Winter park hotel

case ANALYSIS




Prepared by:

Nirmit Doshi 15
Sadaf Khan 26
Himanshu Jha 25
Mohit Vyas 60
Saloni Sharma 56

2013
Submitted to:
Prof. Mahesh K. C

2 WINTER PARK HOTEL CASE ANALYSIS
CASE OVERVIEW

Donna shader is manager of the Winter Park Hotel, is considering how to restructure the
front desk to reach an optimum level of staff efficiency and guest service. At present the
hotel has 5 clerks on duty each with a separate waiting line, during peak check-in time of
3:00 to 5:00 p.m. On average 90 guests arrive each hour. And it takes average 3 minutes for
the front-desk clerk to register the guest. Donna is considering 3 plans for improving guest
service by reducing the length of time guest spend waiting in line.
1. First proposal
Designate 1 employee as a quick service clerk for guests registering under corporate
accounts, a market segment that fills about 30% of all occupied rooms. As corporate
guests are preregistered, their registration will take only 2 minutes. With these guests
separated from the rest, the average time for registering a typical guest would be 3.4
minutes. Non-corporate guest can choose any line from the remaining lines.
2. Second proposal

To implement single line system. All guests could form a single waiting line to be served
by whichever of five clerks became available. This option requires sufficient lobby space
for what could be a substantial queue.

3. Third proposal

It involves using ATM for check-ins. It will provide same service rate as a clerk would.
Initial use of technology might be minimal, Shader estimated that 20% of customers
would be willing to use machines (this might be a conservative estimate if the guest
perceive direct benefits from using the ATM, as bank customers do. Citibank reports that
some 95% of its Manhattan customers use its ATMs.) Donna would set up a single queue
for customers who prefer human check-in-clerks, although Donna is hopeful that the
machine will allow a reduction to four.

DISCUSSION QUESTIONS:
1. Determine the average amount of time that a guest spends checking in. How would this
change under each of the stated option?
2. Which option do you recommend?

3 WINTER PARK HOTEL CASE ANALYSIS
SOLUTION

The Current System:
The current system has five clerks each with his or her own waiting line.
This can be treated as five independent queues each with an arrival time of 90/5 = 18 per
hour.
The service rate is one every 3 minutes, or 20 per hour.
Number of servers = 1
Operating Characteristics
Average server utilization = 0.9000
Average number of customers in the queue (L
q
) = 8.1000
Average number of customers in the system (L) = 9.0000
Average waiting time in the queue (W
q
) = 0.4500
Average time in the system (W) = 0.5000
Probability (% of time) system is empty (P
0
) = 0.1000

First proposal
1. 30% arrivals
Arrival rate 0.3(90)= 27 per hour
Service rate (2 minutes)= 30 per hour

2. For remaining 63.
Arrival rate 63/4=15.75
Service time (3.4 minutes)=17.65 per hour.
Number of server= 1

4 WINTER PARK HOTEL CASE ANALYSIS
Operating Characteristics (1)
Average server utilization (r) 0.9000
Average number of customers in the queue (L
q
) = 8.1000
Average number of customers in the system (L) = 9.0000
Average waiting time in the queue (W
q
) = 0.3000
Average time in the system (W) = 0.3333(20 mins)
Probability (% of time) system is empty (P
0
) = 0.1000
Operating Characteristics (2)
Average server utilization (r) = 0.8925
Average number of customers in the queue (L
q
) = 7.4098
Average number of customers in the system (L) = 8.3023
Average waiting time in the queue (W
q
) =0.4705
Average time in the system (W) =0.5271(31.8 mins)
Probability (% of time) system is empty (P
0
)=0.1075
The average time for all arrivals would be 0.3(20) + 0.7(31.8) = 28.3 minutes.





5 WINTER PARK HOTEL CASE ANALYSIS
SECOND PROPOSAL
A single waiting line for the five clerks
queue with arrival time90 per hour
Service rate=20 per hour.
Number of server= 5

Operating Characteristics
Average server utilization (r) 0.9000
Average number of customers in the queue (L
q
) =6.8624
Average number of customers in the system (L)= 11.3624
Average waiting time in the queue (W
q
)= 0.0762
Average time in the system (W)= 0.1262(7.6 mins)
Probability (% of time) system is empty (P
0
)= 0.0050








6 WINTER PARK HOTEL CASE ANALYSIS
THIRD PROPOSAL

1) 20% arrivals
Service rate 20%
Arrival rate 0.2(90)= 18 per hour
It is same as current system
Average time in the system (W)= 0.5000
The remaining arrival rate=72 hours
Service rate=20
Number of servers= 4

Operating Characteristics
Average server utilization (r) 0.9000
Average number of customers in the queue (L
q
)= 7.0898
Average number of customers in the system (L)= 10.6898
Average waiting time in the queue (W
q
) =0.0985
Average time in the system (W)= 0.1485 (8.9 mins)
Probability (% of time) system is empty (P
0
)= 0.0113
With four servers, the average time in the system is 8.9 minutes, resulting in an
overall average 0.2*30 + 0.8*8.9 = 13.1 minutes



7 WINTER PARK HOTEL CASE ANALYSIS
2) The remaining

arrival rate=72 hours
Service rate=20
Number of servers= 5


OPERATING CHARACTERISTICS
Average server utilization (r) 0.7200
Average number of customers in the queue (L
q
) =1.0553
Average number of customers in the system (L)= 4.6553
Average waiting time in the queue (W
q
)= 0.0147
Average time in the system (W) =0.0647(3.9 mins)
Probability (% of time) system is empty (P
0
)= 0.0228
With five servers, the average time is 3.9 minutes resulting in an overall average
0.2*30 + 0.8*3.9 = 9.1 minutes

RESULT & CONCLUSION:
Waiting time is lower in second proposal it is just 7.6 minutes.
So the option that is to be recommended is 2
nd
.