Chapter 1

Introduction

Rationale of the Study

Queuing theory is a well-established area within mathematics and operations

research focused on the analysis of queues or waiting lines. It offers insights into how

waiting lines function under various conditions, the factors that influence efficiency, and

the patterns of customer arrivals and service times. This theory encompasses a wide range

of applications, from people waiting for services to data packets in computer networks and

vehicles at toll booths, with the primary aim of optimizing service delivery systems while

minimizing wait times and ensuring effective resource utilization.

As a subset of operations research, queuing theory has become integral for

organizations seeking to enhance productivity and improve customer satisfaction. It aids

decision-makers in designing systems that facilitate service delivery, optimize staffing, and

improve overall operational flow. According to Will (2021), applying queuing theory

allows businesses to develop balanced systems that deliver timely service while managing

resource expenditure effectively. Additionally, queuing models provide valuable

forecasting capabilities for system performance under varying loads, helping to identify

potential operational bottlenecks.

The impact of waiting in line is a universal experience encountered in everyday

settings such as supermarkets, banks, and online platforms. Importantly, customer

perceptions during their wait can significantly influence overall satisfaction. Research by
Queue-it (2020) indicates that factors such as transparency, fairness, and the perceived

value of service contribute to shaping the queuing experience. For instance, informing

customers of estimated wait times can improve satisfaction levels, as does equitable

treatment within the queuing system.

In a dynamic business environment, organizations face numerous challenges,

including globalization, the demand for responsiveness, revenue generation while

managing costs, and the need for sustainable transformation. These challenges necessitate

agile and data-driven service design, which queuing theory supports directly.

In the financial sector, institutions like the Pag-IBIG Fund are tasked with

delivering efficient and innovative services to their members, encompassing solutions such

as savings and housing loans, alongside features like the Pag-IBIG Loyalty Card Plus. To

uphold public trust and remain competitive, it is essential for the Pag-IBIG Fund to

minimize wait times and enhance the overall customer experience.

Despite advancements, long queues remain prevalent in service-oriented

organizations, affecting customer satisfaction and operational efficiency. This study seeks

to assess the queuing system at the Pag-IBIG Fund, identifying inefficiencies and

proposing solutions for improvement. By leveraging established queuing models, the

research will analyze critical parameters like arrival and service rates, queue lengths, and

waiting times. The outcome will facilitate the identification of bottlenecks, enabling

enhancements to both speed and overall customer experience.

 Moreover, this study will explore strategies to streamline service workflows

through adjustments in staffing, layout improvements, the implementation of appointment

systems, and the integration of digital queue management solutions. These

recommendations aim to enhance service flow and overall operational performance.

Ultimately, the goal is to design a more effective queuing system for the Pag-IBIG

Fund that balances client satisfaction with operational efficiency. This research aspires to

support the Fund's mission of providing high-quality service to its stakeholders, enabling

continued growth and development.

While innovations like the Pag-IBIG Loyalty Card Plus reflect the Fund's

commitment to modernization and client convenience, ongoing improvements in service

delivery are vital. This study will provide a structured approach through queuing theory to

help the Pag-IBIG Fund address present efficiencies while preparing for future service

expansions.

Despite significant advancements in service processes, continued research is

essential to further enhance the efficacy of queuing systems, particularly in the context of

evolving customer expectations and operational demands. Establishing this understanding

presents an opportunity to fill existing research gaps concerning the application of queuing

theory to governmental service organizations.

Theoretical Background

Review of Related Literature

The development of an optimized queueing system for Pag-IBIG Fund Counter 15 is

grounded in several key theories that provide a framework for understanding and improving service

efficiency. These theories offer mathematical models, operational strategies, and service

management principles that support the study’s goal of enhancing the queueing process through

simulation-based approaches.

One of the primary theories relevant to this study is Queueing Theory, developed by Erlang

(1909), which provides the mathematical foundation for analyzing waiting lines. This theory is

essential in understanding customer arrival patterns, service rates, and system efficiency, all of

which play a crucial role in optimizing the queueing system at Counter 15. By utilizing queueing

models, the study seeks to evaluate service performance and identify necessary improvements in

the existing system. Closely related to this is Little’s Law (Little, 1961), which states that the

average number of customers in a queueing system is equal to the arrival rate multiplied by the

average time spent in the system. This principle is particularly useful in measuring queue

performance at Pag-IBIG Fund Counter 15, allowing for the prediction of service capacity and

waiting time reductions.

