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Managing Business Process Flows: Ch 8 Capacity Planning in Services
Matching Supply and Demand The Service Process Performance Measures Causes of Waiting Economics of Waiting Management of Waiting Time The Sof-Optics Case
Copyright © 2013 Pearson Education Inc. publishing as Prentice Hall 1
Matching Supply and Demand
Goods vs. Services – Make to Stock vs. Make to Order – Produce in advance vs. on demand – Safety Inventory vs. Safety Capacity Examples – Banks (tellers, ATMs, drive-ins) – Fast food restaurants (counters, drive-ins) – Retail (checkout counters) – Airline (reservation, check-in, takeoff, landing, baggage claim) – Hospitals (ER, OR, HMO) – Call centers (telemarketing, help desks, 911 emergency) – Service facilities (repair, job shop, ships/trucks load/unload)
Copyright © 2013 Pearson Education Inc. publishing as Prentice Hall 2
@MBPF: Principles of Operations Management
The DesiTalk Call Center
The Call Center Process
Incoming Calls (Customer Arrivals) Calls on Hold (Service Inventory) Sales Reps Processing Calls (Service Process) Answered Calls (Customer Departures)
Blocked Calls Abandoned Calls (Due to busy signal) (Due to long waits)
Calls In Process (Due to long waits)
Copyright © 2013 Pearson Education Inc. publishing as Prentice Hall
3
The Service Process
Customer Inflow (Arrival) Rate (Ri) – Inter-arrival Time = 1 / Ri Processing Time Tp – Processing Rate per Server = 1/ Tp Number of Servers (c) – Number of customers that can be processed simultaneously Total Processing Rate (Capacity) = Rp= c / Tp Buffer Capacity (K) – Maximum Queue Length
Copyright © 2013 Pearson Education Inc. publishing as Prentice Hall 4
@MBPF: Principles of Operations Management
Operational Performance Measures
Flow time T
Copyright © 2013 Pearson Education Inc. publishing as Prentice Hall
= Ti + Tp Inventory I = Ii + Ip Flow Rate R = Min (Ri, Rp Stable Process = Ri < Rp,,...