Operations Management

161 Cambridge StreetBoston, MA 02114

ISOM H319-FProfessor Kuo-Ting Hung

Pengqia Chen, Taiei Ekawa, Jiaming Liu, Lauren Masaitis, Judy Wong

Overview and Introduction● Long waiting time in queues --- direct impact on customer satisfaction

o Poses a challenge of operations management● Queue management systems

o Capture and analyze datao Provides an understanding of the customer service process

● Customer Service Queue at Bank of Americao Outputs, inputs, resources, and the appropriate measures for

management● Operational Analysis Objectives:

o Streamline the customer service processo Boost customer satisfactiono Increase productivity and efficiency of bank employees

StakeholdersAt The Time of Observation:● Bank of America Customers● 3 Bank Tellers● 2 Customer Service Representatives● 1 Greeter

Additional Stakeholders:● Competing Banking Services● Corporate Bank of America● Shareholders and Investors● Suppliers● Educational Institutions● Government● Communities● Non-Governmental Organizations

Operation

❖ Open Hours: 9:00 AM to 5:00 PM❖ Observed Time: 11:30 AM to 12:30 PM❖ Operation Process

➢ Front Desk (Greeter)➢ Individual Tellers ➢ Customer Service Representatives

❖ Waiting Period❖ Assistance Service❖ Departure

Initial Flow Diagram

Utilization Activity

Activities Available Time Required Time Utilization

Teller 1 60 mins 60 mins 100%

Teller 2 60 mins 52 mins 86.67%

Teller 3 60 mins 44 mins 73.33%

All Tellers 180 mins 156 mins 86.67%

CSR 1 60 mins 49 mins 81.67%

CSR 2 60 mins 41 mins 68.33%

All CSR 120 mins 90 mins 75%

Operational Analysis: Tellers● Teller#1: Busiest Teller, lowest in service, no time to do side-works, nice teller, good customer feedback1. Time Required: 60 mins Utilization: 100% Average Arrival Time: 2.50 mins2. # of Customers: 10 people Average Time per Customer: 6.667 mins/ person3. Total waiting time: 36 mins # of customers waiting: 7 people Average waiting time per customer: 5.14 mins

● Teller#2: Fastest Teller, average busy level, best teller, best customer feedback1. Time Required: 52 mins Utilization: 86.67% Average Arrival Time: 3.00 mins2. # of Customers: 10 people Average Time per Customer: 5.778 mins/ person3. Total waiting time: 52 mins # of customers waiting: 9 people Average waiting time per customer: 5.77 mins

● Teller#3: Most Available Teller, less customers, low utilized but not lazy 1. Time Required: 44 mins Utilization: 73.33% Average arrival time: 1.25 mins2. # of Customers: 8 people Average Time per Customer: 6.286 mins/ person3. Total waiting time: 34 mins # of customers waiting: 6 people Average waiting time per customer: 5.67 mins

● Overall Tellers: possible to become better 22/ 28 customers WAIT in the line, average waiting time: 5.55 mins Time Required: 156 mins Utilization: 86.67%

Operational Analysis: CSR● Representative 1: Above the average, highly utilized cause more waiting time, great customer

feedback 1. Time Required: 49 mins Utilization: 81.67% Waiting Time: 12 mins Average waiting time: 4 mins/ customer2. # of Customers: 5 people Average Time per Customer: 12.25 mins/ customer

● Representative 2: Young employee, required more time in service, low utilized work inefficiency

1. Time Required: 41 mins Utilization: 68.33% Waiting Time: 0 mins 2. # of Customers: 3 people Average Time per Customer: 20.50 mins/ customer

● Overall Representatives: possible to improve, change base on the busy level Time Required: 90 mins Utilization: 75% Total Customers: 8 people

Challenges and Solutions

Challenges● Efficiency● Utilization

Solutions● Implement a hybrid process

o Cross-train employees● Promote ATM usage● Increase number of employees

during peak hours● Promote/Increase Mobile App

usage

Solution Visual

Recommended Flow Diagram

Conclusion

● Measured the lobby performance and queue at Bank of America

● Calculated the utilization activity and flow

o Critical to Bank of America customers and is repetitive in nature

o Increase customer satisfaction

● Waiting lines tend to form even when a system is not fully loaded

● Waiting lines cause concern and are non-value added occurrences

● The goal of waiting line management is to minimize total costs

● Queue management systems allow companies to run more effectively

References● http://www.bankinnovation.net/2012/07/improving-customer-service-thro

ugh-lobby-management-technology/● http://about.bankofamerica.com/en-us/our-story/our-history-and-heritage.

html#fbid=1SfHshOhN_H● http://www.td.com/corporate-responsibility/crr-2010/our-approach/our-k

ey-stakeholders/index.jsp

Thank you!

Any Questions?