Another important framework is the Theory of Constraints (Goldratt, 1984), which

emphasizes the identification and elimination of bottlenecks to improve overall efficiency. In the

context of this study, bottlenecks such as slow service rates, inefficient staff allocation, and

unpredictable arrival patterns hinder smooth transaction processing. By identifying these

constraints, the research aims to develop queueing solutions that minimize delays and enhance

service quality. Furthermore, Discrete Event Simulation (Banks, 1996) is a powerful modeling
technique that allows the study to simulate different queueing scenarios, test various optimization

strategies, and predict their effectiveness before implementation. This approach ensures that the

proposed queueing system at Counter 15 is not only theoretically sound but also practical and data

driven.

Additionally, Service Operations Management Theory (Fitzsimmons & Fitzsimmons,

2010) provides insights into how service systems can be structured to improve customer flow and

minimize waiting times. By applying this theory, the study explores strategies such as adjusting

service schedules, implementing priority systems, or modifying queue discipline to create a

smoother customer experience. Another key consideration is Customer Satisfaction Theory (Oliver,

1980), which highlights the relationship between service efficiency and customer perception. Since

long queues and extended waiting times negatively impact customer satisfaction, optimizing the

queueing system will not only improve operational efficiency but also enhance public trust and

satisfaction with Pag-IBIG Fund services.

Finally, Kingman’s Approximation Formula (Kingman, 1961) helps in estimating expected

wait times by accounting for fluctuations in customer arrivals and service rates. This formula is

particularly relevant when analyzing unpredictable spikes in customer flow at Counter 15. By

incorporating Kingman’s model into the simulation, the study can propose solutions that

accommodate varying demand levels while ensuring an efficient and responsive queueing system.

Review of Related Studies

Several previous studies provide insights into the application of queueing theory and

simulation models in optimizing service counters, offering a strong foundation for this research.
These studies demonstrate the practical benefits of queueing optimization and guide the design of

an improved system for Pag-IBIG Fund Counter 15.

Smith et al. (2018) conducted a study on "Application of Queueing Theory in Bank Service

Optimization," which examined how teller services can be improved using queueing models. Their

research showed that proper allocation of service counters and staff adjustments based on demand

can significantly reduce waiting times. This study directly aligns with the Pag-IBIG Fund Counter

15 optimization effort, as both settings involve financial transactions where efficiency is crucial.

Similarly, Lee & Wong (2020) explored "Simulation-Based Analysis of Public Service Counters,"

which tested different staffing and queueing strategies in government offices. Their findings

support this study by demonstrating that simulation models can predict customer flow variations

and help create more effective service solutions.

In a related study, Martinez & Johnson (2019) examined "Reducing Waiting Time in

Customer Service Centers through Queueing Theory," emphasizing that understanding service

rates and customer arrival patterns can lead to significant queue reductions. Their research provides

valuable methodologies that are applicable to analyzing and improving the queueing system at Pag-

IBIG Fund Counter 15. Additionally, Garcia et al. (2021) explored "The Impact of Queueing

Strategies on Customer Satisfaction in Public Offices," which showed that queue management

plays a crucial role in shaping customer perceptions of service efficiency. This aligns with the

current study’s goal of not only improving transaction efficiency but also enhancing customer

experience.

Further supporting the study’s methodology, Cheng & Patel (2022) conducted research on

"Enhancing Service Flow Using Discrete Event Simulation: A Case Study in Government

Transactions." Their study demonstrated how simulation models can predict service demand
fluctuations and optimize queueing strategies—an approach that this research aims to replicate for

Pag-IBIG Fund Counter 15. Similarly, Dela Cruz et al. (2023) analyzed "Customer Flow in

Payment Centers Using Queueing Models," identifying peak transaction hours and adjusting staff

schedules accordingly. Their findings underscore the importance of data-driven decision-making

in queue management, a principle that will guide the development of the optimized queueing

system in this study.

Additionally, Kumar & Singh (2022) in "Optimizing Service Counters through Lean

Queueing Systems" demonstrated how lean management techniques, combined with queueing

theory, can eliminate inefficiencies in government service transactions. Their work emphasizes the

potential of process streamlining, which is a core objective of the queue optimization for Counter

15. Lastly, Nguyen & Tan (2021) studied "The Role of Queueing Simulation in Improving

Customer Service Efficiency," highlighting how simulation-based modeling can assess different

queue structures before real-world implementation. Their research reinforces the study’s

methodology, as it supports the use of discrete event simulation to evaluate proposed queueing

improvements before deploying them at Pag-IBIG Fund Counter 15.

