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Archive for the ‘Queue management’ Category

Wal-Mart has had a tough go over the last few years. Sure, they are still a huge force in retailing but they have run into a variety of operational problems largely related to in-store execution. (See. for example, this post.) Now the Wall Street Journal reports that Wal-Mart is gearing up for the holidays by trying to address some customer service pain points (Returning to Wal-Mart: Human Cashiers, Aug 15).

In an attempt to lure more customers this holiday season, Wal-Mart Stores Inc. is promising to staff each of its cash register from the day after Thanksgiving through the days just before Christmas during peak shopping times.

The move, called the “checkout promise,” is aimed at addressing one of the retailer’s biggest customer complaints: long waits in checkout lines, which can cause even more frustration when positions aren’t fully staffed. The pledge will cover hours typically on weekend afternoons but which can vary by store.

“We feel good about price and having the top gifts of the season, so the next priority is about getting customers in and out of the stores quickly,” Duncan Mac Naughton, Wal-Mart’s chief merchandising officer, said in an interview. “Taking the possibility of waiting in long lines off the table will attract more people into stores.” …

On Thursday the retail giant said it allocated more hours to the front end of the store, to overnight stocking, and to deli and bakery to improve customer service during the most recent quarter.

Here are two questions that are worth thinking about. (more…)

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Why do you stand in line? In many Western countries, that is a silly question. You stand in line because that is what you do. Whether waiting to check out at the supermarket or get into a ballgame, standing in line is the norm. You stand in line because everyone else is standing in line. However, as a National Post article points out, standing in line is very much a cultural phenomenon and not just some inherent human trait (Everyone line up: Canada’s tradition of orderly queuing ‘foreign and strange’ to many newcomers, Jul 25).

“Lining up is seen as a universal sort of truth,” said J.J. McCullough, the Vancouver-based author of J.J.’s Complete Guide to Canada, an online primer for newcomers. “And if someone doesn’t adhere to the protocol then it must be because they’re uncouth or uncivilized, rather that this is a sort of idiosyncratic tradition that we’ve internalized.” …

At the Canadian School of Protocol and Etiquette, located in London, Ont., lineup training comes on the same day students are taught about North American-style introductions. Students are taught where to line up, how to maintain one’s proper place in the lineup and — most importantly — how close to stand.

“In certain cultures, queue etiquette is just not on the radar,” said school director Wendy Mencel.

So where does this tradition come from?

(more…)

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Have you ever wished you could tell the TSA what to do with itself? Now, you have that opportunity — at least when it comes to how they organize and manage their queues. To make things even better, they might actually pay you! The Transportation Security Administration has posted a challenge asking for people to develop a simulation model to tackle the capacity management issues of getting people through airport security. If you are interested in the challenge, the official call is here. Here are some of the specific considerations that need to be tackled:

TSA is looking for the Next Generation Checkpoint Queue Design Model to apply a scientific and simulation modeling approach to meet the dynamic security screening environment. The new queue design should include, but not limited to the following queue lanes:

  • TSA Pre✓™
  • Standard
  • Premier Passengers (1st class, business class, frequent fliers, etc.)
  • Employee and Flight Crews
  • PWD (wheelchair access)

The Challenge is to provide a simulation modeling concept that can form the basis to plan, develop requirements, and design a queue appropriately. The concept will be used to develop a model to be applied in decision analysis and to take in considerations of site specific requirements, peak and non-peak hours, flight schedules and TSA staffing schedules. Solvers are expected to provide the concept and provide evidence that it works as described in the requirements.

According to Nextgov.com, there are specific performance targets for different classes of customers (Attention, Passengers: $15,000 Prize for Whoever Can Speed TSA Screening, Jul 18)

The line, in this scenario, extends from the point where a passenger joins the end of the queue to the metal detector or body scan machine.

The rules for the challenge state wait times cannot be more than 5 minutes for PreCheck and 10 minutes for standard lines.

(more…)

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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):

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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).

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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). (more…)

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Pity the Transportation Security Administration! They have a tricky capacity planning problem with their Pre✓™ program. Here is how the TSA describes Pre✓™:

TSA Pre✓™ allows low-risk travelers to experience expedited, more efficient security screening at participating U.S. airport checkpoints for domestic and international travel.

