What is waiting line management in operations management?

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Any time there is more customer demand for a service than can be provided, a waiting line occurs. Customers can be either humans or inanimate objects. Examples of objects that must wait in lines include a machine waiting for repair, a customer order waiting to be processed, subassemblies in a manufacturing plant (that is, work-in-process inventory), electronic messages on the Internet, and ships or railcars waiting for unloading.

In a waiting line system, managers must decide what level of service to offer. A low level of service may be inexpensive, at least in the short run, but may incur high costs of customer dissatisfaction, such as lost future business and actual processing costs of complaints. A high level of service will cost more to provide and will result in lower dissatisfaction costs. Because of this trade-off, management must consider what is the optimal level of service to provide. This is illustrated in Figure C-1.

FIGURE C-1 Waiting cost and service level trade-off

Fast-food restaurants illustrate the transient nature of waiting line systems. Waiting lines occur at a fast-food restaurant drive-through during peak meal times each day. There is a temporary surge in demand that cannot be quickly handled ...

It is obvious that nobody wants or likes to wait in line. Forming queues is necessary for most businesses when demand exceeds supply. Luckily, companies are able to manage to wait in lines and improve customer experience by using Waiting Line Management Systems.

Before understanding what a Waiting Line Management System is, it is important to note that if waiting for a line is not managed, and there is a great chance that a company will lose revenue and customers.

Traditionally, a queue is when a customer lines up in a retail shop, a hotel reception, or a restaurant waiting to be served. These lines can be structured where there is a physical line, unstructured where there is little to no guidance or direction, and virtual where the customer needs to check online to see if there is an available time slot.

A Waiting Line Management System ideally eliminates the need to wait in line by creating an order. In order to create a system that works;

1. The number of customers

2. Characteristics of the customer population

3. Pattern of the waiting line

4. How products are delivered to the customer

5. The service mechanism indicates if there are different lines for different services

6. The interaction between the customer and the company

It must be thoroughly examined. Forming a waiting line management will benefit the customer, employee, and the business in total. Especially during the pandemic, the importance of a Waiting Line Management System increased drastically since the customers want to be physically distant from each other. Creating a system, such as forming a virtual queue, that helps customers to have a distance from each other will increase customer satisfaction.

When it comes to the benefits of a Waiting Line Management System, customer satisfaction should be at the beginning of the list. We know for a fact that customers do not like to wait — but again, who does? Customer satisfaction is higher when they know that the company values and respects the customer’s time. The return rate will be higher if there is no waiting line in a business. It will also decrease customer complaints. Even if it is not possible to eliminate waiting in lines, it is important to address an accurate waiting time. As a result, the client will gain a sense that they will not wait too long, and the customers will continue they are using their time more effectively.

Another benefit is to amplify work efficiency. When there is long waiting, line staff may feel the need to manage the line by creating physical barriers or trying to make people stay in the line instead of focusing on serving the customers. With the help of the Waiting Line Management System, the company gains better insight into employee scheduling, staff allocations, and understanding of what customers need and want.

Last but not least, waiting line management systems help improve the business image. When the clients feel that their time is valued, they will have a positive attitude towards the company. Furthermore, the customers will view the business as more innovative and hi-tech. In today’s world, people have less patience and attention span. An average customer is willing to wait less than 5 minutes before leaving the store for purchase. The current system requires businesses to serve faster. In other words, people have less and fewer attention spans as technology improves, and they are not willing to wait in long lines to purchase goods. Therefore it is essential for companies to serve customers faster if they want to increase demand.

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