Capacity Planning – Meaning, Classification and its Goals
February 12, 2025
The Indian government has been facing several cases of fraud every year. There are many chit-fund schemes like the Saradha scheme which have been used to dupe thousands of retail investors to the tune of crores of rupees. After facing severe criticism from the public for the inaction of the government to stop such schemes […]
When analyzed in financial terms, it turns out that the world is in a precarious position. However, there seems to be no sense of urgency amongst the people. This may be because of the fact that newspapers, as well as other forms of media, are not warning the people that a recession might be around […]
Mergers and acquisitions used to be fairly straightforward in the yesteryears. This is because companies would only make acquisitions within their own industry. This meant that if a technology-based startup were up for grabs, the list of potential suitors would only include companies like Google and Microsoft. This has completely changed now. Traditional companies like […]
In the developed world, mobile phones are something that we take for granted. The biggest purpose of a cell phone is to entertain its owner. Cell phones are used by people to connect with their loved ones, play games and log on to the social media. This is the reason why people in developed countries […]
The 5 why method or the Root Cause analysis method that has been described in the Tools section plays an important role in determining that the X’s are recorded at actionable level. In this implementation of the 5 why tool, there is a slight variation from the standard methodology and hence it has been explained […]
The waiting line or queue management is a critical part of service industry. It deals with issue of treatment of customers in sense reduce wait time and improvement of service.
Queue management deals with cases where the customer arrival is random; therefore, service rendered to them is also random.
A service organization can reduce cost and thus improve profitability by efficient queue management. A cost is associated with customer waiting in line and there is cost associated with adding new counters to reduce service time.
Queue management looks to address this trade off and offer solutions to management.
Waiting in line is common phenomena in daily life, for example, banks have customers in line to get service of teller, cars queue up for re-filling, workers line up to access machine to complete their job. Therefore, management needs to work on formulae, which will reduce wait time and create delighted customers without incurring an additional cost. Generally, queue management problems are trade off’s situation between cost of time spent in waiting v/s cost of additional capacity or machinery.
In a waiting line scenario, there are cases of finite population of customers and infinite population of customers.
However finite population model also considers a scenario where the customer after getting served will re-visit the service counter for re-service, leading to increase in finite population.
To solve problems related to queue management it is important to understand characteristics of the queue. Some common queue situations are waiting in line for service in super-market or banks, waiting for results from computer and waiting in line for bus or commuter rail.
General premise of queue theory is that there are limited resources for a given population of customers and addition of a new service line will increase the cost aspect to the business. A typical queue system has the following:
Another aspect of waiting line management is the service configuration. There are four types of service configuration, and they are as follows:
Your email address will not be published. Required fields are marked *