company cannot

fight competition from other firms.

The study will benefit some firms who have been ignoring the impact of abiding to

fundamental business principles to enhance success and business growth. Also some

interested parties and government bodies that have the function of supporting SME growth

and survival. The study can however assist any business in general to improve customer

15
satisfaction especially existing customers as it brings in another dimension that is mostly

ignored by many.

1.7 ASSUMPTIONS

The study has assumed that customer arrivals are random and independent of other arrivals,

hence a Poisson distribution assumed. The study assumed a First Come, First served (FIFO)

bases on customers being served, but in real life some customers get preferential treatment

over others. Infinite population has been assumed, given that there are other restaurants in the

area of which the customers can independently choose to come to the restaurant under study.

1.8 SCOPE OF THE STUDY

A fully comprehensive coverage of all small and medium enterprises is practically impossible

therefore in the study, only a central canteen in Beitbridge is considered in the analysis. The

information obtained in this analysis can be transferred across to other firms for the purpose

of policy formulation. The data used in the Queuing model is collected for an arrival time of

each customer in three weeks, for the busiest three hours by the questionnaire form. The

observations for number of customers in a queue, their arrival-time and departure-time will

be taken without distracting the employees. The whole procedure of the service unit each day

will be observed and recorded using a time-watch during the same time period for each day.

In addition, the questionnaires are conducted at the same timings for each day.

1.9 LIMITATIONS

16
The study is done over a short period of time. This may cause some aspects and

conceptsnecessary for analysis to be omitted or under investigated. However the study has

tried its best to capture relevant concept to answer research questions in order to address

problem of the study. It was worthy to analyse for a longer period and if also possible for a

number of firms in a comparison fashion.

17
 CHAPTER II

LITERATURE REVIEW

2.0 INTRODUCTION

A literature review is a text written by someone to consider the critical points of current

knowledge including substantive findings as well as theoretical and methodological

contributions to a particular topic.7It comprises of secondary sources. The study seeks to

examine empirically the application of Queuing Theory and customer satisfaction with

reference to Small and Medium Enterprises. However, before the empirical estimations of the

relationship could be carried out, it is useful to review and discuss the theoretical and

empirical literature related to Queuing Model and Customer satisfaction. In light of the

above, the current chapter will discuss and review the theoretical literature as well as the

empirical studies on Queuing Model. Thus, the current chapter is significant in as much as it

discusses the foundation upon which the empirical model that we shall adopt is based.

2.1 THEORETICAL LITERATURE REVIEW

A lot of literature on the subject has been done, but however, nothing much has been done

pertaining the decision making framework of small and medium enterprises. The study

encouragements have been differing. Theoretical framework is well exploited in this section.

7
Definition obtained from Wikipedia.

18
2.1.0 THE QUEUING THEORY

In 1908, Copenhagen Telephone Company requested Agner K. Erlang to work on the holding

times in a telephone switch. He identified that the number of telephone conversations and

telephone holding time fit into Poisson distribution and exponentially distributed. This was

the beginning of the study of queuing theory.

Queuing theory is the mathematical study of waiting lines (or queues). A queueingsystem can

be met anywhere. It is easy to recall a situation when waiting was required,for example, in

shops, in banks, in a library. There are also some less obvious examplesof queues, such as

waiting for the phone connection with the extension number, waitingfor the change of traffic

lights or for the morning mail. All of these situations havea common feature, namely, the

arrival process of people or objects that need to beserved. If people or mechanisms which

serve customers are occupied when a customerarrives, then the customer has to wait for

his/her turn. Such customers form a queue.

Queuing models are usually divided into two types: descriptive, which describe thecurrent

real-world situation (for example, how long one has to wait in the queue), andprescriptive,

which prescribe what should be done in order to achieve a particularsituation (for example,

what should be done to minimize customer waiting time).Most research which has been done

in the area of queuing theory concerns descriptivemodels. However, there has also been some

work done in the field of optimizationproblems which prescribe the optimal course of action

to follow. This area ofresearch is referred to as the optimal design and control of queues. In

general, designand control models deal with determining the optimal system parameters, for

example, the optimal service rate or the optimal number of servers.Which parameters are to

19
be optimized depends on how the system has been modelledand which parameters are under

control.

In this section, a discussion of two common concepts in queuing theory is going to be made,

namely Little’s Theorem and Kendall’s Notation.

2.2 EMPIRICAL LITERATURE REVIEW

A study by Obamiro (2010) evaluated the effectiveness of a queuing model in identifying the

ante-natal queuing system efficiency parameters. It used Tora Optimization system to analyse

data collected from ante-natal care unit of a public teaching hospital in Nigeria over a three-

week period. The study showed that pregnant mothers spent less time in the queue and

system in the first week than during the other succeeding two weeks. This implies that there

are less average pregnant women in the queue and system in the first week than in the other

weeks except on the third week when less expectant mother waited in the system. The study

used the observation technique for the first three days of each week, Monday to Wednesday

because they were the busiest. The study was done only for a unit of the hospital not the

entire hospital. It ignored the effect of perception of waiting time on patient satisfaction.

