Waiting Lines u Waiting Lines Waiting lines are

Waiting Lines u Waiting Lines Waiting lines are non-value added occurrences.

Waiting Lines u u 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 u Waiting lines are non-value added occurrences.

Waiting Lines Queuing Analysis Figure 18. 1 Cost Total cost = Customer waiting cost + Total cost Capacity cost Cost of service capacity Cost of customers waiting Service capacity Optimum

Waiting Lines Figure 18. 3 Queuing Systems Multiple channel Channel: A server in a service system Multiple phase

Waiting Lines Figure 18. 4 Poisson Distribution

Waiting Lines Waiting line Models 1. Balking 1. Upon arriving, decide the line is too long and decide not to enter the line. 2. Jockeying 1. Customers may switch to another line. 3. Reneging 1. Waiting customers grow impatient and leave the line. 4. Patient 1. 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 Single channel, exponential service time 2. Single channel, constant service time 1. Multiple channel, exponential service time 4. Multiple priority service, exponential service time 3.

Waiting Lines Table 18. 6 Finite-Source Formulas Service factor Average number waiting Average waiting time Average number running Average number being served Number in population

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

Waiting Lines POMA beyond the final exam 4. 5. 6. Competitive advantage in operational and organization strategy creates a win situation for the organization. Operations Manager should learn to think at the margin. 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. 8. 9. How and why Project Management concepts are equally important to Production Operations Management and vice verca. The importance of coordinating, planning and controlling and budgeting operations and project activities in achieving our firms short and long term objectives. 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.

Waiting Lines 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.