The combination of queueing theory, simulation models, and service optimization

principles provides a strong theoretical and empirical foundation for this study. By integrating

established mathematical models, operations research techniques, and practical insights from

previous studies, this research aims to develop a data-driven, optimized queueing system for Pag-

IBIG Fund Counter 15. The application of these theories and related studies will help minimize

customer waiting times, enhance service efficiency, and improve overall customer experience,

ultimately leading to a more effective and responsive service system.

 Chapter 2

The Problem and its Scope

Statement of the Problem

This study aims to improve the current queueing system at Pag-IBIG Fund Counter 15

Loyalty Card. The result of this study will serve as the basis for improvement.

Specifically, it seeks to answer the following questions:

1. What is the current capacity of Counter 15 Loyalty Card?

2. What is the average service time of Counter 15 Loyalty Card?

3. What is the average operator waiting time of Counter 15?

4. What are the current processes that compose the current queueing system of Counter 15?

5. What are the challenges encountered by the operator under the Counter 15 Loyalty Card?

Scope and Delimitations

Scope:

1. This study focuses on analyzing, simulating, and optimizing the queueing system of Pag-

IBIG Fund Counter 15, specifically for Loyalty Card transactions.

2. It includes time study observations, customer arrival patterns, service rates, and bottleneck

identification.

3. The study utilizes queueing theory models and simulation techniques to propose an

improved service system.

Delimitations:

1. The study does not cover other Pag-IBIG Fund counters or services.

2. External factors such as staff availability, system downtimes, and policy changes are not

within the scope of this study.

3. The simulation results are based on collected historical data and may not account for

unexpected fluctuations in customer volume.

4. The customer waiting time is not part of the collected data.

Significance of the Study

This study is valuable for several stakeholders:

1. Pag-IBIG Fund Management

a. Provides data-driven insights to enhance service efficiency and reduce congestion.

b. Helps in optimizing resource allocation and staff scheduling.

2. Customers

a. Reduces waiting time and improves the overall customer experience.

b. Ensures a more organized and efficient queueing system.

3. Operations and Industrial Engineers

a. Demonstrates real-world applications of queueing theory and simulation

modeling.

b. Serves as a reference for future studies on service system optimization.

4. Government Agencies

a. Highlights the importance of efficient service delivery in public institutions.

b. Provides a framework that can be applied to other government service counters.

Research Methodology

This study employs a quantitative research approach, utilizing time study analysis,

queueing models, and simulation techniques to assess and improve service efficiency at Pag-IBIG

Fund Counter 15. Data collection is conducted through direct observation of customer arrival

patterns, service times, and waiting durations. Time study techniques are used to measure the

average transaction processing time and identify service bottlenecks. In addition to observational

data, customer and staff feedback is gathered through surveys and interviews to better understand

service inefficiencies.

The study applies queueing models such as M/M/1 and M/M/c to analyze the current

queueing system and identify potential improvements. Discrete Event Simulation (DES) is then

utilized to simulate different queueing scenarios, allowing researchers to predict the impact of

various optimization strategies on service performance. Based on the simulation results, an

optimized queueing system is developed with recommendations for reducing wait times and

improving service flow. The final phase of the study involves comparing the proposed system with

the existing setup to validate its effectiveness in enhancing customer service and operational

efficiency.

By integrating theoretical models with practical simulation techniques, this research aims

to develop an optimized queueing system that enhances transaction efficiency at Pag-IBIG Fund

Counter 15, ultimately contributing to improved customer experience and service management.
 Chapter 3
Presentation, Analysis, and Interpretation of Data

