The Problem of Queing in the Financial Institution free essay sample

Introduction As the world turns to a global village characterized by intense and ever increasing competition, operation bank managers continue to experience wrenching changes, which they must keep up with for survival. Bank customers have also become increasingly demanding. Today, they require high quality, low price and immediate service delivery and tomorrow, they want additional components of value from their chosen banker. Since service delivery in banks is personal, customers are either served immediately or join a queue (waiting line) if the system is busy.Waiting line is what we encounter everywhere we go, while shopping, checking into hotels, at hospitals and clinics e. t. c in additional non-queuing environment, customers left confused as what line to stand in, what counter to go to when called by noisy crowded environment (Yechiali etal, 1995). They obvious but unfortunately at large either because nobody speaks for this most marginalized sector of our society or because many pretend that such issues are not significant. We will write a custom essay sample on The Problem of Queing in the Financial Institution or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page The Government found it difficult to handle the situation or they are not aware of it because is considered as the institutions problem that many to those in different areas. Many societies know the true situation they perceive. All though this is not an excuse for failure to intervene, it is necessary to armed with relevant data and information that will validate the problem that people are facing, convince policy 1 makers, service providers, community leaders, government and other stakeholders, and inform the planning of future interventions.Bank customers accumulate numerous experiences that we cannot maintain to sufficiently understand; they are seen but are not heard and thus poorly understood. This research seeks to create a mechanism for these people’s voices in Tanzania that has in Dodoma, it seeks to understand the true situation in the region and thus provide initial baseline information from which necessary benchmark to be provide. 1. 1 Statement of the Problem The problem of queuing in the Financial Institutions in Dodoma. Consistent to now days of development, the process has become one of the big issues that are barely observing.Problem is not reducing. This study questions the level of effectiveness of the services and liability that hold on approaches considered inadequate in influencing the changes. It therefore wishes to examine these approaches, the messages derive from them, and the motives underlying resolve to early approaches despite of the changing of some systems of services in those Banks. 1. 2 Objective of the study The obvious cost implications of customers waiting range from idle time spent when queue builds up, which results in person-hour loss, to loss of goodwill, which may occur when customers are dissatisfied with a system.However, in a bid to increase service rate, extra hands are required, which implies cost to management. 2 The responsibility is then on the management to strike a balance between the provision of satisfactory and reasonable quick service and minimizing the cost of such service. Thus, the management should evaluate performance of different queuing structures and strike a middle ground between costs on one hand, which is the main thrust of this study.The primary objective of this study in the line with the identified problems is to determine whether the present capacity level in the banking industry, using National Microfinance bank (NMB) as a case study. Strike a balance between the cost of providing service and the time of waiting. This was carry out by measuring: i. ii. iii. The number of customers waiting service The processing time and The probability that the facility will be idle The study specifically aims to determine; i. ii.The amount of customer is likely to experience in a system; How the waiting time will be affected if there are alteration in the facility to the system, and, iii. Make policy recommendation base on the findings from the study. 3 1. 3 Justification of the study The previous works on the subject matters of this study only identify the need for the application of queuing models to customer waiting problem in different banks and associated costs but fails to determining the maximum number of services that can be used in order to minimize total expected costs and achieve optimal customer satisfaction.The specific objectives of the research shall be: i. Find out the problems that facing customers who have an account to those Banks in Dodoma. ii. iii. iv. v. Provide data of the people who are facing the problem in the region. Obtain the reasons for these people are in the situation. To assess, in a participatory way, the needs of the customers Make policy recommendations on the findings from the study on effective actions that can reduce the problem of which they can be solved to those people. The research will attempt to answer the following questions: 1. 4 Research questions i. ii. iii. iv. v.Which categories of customers are in a particular problem? What are their attitudes to the problem? How many are getting good services from the Banks? What are their unique experiences (opportunities, knowledge, and challenges)? The time they spending in the line (queue) Queues are integral parts of any service system, which refers to the whole situation from arrival of inputs or times to their departure. According to Ashley (2002), the variants of queuing models that can be applied to waiting problems include; a simple system, multi-channel system, constant service and limited population model.A simple system (MMI) is a single line and single server system, which consists of items forming a single queue, which is served by a single facility while a multichannel system is a system where two or more servers available to handle arriving customers’ needs. Here a common line is formed and the customers at the head of the line proceed to the first free server. In Nigeria, a study conducted by Oladabo (1988) revealed a positive correlation between arrival rates of customers and bank’s service rates. He concluded that the potential utilization of the banks service facility was 3. 18% efficient and 68. 2% of the time.