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Chapter 07 - Service Processes
CHAPTER 7
SERVICE PROCESSES
Bank home office would not have the amount of contact with the outside customer as a bank branch.
The bank branch manager would need to be evaluated on how fast people were moved through the
drive through windows and the line inside the branch. There is a high level of face-to face contact
and that contact should be fairly standardized as most customers coming to the branch do so to
deposit or withdrawal money. The manager of the home office would have more customization
involved in dealing with the customer.
Dental Office Cleaning teeth, taking x-rays, Reminder postcards, phone calls
filling teeth…etc to make appointments
3) Secondlife.com
a) Answers will vary – companies and even educators can use the website site to create customized
learning opportunities for participants.
4) Student answers will vary widely. Assuming they model a simple process, it may very well be easily
analyzed with queuing models in the chapter
7-1
Chapter 07 - Service Processes
Problems
1.
High Low
Doctor
Nurse
Admissions
Billing
Medical
Records
Low High
Level of Patient Interaction
The answers will vary based on personal experience. With patient interaction, maintenance of
medical records is very low. With an established process, the efficiency will be very high.
Similarly, billing is not going to require a high level of patient interaction. The efficiency will be
very high, but since it may depend on outside factors such as insurance claim procedures, it may not
be as high as other processes. Admissions will be a structured process but will depend on more
interaction with the patient.
When we get to the Lab Tests and Diagnostic Test, these will become a little more unique and will
have a high level of interaction. At the top of the chart, you will see Nurses and Doctors having to
treat each patient case by case. Efficiency is going to be much lower.
7-2
Chapter 07 - Service Processes
The service package at McDonalds is the fast and friendly service along with the food being
prepared to your expectations. Depending on your personal situation you may be looking for
activities for kids such as a playground. Cleanliness is another factor that may be considered.
Being customer focused and willing to listen to the customers are some of the attitudes that
are needed by service personnel. Being able to ensure people are provided the condiments
that are available is an example of being customer focused, e.g. by offering “Ranch”,
“Italian” or “Vinaigrette” dressing when someone orders a salad.
Customer demand can be altered by offering something else. For instance, if someone orders
a salad and requests French dressing, demand can be altered by suggesting the customer can
have “Ranch”, “Italian” or “Vinaigrette” dressing.
4. Worker Skill
a. Low CCS – Worker would be able to offer minimal assistance with the bulk of the assistance
coming towards the end of the process. (Example – A worker at a grocery store maybe able
to direct a customer towards the baking isle.)
b. High CCS – Work would be able to offer a high level of knowledge and assistance through
the process. (Example – A car salesperson may be able to help a person make a purchase
based on the individual needs of a car buyer.)
Capacity Utilization
a. Low CCS – Capacity utilization will be high. The physical area will be smaller but all the
options will be made available in this area. (Example – A grocery store will have a defined
area in which the groceries are kept.)
Level of Automation
a. Low CCS – Automation will be high, designed for efficient processing of routine tasks
according to narrow specifications
b. High CCS – Automation will be low except for tasks that do not vary from customer to
customer.
7-3
Chapter 07 - Service Processes
5. Use model 1.
= 4/hour = 6/hour
4
a. 1 − = 1 − = 1 − = .3333 or 33.33%
6
2 42 Lq 1.33
b. Lq = = =1.33, Wq = = = 1/3 hour or 20 minutes
( − ) 6(6 − 4) 4
2 42
c. Lq = = = 1.33 students
( − ) 6(6 − 4)
d. At least one other student waiting in line is the same as at least two in the system. This
probability is 1-(P0+P1).
n
Pn = 1 −
0
4 4
P0 = 1 − = .3333
6 6
1
4 4
P1 = 1 − = .2222
6 6
6. a. Use model 1.
= 4/hour = 10/hour
2 42
Lq = = = .267 students
( − ) 10(10 − 4)
Waiting cost = average number in line * goodwill loss per hour * number of hours per day.
= .267(10)8 = $21.33 per day
7-4
Chapter 07 - Service Processes
b. Use model 3.
4
M=2, = = =.667
6
Waiting cost = number in line * goodwill loss per hour * of hour per day
= .0837(10)8 = $6.70 per day
Total cost = waiting cost + additional service cost
= $6.70 + $75.00 = $81.70 per day
Consequently, it is better to hire another clerk.
