CASE: RIVER CITY NATIONAL BANK

(Case of Managing Demand & Controlling Capacity)

Submitted by:
Section-A, Group:12
Raj Patel | PGP35181
Ravi Balotia | PGP35182
Rohith Anantha Krishnan | PGP35183
Deepak Shakti | PGP35260
 Introduction
River City National Bank & Gary Miller
 River City National Bank has been in
business for 10 years
 Fastest Growing community bank
 Gary Miller, the President took over the
position 5 years ago
 Youngest Bank President
 High Energy & Enthusiasm
 Resulted in Bank’s advancement &
maintenance of high standards
 Customer Centric
Bank Layout
 Main bank lobby with
 One commercial teller
 Three paying-and-receiving teller booths
 Lobby Timings (Monday-Saturday, 9am-2pm; Friday
reopens, 4pm-6pm)
 Drive In lanes
 3 Lanes on each side
 One commercial lane on each side
 One walk-up window to the side of the drive-in
 Drive in Timings (Monday-Saturday, 7am-midnight;
Saturday reopens, 7am-7pm)
Problem Statement
 Over crowded lanes and lobby
 Long Wait time on lines for customers
 High complaints from old and new customers
 Proposed layout of Remote Drive-In
Proposed Layout
• The first lane on either side is commercial only, and the last lane on each side has been built but
is not yet operational. Hours for this facility are 7 AM to 7 PM, Monday through Saturday
• Recommended by BODs
 Demand Fulfillment Problems & Proposed Solutions

Customer not
Proposed Solutions
ready with
required slips or Capacity Control
pen when
Altering Demand
reaches the
counter

1. Encouraging use of 1. Appointing part time

facilities on off peak days.
2. Using signboards outside
to inform customer about
High Demand on
peak hours.
Slow functioning
Paydays and
Fridays
Problems of bank
3. Incentive gift such as pen
or calendar to shift
customer to off peak days.
4. Other incentives include
reducing monthly service
charge
5. Training customer &
their employers on direct
Customers not
aware of the deposit options
new facility 6. SOPs for customers who
are going to reach counter
tellers and preparing
proper shifting schedules
for Weekdays.
2. Analyzing teller
capacity and further
allocating teller hours to
match daily demand
volume.
3. Analyzing daily
transaction demand and
utilization proportion for
both morning and
afternoon shifts
 Table 1: Statistical Analysis of Transactions by Day of Week and Shift

Mean Standard 95 % Demand

Shift 1 2 3 4 5 Sum Number Deviation Level

Morning   175 149 182 169 675 168.75 14.20 196.58

Monday
Afternoon   133 120 171 111 535 133.75 26.42 185.54
Morning   120 136 159 112 527 131.75 20.73 172.37
Tuesday
Afternoon   85 77 137 89 388 97.00 27.13 150.17
Morning 200 122 182 143 92 739 147.80 43.87 233.78
Wednesday
Afternoon 195 115 186 103 95 694 138.80 47.84 232.56
Morning 156 111 172 118 147 704 140.80 25.74 191.26
Thursday
Afternoon 113 100 152 99 163 627 125.40 30.07 184.34
Morning 223 236 215 206 259 1139 227.80 20.63 268.24
Friday
Afternoon 210 225 230 197 298 1160 232.00 39.11 308.65
 Teller Capacity
• Tellers available for the remote drive-in include 2 full-time tellers who work the morning shift only (7 a.m. to 2 p.m.),
Monday through Friday, and 4 part-time tellers who work various combinations of morning shifts (10 a.m. to 2 p.m.) or
afternoon shifts (2 p.m. to 7 p.m.). Each part-time teller works 20 hours per week, excluding Saturdays. This yields a
total of 80 part-time teller-hours per week to supplement the 70 full-time hours for the two full-time tellers. The
problem involves allocating these 150 teller hours to meet the daily demand levels for the week.
• In order to calculate teller capacity, it is assumed that each teller can service two lanes and that all eight lanes
can be used when needed.
• These people can become quite obstinate and take up a lot of time when they find that their checks cannot be
cashed. Transactions take 30 seconds on average; transaction times range from 10 seconds for a straight deposit
to 90 seconds for cashing a bond to about 3 minutes for making out traveler’s checks. (The latter occurs very
rarely.)
• The number of transactions per lane that are possible is based on a typical transaction, which takes
approximately five minutes per customer when we account for all the delays such as moving the car into
position, filling out forms, counting money, and pulling away. Thus, each open lane can accommodate 12
transactions per hour. (Table X)
• For the morning shift (7 a.m. – 2 p.m.), one teller can accommodate 168 transactions, a teller working during the
midday period (l0 a.m. – 2 p.m.) can process 96 transactions, and one afternoon (2 p.m. – 7 p.m.) teller can
handle 120 transactions. Because of the prevailing policy, the two full-time tellers are scheduled to cover the
morning shift each day. The remaining 80 hours of part-time teller capacity is allocated to the midday and
afternoon to create a schedule that has a reasonably consistent percent utilization across the weekdays. (Table Y)
 Continued..
Transactions,   For 1 lane For 2 lanes
Assumption One full time
Morning Shift 84 168
teller
Midday One full time
Approx. time per customer 5 Mins 48 96
period teller
Afternoon One part time 60 120
Shift teller
Transaction per hour 12

