Project #96336 - Business Process Mangement (Variability)

1) A call center has a total of 12 telephone lines coming into its customer service department, which is staffed by 5 customer service repreentatives. On average, 2 potential customers call every minute. Each customer service representative requires, on average, 2 minutes to serve a caller. After great deliberation, management has decided to add another line, increasing the total to 13. As a result the call center can expect the following....

a. The proportion of potential customers getting a busy signal will...

 - Increase?

 - Decrease?

 - be unchanged?

b. Average flow time experienced by customers will....

 - Increase?

 -Decrease?

 - be unchanged?

c. Average utilization of customer service representatives will

 - Increase?

 -Decrease?

 - be unchanged?

2) A mail-order company has one department for taking customer orders and another for handling complaints. Currently, each department has a separate telephone number. Each has 7 telephone lines served by 2 customer service representatives. Calls come into each department at an average rate of 1 per minute. Each representative takes, on average, 1.5 minutes to serve a customer. Management has proposedmerging the two departments and cross training all workers. The projected new department would have 14 telephone lines served by 4 customer service representatives. As process manager, you expect the following...

a. The proportion of callers getting a busy signal will

 - Increase?

 -Decrease?

 - be unchanged?

b. Average flow time experienced by customers will

 - Increase?

 -Decrease?

 - be unchanged?

3) Entrepreneur John Doe has just founded Pizza-Ready, which will accept opizza orders for pickup over the phone. Pizza-Ready's strategy is to compete with fresh, made-to-order deep-dish pizza and excellent service. As part of his advertising campaign, Doe will publish an ad stating, "If your pizza is not ready in 20 minutes, that pizza pluz your next order are on us." Doe has done extensive research on the pizza makingprocess and knows that all fresh deep-dish pizzas require 15 minutes of oven time and 2 minutes of preparation. Moreover, as part of its excellent service, Pizza Ready will accept orders whenever customers pllace them, and a marketing study estimates that Pizza-Ready will accept orders whenever customers place them, and a marketing study estimates taht Pizza-Ready can count on an average demand of 20 pizzas per hour. Doe, therefore, has ordered five pizza ovens, each of which is able to bake one pizza at a time. Doe is now looking for a silent partner to help carry the financial burden of his start-up company.

a. What is the process capacity (pizzas per hour)?

b.What is the safety capacity (pizzas per hour)?

4) M.M. Sprout, a catalog mail order retailer, has one customer service rep (CSR) to take orders at an 800 telephone number. If the CSR is busy, the next caller is put on hold. for simplicity, assumer that any number of incoming calls can be put on hold and that nobody hangs up in frustration over a long wait. Suppose that, on average, one call comes in every 4 inutes and taht it takes the CSR an average of 3mins to take an order. Both interarrival and activity times are exponentially distributed. The CSR is paid $20 per hour, and the telephone company charges $5 per hour for teh 800 line. The company estimates that each minute a customer is kept on hold costs it $2 in customer dissatisfaction and loss of future business.

a. What is the proportion of time that the CSR will be busy?

b. What is average number of customer on hold?

c. What is the average time (minutes) that a customer will be on hold?

d.What is total hourly customer waiting cost?

e.What is total hourly customer waiting cost?

f. What is the average hourly loss incurred because customers cannot get through?

g.What is total hourly customer waiting cost?

h. What is the average hourly loss incurred because customers cannot get through?

i. What is total hourly customer waiting cost?

j. What is the average hourly loss incurred because customers cannot get through?

5) Heavenly Mercy Hospital wants to improve the efficiency of its radiology department and its responsiveness to doctors needs. Administration have observedthat. every hour, doctors submit an average of 18 x-ray films for examination by staff radiologists. Each radiologist is equipped with a conventional piece of viewing equipment that reads one film at a time. Because of complications taht vary from case to case, the actual time needed for report preparation is exponentially distributed with a mean of 30 minutes. Together, the cost of leasing one piece of viewing quipment and each radiologist's salary is $100 per hour. Althoug it is difficult to put a dollar value on a doctor's waiting time, each doctor would like to get a daiologist's report within an average of 40 minutes from the time the film is submitted.

a. How many radiologist should the hospital hire?

b.What is the resulting hourly cost of operating the radiology department?

c. How many radiologist should the hospital hire?

d.What is the resulting hourly cost of operating the radiology department?

6)Since deregulation of the airline industry, increased traffic and fierce competition have forced Global Airlines to reexamine the efficiency and economy of its operations. As part of a campaign to improve customer service in a cost-effective manner, Global has focused on passenger check-in operations at its hub terminal. For best utilization of its check-in facilities, Global operates a common check in system: passengers for all global lfights queue up in a single "snake line," and each can be served at any one of several counters as clerks become available Arrival rate is estimated at an average of 52 passengers per hour. During the check in process, an agent confirms the reservation, assigns a seat, issues a boarding pass, and weighs, labels, and dispatches baggage. The entire process takes an average of 3 minutes. Agents are paid $20 per hour, and Global's customer relations department estimates that for every minute that a customer spends waiting in line, Global loses $1 in missed flights, customer dissatisfaction, and future business.

a.How many agents should Global airlines staff at its hub terminal?

b.How many agents should Global hire?

7) Burrito King, a new fast food franchise, has had problems with its drive through window operations. Customers arrive at an average rate of one every 30 seconds. Current service time has averaged 25 seconds with a standard deviation of 20 seconds. A suggested process change, when tested, results in an average service time of 25 seconds with a standard deviation of 10 seconds. Assume that no customers are blocked or abandon the system.

a. After the process change, the average waiting time in queue will?

 - Increase?

 -Decrease?

 - be unchanged?

b.After the process change, the average server utilization will

- Increase?

 -Decrease?

 - be unchanged?

8) Master Karr is a supplier of industrial parts. All orders are received at a call center. The call ccenter has 15 phone lines, so that a maximum of 15 callers may be in the system at a time. Calls arrive at an average of 4 call per minute. The call center currently has 5 customer service representatives (CSR). Each CSR averages 1 minute a customer. Master Karr estimates that waiting costs incurred are $1 per customer per minute in terms of phone charges and loss of future business. Also assume that callers who get a busy signal take their business elsewhere, resulting in a loss to Master Karr of once they enter the system. CSRs are paid $15 per hour.

a. What is the current hourly cost?

b. What is the new hourly cost?

9) Drive-through window operations are becoming an increasing source of competitive advantage for the fast-food restaurant business. McBergers has performed poorly in this area compared to Mandy's, the leader in drive-throughoperations. The service from a drive through window is staged. At the first stage, the customer places an order. At the second stage, the customer makes a payment at the payment window. Finally, at the third stage, the customer picks up the order. The time between consecutive customer arrivals is exponentially distributed with an average of 45 seconds. Curently, McBerger's total service time (across three stages) averaged 55 secondswith a standard deviation of 35 seconds. Several new process changes were made. Assume that no customer abandon the system or are blocked after entry in either system (before or after the change).

a. After the process change, the average waiting time in queue

- Increase?

 -Decrease?

 - be unchanged?

b. With the technology, the average waiting time in queue

- Increase?

 -Decrease?

 - be unchanged?

 

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Due By (Pacific Time) 11/29/2015 11:54 pm
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