Data Gathered at Pag-IBIG Fund Colon Branch

Customer Time Service time Operator Waiting Time

Number Started (minute/s) Time Ended (minute/s)
C1 8:23 AM 3:40 8:27 AM 8:25
C2 8:28 AM 3:55 8:32 AM 50 sec
C3 8:32 AM 3:22 8:36 AM 18 sec
C4 8:40 AM 2:31 8:43 AM 4:28
C5 8:50 AM 1:07 8:51 AM 6:50
C6 8:53 AM 1:23 8:54 AM 1:49
C7 8:56 AM 3:22 9:00 AM 2:00
C8 9:00 AM 4:39 9:04 AM 0
C9 9:07 AM 5:14 9:12 AM 3:18
C10 9:13 AM 7:31 9:20 AM 27 sec
C11 9:27 AM 6:01 9:33 AM 7:16
C12 9:33 AM 4:25 9:39 AM 37 sec
C13 9:39 AM 9:37 9:49 AM 0
C14 9:50 AM 4:25 9:55 AM 1:00
C15 9:55 AM 7:47 10:02 AM 0
C16 10:04 AM 5:00 10:09 AM 2:00
C17 10:09 AM 3:24 10:12 AM 0
C18 10:12 AM 3:02 10:15 AM 0
C19 10:16 AM 2:35 10:18 AM 1:00
C20 10:18 AM 3:28 10:22 AM 0
C21 10:22 AM 1:52 10:25 AM 37 sec
C22 10:27 AM 2:14 10:29 AM 2:03
C23 10:29 AM 7:41 10:37 AM 0
C24 10:37 AM 1:23 10:39 AM 0
C25 10:39 AM 7:03 10:46 AM 0
C26 10:46 AM 9:03 10:55 AM 0
C27 10:57 AM 3:11 11:00 AM 2:06
C28 11:00 AM 8:03 11:08 AM 0
C29 11:12 AM 4:15 11:16 AM 4:02
C30 11:16 AM 4:22 11:20 AM 0
C31 11:22 AM 7:26 11:29 AM 2:05
C32 11:29 AM 4:15 11:33 AM 0
C33 11:33 AM 4:06 11:37 AM 0
C34 11:38 AM 2:36 11:40 AM 1:02
C35 11:40 AM 6:07 11:46 AM 0
Customer Time Service time Operator Waiting Time
Number Started (minute/s) Time Ended (minute/s)
C36 11:46 AM 5:03 11:51 AM 0
C37 11:53 AM 7:05 12:00 PM 2:01
C38 12:10 PM 5:16 12:15 PM 10:15
C39 12:15 PM 4:31 12:19 PM 0
C40 12:19 PM 3:05 12:22 PM 0
C41 12:24 PM 3:52 12:28 PM 2:11
C42 12:28 PM 37 sec 12:28 PM 0
C43 12:30 PM 2:22 12:33 PM 1:18
C44 12:03 PM 2:35 12:35 PM 15 sec
C45 12:37 PM 2:13 12:39 PM 2:05
C46 12:43 PM 1:51 12:44 PM 3:24
C47 12:45 PM 1:20 12:46 PM 1:00
C48 12:46 PM 2:15 12:48 PM 0
C49 12:50 PM 1:27 12:52 PM 2:03
C50 12:53 PM 2:52 12:56 PM 1:02
C51 12:56 PM 3:43 1:00 PM 0
C52 1:01 PM 2:12 1:03 PM 1:04
C53 1:03 PM 1:48 1:05 PM 21 sec
C54 1:06 PM 2:48 1:09 AM 1:08
C55 1:10 PM 1:31 1:12 PM 1:11
C56 1:14 PM 2:41 1:17 PM 2:31
C57 1:17 PM 57 sec 1:18 PM 0
C58 1:18 PM 2:51 1:21 PM 0
C59 1:21 PM 1:11 1:23 PM 0
C60 1:25 PM 58 sec 1:25 PM 2:04
C61 1:25 PM 1:00 1:26 PM 0
C62 1:28 PM 2:54 1:31 PM 2:07
C63 1:31 PM 3:49 1:35 PM 17 sec
C64 1:36 PM 4:35 1:41 PM 1:14
C65 1:41 PM 6:57 1:48 PM 0
C66 2:09 PM 5:42 2:14 PM 20:28
C67 2:15 PM 3:14 2:18 PM 24 sec
C68 2:20 PM 4:29 2:24 PM 2:00
C69 2:24 PM 4:07 2:29 PM 20 sec
C70 2:29 PM 3:48 2:32 PM 0
C71 2:33 PM 3:36 2:37 PM 34 sec
C72 2:43 PM 2:28 2:46 PM 6:38
C73 2:47 PM 3:10 2:51 PM 1:31
C74 2:57 PM 5:13 3:02 PM 5:56
C75 3:02 PM 3:21 3:06 PM 30 sec
C76 3:06 PM 4:05 3:10 PM 0
 Customer Time Service time Operator Waiting Time
Number Started (minute/s) Time Ended (minute/s)
C77 3:10 PM 3:11 3:13 PM 0
C78 3:15 PM 5:14 3:20 PM 2:25
C79 3:22 PM 4:26 3:26 PM 2:07
C80 3:28 PM 7:14 3:35 PM 2:01
C81 3:38 PM 5:21 3:43 PM 3:30
C82 3:45 PM 6:18 3:51 PM 2:15
C83 3:52 PM 6:20 3:58 PM 1:03
C84 4:01 PM 3:14 4:04 PM 3:27
C85 4:08 PM 2:13 4:10 PM 4:25
C86 4:10 PM 3:11 4:13 PM 0