However the study concluded that the knowledge of queuing theory can help service

managers to make decisions that increase the satisfaction of all concerned parties –

customers, employees and management.

Dharmawirya and Edi (2011), have a case study for restaurant queuing model. The aim of the

paper was to show that queuing theory satisfies the model when tested with a real-case

scenario. Data was obtained from a restaurant in Jakarta, Indonesia. Derivation of the arrival

20
rate, service rate, utilization rate, waiting time in queue and the probability of potential

customers to balk based on the data using Little’s Theorem and M/M/1 queuing model was

done. The derived results showed that the arrival rate at Sushi Teiduring its busiest period of

the day is 2.22 customers per minute (cpm) while the service rate is 2.24 cpm. The average

number of customers in the restaurant is 122 and the utilization period is 0.991. The

conclusion of the paper was discussing the benefits of performing queuing analysis to a busy

restaurant.

Daisi (2010), in a study made an attempt to review the analysis of Stochastic Birth-Death

Markov processes which turns out to be a highly suitable modelling tool for many queuing

systems in general and M/M/1 queuing model in particular. The model, M/M/1, as a single-

channel queuing system with Poisson arrivals and exponential service and with queueing

discipline of first come first serve basis, was applied to arrivals and waiting times of

customers in Intercontinental Bank PLC, Ile-Ife Branch, Osun State, Nigeria. The queue size

of customers including traffic intensity and average number of customers in the system and

queue; the service/waiting times of customers including the average time spent in the system

and queue by a customer, were all obtained. The traffic intensity obtained was 0.8378 which

indicated the probability of a customer queuing or waiting for service on arrival. Primary data

on arrivals, waiting time, service time and departures was collected for 21 working days from

08:00am to 4:00pm. The research method involves derivation of various M/M/m queue

systems and an M/M/1 model has been also applied.

Bolanle (2011) carried out a study stressing the importance of queueing theory to the problem

of port congestion in order to enhance sustainable development of Nigeria ports. Nigeria

Ports are characterized with incessant congestion problem in the recent past and this has

21
resulted in diversion of ships scheduled for Nigeria Ports to other neighbouring country ports

which has caused the country to lose a lot of revenue. The effectiveness of aPort is contingent

upon loading and unloading of ships. The traffic movement through a port is a complex

phenomenon because of the random nature of the arrival and service time of the ships. This

requires a systematic approach in port planning and management. Queuing model was

applied to the arrival and services pattern which causes the problems of congestion and

proffer solutions to the problem areas. It was also used to predict the average arrival rate of

ships to Tin Can Island Port and the average service rate per ship in a month. The study found

out that the number of berth in Nigeria port is adequate for the traffic intensity of vessels but

other factors leading to port congestion were also identified through the content analysis of

the interview conducted with stakeholders at the port.

Houda et al (2008) emphasised that waiting lines and service systems are important parts of

the business world. In their article they describedseveral common queuing situations and

presented mathematical models for analysing waiting lines following certain assumptions.

Those assumptions are that (1) arrivals come from an infinite or very large population, (2)

arrivals are Poisson distributed, (3) arrivals are treated on a FIFO basis and do not balk or

renege, (4) service times follow the negative exponential distribution or are constant, and (5)

the average service rate is faster than the average arrivalrate.The model illustrated in the

airport for passengers on a level with reservation is the multiple-channel queuing model with

Poisson Arrival and Exponential Service Times (M/M/S).After a series of operating

characteristics were computed, total expected costs were studied, total costs is the sum of the

cost of providing service plus the cost of waiting time. The study used Linear Programming

(LP) models for the solution time of queueing theory. Linear Programming has been used to

estimate the performance measures for 46 flights for the 16 branches. The study also used

22
computer simulation because data was too complex and a Hyper-Lindo software for

optimization with 801 iterations.

Opara-Nadi (2005) insisted that customers want fast checkout systems and retailers are

always searching for ways to improve store checkout systems. To begin the study used a pilot

project with 10 shoppers. The study compared the cashier checkout and the electronic self-

checkout systems. Data for the study were collected by observations of checkout processes at

Wal-Mart Super Centers in the Jackson, Mississippi, area. Formulated research questions

were statistically tested employing the independent samples t-tests and the chi square test for

independence. Results of these analyses showed that consumers preferred the cashier

checkout system to the electronic self-checkout system, although shoppers also want to learn

how to use the new self-checkout technology. A random sampling technique was used by the

study for a period of 2 weeks for three stores. 90 customers were selected from each of the

two checkout systems. Information was obtained from responses and observations. Data was

assembled, coded and analysed using SPSS 12.0 for windows. Six (6) hypotheses were tested

and analyzed using independent samples t-tests.

