Development and implementation of a capacity planning model for the service industry.
Item
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Title
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Development and implementation of a capacity planning model for the service industry.
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Identifier
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AAI9521297
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identifier
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9521297
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Creator
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Massimino, Phoebe M.
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Contributor
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Adviser: David Dannenbring
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Date
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1995
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Language
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English
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Publisher
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City University of New York.
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Subject
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Business Administration, Banking | Business Administration, Management | Business Administration, General
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Abstract
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The model developed for this dissertation applies capacity planning principles and concepts to a direct mail response "paperwork" process.;Many service firms avail themselves of marketing promotions, such as television and radio advertisement, and more recently, direct mail solicitations to attract customers. Frequently, these campaigns can be characterized as generating intense activity for discrete periods of time. The above will be referred to as "Campaign Demand".;One of the distinguishing aspects of a customer-generated paperwork process is rework due to customer error. Items with omitted or incorrect information are returned to the customer, or a letter sent, to obtain the required information before processing can be completed. During this stage, there is attrition, since only a percentage of customers respond to the request, and then repair work for the returned items. The resubmitted items have a variable return time that is outside the control of the company, since some customers forward information promptly, and others delay response. The effect of both attrition and variable return time can be significant and therefore need to be accounted for to produce a capacity plan that accurately reflects a paperwork environment.;A general spreadsheet model is developed to provide the number of staff and machines needed on a daily basis and identify under and over capacity situations. The major features of the model are: (1) campaign demand response pattern, (2) variable return time, (3) prescriptive as well as descriptive variations, (4) cost tradeoffs, (5) the ability to handle various arrival patterns for incoming work, and (6) the ability to handle operational occurrences such as equipment breakdowns and interrupted mail delivery, among others.;The general model was adapted to an actual case study in a major US Bank. This case study demonstrated that the model is beneficial for resource planning since it identified potential backlogs and idle time in advance, and provided for scenario analysis.;This model can be applied to a wide variety of service organizations. Any large organization receiving paperwork originating from consumers, that must (in the case of omitted information) obtain additional information in order to complete processing can potentially benefit from this model.
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Type
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dissertation
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Source
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PQT Legacy CUNY.xlsx
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degree
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Ph.D.