7. Use model 1.
= 10/hour = 15/hour
10
a. 1- = 1− = .3333 or 33.33%
15
b. P(both clerks busy) = P(one clerk busy) * P(one clerk busy)
2
10
= = = .4444 or 44.44
2
15
2 10 2
d. Lq = = = 1.33 customers
( − ) 15(15 − 10)
10
e. Ls = = =2
− 15 − 10
Ls 2
Ws = = = .2 or 12 minutes
10
7-5
Chapter 07 - Service Processes
8. Use model 3
= 20/hour = 15/hour
20
a. S =2 , and = = = 1.3333 , from Exhibit 7.12, Lq = 1.122
15
S 1.122((2(15)/20) - 1) = 56%
Pw = Lq − 1 =
b. 1.122 customers
9. Use model 2.
minutes.
2 (72)2
Lq = = = 4.05 cars
2 ( − ) 2(80)(80 − 72)
Lq 4.05
Wq = = = .05625 hours = 3.375 minutes
(72)
Ls 4.95
Ws = = = .06875 hours = 4.125 minutes
(72)
7-6
Chapter 07 - Service Processes
100 = 5
a. Ls = =
− 120 − 100
L 5 = .05 hours or 3 minutes
Ws = s =
100
100 = 1.25
Ls = =
− 180 − 100
Ls 1.25
Ws = = = .0125 hours or .75 minutes or 45 seconds
100
100 = 1.01
Ls = Lq + = .1756 +
120
2 102
a. Lq = = = 2.083 people
2 ( − ) 2(12)(12 − 10)
b. Ls = Lq + = 2.083 + 10/12 = 2.917 people
Lq 2.083
c. Wq = = = .2083 hours.
10
Ls 2.917
d. W s = = = .2917 hours
10
e. It will cause it to increase, at = 12 per hour, Lq = 2 122
= →
2 ( − ) 2(12)(12 − 12)
7-7
Chapter 07 - Service Processes
3
a. Ls = = = 3 customers
− 4−3
b. Ws = Ls = 3 = 1 minute
3
3
c. = = = .75 or 75%
4
d. Probability of 3 or more is equal to 1 – probability of 0, 1, 2
0 1 2
3 3 3 3 3 3
P0 = 1 − = .2500, P1 = 1 − = .1875, P2 = 1 − = .1406
4 4 4 4 4 4
2 32
Lq = = = 1.125 customers
2 ( − ) 2(4)(4 − 3)
Ls = Lq + = 1.125 + ¾ =1.875
(b. revisited)
Lq 1.125
Wq = = = .375 minutes
3
Ls 1.875
Ws = = = .625 minutes
3
By converting to constant service time, the number in line is reduce from 3 to 1.875 people (a
reduction of 1.125, and time in system is reduced from 1 minute to .625 minutes (a reduction of
.375 minutes or 22.5 seconds).
7-8
Chapter 07 - Service Processes
20
d. = = = .667 = 66.7% = .67 or 67%
30
e. Use model 3.
20
= = =.6667
30
Ls .676
Ws = = = .0338 hours or 2.03 minutes
20
7-9
Chapter 07 - Service Processes
5
a. Ls = = = 5 people in the system
− 6−5
Ls 5
Ws = = = 1 hour
5
2 52
b. Lq = = = 4.17 people on average
( − ) 6(6 − 5)
5
c. It would be busy = = =.833 or 83.3% of the time, for a 12 hour day .833(12) = 10 hours
6
d. Utilization is .833 so idle probability is 1 - .833 = .167. Double-check with formula:
0
5 5
0
5
Ls = 3.75 = = 6.33 , therefore, the service rate must be increased to at least 6.33
− −5
customers per hour, which works out to an average service time of just under 9.5 minutes.
2 22
a. Lq = = = 1.333 customers waiting
( − ) 3(3 − 2)
Lq
1.333
b. Wq = =
= .667 hours or 40 minutes
2
2 L 2
c. Ls = = = 2, Ws = s = = 1 hour
− 3− 2 2
2
d. = = = .67 or 67% of the time
3
7-10
Chapter 07 - Service Processes
2
a. = = , from Exhibit 7.12, Lq = .0837
3
b. W q= Lq = .0837/2 = .0418 hours or 2.51 minutes
c. Ls = Lq + = .0837 + 2 / 3 = .7504 , Ws = Ls / = .7504 / 2 = .3751 hours or 22.51 minutes
6
a. Ls = = = 1.5 people
− 10 − 6
Ls 1.5
Ws = = = .25 hours or 15 minutes
6
6
b. = = = .60 or 60%
10
c. Probability of more than 2 people is equal to 1 – (probability of 0, 1 or 2)
n
Pn = 1 −
0
6 6
P0 = 1 − = .4000
10 10
1
6 6
P1 = 1 − = .2400
10 10
2
6 6
P2 = 1 − = .1440
10 10
7-11
Chapter 07 - Service Processes
d. Use model 3.
