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 was growing fast and usually followed
long working hours to manage demand
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 counter on commercial lane
 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-Friday, 7am-midnight; Saturday
reopens, 7am-7pm)
Problems faced by bank
 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
• 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
• Employment Structure {Full Time Tellers (7am-2pm); Part time Tellers (2pm-7pm);(7pm-
midnight)}
• Performs normal Banking functions such as cashing checks, receiving deposits, verifying deposit
balance, selling money orders etc
 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

To calculate teller capacity

2 full-time tellers 4 part-time tellers Assumption

Approx. time per 5 Mins
customer
Transaction per hour 12
Available morning shift only (7 a.m. morning shifts (10 a.m. to
Teller: to 2 p.m.) 2 p.m.)

Transactions,   For 1 lane For 2 lanes

One full time
Morning Shift teller 84 168
afternoon shifts (2 p.m. to
7 p.m.).
One full time
Midday period 48 96
teller

Afternoon One part time

Shift teller 60 120
 Continued..
Table 2: Requirement of number of tellers

Part time Part Time Part Time (2

Shift 1 2 3 4 5 Avg Full time (7 (10 AM-2 PM-7 PM)
AM-2 PM) (2 PM-7 PM)
PM) Extra

Morning 0 15 12 15 14 11 2 1    
Monday
Afternoon 0 11 10 14 9 9     2 0 Table 2 : Proposed
Morning 0 10 11 13 9 9 2 0     teller schedule. Note
Tuesday that 81 part-time
Afternoon 0 7 6 11 7 6     2 0
teller hours have
Morning 17 10 15 12 8 12 2 1     been scheduled.
Wednesday
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: Recommended 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.
THANK YOU