The perks of the program of the program include being able to leave your shoes on, not having to take out your laptop, and leaving your baggie of toothpaste buried in your carry-on. All of that gets you faster screening and — in theory — a faster moving line. The program started off being by invitation but has broadened to include those enrolled in the Custom and Boarder Patrol Global Entry program. Now anyone can apply. The trade off for travelers is that you have to pony up for a background check. For the TSA, it allows them to expend fewer resources on people it knows something about so more time can be spent on those it has no information on.

So what’s the problem? The issue is how the system has to be implemented at airports. Pre✓™ flyers go in a separate line and then through separate equipment and personnel. But, as the Wall Street Journal tells it, that is costly for the TSA and they cannot readily justify dedicating the current resource levels unless they can get more flyers signed up (Trouble Selling Fliers on the Fast Airport Security Line, Apr 16).

TSA wants lots more people enrolled in Precheck to make better use of its designated security lanes, which currently number 590 at 118 U.S. airports. Since December, TSA has encouraged travelers to apply to the program directly. The agency is opening enrollment centers across the country, letting people who are U.S. citizens or permanent legal residents to make an appointment or drop in and have fingerprints taken digitally. The $85 background-check fee buys five years of enrollment.

“It’s one of the last great bargains the U.S. government is offering,” TSA Administrator John Pistole joked at an enrollment-center opening last week at Dallas-Fort Worth International Airport.

TSA said more than 1.2 million people as of December were able to use Precheck, mostly because they had enrolled in Global Entry. Since TSA began taking applications directly, some 170,000 additional people have signed up for Precheck. The program appears on track, but if more travelers don’t sign up TSA will have to scale back the number of Precheck lanes at airports, Mr. Pistole said. TSA hasn’t set an optimum number of enrollees for the program, he said.

(more…)

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How heavily should a firm use its resources? Resources — be they people, equipment, or facilities — are expensive so there is an obvious case to be made for keeping utilization rates as high as possible. But there is also something to be said for not pushing utilization too high. Many systems need some slack to work well. It is slack that allows firms to absorb the unpredictable or to address problems that go beyond immediate firefighting. That is the point of a recent Strategy & Business article (Cut Your Company’s Fat but Keep Some Slack, Spring 2014). The authors main point is that “slack is routinely undervalued.”

Here is the example given to lead off the article.

In 2002, the operating rooms at St. John’s Regional Health Center, an acute-care hospital in Missouri, were at 100 percent capacity. When emergency cases—which made up about 20 percent of the full load—arose, the hospital was forced to bump long-scheduled surgeries. As a result, according to one study, doctors often waited several hours to perform two-hour procedures and sometimes operated at 2 a.m., and staff members regularly worked unplanned overtime. The hospital was constantly behind.

Administrators brought in an outside advisor, who came up with a rather surprising solution: Leave one room unused. To many, this seemed crazy. The facility was already being squeezed, and now comes a recommendation to take away even more capacity? Yet there was a profound logic to this recommendation, a logic that is instructive for the management of scarcity.

On the surface, St. John’s lacked operating rooms. But what it actually lacked was the ability to accommodate emergencies. Because planned procedures were taking up all the rooms, unplanned surgeries required a continual rearranging of the schedule—which had serious repercussions for costs and even quality of care. The key to finding a solution was the fact that the term unplanned surgery is a bit misleading. The hospital can’t predict each individual procedure, but it knows that there will always be emergencies. Once a room was set aside specifically for unscheduled cases, all the other operating rooms could be packed well and proceed unencumbered by surprises. The empty room thus added much-needed slack to the system. Soon after implementing this plan, the hospital was able to accommodate 5.1 percent more surgical cases overall, the number of surgeries performed after 3 p.m. fell by 45 percent, and revenue increased. And in the two years that followed, the hospital experienced a 7 and 11 percent annual increase in surgical volume.

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I have a long-standing interest in Black Friday — less because I want to go shopping but more because it poses some interesting questions on how firms compete and how they manage customers. The news this year is that Black Friday is creeping evermore into Thanksgiving proper as retailers keep moving up their opening times. So why are they doing that? Two posts on Businessweek.com put forward theories. The first posits that this is being driven by customer segmentation (The Game Theory Behind Macy’s Thanksgiving Opening, Oct 15).

