Waiting Line Management

WAITING LINE
MANAGEMENT
Introduction
Why is there waiting?
Goal of Waiting Line Management
Characteristics of Waiting Line
Measures of Waiting Line Performance
Infinite Source: Queuing Models
Constant Management
The Psychology of Waiting
Waiting Lines
Introduction
A body of knowledge about waiting lines, often called queuing theory is
an important part if operations and a valuable tool for operations manager.
Waiting Lines may take the form of care waiting for repair at a shop, waiting at
a bank to be served, etc.
In many retail store and banks, management has tried to reduce the
frustration of customers by somehow increasing the speed of the checkout and
cashier lines. Although most grocery stores seem to have retained the multiple
line/multiple checkout systems, many banks, credit unions and fast food
providers have gone in recent years to a queuing system where customers wait
the next available cashier.
The frustrations of getting in a slow line are removed because that one slow
transaction does not affect the throughput of the remaining customers.
Walmart and McDonalds are other examples of companies which open up
additional lines when there are more than about three people in line. In fact,
Walmart has roaming clerks now who can total up your purchases and leave
you with a number which the cashier enters to complete the financial aspect of
your sale. Disney is another company where they face thousands of people day.
One method to correct the problem has been the use of queuing theory. It has
been proved that throughput improves and customer computing web servers
and print servers are now common.
Why is there waiting?

Many people are surprised to learn that waiting lines tend to form even
though a system is basically under loaded. For example, fast-food restaurant
may have the capacity to handle an average of 200 orders per hour and yet
experience waiting lines even though the average number of orders is only 150
per hour. The key word is average. In reality, customers arrive at random
intervals rather than at evenly spaced intervals, and some orders take longer to
fill than others. In other words, both arrivals and service times exhibit a high
degree of variability. And because services cannot be performed ahead of time
and stored until needed, the system at times becomes temporarily overloaded,
giving rise to waiting lines. However, at other times, the system is idle because
there are no customers. It follows that systems where variability is minimal or
nonexistent (e.g., because arrivals can be scheduled and service time is
constant), waiting lines do not ordinarily form.
Goal of Waiting Line Management

In a queuing system customers enters a waiting line of a service facility,
receive service when their turn comes, and then leave the system. The number
of customers in the system will vary randomly over time. The goal of waiting
line management is essentially to minimize costs. The two basic categories of
cost in a queuing situation; those associated with customers waiting for service
and those associated with capacity. Thus,
TC = Customer waiting cost + capacity cost
Capacity cost are the costs of maintaining the ability to provide service.
Examples are include the number of bays at a car wash, the number of
checkouts at a supermarket, the number of repair people to handle equipment's
breakdowns, and the number of lanes in a highway. Customer waiting cost
include the salaries paid to employees while they wait fro service, the cost of
space for waiting, length of driveway at a car wash and any loss of business due
to customers refusing to wait and possibly going elsewhere in the future.
Characteristics of Waiting Lines

There are numerous queuing models from which an analyst can choose.
Naturally, much of the success of the analysis will be depend choosing an
appropriate model. Model choice is affected by the characteristics of the system
under investigation. The main characteristics are: (1) population source, (2)
number of servers, (3) arrival and service patterns and (4) queue discipline .
Population Source
The source of arrivals at a service system may be finite or infinite

population. In an infinite source situation, the potential number of
customers greatly exceeds system capacity. Examples are: shoppers
arriving at a supermarket, banks, restaurants, amusement centers and
toll bridges.
When the potential number of customers is limited, a finite source

situation exists. An example is the repairman responsible for a certain number
of machines in a company. The potential number of machines that might need
repairs at any one time cannot exceed the number of machines assigned to the
repairer.
Number of Servers (Channels)
The capacity of queuing systems is a function of the capacity of each
server and the number of servers being used. Systems can be either
single or multiple channel. A single channel system, with one server, is
typified by the drive-in banks with only one open teller. If on the other
hand, the bank has several tellers on duty, with each customer waiting
in one common line for the first available teller, then we would have a
multiple channel.
Arrival and Service Patterns

Waiting lines are a direct results of arrival and service variability. They
occur because random highly variable and service patterns cause
systems to be temporarily overloaded. The Poisson distribution often
provides a reasonably good description of customers arrivals per unit
of time (per hour). In some hours, there are three or four arrivals; in
other hours one or two arrivals; and in some hours no arrivals. The
negative exponential distribution often provides a reasonably good
description of customer service times. (Example: First aid care for
accident victims). Note that most service times are very short, some are
close to zero but a few require a relatively long service time.
Research has shown that these assumptions are often appropriate for
customer arrivals but less likely to be appropriate for service. In situation
where the assumptions are not reasonably satisfied, the alternatives would
be to:
1. develop a more suitable model
2. search for a better and (usually more complex) existing model or,
3. resort to computer simulation
Queue Discipline
Refers to the order in which customers in the line are to receive service.
Most systems use queue discipline known as first in, first out rule. This
is perhaps the most encountered rule. There is first come basis at banks,
restaurants, registration lines and so on. Examples of system that do not
serve on first come basis include hospital emergency rooms, rush orders
in a factory.
Measures of Waiting-Line Performance

