Waiting Lines

Waiting Lines

 Waiting lines are non-value

added occurrences.
Waiting Lines

Waiting Lines

 Queuing theory: Mathematical

approach to the analysis of waiting
lines.
 Goal of queuing analysis is to
minimize the sum of two costs:
• Customer waiting costs
• Service capacity costs

 Waiting lines are non-value added

occurrences.
 Waiting Lines

Queuing Analysis
Figure 18.1

Total Customer Capacity

cost = waiting cost + cost
Cost

Total cost
Cost of
service
capacity

Cost of
customers
waiting

Service capacity Optimum

 Waiting Lines

Figure 18.3 Queuing Systems

Multiple channel

Multiple phase
Channel: A server in
a service system
 Waiting Lines

Figure 18.4 Poisson Distribution

0.25
0.2
0.15
0.1
0.05
0
0 1 2 3 4 5 6 7 8 9 10 11 12
Waiting Lines

Waiting line Models

1. Balking
 Upon arriving, decide the line is too long
and decide not to enter the line.
2. Jockeying
 Customers may switch to another line.
3. Reneging
 Waiting customers grow impatient and
leave the line.
4. Patient
 Customers enter the waiting line and
remain until served.
Waiting Lines

System Performance
Measured by:
1. Average number of customers
waiting
2. Average time customers wait
3. System utilization
4. Implied cost
5. Probability that an arrival will
have to wait
 Waiting Lines

Queuing Models: Infinite-Source

1. Single channel, exponential

service time
2. Single channel, constant service

time
3. Multiple channel, exponential
service time
4. Multiple priority service,

exponential service time

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Table 18.6 Finite-Source Formulas

T
Service factor X
T U
Average number waiting L  N (1  F)
L(T  U ) T(1  F)
Average waiting time W 
NL XF
Average number running J  NF(1  X )
Average number being served H  FNX
Number in population N  J  L H
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Other Approaches
1. Reduce perceived waiting time
1. Magazines in waiting rooms
2. Radio/television
3. In-flight movies
4. Filling out forms
2. Derive benefits from waiting
1. Place impulse items near checkout
2. Advertise other goods/services
 Waiting Lines

POMA beyond the final exam

1. In the long run ( When factors of
production change, labor, land,
technology), productivity growth is
almost everything if not everything.
2. Do not create artificial non operational
management strategies to balance
capacity with demand.
3. How much does it really cost to
manufacture a product or develop a
service.
 Waiting Lines

POMA beyond the final exam

4. Competitive advantage in
operational and organization
strategy creates a win win situation
for the organization.
5. Operations Manager should learn to
think at the margin.
6. How we as Operations Manager can
play a part in minimization of costs
of most important of services.
 Waiting Lines

POMA beyond the final exam

7. How and why Project Management concepts
are equally important to Production
Operations Management and vice verca.
8. The importance of coordinating, planning
and controlling and budgeting operations
and project activities in achieving our firms
short and long term objectives.
9. The concepts of strategy, competitiveness
and productivity, design of product and
services, design of work systems and
facilities, concept of quality and system
improvement as applicable in organizations
be applied to Pakistan.
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POMA beyond the final exam

10. How as Operations Manager we can
communicate to masses the importance of
Pakistani domestic markets and how they
help in capital formation.