Frontiers in Operations: Waiting Experience in Open-Shop Service Networks: Improvements via Flow Analytics and Automation

Abstract

Problem definition: We study open-shop service networks where customers go through multiple services. We were motivated by a partnering health screening clinic, where customers are routed by a dispatcher and operational performance is measured at two levels: micro-level, via waits for individual services, and macro-level, via overall wait. Both measures reflect customer experience and could support its management. Our analysis revealed that waits were long and increased along the service process. Such long waits give rise to negative waiting experience and the increasing shape is detrimental as it is known to create perceived waits that are even longer. Our goal is hence to analyze strategies that shape and improve customers’ perceived experience. Methodology/results: Analytically, we use a stylized two-station open-shop network to show that prioritizing advanced customers, jointly with pooling (virtual) queues, can improve both macro- and micro-level performance. We validate these findings with a simulation model, calibrated with our clinic’s data. Practically, we find that an automated routing system (ARS), recently implemented in the clinic, had a negligible impact on overall wait—It simply redistributed waiting among wait-for-routing and wait-for-service. However, ARS renders applicable sophisticated priority and routing policies (that were infeasible under the manual routing practice), specifically the ones arising from the present research. Managerial implications: Our study amplifies performance benefits of accounting for individual customers’ system status in addition to station-level load information. We offer insights into the implementation of new technologies: Firms better plan for fundamental changes in their operation rather than harness new technology to their existing operation, which may be suboptimal due to past technical limitations. History: This paper has been accepted in the Manufacturing & Service Operations Management Frontiers in Operations Initiative. Funding: M. Chen acknowledges the support from the National Natural Science Foundation of China [Grant 72301280]. O. Baron acknowledges the support from the Natural Science and Engineering Research Council of Canada. J. Wang acknowledges the support from the City University of Hong Kong [Grant 11505421]. A. Mandelbaum is partially supported by the Israel Science Foundation [Grant 491/22]. Supplemental Material: The online appendices are available at https://doi.org/10.1287/msom.2022.0590 .