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Take A Number, Please

A presentation on Queuing Theory.
by

Alexandra Hardie

on 2 April 2014

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Transcript of Take A Number, Please

Andrew Acosta
Dwayne Codding
Alex Hardie
Thao Heng
Katelyn Kapnick
Hunter Marsh
Seth Peacock

TAKE A NUMBER, PLEASE
HISTORY
QUEUING THEORY & BUSINESS
OTHER BUSINESSES USING QUEUING THEORY
Four popular queuing disciplines that have been developed from queuing theory and widely applied in the business field are:

Queuing theory
was first invented by Tore Olaus Engset and Agner Krarup Erlang

In 1909 the first paper on queuing theory was published by Agner Krarup Erlang and focused on its applications within the telephone industry.

Engset’s formulations were not known until later because of the delay in publishing them.They were first used by traffic engineers to develop better systems. (History and development, 2012).
(Fried, n.d.)

INTRODUCTION
queue
A line or sequence of individuals or tasks waiting to be processed or attended to.
queuing theory
The mathematical study of waiting in lines.
traffic lights
checkout lines
waiting at the doctor's office
printer jobs
calls on hold at a call center
paperwork waiting to be processed
EXAMPLES OF QUEUES
Queues form because resources are limited
Ex: customers arrive faster than they are able to be served.
WHY STUDY QUEUES?
The objective of analyzing queues is to provide insight to the underlying processes so that informed operational decisions can be made by management (Bhat, n.d.).
WARNING: Standing in line can cause extreme boredom, annoyance and even rage, which is precisely why there is a fascinating science devoted to what makes people tick -- and ticked off -- when forced to wait (Pawlowski, 2008).
QUEUE STRATEGY
The Pareto principle was first defined by Italian economist, Vilfredo Pareto.
1897
Final Perspective Timeline
First paper on “Queuing Theory” was publish by Agner Krarup Erlang.
1909
Jon Van Newman
formulates "Game Theory"
1908
John Nash publishes the “Nash equilibrium”.(Holt & Roth, 2004)
1950
Treating queues on a first come, first served basis is the foundation to queuing success.
eliminate empty time
(Palowski, 2008)
studies the psychology of queues to help keep customers interested while waiting in lines for rides.
At Epcot Center, Interactive screens and video cameras allow the people waiting in line to play games, such as bursting virtual water bubbles.
At Disney World, people waiting in line for a comedy show are prompted to text in jokes that may be used during the show.
With increased product quality and optimal service levels as main objectives, the number of ways in which to apply queuing theory is endless.

Queuing Theory enables businesses to continually analyze customer queuing behavior and strive for the best possible consumer interactions.
REFERENCES
Applying Queuing Theory in Health Care. (n.d.). Institute for Healthcare
Optimization. Retrieved July 25, 2013, from
http://www.ihoptimize.org/news-events-queuing-seminar-home.htm
Bhat, U. (2005, August 1). U. Narayan Bhat. Southern Methodist University. Retrieved
July 27, 2013, from http://faculty.smu.edu/nbhat/
Fried, J. (2012, April 26). History Of The Queue. Queuing Theory. Retrieved August 1,
2013, from
http://queuingtheory.wordpress.com/2012/04/26/iframe-widt/
Free Music by DanoSongs.com.
Fried, J. 2013. History and development. (2012, 4 26). Retrieved 25 7, 2013, from
Queuing Theory:
http://queuingtheory.wordpress.com/2012/04/26/iframe-widt/
Kokemuller, N. (n.d.). Describe the Differences Between the FIFO and LIFO Methods
of Inventory | Chron.com. Small Business - Chron.com. Retrieved July 28, 2013, from
http://smallbusiness.chron.com/describe-differences-between-fifo-lifo-methods-inventory-14396.html
Pawlowski, A. (2008, November 20). Queuing psychology: Can waiting in line be
fun?. CNN. Retrieved July 27, 2013, from
http://www.cnn.com/2008/TECH/science/11/20/queuing.psychology/
fair play
seniority vs. size
"A large job arrives at a queue first and a very short job arrives at a queue a bit later. Is it more fair to serve the first job or the short job first?" (Mayer, 2007)
In order to design a fair queuing system, the operations team will need to determine how to fairly distribute their resources.
seniority
size
refers to the length of time a customer has been waiting in the queue.
refers to the amount of resources needed to service the customer
resource allocation
Designing a fair queuing system requires the answers to these challenging questions.
CONCLUSION
FIFO
LIFO
PROCESSOR
SHARING
PRIORITY
FIRST IN, FIRST OUT (or FIFO)
Applying
FIFO
to customer priority results in customers being served in the order they are received.