6
= = = .60, S = 2, from Exhibit 7.12, Lq = .0593
10
Ls = Lq + = .0593 + 6 / 10 = .6593
60 / 55
a. Ls = = = 10.00 people
− 60 / 50 − 60 / 55
L 10.00 = 9.167 minutes (includes waiting + service time)
Ws = s =
(60 / 55)
60 / 55
b. Ls = = = 10.00 people (waiting and being served)
− 60 / 50 − 60 / 55
60 / 55
d. = = = .9091 or 90.91%
60 / 50
7-12
Chapter 07 - Service Processes
e. Use model 2.
Lq =
2
=
(60 / 55)2 = 4.545
2 ( − ) 2(60 / 50)(60 / 50 − 60 / 55)
n
Pn = 1 −
0
25 25
P0 = 1 − = .1667
30 30
1
25 25
P1 = 1 − = .1389
30 30
2
25 25
P2 = 1 − = .1157
30 30
3
25 25
P3 = 1 − = .0965
30 30
e. Lq =
2 302
= →
( − ) 30(30 − 30)
7-13
Chapter 07 - Service Processes
4
a. = = = .667 or 66.7%
6
4
b. Ls = = = 2.00 students in the system
− 4−2
Ls 2.00
c. Ws = = = .50 hours or 30 minutes
4
d. Probability of 4 or more is equal to 1 – (probability of 0, 1, 2, or 3)
n
Pn = 1 −
0
4 4
P0 = 1 − = .3333
6 6
1
4 4
P1 = 1 − = .2222
6 6
2
4 4
P2 = 1 − = .1481
6 6
3
4 4
P3 = 1 − = .0988
6 6
2 62
e. Lq = = →
( − ) 6(6 − 6)
7-14
Chapter 07 - Service Processes
2 102
a. Lq = = = 4.17 vehicles
( − ) 12(12 − 10)
10 = 5, L 5
b. Ls = = Ws = s = = .5 hours or 30 minutes
− 12 − 10 10
10
c. = = = .833 or 83.3%
12
d. Probability of 3 or more is equal to 1 – (probability of 0, 1, or 2)
n
Pn = 1 −
0
10 10
P0 = 1 − = .1667
12 12
1
10 10
P1 = 1 − = .1389
12 12
2
10 10
P2 = 1 − = .1157
12 12
10
a. = = = .8333, S = 2, from Exhibit 7.12, Lq = .175 cars
12
Ls = Lq + = .175 + .8333 = 1.008
Ls 1.008
b. Ws = = = .101 hours or 6.06 minutes
10
7-15
Chapter 07 - Service Processes
When adding a second lane, treat it as two separate models 1, and cut in half.
2 52
c. Lq = = = .298
( − ) 12(12 − 5)
Since there are two lines, the total number in line is 2 times .298, which is .596 cars
5
d. Ls = = = .7143
− 12 − 5
Ls .7143
Ws = = = .143 hours or 8.58 minutes
5
= 2 per hour
2
Ls = = →
− 2−2
2
Ls = = = 2 cars
− 3−2
2
Ls = = = 1 car
− 4−2
1 2 $ $ 20 $
2 3 2 80 40 120
3 4 1 40 60 100
Note: 1 = cost of waiting is number in system times downtime cost of $40 per hour.
2 = cost of service is number of repair personnel times wage rate ($20 per hour).
Should use three repair persons.
7-16
Chapter 07 - Service Processes
By inspection we see that Global must use at least 3 agents; otherwise the arrival rate would
exceed the total service rate.
Consider 3 agents: From Exhibit 7.12, with S = 3, Lq = 4.9322. Wq = Lq/ = .0949 hours = 5.69
minutes. The total cost is the cost of waiting plus the cost of service. The hourly cost of waiting
is the average wait in minute * the number of customers per hour * $1 = 5.69*52 = $295.88. The
cost of service is the hourly wage * number of agents = $20*3 = $60. The total cost per hour
with 3 agents is $295.88 + 60.00 =$355.88.
Consider 4 agents: From Exhibit 7.12, with S = 4, Lq = 0.6581. Wq = Lq/ = .79 minutes. The
total cost of this option is (.79)(52)+(20)(4) = $121.08
Consider 5 agents: From Exhibit 7.12, with S = 5, Lq = 0.1609. Wq = Lq/ = .186 minutes. The
total cost of this option is (.186)(52)+(20)(5) = $109.67
Consider 6 agents: From Exhibit 7.12, with S = 6, Lq = 0.0425. Wq = Lq/ = .049 minutes. The
total cost of this option is (.049)(52)+(20)(6) = $122.55
Comparing the costs across these options, we see that the optimal number of agents is five.