Table 3.0
The table shows the data on customer transactions under Counter 15 Loyalty Card at Pag-

IBIG Fund. It includes the start and end time of each transaction, reflecting the duration of

customer service provided by the operator.

 Customer no. Transaction Customer no. Transaction
1 Loan 26 Payment
2 Loyalty Card 27 Loan
3 Membership 28 Provident Claims
4 Loan 29 Loan
5 Payment 30 Claim
6 Payment 31 Payment
7 Loan 32 Registration
8 Loyalty Card 33 Registration
9 Loyalty Card 34 Registration
10 Payment 35 Membership
11 Payment 36 Loan
12 Loan 37 Registration
13 Pension 38 Registration
14 Membership 39 Billing
15 Loan 40 Loan
16 Loyalty Card 41 Membership
17 Payment 42 Loan
18 Loan 43 Loan
19 Loan 44 Billing
20 Payment Screening 45 Loan
21 Loan 46 Membership
22 Provident 47 Membership
23 Loan 48 Registration
24 Loan 49 Provident Claims
25 Loyalty Card 50 Membership

Table 3.1

The data shows that loans are the most common transaction at PAG-IBIG fund with 18 customers

seeking financial assistance. Membership-related transactions, including new sign-ups and updates,

account for 7 transactions, while payments and registration each total 6 transactions, indicating steady

interaction for housing loans, contributions, or other obligations. Notably, loyalty card transactions appear

5 times, suggesting a moderate interest in PAG-IBIG’s rewards and discount program. Meanwhile,

provident claims (4 transactions) reflect members withdrawing savings, possibly for retirement or

emergencies. Less frequent transactions include billing (2), pension (1), and payment screening (1),

indicating that these services are used less often.

 Figure 3.0

This shows the current layout at PAG-IBIG Fund. The encircled area is the Counter 15
for the Loyalty Card.
 Figure 3.1

The flowchart illustrates the step-by-step process that a PAG-IBIG Fund customer

must undergo to complete a "Loyalty Card" transaction. The process begins with the

customer entering the facility, followed by queuing at the Information Desk. Upon reaching

the Information Desk, the customer receives the necessary guidance and instructions

regarding the transaction. Subsequently, the customer proceeds to the Loyalty Card

Counter, where they must queue again before being accommodated. At the Loyalty Card

Counter, the customer submits the required documents and formally applies for the Loyalty

Card. After this step, the customer joins another queue at the Loyalty Card Station, where

the card processing or issuance takes place. Once the transaction is completed, the customer
exits the facility, marking the conclusion of the process. This flowchart highlights the

structured nature of the procedure, emphasizing the multiple queuing stages involved,

which may contribute to waiting times. Overall, the systematic approach ensures that each

customer undergoes the necessary steps to successfully obtain their Loyalty Card

Figure 3.2

The Ishikawa diagram identifies various factors contributing to an inefficient

queueing system, categorized into four main areas: Environment, Methods, Man,

Materials, and Machine. Under the Environment category, issues such as crowded waiting

areas, mismatched capacity with peak customer volume, inadequate space planning, and

insufficient demand forecasting are highlighted, with a specific emphasis on the lack of

customer demand analysis in facility planning. The Methods section points to inefficient

service processes due to outdated practices, the absence of regular reviews, and a lacking
culture of continuous improvement, culminating in a noted absence of process

improvement initiatives. The Man category discusses workforce-related challenges,

including inadequate training for employees, the absence of structured training programs,

and management's failure to prioritize training budgets or schedules, along with a lack of

awareness regarding the importance of employee training on service efficiency. The

Materials section points out issues such as a shortage of loyalty cards, insufficient

inventory management, and the absence of systems for real-time tracking of resources.

