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The mathematical relationships predicting average waiting time as a function of arrival patterns, service time distributions, number and types of servers, and various queue disciplines are well known. In this note, we address the problem of managing queues by managing perceptions of waiting. Basic operations-management principles can easily address issues of fairness: form one line instead of many; apply first-come, first-served principles (unless an "express lane" can be formed in a way that everyone finds fair); do not allow line jumping. Innovative approaches to queue management, though, can alleviate or reverse the boredom and manage expectations, making the process less painful for customers and front-line employees through three mechanisms: (1) eliminating or reducing the wait, (2) managing expectations, and (3) enhancing the experience. We discuss numerous examples of innovative queue management that fit into this framework.

Student spreadsheet for cases UV7389 and UV7392.

This case was a runner-up in the Decision Sciences Institute (DSI) 2017 case competition. Anna Pessah, process engineer at Summit Funding (Summit), a mortgage-loan-processing company, is reflecting back on her year at the company. Pessah had been hired to improve operations at the firm-to make the core operations cheaper, faster, and of a higher quality. She had addressed two key operations: loan closings and verifications of employment (VOE). Her next tasks involved improvements at the 28 branches and reaction to a corporate-wide improvement program entitled "Project Ninja." Pessah had implemented a system called "pods," similar to manufacturing cells, in order to address loan closings. Data is given for the student to analyze the implications of this approach and suggest alternatives. Data is also given for analyzing the VOE process and deriving an approach to the branch productivity problem. Finally, the Project Ninja memo is given, and students are asked to evaluate this initiative.

This is a technical note that describes the history of Lean and explains why it is not just a manufacturing tool. It is used in Darden's "Management of Service Operations" course elective.

The strategic and tactical problems of managing the operations function in a service environment can be examined through the context of the Walt Disney Company (DIS) opening Shanghai Disneyland. The company and its investors were excited about the Shanghai opening for a good reason: demographics. The resort would be located in the Pudong district of Shanghai, easily the wealthiest of all of China's districts. A massive 330 million people lived with a three-hour driving radius of the resort site, compared with 19.6 million who lived within the same radius at DIS's most profitable park, Walt Disney World in Orlando, Florida. Still, risks remained. Construction complications had delayed the opening almost a year longer than expected and cost overruns and alterations had increased the final price tag of the project. The Chinese economy had also hit a rough patch following the Chinese stock market slump in the summer of 2015. With the world watching, could the classic Disney theme park experience be delivered with the right cultural balance to appeal to its largely Chinese customers? Could DIS get it right?

Though the world has recently been described as "flat," we contend that it is also "lumpy." Some managerial practices may be universal (i.e., applicable across all cultures), while others may have to be customized for location. In this technical note, we discuss the application of kaizen principles across cultures. When managers analyze kaizen with cultural values in mind, they may find the key to its practical success, and where relevant values or predispositions do not come naturally, adjustments may benefit from a pragmatism based on cultural fluency.

Process behavior charts-also called control charts or Shewhart charts after their creator-provide a means to interpret data as they are generated. While many statistical methods and graphs are useful only for post hoc analysis, control charts provide a visual and statistically sound basis for identifying issues in a process as they arise, ideally allowing prevention of failures before they occur.

This brief case discusses the graduation hooding ceremony at the Darden School of Business at the University of Virginia. Its purpose is to provide practice in calculating process operating parameters such as takt time, throughput rate, throughput time, and capacity. It also provides an example of the use of Little's Law and Operator Loading Charts.

In an effort to save his business, Paul Marciano, the owner of Italian family restaurant Maria's Ristorante, runs a number of experiments focused on improving the customer experience around his target customer segment. These experiments lead to a better understanding about his business and cause him to make specific changes to his business model that ultimately improve things across the board. The experiments are based on research from the academic literature on the use of behavioral variables to manage customer perceptions.

This case examines the queueing issues caused by the growth in popularity of one of the most visited Hindu temples in the world. On January 2, 2015, Ramesh and Vasantha Gupta visit Tirumala Venkateswara Temple, just a day after some 210,000 people crowded the 2,000-year-old site. The case describes the many enhancements that the temple administrator, Tirumala Tirupati Devasthanams (TTD), has implemented since its management of the temple complex began in 1932. The soaring popularity of the temple, however, has led to safety and comfort concerns for pilgrims. While challenging students to consider additional improvements that might benefit pilgrim throughput rate and time in the temple system, the case highlights the tension TTD must manage between maximizing efficiency and maintaining religious traditions. Additionally, the case demonstrates the importance of perceived waiting times in the management of queues.