The operation manager typically looks at five measures when evaluating
existing or proposed service systems. They relate to potential customer
dissatisfaction and costs.
1. The average number of customers waiting, either in line or in the
system.
2. The average time customers wait, either in line or in the system.
3. System utilization, which refers to the percentage of capacity utilized.
4. The implied cost of a given level of capacity and its related waiting
line.
5. The probability that an arrival will have to wait for service.
Of these measures, system utilization bears some elaboration. It reflects

the extent to which the servers are busy rather than idle. On the surface, it might
seem that the operations manager would want to seek 100 percent utilization. In
fact, these values become exceedingly large as utilization approaches 100
percent. The implication is that under normal circumstances, 100 percent
utilization is not a realistic goal. Even if it were, 100 percent utilization of
service personnel is not good; they need some slack time. Thus, instead, the
operations manager should try to achieve a system that minimizes the sum of
waiting costs and capacity costs.
Queuing Models: Infinite Source

Many queuing models are available for a manager or analyst to choose
from. The discussion here includes four of the most basic and most widely used
models. The purpose is to provide an exposure to a range of models rather than
an extensive coverage of the field. All assume a Poisson arrival rate. Moreover,
the models pertain to a system operating under steady-state conditions; that is,
they assume the average arrival and service rates are stable. The four models
described are
1. Single server, exponential service time.
2. Single server, constant service time.
3. Multiple servers, exponential service time.
4. Multiple priority servers, exponential service time.
Constraint Management
Managers may be able to reduce waiting times by actively managing one
or more system constraints. Typically, in the short term, the facility size and the
number of servers are fixed resources. However, some other options might be
considered.
Use Temporary Workers. Using temporary or part-time workers during busy
periods may be possible. Trade-offs might involve training costs, quality issues,
and perhaps slower service than would be provided by regular workers.
Shift Demand. In situation where demand varies by time of day, or time of
week, variable pricing strategies can be effective in smoothing demand more
evenly on the system. In situation where demand varies by time of day, or time
of week, variable pricing strategies can be effective in smoothing demand more
evenly on the system.
Theaters use this option with lower prices to shift demand from busy times to
slower times. Restaurants offer early-bird specials to accomplish this. Some
retail business offer coupons that are valid only for certain (slow) days or times.
Standardize the Service. We saw the effect of constant service on waiting lines
compared to non constant service (the number and time in line were cut in half).
The more service can be standardized, the greater the impact on waiting lines.
Look for a Bottleneck. One aspect of a process may be largely responsible for a
slow service rate; improving the aspect of the process might yield a
disproportion increase in the service rate. Employees often have insights that
can be exploited.
The Psychology of Waiting

Despite managements best efforts, in some instances it is not feasible to
shorten waiting times. Nevertheless, steps can be taken in certain situations that
make the situation more acceptable to those waiting in line, particularly when
the waiting line consists of people. The importance of doing so should not be
underestimated.
Studies have shown a difference sometimes a remarkable difference between the actual time customers spend in a waiting and their perceived time.
Several factors can influence the differences. One is the reason for being in line
(e.g., waiting for the police or fire personnel, waiting at the emergency room,
having other appointments or a plane or train to catch. Aside from those
situations, where the level of anxiety can make even short waits seem long, in
many instances management can reduce their customers perception of the
waiting time.
If those waiting in line have nothing else to occupy their thoughts, they
tend to focus on the fact that they are waiting in line and usually perceive the
waiting time to be longer than the actual waiting time. Conversely, if something
else occupies them while they wait, their perception of the waiting time is often
less than their actual waiting time. Examples of distractions include in-flight
snacks, meals or videos, and magazines and televisions in waiting rooms.
Giving customers something to do while waiting, such as filling out forms, can
make their wait seem productive. Of course, some customers provider their
distractions (e.g., they talk on their cell phones, text message or play games on
hand-held electronics devices). Another factor can be the level of comfort
available (e.g., standing versus sitting, waiting outside in the weather versus
inside or under cover).
Also, informing customers how long the wait will be can reduce anxiety.
For example, call centers sometimes announce the expected time before a
service representative will be available, and restaurants usually are able to tell
patrons how long they will wait to be seated.

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WAITING LINE

Why is there waiting?

Goal of Waiting Line Management

Characteristics of Waiting Lines

The source of arrivals at a service system may be finite or infinite

When the potential number of customers is limited, a finite source

Arrival and Service Patterns

Measures of Waiting-Line Performance

Of these measures, system utilization bears some elaboration. It reflects

Queuing Models: Infinite Source

The Psychology of Waiting

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