IJERT-Simulation of Service Industry: An Effective Approach to Improve Service quality under Dynamic Demand Scenario (original) (raw)
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International journal of engineering research and technology, 2013
In today's world of global competition, customer satisfaction has become a major concern in service industry settings like banks, hospitals, call centers, etc. Service organizations, in general, are characterized by high variability in demand. Under changing demand scenario, if the workforce is constant, customer's waiting time may increase drastically which may result in heavy loss to business. Customer's efficient staff scheduling which takes into account varying demand levels. This paper investigates the various processes of bank at a branch of a nationalized bank in India. It also suggests a methodological framework that can be implemented in this service industry. This investigation reduces waiting time, processing time and finds a way for proper utilization of resources.
Service Time Reduction Through the Development of a Simulation Model in a Selected Bank
Asian Journal of Managerial Science
Service time is an important element of the banking service. The time needed to wait in the queue makes the service receiver dissatisfied. To minimize the waiting time and improve the utilization rate, simulation-based analysis is a well-established technique. The objective of the current research is to investigate the current scenario of the service mechanism of the selected bank and suggest the best possible configuration for improving the service level. The research is based on a case study in which the operations of a specific bank were observed. A conceptual model of the studied bank has been developed first. It helps to realize how the entities move through the system. Then, an arena model was built according to the conceptual model following the collection and distribution of field data (arrival time, delay time at the aisle, and service time) via an input analyzer. The suggested model shows progressregardingthe average server utilization rate and waiting time customers spen...
Modeling and simulation of queuing system to improve service quality at commercial bank of Ethiopia
Cogent Engineering, 2023
This study aims to develop a queuing model at the Commercial Bank of Ethiopia to improve the service quality perceived by customers using a simulation tool. Performance variables that were considered when developing this model are the average waiting time for a client to get service, customer arrival rates, and service time. After the identification of the problem, the service quality of the bank is assessed using a questionnaire that was prepared in SERVQUAL format. The filled-out and returned questionnaires were analyzed using SPSS, and the results show that the service quality of the bank was deemed very low. The recorded data was then ultimately used as a basis for the determination of arrival, service rates, and the distribution function in the simulation input analyzer. The distribution function determined was used as an input for the development of the existing queue model, and based on that, scientific scenarios are adopted from scientific research and further observations at the bank are added to show enhancement of the existing model. The study used four scenarios to test the response group, and one scenario was selected as the best. This has been identified by adding a server to the counters where there is less utilization, that is, servers four and five. As a result, the waiting time has been minimized by 20 minutes under server four and by 83.4 minutes under server five. Also, the number of customers served per day can be increased from 1048 to 1168, which is 11.45% improvement.
Analysis of Queuing to Customers Management in Banking: A Case Study
Proceedings of the 11th Symposium on Applied Science, Business & Industrial Research , 2019
Banking services have emerged as a foremost service under contemporary circumstances. The vigorous competition among the banking and financial services sector provides a platform for continuous improvements in their services. With the increased usage of banking services, identifying the means of improving customer satisfaction is essential. Psychology of waiting lines has proven to decrease the level of satisfaction through the increased waiting times. The study was undertaken to model and reduce the waiting times at the two counters of a commercial bank. Primary data on arrival and the service times for each customer arrival at the counters were taken. The study was conducted during the working hours for two consecutive weeks. Data collected from 150 customers were modelled using the student version of Rockwell ARENA 14.5 platform. The system was then modelled as multiserver quieuing system with unlimited waiting room capacity.It was run for 100 a replication length of customers. It was observed respective waitng times in the queues of current system to be 11 and 1.52 minutes for counter 1 and counter 2 respectively. Further the corresponding number of customers waiting in the queues were five and one. Therefore, the bank needed improvements for efficient service delivery. The system was simulated on two basic alternatives, namely; increment fo the service rate in a single queue at a time and the increment of the service rate in both the queues at once. The results obtained depicted the waiting times of the queues to be 5.25, 0.16 minutes and 0.52 ,0.12 minutes, respectively for the two alternatives. Thus the bank can eliminate excessive waiting through the increment of the service rate by twofold in one queue or in both the queues at once. The obtained results moreover emphasized the importance of the employees in the service industry and their continuous improvements in both skills and knowledge.
A Simulation of the Service Performance of a Supermarket: A Case Study
Proceedings of the 11th Applied Science, Business and Industrial Research Symposium, Wayamba University of Sri Lanka, 2019
Simulation of waiting lines has become a widely studied research area of many researchers. Supermarket waiting lines are foremost among those experienced daily by ordinary Sri Lankans. Waiting in queues wastes the time and it creates a bad reputation for any organization. The study analyzed the performance of a supermarket and presented relative measures and recommendations for improvements. The system was modeled using the student version of Rockwell ARENA 14.5. Data were collected through direct observations for three hours in one Saturday. The sample consisted of 100 observations for inter arrival times and service times at counters. Heavy crowd at the supermarket permitted the study to analyze only three counters. ARENA Input Analyzer recorded the probability distributions for each process. The model was run for a replication length of three hours. The performance of the existing system was measured by the number of customers served among the number arrived. This was recorded as 76.36 %. But the results showed higher customer waiting times in queues. Thus the authors decided to increase the resources used at each counter as a means of reducing the waiting time. The proposed model recorded the maximum performance with lower waiting times as expected. Accordingly the authors recommended employing two people at each counter to speed up the billing process. Further the layout of the supermarket could be rearranged allowing adequate space for the customers to walk around.
