Has the advent of smartphones changed customer behavior in restaurants? According to a piece in PetaPixel, it has and not in a really good way (Restaurant Finds that Smartphone Photos Have Doubled Table Times Since 2004, Jul 14). Here’s the gist of the story, someone at a popular New York City supposedly sat down and looked at security footage from 2004 and 2014 and compared how long customers sat at tables. They measured out how long it took them to peruse the menu, eat their food etc. Here is a sample description of what they found in 2014.
- Customers walk in.
- Customers get seated and is given menus, out of 45 customers 18 requested to be seated elsewhere.
- Before even opening the menu they take their phones out, some are taking photos while others are simply doing something else on their phone (sorry we have no clue what they are doing and do not monitor customer WiFi activity).
- Finally the waiters are walking over to the table to see what the customers would like to order. The majority have not even opened the menu and ask the waiter to wait a bit.
- Customer opens the menu, places their hands holding their phones on top of it and continue doing whatever on their phone.
- Waiter returns to see if they are ready to order or have any questions. The customer asks for more time.
- Finally they are ready to order.
- Total average time from when the customer was seated until they placed their order 21 minutes. [Compared to 8 mins in 2004]
There are similar delays for taking pictures of food or each others over the rest of the meal. The punchline is that they found that the average time a party sat at a table climbed by 50 minutes — from 1:05 to 1:55.
Continue Reading »
Posted in Incentives, Restaurants, Services | Tagged Incentives, Restaurants, Services | 1 Comment »
It’s been a while since we have posted about airline baggage fees, one of my favorite topics. As I have argued before (see here or here), baggage fees are interesting since they serve as a way to regulate passenger behavior and potentially lower airline costs. Fewer bags means less labor in loading them on and off planes or tracking down lost bags. It also potentially means less weight if passengers actually bring less stuff aboard. But how much is any of that worth? Are we talking about pennies or dollars or thousands of dollars?
The folks at FiveThirtyEight have tried to answer part of that question (Why Budget Airlines Could Soon Charge You to Use the Bathroom, Jun 30). More specifically, they look at the negative impact of adding extra weight to the average flight (or the gain to be had from shedding weight). Here is how they described their methodology.
Our analysis takes into account the distance of a flight, the weight carried onboard the aircraft, and the aircraft type itself. It then simulates every phase of the flight, from departure gate to arrival gate, in order to determine the fuel consumed at each moment along the flight path. To get an idea of how adding small amounts of weight can affect fuel burn on a typical flight, we analyzed a flight from Boston to Denver operated by a Boeing 737-700. Southwest Airlines operates this service three times per day.
According to our model, the total cost of fuel for operating this flight with 122 passengers (85 percent of the maximum seating-capacity) is about $7,900. Each marginal pound onboard the aircraft for this flight will result in a marginal fuel cost of a little less than 5 cents. So if every passenger remembered to go to the bathroom before boarding, shedding an average of 0.2 liters of urine, the airline would save $2.66 in fuel on this flight alone. Such tactics are not off limits. Ryanair famously contemplated charging customers to use the bathroom (in an effort to reduce the number of on-board bathrooms and pack on more seats). Company spokesman Stephen McNamara said in 2010, “By charging for the toilets we are hoping to change passenger behavior so that they use the bathroom before or after the flight.”
Continue Reading »
Posted in Airlines, Incentives | Tagged Airlines, baggage fees, Incentives, Services | 2 Comments »
The last couple of days have been a dream for sports enthusiasts: World Cup mania in Brazil, an epic Fedderer-Djokovic championship at Wimbledon, and the start of summer ritual with the most beautiful of all: the Tour de France (TdF). And off course, behind every thing of beauty lurks a masterful operation. Last year we talked about the project management process to schedule all pro-team Orica GreenEdge members over the course of a year around the globe. (Like the traditional US defense strategy to support two simultaneous wars, pro-teams often participate in two races in different countries at the same time.) Today we talk about tactical operational support during a stage race like the TdF.
Many people can imagine the support processes behind a football or basketball team, yet professional cycling has some interesting unique characteristics. Continue Reading »
Posted in Uncategorized | Leave a Comment »
Have you ever thought about pallets? You know, those wood contraptions that can hold a pile of stuff off the floor while letting a forklift easily scoop up said pile? Here’s a snapshot of one that just happened to be lying around the Northwestern campus.