Gosha (2007) studied queue management for a barber shop. It was insisted that in this age of

technology it is not only important to organize the existing queue, but to gather statistics

about the queue in order to identify trends that could be anticipated. The study will suggest

that a Queue Management System such as QueueAdmin will improve the satisfaction of a

shop’s customers as well as their barbers.QueueAdmin is a database driven, online

application to manage the different waiting list of a barbershop. In order to provide better

functionality and to maximize use of all the information collected, QueueAdmin has three

interfaces: the Administrative interface, the Employee interface and the Customer interface.

23
Instead of limiting these interfaces with standard keyboard input, they willmulti-modal using

touch screen technology as well as wireless web interface for use with cell phones and

Personal Digital Assistants (PDAs). This makes it a robust solution to an existing practical

problem. A survey was done to customers and barbers, 25 participants who agreed to

participate of which 4 were barbers and 21 were customers. The study emphasised on how to

manage waiting list. It concluded that customers are patient to wait only if they have the

information of the waiting list and are able to calculate their turn of being served.

As analyzed by Fink and Gillett (2006) the cost of a dissatisfied customer is not negligible,

they described that waiting in line is a primary source of dissatisfaction. They mentioned well

known queuing theories and integrating theory behind the Taguchi Loss Function, a manager

can derive the costs associated with this dissatisfaction and that customer dissatisfaction is

not just an issue at the upper specification limit, but rather for each moment in time beyond

the targeted wait time. They illustrated by using theTaguchi Function, it can then be seen that

these costs increase beyond the upper specification limit. However, by assessing these costs

and then taking measures to reduce either the actual or perceived waiting times, organizations

can quantitatively determine the cost-benefit relationship of improved waiting lines.

Chin (2007) investigated the submittal review/approval process and used queuing theory to

determine the major causes of long lead times. Under his study, he explored the underlying

causes of waiting in a process flow and found the improvement methods from the queuing

perspective.

Agrawal and Saxena (2010) analyzed the use of queuing theory in healthcare centre ofIIT-K

and the benefits accrued from the same and they conceptualize an appointment system in

24
which customers who are about to enter service may have a probability of not being served

and may rejoin the queue. In their investigation, they found that the capacity utilization is

76%, average number of people waiting in queue is 2.57calculated by the Poisson distribution

method.

Joel Zhang Laifu (2000) has evaluated the performance of single-channel and

multiplechannelsqueues using the discrete-event simulation technique. The input to the

simulators is based on live data. A customer can hop to a shorter queue but the service time

needed by the customers in the queue may be longer thus resulting in an even longer waiting

time.

2.3 CONCLUSION

The literature reviewed in this study unanimously agreed that time is a very significant and a

critical component in decision making process. It has been indicated that queueing theory and

waiting line techniques improve the way managers managed queues to reduce the length of

lines in firms. The literature reveiwed in this study concludes that time and convenience are

among the most important factors managers should consider when selecting and implementing

checkout processes for firms. The observation technique has been the most technique being

used by many studies. The study period has been 3 weeks, though it varied how it was being

applied. The population size varied according to the researcher and some have been using the

sampling technique where necessary. This study has greatly observed the differences and

weaknesses of the reviewed literature to come up with its methodology.

25
1.6.1 MODEL SPECIFICATION

Model specification is the process of converting theory into regression model. It consists of

selecting appropriate functional form for the model and choosing which variables to include.

If the estimated model is misspecified, it will be biased and inconsistent.

The study adopted a Queuing Model in the form of:

M / M / C : FCFS / ∞ / ∞

where; M=Markovian (or Poisson) arrivals and exponential service time.

C= Multi-server;

FCFS = First come, first served;

∞ = Infinite system limit;

∞ = Infinite source limit.

For the analysis of the Croc Foods Restaurant M/M/1 queuing model the following variables

will be investigated;

λ - mean arrival rate (number of arrivals per unit of time),

µ - mean service rate per server,

C - number of servers,

L - Average number of units (customers) in the system (includes both the customers

waiting for service and those being served),

Lq - average number of customers in the queue (waiting to be served),

W - average waiting time in the system,

Wq - average waiting time in the queue (service time not included).

26
The following parameters will be calculated, and their formulas have been presented;

• Probability that there is no customer λ

P ( 0) = 1 −
µ
in the system

• Average number of customers in the λ2

Lq =
µ (µ − λ )
waiting line.

• Average number of customers λ2 λ λ

L = + = Lq +
µ (µ − λ ) µ µ
existing in the system.

• Average time spent by a customer in Lq

Wq =
λ
the waiting line.

