Operations Management: An Integrated Approach, 5th Edition

WAITING LINE PERFORMANCE MEASURES

Performance measures are used to gain useful information about waiting line systems. These measures include:

1. The average number of customers waiting in line and in the system. The number of customers waiting in line can be interpreted in several ways. Short waiting lines can result from relatively constant customer arrivals (no major surges in demand) or from the organization's having excess capacity (many cashiers open). On the other hand, long waiting lines can result from poor server efficiency, inadequate system capacity, and/or significant surges in demand.
2. The average time customers spend waiting, and the average time a customer spends in the system. Customers often link long waits to poor-quality service. When long waiting times occur, one option may be to change the demand pattern. That is, the company can offer discounts or better service at less busy times of the day or week. For example, a restaurant offers early-bird diners a discount so that demand is more level. The discount moves some demand from prime-time dining hours to the less desired dining hours.

   If too much time is spent in the system, customers might perceive the competency of the service provider as poor. For example, the amount of time customers spend in line and in the system at a retail checkout counter can be a result of a new employee not yet proficient at handling the transactions.

3. The system utilization rate. Measuring capacity utilization shows the percentage of ...