Lastly, the Machine category addresses failures in technology, including outdated systems

and insufficient maintenance routines, highlighting neglect in IT investment and

maintenance planning. Together, these elements illustrate a comprehensive analysis of the

root causes behind the inefficiencies in the queueing system.

 Failure Mode and Effect Analysis
Potential Potential
Process Potential Current
Failure Failure Severity Occurrence Detection RPN
Step/Input Causes Controls
Mode Effect
Lack of
management
Lack of awareness
training for and 8 8 8 None 512
employees prioritization
of employee
training.
Inefficient
service Absence of
processes process
7 8 9 None 504
leading to improvement
long wait initiatives.
times
Neglect in IT
investment
Failures in
Counter and 6 5 4 None 120
technology Inefficient
15 maintenance
Queueing
Loyalty planning.
System
Card Lack of
customer
Crowded
demand
waiting 8 6 5 None 240
analysis in
areas
facility
planning.
Lack of
Shortage of
automated
loyalty 9 8 8 None 576
inventory
cards
management.
Inadequate
tracking Lack of focus
and on
7 8 7 None 392
reporting performance
of wait analytics.
times

Table 3.2

The Failure Mode and Effect Analysis (FMEA) reveals significant vulnerabilities in the

operational processes related to the Counter 15 Loyalty Card system. A critical failure mode is
identified as the lack of training for employees, which has a high Risk Priority Number (RPN) of

512 due to severe impacts on management awareness and prioritization of training initiatives.

Inefficient service processes contribute to prolonged wait times, with an RPN of 504 highlighting

the absence of essential process improvement efforts. Failures in technology further complicate the

situation, particularly related to the inefficient queue management system and an RPN of 120,

pointing to insufficient investment in IT and maintenance planning. Crowded waiting areas and a

shortage of loyalty cards indicate a systemic issue with customer demand analysis, resulting in an

RPN of 240, revealing a lack of automated inventory management. Lastly, inadequate tracking and

reporting of wait times are noted, which reflects a deficiency in performance analytics and supports

an elevated RPN of 392. The analysis underscores a pressing need for enhancements in training,

technology investment, inventory management, and performance monitoring to mitigate potential

failures and improve overall service efficiency.

Severity
Score Description
1 No impact; no disruption in service
2 Minor inconvenience; negligible effect
3 Low service impact; slight delays
4 Moderate impact; service continues but is less efficient
5 Noticeable service disruption; customer dissatisfaction
6 Significant impact; multiple complaints from customers
7 High impact; frequent delays harming overall service
8 Severe impact on customer experience; risk of losing customers
9 Critical failure; major service disruption with widespread impact
10 Catastrophic failure; loss of business and reputation
Table 3.3
 Occurrence
Score Description
1 Failure is exceptionally rare
2 Rare failure; minimal chance
3 Unlikely to occur; minimal historical evidence
4 Some evidence; low likelihood of occurrence
5 Occasional occurrences under specific conditions
6 Frequent occurrences; common complaints reported
7 Often occurs; regular service challenges
8 Very high likelihood; usual part of the service routine
9 Almost certain to happen; highly likely failure
10 Failure is inevitable; continuous issues with service
Table 3.4

Detection
Score Description
1 Failure easily detected before service impact
2 Rarely missed; robust monitoring in place
3 Typically detected; minor lapses possible
4 Moderate detection; some delays in identification
5 Frequent detection, but with occasional oversight
6 Regularly identified, but not consistently timely
7 High chance of missing failures before they affect service
8 Difficult to detect due to service complexity
9 Very likely missed; failure goes unnoticed until severe
10 Almost impossible to detect; failures are completely undetected
Table 3.5
 Graph 3.0

The Pareto Chart highlights several potential causes of issues, ranked by

their Risk Priority Numbers (RPN) alongside their cumulative percentage impact.

The top three bars indicate significant concerns, with "Lack of automated inventory

management" and "Lack of management awareness and prioritization of employee

training" leading the chart due to their high RPN scores. The orange line represents

the cumulative percentage of the total RPN, showing a steep rise that suggests

addressing the first few issues could significantly improve overall performance.