• Average time spent by a customer in 1

W = Wq +
µ
the system

• The probability that the customer is λ

Pw =
µ
waiting to be served:

• The probability that there are λ

n

Pn =   P0
ncustomers in the system µ

It is worthy to note that the formulas can be applied only if µ is greater than λ. In other words,

they can be applied only if λ/µ < 1. Simply put, that is when the rate of arrivals is less than the

rate of departures. Failing to meet this condition leads to a growing of the waiting line,

because the service capacity is insufficient.

27
1.7 QUESTIONNAIRE TECHNIQUE DISCUSSION

A questionnaire has been designed (see Appendix 2) to collect specific data pertaining the

service time and customer satisfaction. The questionnaire is very rich with data for the

behaviour of customers in relation to the operations of the restaurant with reference to serving

time and serving queues. The questionnaire comprises of 14 questions, which have been

deemed enough to explore the need for the research and helps to answer some of the research

questions.

Sex and age of customers have been asked just to show the distribution of the clients. It has

been assumed that the behaviour of males and females are different with respect to the needs,

female customers do not worry much about time. The same can be said about age, the older

customers are less worried to long queues and can stay longer waiting for the service than the

young ones.

The level of education of the customers is a crucial variable. It has been included so as to

check the level of awareness of the customers. It is assumed that the quality of the

information we obtain from highly educated is of higher grade than the one from less

educated.

Regularity of customers to the restaurant under study is to be checked, so as to determine the

type of clients that dominates the restaurant. This is checking the population level of existing

customers, average customers as well as new customers. Getting information from existing

customers is of better importance as they have greater information about the company’s

operations over the years.

28
To confirm the origin or causes of serving queues at the restaurant, the number of people

approaching the restaurant has been asked. It is assumed that when customers arrive in

groups, it automatically impose pressure on the serving staff and hence longer queues arise.

When customers arrive one by one, it relieves pressure and it is likely to have shorter queues.

Satisfaction with the serving time (queues) determines and put it out the necessity of the

study as the fraction of satisfied customers and unsatisfied customers to the status quo is

obtained. This question is almost the same as the rating question, only that this one introduces

a scale to show the level as measured by customers.

Turning away question is very critical to the study, as it shows the revenue loss due to long

queues. If there are high levels of customers turning away due to long queues, it poses for an

urgent plan. Customers lost create demand elsewhere. The frequency has been asked to check

if there is a continuous weakness from operations to cater for every customer.

Customer solutions have been included as this will show us exactly how the weakness of

failure to cater for customers within reasonable time impacts. Possible customer solutions

have been put in place. They show the transfer of customers to other better operating firms.

Failure of customers to get the service at all is also an option or other customers coming back

later at other time deemed to have low pressure.

Number of customers in the view of the customer has been asked just to check how the

customer sympathises with the firm in question. And how they expect the firm to adjust to

reasonable operations. Flexibility of customers to change to other visiting times, helps to

29
check how sticky the customers are to their specific visiting specific times. It also shows the

ratio of customers that do not need disturbances and that are likely to be affected most.

Opinion question is there just to enable the discovering of how exactly the customers think on

where the problem is located. The question helps to discover the ratio of those that links it to

time of serving. The comparison question helps to discover how the firm operate. It

automatically ranks the firm to other firms. The level of competitiveness of the firm in

customer care.

1.8 CONCLUSION

This chapter has outlined the methodology, estimation procedures and data analysis methods

tobe employed in the next chapter. The next chapter concentrates on estimation and

interpretation of results as well as graphical and chart analysis.

30
 CHAPTER IV

DATA PRESENTATION AND ANALYSIS

2. INTRODUCTION

This chapter focuses on explaining data tables and graphs, analysing trends and estimation of

the statistical. The chapter will present summary statistics, results of relevant test undertaken

in the study and final results to be used to conclude the study.

2.6 WEEKLY CUSTOMER COUNTS

Table 1 below shows the weekly customer counts as evidenced by the total daily receipts kept

by the restaurant.

Table 1: Weekly Customer Counts

M T W T F S S

1ST WEEK 585 594 601 589 598 611 606

2ND WEEK 590 593 583 604 590 605 607

3RD WEEK 604 585 597 601 588 600 605

4TH WEEK 587 599 593 607 601 613 609

Source: Company records from purchase receipts.

31
From the Table 1 above, it can be seen that weekends are the busiest days of the week,

because more customers are recorded by the company statistics.

2.7 AVERAGE IN AND OUT CUSTOMERS FOR THE BUSIEST THREE HOURS

The averages in and out of customers have been observed for the busiest three hours of each

day for the three weeks. The collected data is shown in Table 2 below.

Table 2: Average In and Out Customers for Busiest three hours

M T W T F S S

1st IN 59 61 64 66 63 62 62

WEEK OUT 80 79 85 83 87 87 85

2ND IN 54 58 57 60 60 64 61

WEEK OUT 77 79 81 86 86 88 84

3RD IN 59 57 60 59 59 62 65

WEEK OUT 82 83 79 86 89 84 84

From Table 2 above, the averages in and out of customers have been used to determine the

arrival rate and the service rate. It has been found that the sixty customers (60) arrive every

hour and eighty-four (84) customers are served every busy hour.8

2.8 QUEUE LENGTH AS PER EVERY TWENTY MINUTES

8
Obtaining these two parameters will help us get the optimal efficient parameters. This helps answer some of the
research questions leading to policy conclusions.

