OM in the News: Perception vs. Reality in the Supermarket Checkout Queue

supermarketStanding in the supermarket queue, you note that other customers are seamlessly drifting forward in their appealingly shorter lines. Should you should stay put, switch lanes, or just head home empty-handed? One research study found that reduction in wait times for express-lane customers didn’t offset the overall increase in wait times for everyone (Five Thirty Eight, Oct. 16, 2014). So would it be better if the supermarket didn’t have an express lane — or, better yet, if it got rid of multiple lines altogether and had all customers join a single long line where there were no winners and losers. Our math in Module D shows that the single line is the best approach. But is it really?

If single lines reduce wait times by so much, why do stores queue us in separate lines for each cashier? One reason is that models overestimate the difference between single and multiple lines because they don’t take into account some human behaviors. Maybe you know who the fastest cashier is. Maybe you switch lanes (“jockeying”) or simply ditch your items and leave (“reneging”). Those behaviors reduce the average wait time in a multiple-line queueing system and bring it a little closer to a single-line system.

In addition, perceptions don’t always match up with reality. The longer we stand in line, the more the gap between perceived and actual wait time grows. By the time we’ve been in line for 5 minutes, we think we’ve been waiting for 10. (See “Why We Buy,” by P. Underhill). So rather than simply shoving us all into one line, supermarkets are exploring three alternatives to reduce both our actual and perceived wait times. First, customers waiting in line can have their items scanned by roaming tellers with hand-held machines, to reduce their service time once they finally reach the cashier. Second, customers can register their place in line, go away, and come back once it’s their turn (like grabbing a ticket from the deli counter). The 3rd strategy: distraction. You can try to entertain customers with videos and in-line merchandising.

Classroom discussion questions:

1. What is the main reason supermarkets do not use a single checkout line?

2. What other alternatives can stores use to speed up the lines?

OM in the News: Smart Queues at Disney

Toy soldier characters greet Disney visitors
Toy soldier characters greet Disney visitors

It’s one of theme parks’ biggest challenges, reports the Orlando Sentinel (Oct. 12, 2014): finding ways to ease the pain of waiting in line. Disney tried something unusual last week, when it required FastPass reservations for anyone boarding the Toy Story Midway Mania ride. Amusement parks have plenty of motivation to lessen waits, or at least make them less boring. Guests leave happier — and are more likely to return. Shorter lines at popular rides mean tourists have more time to visit secondary attractions. And time not spent in line means more cash at the registers in a park’s shops and restaurants.

A few years ago, Disney created a new underground center here in Orlando in which employees monitor crowds via computer and video camera, then decide which congestion-fighting weapons to deploy. A ride might launch more vehicles, for example, or a restaurant could open more registers. The parks’ arsenal of crowd-control tactics also includes distractions, which have grown increasingly elaborate. At Disney World’s Fantasyland, for example, kids frolic in an indoor playground until buzzers alert their families it’s time to board the Dumbo ride.

Disney has also encouraged more widespread use of the passes through its MyMagic+ billion-dollar technology project. Guests can now reserve rides and shows up to 2 months before their visits: 75% of Walt Disney World guests use FastPasses now. But don’t expect to see a lineless theme park anytime soon.Ushering guests through too many attractions too quickly, and a new set of problems is created. Visitors might get bored if they see everything too fast. “The flow within a park assumes a certain number of people will be standing in line, more so during peak periods than nonpeak periods,” says a former Disney VP. “You take them out of line, and where do they go?”

Classroom discussion questions:

1. Why are queues such an important OM issue at all theme parks?

2. What other options does Disney have for capacity planning?

OM in the News: Queuing Up For Quick McDonald’s Medicine

McDonald’s medicine it’s called: patients in the US want their health care like their food–served up speedily and made “your way”. ” The prospect of waiting for health care is not only distasteful to Americans;  its downright threatening”, say the  MD authors of the recent Time (Jan. 26,2011) article. The mere specter of Canadian-style waiting  lists for tests and procedures evokes enough fear to challenge the concept of government subsidized health care, they add.

We have blogged about waiting for medical care earlier and it’s clear that convenience has become an important part of the way people think. CVS  drug stores offer walk-in “Minute Clinics”, many ERs have billboards advertising guaranteed wait times (offering free movie tickets if they run longer), while other hospitals have even experimented with drive-thru ERs!

The real question is whether it is feasible to implement a reasonable waiting time for “urgent” conditions—like heart attacks, strokes, and lung infections. The good news is that convenient care clinics do a good job of handling coughs, colds, a swollen knee, and even a nagging hernia that hurts a bit more than usual today. But the root problem may be that the current system of medical care  is not set up to triage acute health needs.

This is where OM can help. So many of the issues tied to creating more efficient heath care can be tackled by re-engineering, process analysis, layout changes, JIT, lean,and all the other topics we teach in OM. You can click on Mark Graban’s Lean Blog to see his excellent discussions.

Discussion questions:

1. Why do we need to reorganize ER treatment centers?

2. What is the difference between “severity” and “urgency” in selecting a treatment?

3. How can OM help shorten ER queues?

OM in the News: If You Don’t Get Your Bag in 20 Minutes, You Get $20!

We have seen it in the ERs…”we guarantee you will be seen in 30 min. or….”. But did we ever think we would see it in airports as we wait for our checked bags? After decades of mishandled and delayed suitcases arriving to the carousel (which costs the airlines $2.5 billion a year), the quality of service is finally improving dramatically—all because of OM efforts.

The Wall Street Journal (Dec.2,2010) reports that Alaska Airlines has just implemented a 20 min. guarantee. If a customer’s bag does not arrive at the claim area within 20 min. of arrival, fliers get a $20 voucher or 2,000 frequent-flier miles. Alaska has improved its misdirected baggage claims by 52% in the past 2 years. For all airlines the  lost luggage figures are down by a whopping 38%. “If you are going to charge for bags, you better be really reliable”, says US Airways’ COO.

How did OM impact the change? New technology  and revised processes (both in Ch.7) are the keys. Airlines have ramped up use of bar-code scanners to track bags along their journey–something cargo shippers and supermarkets have been doing for years. Delta invested $100 million in its Atlanta operations alone. It gutted the entire infrastructure under Terminal B to make room for an automated baggage system. Belt time is 7-10 min., vs. the old system of driving bags on carts, which took 15-30 min. Payback comes from less mishandled bags, which average $100 each.

Alaska Airlines has changed its processes and a new strict adherence to timeliness. Within 10 min. of arrival, all bags must be offloaded. And instead of measuring when the 1st bag hit the carousel, Alaska tracks when the last bag is delivered, posting scorecards for employees. “It is measuring and setting goals that are very specific”, says the airline.

Discussion questions:

1. Why and how did airlines improve so quickly?

2. What technology drives the changes?

3. What do students think of the 20 min. guarantee?  Will other carriers be forced to match it?