The last two categories, "Lack of customer demand analysis in facility planning"

and "Neglect in IT investment and maintenance planning," exhibit much lower

RPNs, indicating they are less urgent but still important. The analysis emphasizes

the necessity for organizations to prioritize resources and efforts on the top

identified issues, while also considering a long-term strategy to address the lower

impact ones. Ongoing monitoring and evaluation of these causes will aid in refining

priorities and ensuring effective implementation of improvements.

 Peak
30.00

25.00
Time(minutes)

20.00

15.00

10.00

5.00

0.00
Entrance to (Costumer (Service Time) to (Waiting) to (Printing) to
Information Desk Waiting Time) to Loyalty Card Queue Loyalty Card
Queue Station Station
Process

Graph 3.1

The graph provides an overview of the time taken at various stages of a process during

peak hours, with the vertical axis indicating the duration in minutes. The bars represent five stages:

Entrance to Information Desk, Customer Waiting Time to Queue, Service Time to Loyalty Card

Station, Waiting to Queue, and Printing to Loyalty Card Station. A key observation from the graph

is that the Waiting to Queue stage has the longest duration, exceeding 25 minutes, which highlights

a potential bottleneck and significant delays experienced by customers. In contrast, the Entrance to

Information Desk and Service Time to Loyalty Card Station take considerably less time, with the

former being the shortest. The Customer Waiting Time to Queue also reflects a substantial duration,

suggesting that customers are experiencing long waits before they can even queue. Conversely, the

Printing to Loyalty Card Station step demonstrates minimal time expenditure, indicating efficiency

in this area compared to others. The high times in the customer waiting stages suggest a need for

improvements to reduce wait times and enhance overall customer experience. Streamlining the

queue process or increasing resources during peak hours could potentially alleviate these long wait
times. Ultimately, the chart effectively illustrates areas within the process that require attention to

improve efficiency and customer satisfaction during peak periods.

Lean
15.00

12.00
Time(minutes)

9.00

6.00

3.00

0.00
Entrance to (Costumer (Service Time) to (Waiting) to (Printing) to
Information Desk Waiting Time) to Loyalty Card Queue Loyalty Card
Queue Station Station
Process

Graph 3.2

The graph outlines the time spent at various stages of a process during lean operations,

with the vertical axis representing the duration in minutes. It displays five specific stages: Entrance

to Information Desk, Customer Waiting Time to Queue, Service Time to Loyalty Card Station,

Waiting to Queue, and Printing to Loyalty Card Station. In this scenario, the highest time recorded

is for the Customer Waiting Time to Queue, which reaches approximately 12 minutes, indicating a

significant waiting period for customers before they can queue. The Waiting to Queue also shows

a considerable duration, suggesting that this part of the process may require optimization. The

Entrance to Information Desk takes a minimal amount of time, suggesting efficiency in the initial

steps. In contrast, the Service Time to Loyalty Card Station takes even less time, reflecting an

effective service process. The Printing to Loyalty Card Station is also quick, indicating that this

step is performed efficiently. Overall, the graph demonstrates areas within the lean process that

have various time efficiencies and inefficiencies, highlighting particular stages that may benefit

from further improvement to enhance customer experience.

 Chapter 4
Summary, Findings, and Conclusion

This research study aims to enhance the queuing system at Pag-IBIG Fund Counter 15,

specifically focusing on the Loyalty Card transactions, by applying queuing theory and simulation

models. It highlights the significance of optimizing service delivery to minimize wait times and

improve customer satisfaction, a critical aspect for organizations in the financial sector amidst

increasing service demands. The study investigates various operational metrics, including the

capacity, service times, and customer arrival patterns, and identifies existing inefficiencies

hindering customer experience. Through a quantitative approach, data is gathered via direct

observations and analyses, leading to the development of a data-driven, optimized queuing system

that proposes recommendations for improving service flow. Key theoretical frameworks, such as

Little’s Law and the Theory of Constraints, inform the methodology, supporting the analysis of

bottlenecks and predicting service performance under different scenarios. By exploring strategies

such as staff adjustments and digital queue management solutions, the research aspires to design a

more efficient queuing system that not only enhances operational effectiveness but also supports

the Pag-IBIG Fund's mission of delivering high-quality service to its members. The findings

underscore the need for continuous improvement in service processes to meet evolving customer

expectations and operational demands. Ultimately, this study serves as a foundational reference for

future research on service system optimization in governmental organizations.