So in many ways, there is nothing particularly special about pallets except that they play a key role in logistics and supply chains. They basically make schlepping stuff modular. What is actually stacked on the pallet doesn’t matter; a guy with a forklift can just pick it up and put it on or take it off a truck. Which is not to say that pallets are uninteresting. The people at Planet Money did a whole episode on pallets (Episode 545: The Blue Pallet, Jun 11) that makes for great listening. Here, check it out:
The key point is that there has in fact been innovation in the pallet market. What you see above is your basic stringer pallet. It consists of 15 pieces of wood and a bunch of nails. Note that with those three pieces of wood sandwiched between the other twelve, a forklift can only pick it up from two sides — either the front or back in the picture above. The alternative is to have a block pallet. A block pallet replaces that those three pieces of wood with nine blocks. Those blocks give extra spacing on the other two sides and a forklift can hoist the thing from any side. That additional flexibility increases efficiency. Go to a Costco. They have essentially mandated all their suppliers send stuff on block pallets. If you unload as many tractor trailers as Costco does, the productivity boost from block pallets really adds up. Continue Reading »
Posted in Supply Chain, Operations Strategy, Logistics | Tagged Supply Chain, Operations Strategy, Logistics | Leave a Comment »
Reshoring — moving manufacturing from far-flung global locations back to the US — has been a popular topic both in the general press and on this blog. What’s not to like about it? As long as manufacturing allows average humans without extreme degrees of education or super rare skills to make a decent wage, new employment opportunities in manufacturing are always going to create a buzz.
But just what kind of firms are bringing work back to the States? According to the Wall Street Journal, we are mostly talking about smaller enterprises (Bringing Jobs Back to U.S. Is Bruising Task, Jun 25).
More than 80% of companies bringing work back to the U.S. have $200 million or less in sales, according to the Reshoring Initiative, a nonprofit that encourages companies to return production to the U.S. Many supply parts to bigger companies or, if they sell directly to consumers, are seeking to cut out lengthy supply chains from Asia.
But big companies have the resources and experience to hopscotch around the globe. It’s harder and riskier for small firms to do the same.
So for every General Electric moving appliance manufacturing back to Kentucky, you have lots of firms like Chesapeake Bay Candle dealing with much smaller product lines. To some extent this is not too surprising. Whether you are GE or Chesapeake Bay Candle, managing a long supply chain or navigating cultural differences is nontrivial. One of those firms, however, can much more easily absorb the cost of having in country staff or can resort to throwing around its sizable weight to get a good deal. Further, a multinational like GE can also have ambitions of growing in China that may not be a priority for a small player like Chesapeake Bay Candle.
While it is not surprising that smaller firms play a big role in reshoring, that is also a problem. Continue Reading »
Posted in global operations, Manufacturing, Operations Strategy, Supply Chain | Tagged global operations, Manufacturing, Operations Strategy | 1 Comment »
Have you ever heard of VidCon? Turns out it is, in the words of Wikipedia, “a multi-genre online video convention, held annually in Southern California since 2010. Originally conceived by Hank and John Green of the “Vlogbrothers” YouTube channel, the convention is the largest of its kind in the world, gathering thousands of online video viewers, creators, and industry representatives worldwide.”
My wife and I had never heard of it either until our teenage daughter (who for the sake of this post we’ll call Magenta) put on the full-court press to attend. For better or worse, we caved and today Magenta is Anaheim for the start of the conference with her mom in tow. They have in hand tickets that were purchased months ago. However, they also need to get their IDs for the conference. That was the first order of business today and led to a text I received a little before 9:00AM central time (which, allow me to point out, is not quite 7:00AM in Anaheim):
Just what does the longest line that Magenta’s Mom has ever seen look like? Take a gander (and see if you can spot Magenta).
So why bring this up? Beyond being able to publicly thank Magenta’s Mom for falling on this particular parenting grenade, it serves as a nice lead in to a recent Business Insider article on “Why People Wait In Hours-Long Lines For Shake Shack, Cronuts, And iPhones” (Jun 25). Continue Reading »
Posted in Incentives, Queue management, Waiting | Tagged Incentives, Queues, VidCon, Waiting Time | 1 Comment »
It was a bad winter in Chicago and, frankly, pretty much everywhere in the Northern part of the country. If April showers bring May flowers, then January snows bring February potholes. Or at least that is the conventional thinking, but is Mother Nature really the only cause of potholes?
That is the question asked by an OR/MS Today1 article. And is there anyway not to be intrigued by the headline “Pothole Analytics“?
The article is written by Lucius Riccio who, among other things, is a past Commissioner of NYC’s Department of Transportation. His contention is that the formation of potholes is not independent of how a city treats it roads and that Gotham may just have been asking for a ton of potholes. Here’s the punchline to the article.
Clearly, fixing potholes is an essential and commendable thing to do. And to do so efficiently is a worthy management objective. Of course, it is not how many you fill but how many you don’t fill. Or put another way, how long do they remain in the street breaking axles and blowing out tires? But in addition, I think the fixation (pun intended) with potholes is the wrong approach.
A high number of potholes is indicative of a failure to maintain the streets. Fixing potholes means the smart thing hasn’t been done, which is to do the work that prevents them in the first place. Potholes are emblematic of a failed strategy.
How does he get to this conclusion? Data! Continue Reading »
Posted in Quality | Tagged maintenance, Quality | Leave a Comment »