32
The queue lengths have been observed, and this has been done for every twenty minutes for

the three busiest hours. This allows the pattern of the queue to be studied. The collected data

is presented in Table 3 next page.

Table 3: Queue length as per every twenty minutes

1ST HOUR 2ND HOUR 3RD HOUR AVERAGE

A B C a B c a B c

DAY 1 10 8 11 15 11 10 9 9 5 9.7

DAY 2 5 7 6 10 12 11 9 8 6 8.2

DAY 3 8 6 9 12 14 14 10 9 11 10.3 9.4

a- 20mins, b – 40mins, c – 60mins.

From Table 3 above, it shows that the second hour is the busiest of the three hours. This

implies that there will be more pressure from customers to be served and the queue length

will be longest.The study observed that there are on average 9.4 customers in the queue

waiting to be served. However as indicated, the queue length varies, due to the arrival pattern

of customers, for example, some arrives in groups thereby forming a relatively longer queue.

2.9 QUESTIONNARE RESULTS ANALYSIS

Appendix 2 shows a questionnaire conducted by the study in an effort to answer some of the

research questions and making it clear the significance of the study. 200 questionnaires were

dispatched to the customers of which there were non-respondents and 171 were responded,

which is a good number to obtain useful information.

33
Most customers who visit the restaurant are males (107) and are above 18 years (158) of

which the level of awareness for the majority is secondary and above (150). This guarantees

that the study uses high quality information enabling a strong conclusion and better policy

prescription.

There are many regular customers (113 or about 66%), which makes existing solid customers

that the company bases on for its products. However there is also a significant number of

average and new customers that visit the restaurant for its servicers, being about 23.3% and

10.5% respectively. Many of the customers visit the restaurant singly (about 45.6%) and

sometimes in pairs (about 31.6%). However few customers arrive in groups with some

having some variability in visits fashion.

Many of the customers are unsatisfied (74) in relation to the serving time and the queues that

develop due to that. Some say the queues are just fair (68), while some say things are just fine

as they are (29). 43.3% of the customers are not satisfied, they do complain about the queues

resulting from serving operations, such magnitude is very risky to the growth and survival of

the firm given the level of competition in the market. About 89.5% of the customers

interviewed have rated the process of serving as not best. This shows that something has to be

done concerning operations.

About 118 customers (69%) have at least turned away on regular occasions due to long

queues and serving delays, of which 62,7% of these have done it many times if not always.

This is a high figure that the management should be quick to solve the causes and

inappropriate. About 56.8% of the turned back customers have gone to seek the same service

elsewhere, while others (22.8%) have chosen to return at some other time.

34
Majority of the customers (77.2%) do believe that the customer volumes visiting the

restaurant should be manageable by the firm. Many of the customers (57.9%) are not flexible

to change the time of visit to avoid busiest moments, while some cannot be flexible every

time (18.7%). Hence the firm should strive to serve the customers as they come.

Checking on the customer solutions, about 33.9% encourages the restaurant to increase its

staff (however such a decision needs incorporation of costs), about 28.1% opt for workers to

work extra hard, 24% combine the above two options and 14% were not sure what the firm

has to do. Finally, a significant portion (34.5%) have rated the firm’s serving ability (queue

management) as poor when compared to other firms offering the same service, while 28.7%

have seen it as at par with many other firms.

2.10 STATISTICAL RESULTS FOR M/M/1 QUEUEING MODEL

The parameters and corresponding characteristics in Queuing Model M/M/1, assuming

system is insteady-state condition (see Appendix 1), are:

Number of servers (c) = 1

Arrival rate ( λ ) = 60 customers per hour

Serving rate ( µ ) = 84 customers per hour

Overall system utilization ( ρ ) = 71.43 %

The probability that all servers are idle ( P (0) ) = 0.2857

Average number of customers in the queue ( Lq ) = 1.782

Average time customer spends in the queue ( Wq ) = 0.0298 hours

35
2.11 DISCUSSION OF STATISTICAL RESULTS

From the M/M/1 Queuing model of which the arrival rate ( λ )is 60 customers and there is a

single server and service rate ( µ ) is 84 customers. This shows that the rate of serving is

higher than the rate of which the customers are coming. Implying that there is a bit of

efficiency on the serving of customers, the waiting line is being managed.

The system performance parameters are as follows; Lq = 1.7857. This implies there are

1.7857 customers in the queue waiting to be served. Given the rate at which customers are

being served, the results shows that on average at least 2 customers are always waiting to be

served.

