Operations Management a Late Night Term Paper

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That the service is performed is more important than the speed with which it is performed.

Another factor is that the waiting experience is structured in such a manner as to facilitate long waits. The customer's initial contact is almost immediate, so they are "in the system" and thus more likely to be patient while awaiting the subsequent contact. They are typically comfortable and relatively occupied while waiting as well. The wait is usually in done in a group, which lends itself to lower perceived wait times. Plus, the customer has made an appointment and is thus unlikely to have any immediate plans for their time.

Lastly, the customer's expectation is that they will exit the system feeling better than when they entered. While the customer wishes to feel better as soon as possible, they are willing to wait; plus they expect thorough treatment themselves and thus few would begrudge other customers that - it's a fair wait in that sense.

3) Bottlenecks in the system affect the customer in that they are subject to delays. The delays are unexplainable in that the customer cannot understand why there is a bottleneck. This type of delay increases customer agitation. The wait time for the good or service can cause problems for the customer if they need to make immediate use of that good or service.

Bottlenecks cause problems for the company in that they result in reduced efficiency at all subsequent stages of production.

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Every other step besides the bottleneck will inherently be working at less than full capacity while awaiting the flow from the bottleneck or if upstream while waiting for the bottleneck to catch up to their output level. This in turn affects the company's overall performance. Moreover, the company can be subject to lost opportunities in the marketplace if the bottleneck causes them to be unable to meet demand. Unmet demand attracts new entrants to the market and if those entrants are not subject to the same production constraints like the bottleneck, the new competitor can not only soak up the unmet demand in the marketplace but steal the company's existing business as well.

For the employees who work in the system, a bottleneck has two significant impacts. Downstream employees will be working at less than capacity, which could result in a reduction in working hours or in number of employees. Even upstream employees could receive more hours or more workers if they were able to produce at their full level.

Another impact is that the employees will have to deal with the customers, many of whom will be dissatisfied by the delays. This puts undue stress on employees in the customer service function, since they must deal with customers who are upset through doing of their own......

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