Operations Management MGT 713
October 21, 2012
A bank is opening up a new branch where the operations manager will have to make important decisions regarding teller operations. A large apart of customer service is dependent upon wait time and seamless service. The operations manager wants to be prepared and avoid wait time complaints that have transpired at other branches. Since this is a new branch, demographics will also come into play in deciding how to approach teller operations. The operations manager collects data regarding teller operations which states that “an average 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.” (Stevenson, 2011) The operations manager must decide whether to have one waiting line with multiple tellers, or have two waiting lines: one for customers with multiple transactions and one line for single transactions.
Wait time is very important to customers and if an operations manager does not evaluate and study wait time, it can lead to a loss in customers. The operations manager must consider the following system constraints that will lead to an efficient teller operation. The four constraints are 1. Use of temporary workers, 2. Shift demand, 3. Standardize the service, 4. Look for a bottleneck. (Stevenson, 2011)
The operations manager can utilize temporary workers at a banking center. Temporary workers are part time and are given work times during the busy periods. The tradeoff is that part time workers have a larger turnover rate over full time workers. This can drive up the expense in hiring new part time employees. Also, part time workers are not always as fast as full time workers and may not have experienced every customer...