L = 2.5. This measures the average number of customers in the system. That is, there are 2.5

customers in the system. This implies that the system comprises of at least 3 customers who

needs the firm’s service and these are the customers whose satisfaction should be considered.

Waiting customers usually have the chance to monitor and analyse the whole serving process

for the customers being served before them.

Wq = 0.0298, meaning that customers spent 0.0298hours (1.788minutes) on the queue

waiting to be served. Since customers are very eager about the time they spent on the queue,

this is very critical. The time spent on the queue may cause frustration and turn away of

customers. Lose of customers also implies loss of revenue.

W = 0.0417 this means that customers spent 0.0417hour (2.502 minutes) in the system. The

time spent before joining the queue, waiting in the queue to be served and time spent after

being served before departure.

36
The server utilization factor is 71.43%. This shows the busy factor of the serving system. It

measures the efficiency of the queuing system of the firm. A lower utilisation factor is

preferred, hence the Croc Food restaurant model shows that there is a lot to be done to

manage its queues to improve customer satisfaction.

Cumulative probability is shown in Table 4 below.

Table 4: Results of M/M/1: FCFS/infinity/infinity model

N Probality P(n) Cumulative Probability P(n)

0 0.2857 0.2857

1 0.2041 0.4898

2 0.1458 0.6356

3 0.1041 0.7397

4 0.0744 0.8141

5 0.0531 0.8672

6 0.0379 0.9051

7 0.0271 0.9322

8 0.0194 0.9516

9 0.0138 0.9654

10 0.0099 0.9753

From Table 4 previous page, it can be seen that the probability of customers in the queue

decreases with increasing number of customers. The probability of having one customer in

the queue is 0.2041 and the probability of having three customers is 0.1041, hence showing a

37
decline in probability as number of customers increase. This shows that the queue is

manageable though at a certain rate, which needs attention. The cumulative probability is

quickly approaching 1, for example for 10 customers it is 0.9753, implying that it is rare to

have more than 10 customers in the queue when things are normal.

2.12 EFFICIENCY ANALYSIS

Analysing efficiency is very crucial. In case the company wants to increase the efficiency

5levels in their service delivery, for example quickening the process, implying they increase

the number they serve per hour. The study has identified the efficiency margins and the

movement of efficient parameters is observed. Also in case the company becomes less

efficient, the impact has been assessed. Table 5 below shows the efficiency parameters.

Table 5: Efficiency Level Analysis

EFFICIENCY -5% Status +1% 2% 5% 10%

Quo
PARAMETERS
LAMBDA ( λ ) 60 60 60 60 60 60
MU ( µ ) 79.8 84 84.84 85.68 88.2 92.4
RHO ( ρ ) 75.19% 71.43% 70.72% 70.03% 68.03% 64.94%
L 3.0303 2.5 2.4155 2.3364 2.1277 1.8519
Lq 2.2784 1.7857 1.7082 1.6362 1.4474 1.2025
W 0.0505 0.0417 0.0403 0.0389 0.0355 0.0309
Wq 0.038 0.0298 0.0285 0.0273 0.0241 0.02
P (0) 0.2481 0.2857 0.2928 0.2997 0.3197 0.3506

Table 5 (previous page) shows the efficiency parameters under different company objectives,

for example, a company set to improve speed at which it serves customers by raising the

service rate by 1%, 2%, 5% and 10%. Customer satisfaction is assumed to increase with the

increase in service rate or decrease in waiting time in the queue.

38
A graphical analysis of the busy factor or system utilisation factor is necessary as the

company changes its efficiency levels. This may have been caused by increased commitment

of workers, hiring of high qualified staff or motivation from management. Figure 3 below

shows the magnitude of the busy factor as efficiency levels increases.

Figure 3: System Utilization and Efficiency Levels

Figure 3 above shows that the busy factor decreases as efficiency levels increases. There is an

inverse relationship between the system utilisation factor and the efficiency level. Therefore

it is a wise decision to improve efficiency levels because the end result will be increased

customer satisfaction. The time spend on the queue will be reduced and hence the restaurant

becomes more attractive.

39
A graphical analysis can be done to show the relationship between the various efficiency

levels and the resultant queue length. Figure 4 below shows the relationship between

efficiency and queue length.

Figure 4: Queue length and Efficiency levels

2.2
2
Average Queue Length
1.8
1.6
1.4
1.2

-.05 0 .05 .1
Efficiency Levels

Figure 4 above clearly shows that as efficiency increases the number of customers waiting to

be served decreases. That is there is an inverse relationship between efficiency and queue

length. Ifcompany’s efficiency levels decreases, the number of customers waiting to be

served also increases. Hence longer queues emanate making the restaurant less favoured. A

similar trend has been observed for the average waiting time,that is, waiting time for

customer decreases as efficiency levels increases.

