Managing Customer Queuing Systems

Regardless of where we go to receive some form of service, there is a good chance that there will be waiting involved. Whether it is the doctor’s office, the grocery store, the movie theater, or a restaurant, we can expect to find ourselves in some type of queuing system prior to receiving service. It is inevitable for waiting lines to form due to the arbitrary nature of customer arrival time. Since customers do not arrive at a steady pace and each customer takes a different amount of time to be served, it is impossible for service providers to avoid queuing systems. Although waiting lines are inevitable, they can be managed to improve efficiency and mitigate wasted time and customer frustration.



There are two basic types of waiting line structures: the basic single-server system and the multiple-server system. The single-server system has one server waiting on a single line of customers. This is often in the form of a multiple single-server queuing system, such as we see in most large grocery stores. An example of a company that uses a single-server waiting line would be Kroger. Since Kroger uses multiple single-server waiting lines, it is common for customers to move from one line to another in hopes of getting served faster. This is referred to as jockeying. Having multiple lines can help to reduce balking and reneging due to the reduced wait time. Balking is when customers refuse to join the queue to wait for service, and reneging is when customers join the queue but leave before receiving service.

The multiple-server line structure consists of multiple servers waiting on a single line of customers. An example of a company that uses this queuing system is Comcast. Whether going in to pay a bill in person or dropping off equipment when terminating services, one must wait in a single line that is processed in turn by several servers. When a server becomes available, the next customer in line moves to this server. Since there are multiple servers, the line moves much faster than in a single-server line; although since the lines are often much longer customers sometimes perceive longer wait time which increases balking and reneging. However, since there is only one line, multiple-server systems completely eliminate jockeying. Multiple-server waiting lines are very similar to multiple single-server waiting lines. The main difference is the tradeoff in jockeying, balking, and reneging.

Assume that both Kroger and Comcast have the same number of servers. Now assume that in a given moment they each have the same number of customers in their queuing system. Kroger would have several short lines while Comcast would have one long line. Kroger could expect to see jockeying as customers move around to get served faster. Comcast does not have to worry about jockeying, but since their line is much longer there is a higher chance of reneging and balking. This illustrates the primary difference between the two systems, as Kroger will likely serve more customers but in a less systematic way. Since more customers will receive service, the multiple single-server line structure seems to be a better option for both the customer and the company. In some contexts, however, multiple single-server lines would be impractical; especially where there is limited space or a need to manage queue order.

Each company should take measures to reduce waiting time, and where it cannot be reduced measures should be taken to make the wait more palatable for the customer. One way that Kroger could reduce waiting time without increasing the cost of human labor is by offering additional self-checkout lanes. They could also install televisions to distract customers from the wait. Both companies could benefit from data analysis and statistical calculations to determine specific times of higher customer volume. This would allow them to be better prepared at any given moment. Comcast could make the wait more tolerable and mitigate balking and reneging by installing a number queue system and providing seating for customers to be called when it is their turn in queue. This is common in many health and public service facilities.

Waiting lines are inevitable in service industries and must be managed to balance customer satisfaction and the company’s cost of labor. Companies should carefully consider which queue system is right for their service, and diligently monitor data to continuously refine their operations to best serve the customer. When waiting time cannot be mitigated for whatever reason, companies should consider ways to make the wait more palatable for the customers. This can be achieved through an automated queue system that allows customers to be seated while waiting, and/or entertainment such as television, magazines, or other forms of entertainment that may be relevant to the service being provided. Customer satisfaction should always be a high priority, and in such a busy world time is our most valuable resource. Every manager in a company should value the time of their customers as much as they do their own.

References

Russell, R., & Taylor, B. (2011). Operations Management (7th ed.). Hoboken, NJ : John Wiley and Sons, Inc.

ContentConnections. (2008, December 17). Customer Queuing Systems. [Video File]. Retrieved May 17, 2014, from https://www.youtube.com/watch?v=YlUJ4qPjt1o&feature=related/