The
disadvantage
is that customers who may only need 3 minutes to serve could end up waiting for those who need 30 minutes to serve.
(Kokemuller, n.d.)
LAST IN, FIRST OUT (or LIFO)

Customers that arrive late will be served sooner, giving them the shortest waiting times, while the earlier arrivals remain on queue for the longest waiting times. This is largely considered an unfair queuing approach.

Having a hard time relating LIFO to a real life scenario?
Think: elevators.
(Kokemuller, n.d.)
PRIORITY
is determined by who is served first. Traditionally, smaller jobs are given higher priority & bigger jobs are lower priority.

There are 2 types of Priority:

NON-PREEMPTIVE:
Where a job or specific task can't be interrupted.

PREEMPTIVE
: Where a job can be interrupted by another higher priority job.
is when a task or a job is shared between two others.
PROJECT 6, TEAM 2
CASE STUDY:
THE HEALTHCARE INDUSTRY
Queuing theory has helped resolve the
following questions for the medical field:

•How many nurses are needed at a time on any inpatient unit?

How many
registration staff, nurses, other providers, or exam rooms are needed to provide open access services in a clinic/hospital setting?
•What additional
resources
are needed to decrease the individuals who are not being seen?
•What is the highest
occupancy
/ utilization rate a medical facility can
tolerate
?
AND MANY MORE

By applying
queuing theory,
medical facilities operate at a much higher and efficient level of service, cutting down wait time and guaranteeing the right specialists are on duty to see patients.
One of the biggest and most important service industries is the healthcare field.

Until recently, queuing theory was never applied to the healthcare industry; but now, patients/customers are receiving better treatment and waiting far less.
"When used appropriately, the results are often dramatic: saving time, increasing revenue, and increasing staff and patient satisfaction."
(Institute for Healthcare Optimization, 2013)
(Institute for Healthcare Optimization, 2013)
Why analyze queues? To assess potential areas for improvement. Improving queues can result in increased productivity, revenues and customer satisfaction
improvement
what can be improved?
queue length
refers to the number of customers in the queue at any given time
THE COMPONENTS OF A QUEUE
waiting time
the time a customer has to wait for service
service period
the length of time the server is continuously busy
the key is finding the
fine balance
between resources and customers to ensure customer satisfaction while still meeting the budget.
PROCESSOR SHARING
Figure 1
Figure 2. Stoplight. Retrieved on July 27, 2013 from https://www.auroragov.org/cs/groups/public/documents/digitalmedia/009929.jpg
Figure 3. Queue. Retrieved on July 27, 2013 from : http://myriadrainbowhues.blogspot.com/2013/05/jump-queue-time_25.html
Figure 4. Agner Karup Erlang. Retrieved on July 27, 2013 from http://en.wikipedia.org/wiki/Agner_Krarup_Erlang
Figure 5.
Figure 6. Car Assembly. Retrieved on July 30, 2013 from https://encrypted-tbn2.gstatic.com/images?q=tbn:ANd9GcTsgp6VEIn7vgQQ_Q0seYmysdxhWn_9ZRfhuSO_bRWOVt--kStu
Figure 7. Movie Camera. Retrieved on July 30 from http://us.123rf.com/400wm/400/400/maxxyustas/maxxyustas1211/maxxyustas121100063/16528583-vintage-movie-camera-3d.jpg
An example: When an assembly machine is assembling more then one part in a product.
When a movie director is directing and acting in the same movie.
OR
Figure 8. Retrieved July 27 from http://keplerresearch.zippykid.netdna-cdn.com/files/2012/03/ResourceAllocationPage-280x192.jpg
Figure 9. Disney Logo. Retrieved July 27, 2013 from www.disney.com
Figure 10. Retrieved July 27, 2013 from https://disneyworld.disney.go.com/destinations/epcot/
Figure 11. Retrieved July 27, 2013 from : http://bradmeltzer.blogspot.com/2007/12/lawyers-ruin-disney-world.html
Figure 12. Hospital Symbol. Retrieved on July 30, 2013 from http://leisurelakesrvpark.com/wp-content/uploads/2010/08/Hospital-Symbol.jpg
Figure 14. Disneyland. Retrieved July 28, 2013 from www.disney.com
Figure 15. FedEx. Retrieved July 28, 2013 from www.fedex.com
Figure 16. Las Vegas. Retrieved July 28, 2013 from www.lasvegas.com
Figure 17. Best Buy. Retrieved July 28, 2013 from www.bestbuy.com
Figure 18. Verizon Wireless. Retrieved July 28, 2013 from www.verizonwireless.com
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