2.13 SINGLE SERVER AND MULTI-SERVER COMPARISONS

40
Croc Foods Restaurant used the single server model that is an M/M/1 Queuing model has

been identified. However, for efficiency purposes, it is worth to assume a multi-server being

used by the same restaurant so as to compare the efficiency levels. To compare, the study has

proposed an M/M/2 and M/M/3 model. It is worth mentioning that the multi-server model

comes with an additional cost to the company and hence cost and benefit analysis will be

required. The efficiency parameters for the three models are shown in Table 6below.

Table 6: Queueing Models Comparison

PARAMETERS Status Quo (M/M/1) M/M/2 M/M/3

λ 60 60 60
µ 84 84 84
ρ 71.43% 35.71% 23.81%
L 2.5 0.8187 0.7264
Lq 1.7857 0.1044 0.0122
W 0.0417 0.0136 0.0121
Wq 0.0298 0.0017 0.0002
P (n=0) 0.2857 0.4737 0.488

P(t<0) 0.2857 0.812 0.9611

Table 6 above shows the efficiency parameters under three different queueing models. By

using the system utilisation parameter, it has changed significantly from 71.43%, 35.71% to

23.81% for the M/M/1, M/M/2 and M/M/3 consecutively. This shows that as more servers

are introduced (this may be in form of more queue lines to various servers), then the

restaurant becomes less busy. This may attract more customers as the probability of one

being quickly served increases.

41
Considering also the length of the queue moving from M/M1 through to M/M/3 a reduction

in queue size is noticed from 1.7857 customers, 0.1044 customers and 0.0122 customers. All

other parameters has supported that moving to a multi-server benefits the customers in terms

of time they wait to be served.

The probability that there is no customer (zero customer) in the queue increases as the

number of servers increases. For M/M/1 model P(n=0) is 0.2857, for M/M/2 is 0.4737 and for

M/M/3 is 0.488. However the rate of the increase in probability from a lower model to a

higher model falls. The graphical analysis is shown in Figure 5 below.

Figure 5: Probability of Zero Customers Waiting

Figure 5 above clearly shows that multi-server models are better than the single server model.

This is shown by an increasing probability of zero customers in the queue as we move from

M/M/1 model to M/M/2 model and finally to M/M/3 model.

42
2.14 CONCLUSION

In this chapter efficient parameters of the waiting lines model have been estimated and their

implications have been discussed. The chapter went on to analyse and compare the efficient

parameters of the queueing model under various margins of company efficiency. A

comparison has been done for the single server model and the multi-server model, of which

efficient parameters were also analysed. These findings are the basis for policyprescriptions

to be outlined in the next chapter.

43
 CHAPTER V

SUMMARY, CONCLUSION AND RECOMMENDATIONS

3. INTRODUCTION

This chapter contains a detailed conclusion to the study and also some policy lessons drawn

from the empirical results of the previous chapter. In addition, the chapter also gives possible

areas of future research.

3.6 SUMMARY

The study, which is an empirical analysis of the Queuing Theory and customer satisfaction in

small and medium enterprises, has been done using primary data collected through

observations done over a three week period. The study has been done for the Croc Foods

restaurant in Beitbridge town and the conclusions can be transformed to any other SME. The

objectives of the study were to use the Queuing Model to determine the waiting line

performance such as: average arrival rate of customers, average service rate, system

utilization factor, and the probability of a specific number of customers in the system. The

other objectives were to comment on efficiency of the firm according to the Queuing Theory

and to determine ways to manage queues to avoid customer lose.

According to the Queuing Model, the study found out that Croc Foods restaurant used an

M/M/1 Queuing Model. The model parameters assuming system is insteady-state condition,

are: number of servers (c) = 1, arrival rate ( λ ) = 60 customers per hour, the serving rate ( µ )

= 84 customers per hour, overall system utilization ( ρ ) = 71.43 %, the probability that all

44
servers are idle ( P (0) ) = 0.2857, average number of customers in the queue ( Lq ) = 1.782,

and the average time customer spends in the queue ( Wq ) = 0.0298 hours. The conclusion to

the parameters was that the firm needs to manage its queues as the system utilisation

parameter is high.

The study compared efficiency levels for the single server model and concluded that

improving the rate of serving customers improves customer satisfaction. Hence setting

company objectives of enhancing efficiency was necessary. A comparison with multi-server

queuing model was done and the single server model was not found better. Hence a switch

from single server to multi server model was encouraged. However the study recognises for a

cost and benefit analysis to be done since the cost side was not evaluated by the study.

3.7 CONCLUSION

In case of the considered Croc Foods restaurant, the results highlight some important issues

about thewaiting line operation mode. Thus, the customers have to wait an average of

0.0417hours (2.502 minutes) in the system and the average number of customers who have to

wait is 1.7857 and 71.43% of arriving customers haveto wait to be served. These values show

that it is necessary to improve the operations occurringwithin the waiting line. If the

managers continue to use the single-channel waiting line, the number of waiting customers

will be increasingly higher.

