Have one waiting line and have the first person in line go to the next available teller.

It’s the question in the Big Bank Case of chapter 18 pg. 820: The operations manager of a soon-to-open branch of a large bank is in the process of configuring teller operations. Currently, some branches have a separate teller line for customers who have a single transaction, while other branches don’t have separate lines. The manager wants to avoid complaints about long waits that have been received at some branches. Because the demographics differ from location to location, a system that works at one branch won’t necessarily work at another. The manager has obtained data on processing times from the bank’s home office and is ready to explore different options for configuring operations. (Fortunately, she has her textbook and CD from when she took an operations management course at a nearby university.) An average of 80 customers are processed during the noon hour, The average processing time for customers with a single transaction is 90 seconds, while the processing time for customers with multiple transactions is 4 minutes. Sixty percent of the customers are expected to have multiple transactions. One time that will get special attention is the noon hour on Friday. The plan is to have five tellers available. Under consideration are the following options:

a. Have one waiting line and have the first person in line go to the next available teller.

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b. Have two waiting lines: one teller for customers who have a single transaction and four tellers who would handle customers who have multiple transactions.

Questions: If you were the manager, which option would you select? Why? Explain the disparity between the results for the two options. What assumptions did you make in your analysis?

Sample Solution

As the manager of the soon-to-open branch of the large bank, based on the given data and scenario, I would select option b: having two waiting lines, one for customers with a single transaction and four for customers with multiple transactions.

There are several reasons for this choice:

1. Efficiency: By having separate waiting lines for customers with single transactions and customers with multiple transactions, the bank can prioritize and expedite the processing of customers with single transactions. With four tellers dedicated to handling customers with multiple transactions, the bank can efficiently process their transactions, which on average take longer (4 minutes) compared to customers with single transactions (90 seconds). This would help reduce the waiting time for both types of customers, especially during peak hours like the noon hour on Fridays.
2. Customer Experience: Having separate waiting lines for customers with single transactions and customers with multiple transactions can help improve the overall customer experience. Customers with single transactions, who typically require less time at the teller, can experience shorter wait times and quicker service. This can help reduce complaints about long waits and enhance customer satisfaction, which is important for the reputation and success of the bank branch.
3. Flexibility: Considering that demographics differ from location to location, having two waiting lines provides flexibility in accommodating the unique needs and preferences of customers in the specific branch location. Some branches may have a higher proportion of customers with multiple transactions, while others may have more customers with single transactions. Having separate waiting lines allows the bank to adapt to the local customer profile and provide tailored service accordingly.

Assumptions made in the analysis:

1. Processing times provided are accurate and representative of the actual performance in the bank’s operations.
2. The average number of customers (80) and the percentage of customers with multiple transactions (60%) during the noon hour on Fridays is consistent across different weeks and days.
3. The bank has sufficient resources, including tellers and equipment, to support the chosen option…GET A COMPREHENSIVE ANSWER HERE

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