Traditions are being trampled on by the Corporate Retail Complex! Of course, consumers don’t have to go. Some won’t, and that’s precisely what the strategy folks at Macy’s are betting on.

The purists scandalized by the thought of shopping on the holiday itself aren’t likely to avoid Macy’s altogether. And with the die-hard bargain-hunters swarming the stores on Thursday, Friday shopping will likely be much more pleasant for those who are a little less committed.

(more…)

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Much has been written Angela Ahrendts leaving Burberry to take over Apple’s retail operations but the Guardian has something of a unique take. They argue that a pressing concern is simply managing the queue for tech support (Apple stores await Ahrendts touch as outlets struggle with growing demand, Oct 18).

It’s only a two-hour wait. An ordinary Thursday afternoon at Apple’s flagship UK store in Regent Street, London and a long line of customers snakes across the first floor. The hip technology brand is used to queues for the launch of its latest must-have product, but these people have come carrying faulty iPhones and malfunctioning laptops, desperate for help from one of Apple’s increasingly hard to reach “Genius” experts.

When it opened in Virginia in 2001, the first Apple store was hailed as a retail revolution, allowing shoppers to play with expensive technology without any sales pressure. The emphasis on service, with blue-shirted Geniuses on hand to answer queries and fix broken products, has become almost as important to the Apple brand as the aesthetic appeal of its products. But the whole experience is under pressure as a relatively small number of shops struggle to cope with rapidly growing customer numbers. …

The Regent Street outlet, for example, employs at least 120 Geniuses. Each sees up to 30 customers a day but it is impossible to book an appointment less than a week in advance. If the problem is urgent you can turn up and queue, but it could be a very long wait. This week, a gaggle of well-trained, polite and friendly staff worked their way along the line trying to answer simple queries and advise people on alternatives to queueing. But it is hard to redirect people when every nearby shop has its Geniuses fully booked for days on end.

The article goes on to note that this is not just an issue in London. It certainly can be an issue here in Chicagoland. While a quick check of my nearest Apple store shows that they currently have a number of appointments open for tomorrow, Friday morning already has no availability. There are even reports of scalpers hawking Genius Bar reservations in China.

So is there an easy fix to this problem? It seems like there are two issues here. First, to what extent should Apple accommodate walk-in customers? Second, is there any easy fix to expanding Genius capacity? These are related. If capacity is expanded then the ease of getting a reservation should take care of the walk-in issue. On the other hand, if capacity cannot be easily expanded, then there is a question of how to allocate it between walk-ins and appointments.

(more…)

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In the basement of the Kellogg School, there is a cafe. It’s a busy cafe, which says more about the available alternatives than about its absolute quality. Because it gets busy and because a good number of its customers are polite enough to walk out of class five minutes early to beat the crowd, I and my colleagues have learned that it is a much better to plan to go down for a sandwich a little before noon than a little after noon. According to CNBC, Goldman Sachs faces similar issues with queuing in its cafeteria and it actively tries to manage the system (The creepy capital efficiency of Goldman’s cafeteria, Oct 17).

The most crowded time of the day to eat lunch is, naturally, during lunch time. For most people, this falls around noon. This creates the phenomenon of the lunchtime rush hour. You know this all too well if you’ve ever tried to stop in your local chopped salad place at, say, 12:30 in the afternoon.

Goldman didn’t like the idea of its people waiting on long lines to get their lunch. People are capital to Goldman. It wants to use its capital efficiently. Standing on line waiting for dumplings or salad or a burger is not an efficient use of Goldman’s capital. …

The cafeteria has a set of timed discounts. If you show up in the cafeteria before 11:30 or after 1:30, you get a 25 percent discount on your food. Goldman incentivizes employees to avoid the rush hour.

(more…)

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It’s been a while since we have written about long delays to clear immigration control at airports. But as this eye candy from the Wall Street Journal makes clear, it is time to revisit the topic (The Summer of Long Customs Waits, Jun 12).

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In a nutshell, lines are getting longer and longer. (Also, don’t fly through Miami. Check out this video.)

So what is going on? (more…)

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