The waiting line models play a key role in highlighting the operations effectiveness andhence

the need of improving their characteristics. The analysismakes it possible to decide if there

are any changes regarding the waiting line configuration. In general, in order to improve the

45
operationswithin the waiting line, there is need to improve the service rate. This is possible

by either redesigning the waitingline or using the new technologiesso that more customers

can be served simultaneously.

A questionnaire has been used as another research instrument, of which 200 copies were

issues and 171 responded to the required standard. It has been found that about 66% of the

customers are regular to the restaurant. 43.3% of the customers are not satisfied by the

waiting lines management at the restaurant. As a matter of concern about 69% of customers

have at least turned away at regular occasions as a result of long waiting lines. This on its

own entails revenue loss and possible customer loss to other efficient firms. About 34.5% of

customers have rated the firm’s serving ability as poor.

The study has managed to attain its objectives, the research questions have been answered

and the hypothesis of the study tested. It has been found that many SMEs do not really follow

the fundamental business principles as far as customer satisfaction is concerned. There is a

significant number of unsatisfied customers, about 43.3%. The M/M/1 queueing model is not

the best for Croc Foods restaurant rather a multi-server model is suggested. Increasing

efficiency levels will raise customer satisfaction.

3.8 RECOMMENDATIONS

In a period of major change in the business environment, enhancing satisfaction is becoming

increasingly important because satisfaction is recognized as a measure of quality. Knowledge

of the use of queuing model to determine system parameters is of value to SMEs who seek to

attract, keep and provide quality services to customers in the ever-competitive industry.

Queuing theory is a powerful and tested mathematical approach to the analysis of waiting

46
lines performance parameters in many business centres. It is also a powerful management

decision tool that is yet to be fully applied in SMEs. Effective application of the model can

help to improve access to quality services which is viewed as key to decrease the incidence of

customer base and loyalty and hence profitability. It is worth mentioning that queuing models

are not the end in itself in decision making, they are just the beginning of the structuring of

decision making framework.

It is recommended that SMEs should capitalise on the various policies and advice they are

getting from various stakeholders. Most importantly they have to be strict about following

fundamental business principles to enable them to grow, as it is risky to ignore them. Apart

from focusing on complex business models SMEs have to recognise the importance of basic

business planning and growth. Basic business principles strengthen the firm hence it should

be a culture to them. SMEs have to realise the importance of existing customers thereby

enabling creation of additional customers for growth purposes.

Policy formulators from the government and other interested organisations should develop

and design test meters to check the various SMEs they wish to extent a hand if they do have a

culture of following the basic business principles in their operations. This enables to create a

vibrant SME sector because injecting capital to constrained business may mean a definite

loss, if not carefully assessed. Customers, especially existing ones remains a key to business

survival and growth hence their satisfaction level should be constantly checked and possible

measures taken.

3.9 FUTURE RESEARCH AREA

47
Despite its contributions, this study also has its own limitations. Most particularly, we

recognize that the data was gathered during three weeks in one restaurant, this may limit the

generalization of our findings. As a result, a further study is recommended to cover some

selected restaurants or SMEs for a longer period of time. In its analysis the study did not

include the cost dimension for effective conclusions and optimization; hence a study that

incorporates cost associated with waiting lines is necessary.

48
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 APPENDIX 1

QUEUING THEORY CALCULATOR RESULTS – M/M/1

53
 APPENDIX 2

QUESTIONNARE

This questionnaire serves to gather data for a study in partial fulfilment of an MBA degree
with the Zimbabwe Open University undertaken by Bonga Wellington Garikai. The data
collected is not used for any other purposes, other than the said.

1. Sex
Male Female

2. How old are you?

<18 years < 30 years > 30 years

3. What is your highest level of qualification?

Primary Secondary University/College

4. Are you a regular customer?

YesAverage No

5. When you visit the restaurant, how many will you be mostly?
Single Pairs Group It differs

6. Are you happy with the serving time?

Yes Moderate Slow

7. How do you rate the serving time.

Fast Moderate Slow

54
8. Have you ever turned away due to longer time being taken to be served?
Yes No Can’t remember

9. If yes to 8, how many times have you done such?

Many times Rare dates Not many

10. If yes to 8, how have you solved the issue?

Going elsewhere Abandon the day service Come back later

11. Do you think customers are too many?

Yes Moderate No

12. Are you flexible to change your time of visit?

Yes Not Always No

13. What do you think they should do to increase serving time?

Work harder (A)Increase staff(B) Both A&BNot sure

14. Comparing with other firms, how do you rate the said in terms of serving time.
Competitive Average Poor

Thank you for your cooperation.

55
 APPENDIX 3

COMPILED STATISTICS FOR THE QUESTIONNARE

56
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