Big Bank Analysis free essay sample

Problem A bank is opening up a new branch where the operations manager will have to make important decisions regarding teller operations. A large apart of customer service is dependent upon wait time and seamless service. The operations manager wants to be prepared and avoid wait time complaints that have transpired at other branches. Since this is a new branch, demographics will also come into play in deciding how to approach teller operations. The operations manager collects data regarding teller operations which states that â€Å"an average 80 customers are processed during the noon hour. The average processing time for customers with a single transaction is 90 seconds, while the processing time for customers with multiple transactions is 4 minutes. Sixty percent of the customers are expected to have multiple transactions. † (Stevenson, 2011) The operations manager must decide whether to have one waiting line with multiple tellers, or have two waiting lines: one for customers with multiple transactions and one line for single transactions. We will write a custom essay sample on Big Bank Analysis or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page Analysis Wait time is very important to customers and if an operations manager does not evaluate and study wait time, it can lead to a loss in customers. The operations manager must consider the following system constraints that will lead to an efficient teller operation. The four constraints are 1. Use of temporary workers, 2. Shift demand, 3. Standardize the service, 4. Look for a bottleneck. (Stevenson, 2011) The operations manager can utilize temporary workers at a banking center. Temporary workers are part time and are given work times during the busy periods. The tradeoff is that part time workers have a larger turnover rate over full time workers. This can drive up the expense in hiring new part time employees. Also, part time workers are not always as fast as full time workers and may not have experienced every customer situation, which means a need for additional training. The lack of speed may not be as beneficial to busy periods. The manager must find part time tellers who only want part time work in order to eliminate the tradeoffs. Over time, part time workers will be beneficial and have all of the necessary training needed. Shift demand is the second constraint that banks can utilize by providing various account types specific to the customers need. At Bank of America, they offer a banking account that is free if you do not come inside the branch for services. This also reduces wait time and will train the customer to use ATM and online services. Standardize the service is the third constraint in which consistency of service is very important. This constraint is going to be the most critical when dealing with teller wait times. The operations manager must understand the busy periods of their branch, such as holiday seasons, lunch breaks, social security payments, pay days close to the 1st and the 15th. Understanding these busy periods will allow for the appropriate amount of staff. Maintaining the same staff and standardizing their ability to perform consistently and with the right tools will allow for a successful teller operation. The fourth constraint is having a bottleneck. This cannot be discovered until the branch is open. Transaction time’s for each teller can be evaluated by calculating how many transactions each teller has performed each day and over how many total hours. If there are busy times and you notice a particular teller is not moving as fast as they should, the manager must resolve this by providing additional training and practice for the teller. Resolution The operations manager must understand the four constraints and apply them to their final decision regarding wait times. Considering that out of an average of 80 customers, 60 percent of the customers are expected to have multiple transactions. That 60 percent makes up 48 customers which is more than half of the average customers. The best option is to have two waiting lines: one teller for customers who have a single transaction and four tellers who would handle customers who have multiple transactions. I would also include a line leader who can talk to each of the customers about their needs prior to getting to the teller window. This will also eliminate the customers in the wrong line or who can get their issues resolved from the bank manager or personal banker. Also line leaders can walk customers over to the ATM, when there is no ATM usage, and assist them with their simple transactions. This provides an ATM learning lesson and reduces the wait time. Line leaders can also help customers who have deposit slips ready and filled out before they get to the window and this can lead to additional sales. Another benefit to distract customers is television in the lobby or music playing in the background. This will occupy customer’s time and give them the filling of not waiting as long. One additional recommendation is to avoid having a clock in your lobby, because it could cause customers to watch the clock as they wait in line.