Table 2: Requirement of number of tellers

Part time Part Time Part Time
Full time (7
Shift 1 2 3 4 5 Avg (10 AM-2 (2 PM-7 (2 PM-7
AM-2 PM) PM) PM) Extra
PM)
Morning 0 15 12 15 14 11 2 1     Table 2 : Proposed
Monday
Afternoon 0 11 10 14 9 9     2 0 teller schedule. Note
Morning 0 10 11 13 9 9 2 0    
Tuesday
Afternoon 0 7 6 11 7 6     2 0
that 81 part-time
Morning 17 10 15 12 8 12 2 1    
teller hours have
Wednesday been scheduled.
Afternoon 16 10 16 9 8 12     2 1
Morning 13 9 14 10 12 12 2 0    
Thursday
Afternoon 9 8 13 8 14 10     2 0
Morning 19 20 18 17 22 19 2 2    
Friday
Afternoon 18 19 19 16 25 19     2 2
 Teller 2: Teller Schedule
Day Shift Requirement of workers
Morning two full-time 7-2 one part-time 10-2
Monday
Afternoon two part-time 2-7  
Morning two full-time 7-2  
Tuesday
Afternoon two part-time 2-7  
Morning two full-time 7-2 one part-time 10-2
Wednesday
Afternoon three part-time 2-7  
Morning two full-time 7-2  
Thursday
Afternoon two part-time 2-7  
Morning two full-time 7-2 two part-time 10-2
Friday
Afternoon four part-time 2-7  

Total teller hours per week: 70 full-time

and 81 part-time
 Table 3:Transaction Capabilities of Tellers as Scheduled in Table 2
95 % Percent
 Table 3: Shift Lanes Open Total Capacity Demand
Utilization
Level
Morning 5.14 431.7 196.57 45.5%
Monday
Afternoon 4 240 185.54 77.3%
Morning 4 336 172.37 51.3%
Tuesday
Afternoon 4 240 150.17 62.6%
Morning 5.14 431.76 233.77 54.1%
Wednesday
Afternoon 6 360 232.55 64.6%
Morning 4 336 191.25 56.9%
Thursday
Afternoon 4 240 184.34 76.8%
Morning 6.29 528.36 268.23 50.8%
Friday
Afternoon 8 480 308.65 64.3%

1. Lanes Open assumes each teller serves two lanes.

2. Total Capacity is calculated as follows:
(lanes open) (hours/shift) (12 transactions/hour/lane)
3. percent Utilization is calculated as follows:
95 percent demand level/total capacity
*Calculated using a weighted average, because the two full-time tellers work from 7 to 2 and the part-time teller(s) work(s)
from 10 to 2.