This note offers a brief overview of two techniques used in continual improvement programs: fishbone (Ishikawa) diagrams and Pareto charts.

This case has been taught successfully in a second-year MBA elective, "Management of Service Operations," in a module on service system design. The material works well to unfold with Frances Frei's service model framework. Ari Straus, a former customer of Monticello Motor Club (MMC), brought that customer perspective with him to take on the roles of CEO and president. MMC was a high-end service business with an exclusive clientele. As much as the asphalt track, racecars, and clubhouse facilities attracted members and guests, the staff's professionalism and personal touch kept them coming back and kept them recommending the club to their acquaintances.

Charlie Reese, an operations manager for a fragrance manufacturer, is given a directive to reduce costs in order to free up working capital for other initiatives. Reese discovers that his initial plan to approach the problem from an inventory perspective would be unsustainable. In evaluating his options, he must determine which other areas of the production process to focus on.

Modeled loosely after the American restaurant chain Chipotle, Picante Mexican Grill seeks to offer fresh and healthy vegetarian fast-food options. The owners of this start-up chain in Gurgaon, India, struggle to manage their quickly growing operation. As they consider expanding into new locations, diverse issues-including determining store hours, location, managing centralized production, and meeting staffing needs-challenge the entrepreneurial trio.

The airline passenger industry in India was a mess in 2013, but the low-cost carrier, IndiGo, was making money. This relatively new company had managed to work against the odds and grab market share from longer-established flyers. Still the weak rupee, depreciated by 15%, was sending a chill wind through the aviation sector, and growth plans would have to include opening new destinations. This meant hiring more employees, opening more ticketing stations, and increasing costs. Could the airline continue its climb or would it be prudent to prepare for a hard landing?

Amazon.com had purchased Zappos in 2009 and was making significant investments in warehouse infrastructure. By early summer 2012, Zappos, a dominant player in the crowded online retail apparel and footwear arena must decide whether to retain its warehouse complex in Kentucky, which it had maintained since 2002, or turn over the operations to Amazon. Should Zappos continue to operate as an entity external to its parent company? Or would advancements and changes in the market be disruptive enough to force Zappos to change in order to remain competitive?

This note reviews the effect setup time, batch size, and throughput time have on each other by providing everyday examples.

Waiting lines, sometimes called queuing situations, are encountered widely in business operations. Improvements to the waiting-line process can result in better use of labor, equipment, and facilities, and a greater capability to provide customers with a level of service that matches the business objective. This Reading presents methods for determining the resources needed to provide particular service attributes in waiting-line situations. It emphasizes developing intuition regarding the impact of utilization, system size, and variability on performance characteristics. It includes an explanation of an approximation formula for determining the average waiting time and line length for queuing situations and covers managing customer perceptions of waiting.

A problem set to review the concepts of continuous review inventory systems. These problems can be assigned for additional practice in calculating order quantities, inventories, and relevant costs. This can be used with the notes "Managing Inventories: Determining Order Quantity" (UVA-OM-1395) and "Managing Inventories: The Reorder Point System" (UVA-OM-1394).

With a cross-disciplinary perspective, this field-based case series uses the purchase of a manufacturing company based in China to set the stage for an analysis of cost accounting, operational effectiveness, and cross-cultural communication. It offers a discussion about the strategy to purchase a Chinese firm to enter a promising business line for the Chinese market and provides an opportunity to introduce basic accounting, management communication, and operational terms that can be explored in following classes. The material includes an overview of a partnership between a Westerner and two Chinese executives, the issues they discovered through due diligence, plans to break into a new market, and their efforts to communicate lean manufacturing principles in another language and culture. If possible, inviting colleagues from accounting, communications, or operations to jointly teach the class enriches the discussion and provides an integrated learning experience. The A case opens with an overview of the capacitor factory in the province of Henan, China that Peer Nielsen, Baocheng Yang, and Zhihong Li are thinking about purchasing. They discovered several issues: workers' wages had gone unpaid for months, payroll taxes were years in arrears, one of the company's most profitable production lines had been "rented out." Not only were local competitors using its technology, some were producing the same capacitors under the China Star brand. Then there were the production lines that lacked raw materials and the huge unexplained power bill. But the political brass in the region was eager to see new owners purchase the factory with intent to manufacture and would provide the necessary permits and support to get started. Should the group buy it?