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Waiting Lines Waiting lines are non-value added occurrences.

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Presentation on theme: "Waiting Lines Waiting lines are non-value added occurrences."— Presentation transcript:

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

2 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.

3 Queuing Analysis Figure 18.1 Cost Service capacity Optimum Total cost
Customer waiting cost Capacity cost = + Total cost Cost Cost of service capacity Cost of customers waiting Service capacity Optimum

4 Queuing Systems Multiple channel Multiple phase Figure 18.3
Channel: A server in a service system

5 Poisson Distribution Figure 18.4

6 Waiting line Models Balking Jockeying Reneging Patient
Upon arriving, decide the line is too long and decide not to enter the line. Jockeying Customers may switch to another line. Reneging Waiting customers grow impatient and leave the line. Patient Customers enter the waiting line and remain until served.

7 System Performance Measured by: Average number of customers waiting
Average time customers wait System utilization Implied cost Probability that an arrival will have to wait

8 Queuing Models: Infinite-Source
Single channel, exponential service time Single channel, constant service time Multiple channel, exponential service time Multiple priority service, exponential service time

9 Finite-Source Formulas
Table 18.6 Average number being served Service factor Average number waiting Average waiting time Average number running Number in population

10 Other Approaches Reduce perceived waiting time
Magazines in waiting rooms Radio/television In-flight movies Filling out forms Derive benefits from waiting Place impulse items near checkout Advertise other goods/services

11 POMA beyond the final exam
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.

12 POMA beyond the final exam
Competitive advantage in operational and organization strategy creates a win 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.

13 POMA beyond the final exam
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.

14 POMA beyond the final exam
How as Operations Manager we can communicate to masses the importance of Pakistani domestic markets and how they help in capital formation.


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