Improving Productivity in a Bank System by Using Computer Simulation
Applied Mechanics and Materials, 2014
With advent of high technologies, simulation software becomes more applicable between organizations’ managers. Simulation can model the real situation on a visual program. It will make the understanding of system, properly. Nowadays in each organization, the main considered factor is how they can improve its services confidently. This study emphasize on customer satisfaction and reducing the waiting time for customers in a bank service system. The goal of this paper is applying ARENA simulation software for modeling the system and measuring the performances. In addition, three strategies are implemented that each strategy consists of several scenarios. 17 possible scenarios are compared to achieve all kind of results that can be imagined. It would be very helpful for manager to analyzes and compare the results then find the lowest and highest effective element for improvement.
Measure of Performance of Queuing Models and Behavior of Customers in Real Life Applications
International Journal of Applied Physics and Mathematics, 2013
The objective of the paper is to determine customer behavior in queues in four different situations in India. The study is limited to Toll Booth-Delhi Gurgaon Highway, Health care facility for Public sector bank's staff and family, Executive check up in Health care organization and Tellers in a Bank. A detailed study of the queues at the Toll Booth on the Delhi Gurgaon expressway was done as the expressway is highly traversed and is a bottlenecked stretch. In spite of the multiple provisions to ease the traffic on this expressway, chronic delays led to a ruling by the court which made the expressway a freeway for two weeks in September 2012. The second case studied is of the work mechanism of a clinic set up for the public sector bank's staff and family in India. The doctor visits the clinic during specified hours. It was observed that one doctor caters to a large number of patients giving rise to long queues. The third case is of the hospital which has an Out Patient Department (OPD) that provides service for executive health checkup. Our study is limited to the executive health checkups, where a patient first registers and then is guided to different departments for the checkups. Lastly the study was conducted for a bank where the major business of this particular bank is retail banking for which the customer is diverted towards the tellers. Due to cost considerations and space constraint the number of tellers in a bank is limited. Inspite of the use of modern technology to streamline the queues, it is observed that during peak business hours the length of the queue increases resulting in increased waiting time for the customers. This paper attempts to do a comparative study for four different models to understand the behavior of customers waiting in queues in India.
Modeling and Simulation of a Bank Queuing System
One of the major factors influencing the success of organizations in today's competitive world is to increase customer satisfaction through the improvement of service quality. In any service organization, managers are mostly concerned about the time that customers are required to wait for receiving their service. Banks in particular pay special attention to service quality as the most significant core competence. The queue length and waiting time are two significant factors which play important roles in customer perception about the quality of service in banks. Therefore, banks' managers are concerned about providing the optimal service configuration that can satisfy both customers and service providers. Among different approaches which are useful to evaluate different alternatives, simulation has proven its high capability in modeling and evaluating such situations. This study attempts to investigate and suggest the best possible configuration for a bank in Malaysia through constructing computer-based simulation models. As the result of this study, the final suggested configuration shows improvement in terms of average utilization rate of counters and average waiting time that customers have to spend in the queue.
Queues are commonly sighted in almost every organization where services rendered, especially banks. Therefore, queuing theory which is the mathematical study of waiting lines is suitable to be applied in the banking sector since it is associated with queue and waiting line where customers who cannot be served immediately have to wait (queue) for service. The aim of this research project is to determine the average time customers spend on queue and actual time of service delivery in a certain Bank. The primary data were collected from the bank based on the arrival and service patterns of customers. The methodology employed followed the birth and death Markovian process. The result obtained showed that service rate is nine (9) persons per hour, the arrival rate is twelve (12) persons per hour and the probability that the servers are idle is 0.2471. It is therefore recommended based on the analysis that the bank management should increase the number of servers from three (3) to four (4) in order to help reduce the time customers spend on queue.
Simulation and analysis of a bank queuing system
2015 International Conference on Industrial Engineering and Operations Management (IEOM), 2015
sector is essential for customer satisfaction. Decision makers are especially concerned about the time that customers wait before receiving their service. To stay competitive, decision makers have to continuously improve their service quality, measured in terms of suitable performance indicators. In this study, we focus on modelling and analysis of bank queuing systems. The study comprises three phases: (i) identify suitable performance indicators that influence customer perception with regards to service quality, (ii) simulate the behavioral performance of bank queuing systems, and (ii) evaluate and improve the service quality of the system. An illustrative case study is presented, showing the utility of proposed simulation approach.