7-17
Chapter 07 - Service Processes
a. What is the average length of the “place order” line? What is the average length of the “pick-up”
line?
2 122
Place order: Lq = = = 1.6 customers
2 ( − ) (2)15(15 − 12)
Pick-up: This can be tricky. The key here is the constant service times. Every order
placement takes exactly 4 minutes after which the customer spends 3 minutes waiting for the
food to be prepared (in service at food prep). Since every order placement takes longer than
every food prep, there will never be anyone “in line” at food prep. How many will be in the
food prep system? With 12 customers per hour, each spending no time in line and 3 minutes
in service at food prep, there will be (12*3)/60 = .6 customers on average in the food prep
system.
c. The manager feels that the cashier has slowed down the process and send him to a strict training
class. After the class, the cashier can take an order in exactly 2 minutes. What is the capacity of
the system now?
It takes the cashier 2 minutes to serve one customer, so the cashier can serve 30
customers/hour. It takes the food preparer 3 minutes to serve one customer, so the food
preparer can serve 20 customers/hour. We see the bottleneck shifting and the new capacity of
the system is 20 customers per hour.
d. After the training, what is the average length of the “place order” line?
2 122
Lq = = = 0.1333 customers
2 ( − ) (2)30(30 − 12)
7-18
Chapter 07 - Service Processes
b. The Northern Emergency Computer Support is going to merge with the Southern Emergency
Computer Support, which also has a call center with 10 customer service representatives and
faces the exact same customer demand pattern. While the managers want to maintain the same
waiting time criteria --- average waiting time to be less than 1 minute, a consultant points out that
after the merger, the company can in fact fire 3 representatives and retain only 17 customer
service representatives. Is the consultant correct?
We cannot solve this using Exhibit 7.12 in the text because S = 17. You can solve it using
the queuing spreadsheet or any “queuing calculator” on the web. Using the latter, at
http://www.wlu.ca/sbe/ttucker/si/QueueCalc.html: Wq = .00844 hours = .507 minutes. The
wait time is virtually unchanged from before, but they will save the cost of three agents. Yes
the consultant is correct.
If they go down to 16 agents the wait time will increase to 1.023 minutes.
To improve patients’ experience, Wilshire Clinic decides to divide twenty clinicians into five teams,
each of which consists of 4 clinicians. A patient’s information is shared within the team, so a clinician
can serve a patient who comes to any clinician on the same team.
7-19
Chapter 07 - Service Processes
f. What is the average number of patients waiting in line for each team?
From Exhibit 7.12, Lq = 0.7721. (This answer depends on linear interpretation of Exhibit
7.12. Using an online calculator to check yields an answer of .7568.)
ANALYTICS EXERCISE
1. Draw a diagram of the process using the format in Exhibit 7.3.
Food Champ
prepares order
Service Champ
prepares drinks
2. Consider a base case where a customer arrives every 40 seconds and the Customer Service Champion
can handle 120 customers per hour. There are two Food Champions each capable of handling 100
orders per hour. How long should it take to be served by the restaurant (from the time a customer
enters the kiosk queue until her food is delivered)? Use queuing models to estimate this.
7-20
Chapter 07 - Service Processes
For the Customer Service Champion, the average service time is .0083 hours (40 seconds) and the
average time in line is .0250 hours (from queuing formulas) for a total of .0333 hrs (120 seconds).
This is calculated using Model 1. For preparing the food for the two Food Champions, the average
service time is .01111 hours (40 seconds). Using model 3, and with lambda/mu = .9, Lq from Exhibit
7.12 is 0.2285 customers. The time a customer spends in the system for food to be prepared is .01254
hours or 45.1 seconds. The total time is 120 + 45.1 = 165.1 seconds or 2.75 minutes.
3. On average, how busy are the Service Champion and the two Food Champions?
The Service Champion is busy = 90/120 = 75% of the time and the Food Champions are busy
= 90/200 = 45% of the time.
4. On average, how many cars do you expect to have in the drive-thru line? (Include those waiting to
place order and waiting for food.)
5. If the restaurant runs a sale and the customer arrival rate increases by 20%, how would this change
the total time expected to serve a customer? How would this change the average number of cars in
the drive-thru line?
The current customer arrival rate is 90 per hour, this would go up to 90(1.2) = 108 per hour.
7-21
Chapter 07 - Service Processes
6. Currently, relatively few customers (less than ½ percent) order the Crunchwrap Supreme. What
would happen if we ran the sale and demand jumped on the Crunchwrap Supreme and 30% of our
orders were for this item? Take a quantitative approach to answering this question. Assume that the
two processes remain independent.
