Optimal Workforce Mix in Service Systems with Two Types of Customers

Production and Operations Management (Impact Factor: 1.44). 01/2009; 14(2):218 - 231. DOI: 10.1111/j.1937-5956.2005.tb00020.x


We consider a service system with two types of customers. In such an environment, the servers can either be specialists (or dedicated) who serve a specific customer type, or generalists (or flexible) who serve either type of customers. Cross-trained workers are more flexible and help reduce system delay, but also contribute to increased service costs and reduced service efficiency. Our objective is to provide insights into the choice of an optimal workforce mix of flexible and dedicated servers. We assume Poisson arrivals and exponential service times, and use matrix-analytic methods to investigate the impact of various system parameters such as the number of servers, server utilization, and server efficiency on the choice of server mix. We develop guidelines for managers that would help them to decide whether they should be either at one of the extremes, i.e., total flexibility or total specialization, or some combination. If it is the latter, we offer an analytical tool to optimize the server mix.

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Available from: Saligrama Agnihothri, Oct 05, 2015
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    • "Sometimes, it is necessary first to scale a database of activity processing times and, from this data set, workforce scaling and allocation can be performed. Accordingly, any information on the workforce that is to conduct the activities should have some of the following attributes (Naveh et al., 2007; Gresh et al., 2007; Hu et al., 2007; Chakravarthy and Agnihothri, 2005; Easton and Rossini, 1997): "
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    ABSTRACT: Building on a study of quantitative and qualitative approaches to workforce planning, a structure and a set of steps are proposed for conducting workforce planning projects in organizations. This approach contemplates four styles of governance applicable to a workforce planning project and the combinations (centralized or decentralized) to be used in the process of reaching decisions in the various difference organizational units. Its structure also comprises the sequencing necessary for workforce planning, as well as the various elements that make up each of the steps. Lastly, its application leads to the systematic construction of an information base that can contribute to enhancing the assertiveness of workforce planning decision making.
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    • "When there are only two skill types, technicians are either dedicated or cross-trained. Shumsky (1999), Agnihothri (2000), and Chakravarthy and Agnihothri (2003) used analytical queueing models while Agnihothri et al. (2003) used simulation to study such systems with queueing delays . In comparison, our paper studies three skill types, efficiency in secondary skills, and mismatch. "
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    ABSTRACT: To be cost-effective, field service managers must balance the high cost of machine downtime with the high cost of cross-training technicians in multiple skills. We study a field service system with three job types requiring three different skills. Each server has a primary skill, the cost of which is considered sunk, and up to two secondary skills, which is a managerial decision. We model two important characteristics that distinguish field services: server–job mismatch and the ratio of travel time to service time. We use a queueing framework and simulation to study three cross-training decisions: the number of servers cross-trained in secondary skills, the number of secondary skills each server should have, and the efficiency in each secondary skill. We find that complete cross-training is cost-effective in some field service situations. Typically, efficiency in secondary skills must be close to 100%, but when the probability of mismatch is high and the ratio of travel time to service time is high, efficiency in secondary skills must be less than 100%.
    Decision Sciences 04/2004; 35(2):239 - 257. DOI:10.1111/j.00117315.2004.02642.x · 1.36 Impact Factor
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    ABSTRACT: As the trend towards more after sales service progresses through the industrial equipment industry, equipment manufacturers are offering comprehensive service contracts in which they take full responsibility for the functioning of their customers’ machines. These contracts increase the importance of capacity decisions in maintenance field operations. We evaluate the possibility to deploy technicians dedicated to preventive maintenance instead of fully cross trained technicians based on a real case in the compressed air industry. Our contribution consists of identifying the factors that influence the optimal cross training policy while taking into account the effect of the capacity decisions on the maintenance demand.
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