Just to make this interesting, let’s assume that the customer arrival rate went to 108 customers per
hour.
For the order preparation, assume that 70% of the orders still take (60*60)/100 = 36 seconds on
average to prepare, but 30% of them now take 72 seconds.
The average time to make an order would be .7(36) + .3(72) = 46.8 seconds
So they could prepare (60*60)/46.8 = 76.92 orders per hour (each Food Champ).
Ws = Ls/λ = 8.1/108 = .075 hours = 4.5 minutes → this is the same as before.
7. For the type of analysis done in this case, what are the key assumptions? What would be the impact
on our analysis if these assumptions were not true?
A big assumption is that there is no interference between the two processes. This would occur if
one process was causing a delay in the other process for some reason. It does not appear that this
would be true in this process. We are also assuming the Food Champs are working independent,
not as a team. Other major assumptions are the distribution associated with arrival and service
rates, and that these rates are valid during the peak noon period.
8. Could this type of analysis be used for other service type businesses? Give examples to support your
answer.
7-22
Another random document with
no related content on Scribd:
that respect, we would like to inform them that all who believe that
the new Amendment has been or can be put in the Constitution by
governments, “seem to have lost sight of the people altogether in
their reasonings on this subject; and to have viewed” our national
and state governments, “not only as mutual rivals and enemies, but
as uncontrolled by any common superior in their efforts to usurp the
authorities of each other. These gentlemen must be here reminded
of their error. They must be told that the ultimate authority, wherever
the derivative may be found, resides in the people alone, and that it
will not depend merely on the comparative ambition or address of
the different governments, whether either, or which of them, will be
able to enlarge its sphere of jurisdiction at the expense of the other.”
(Fed. No. 46.) It contributes not a little to the importance of the
quoted statements that they were written by Madison, who also
wrote the real Fifth Article. They are his warning to the then
“adversaries of the Constitution.” They serve well as our warning to
the present adversaries of our Constitution, who assume and have
acted on the assumption that they can ignore its most important
factors whenever government desires to exercise or to grant a new
power to interfere with our individual freedom, although we have not
granted it but have reserved it to ourselves.
We might continue somewhat indefinitely the story of Senate Joint
Resolution 17 in the House of Representatives on that December
day of its passage therein. We would find, however, what we have
already seen of Webb and his colleagues there to be typical of all
they have said and all that they knew of basic American law. We
cannot leave that House on that day, however, without some
comment upon the final eloquent appeal made by Webb at the close
of his arduous labor to secure the passage of the Resolution.
To those, who have any knowledge in the matter, it is well known
that Christ preached the doctrine of free will and temperance, while
Mohammed laid down the law of prohibition. With great curiosity,
therefore, we have listened for years and still listen to the ceaseless
tirade coming from Christian churches where men style themselves
American “Crusaders” and denounce, in no temperate language, all
Americans who do not align themselves under the “Crescent” flag of
Mohammed and respect his Mohammedan command embodied in
the First Section of the Eighteenth Amendment. Our curiosity is not
lessened by the fact that their denunciation of those, who flatly deny
that the command itself is Christian, is always accompanied with an
equally temperate denunciation of those who dare to question their
Tory concept that governments in America can constitute new
government of men.
We have seen Webb, with a candor only equalled by ignorance,
frankly array himself with those who believe the Tory concept, that
the legislatures of the state citizens are “the only tribunal” in which
the national part of the Constitution of the American citizens can be
changed. To his credit, therefore, we find it a matter of record that,
with equal candor, he frankly arrays himself under the “Crescent” flag
of Mohammed and eloquently appeals to all other devotees “of the
great Mohammed” in support of the Mohammedan and un-Christian
precept embodied in the Eighteenth Amendment. That full justice
may be done his eloquence and his candor, these are his own words
on his immortal December 17, 1917: “During one of the great battles
fought by Mohammed, the flag was shot from the ramparts. A daring
and devoted soldier immediately seized it with his right hand and
held it back on the rampart. Immediately his right arm was shot off,
but, never faltering, he seized the flag with his left hand and that, too,
was instantly shot away whereupon with his bleeding stubs he held
the emblem in its place until victory came.
“With a zeal and a determination akin to that which animated this
devotee of the great Mahomet, let us wage a ceaseless battle and
never sheathe our swords until our constitutional amendment is
firmly adopted and the white banner of real effective prohibition
proudly floats over every courthouse and city hall throughout this, the
greatest nation upon earth.” (Congressional Record, Vol. 56, p. 469.)
CHAPTER XVIII
THE TORY IN THE SENATE