Models for Improving Team Productivity at the Federal Reserve Bank

Kut C. So (), Christopher Tang () and Robert Zavala ()
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Kut C. So: Graduate School of Management, University of California, Irvine, California 92697
Christopher Tang: Anderson School of Management, University of California, Los Angeles, California 90095
Robert Zavala: Check Operations, Federal Reserve Bank, 950 S. Grand Avenue, Los Angeles, California 90015

Interfaces, 2003, vol. 33, issue 2, 25-36

Abstract: To compete with other check-processing services, the Federal Reserve Bank (FRB) needs new mechanisms for providing low-cost, high-quality service to its customers. Specifically, the FRB must have the right supply of workers at the right time to handle uncertain check arrivals and complete processing them on time. We developed one deterministic optimization model and one simulation model that are valuable for managing teams. The first model, corroborated by a pilot study, confirms that the FRB can achieve higher productivity by changing from a serial-line configuration to a team structure. The second model enables managers to configure different teams and their work schedules effectively. The FRB in Los Angeles used these two models as a planning tool in reconfiguring its check-processing unit in 2000. Implementing these two models at the Los Angeles branch of the FRB saves $1 million annually and increases productivity by 24.3 percent.

Keywords: Organizational; studies:; productivity.; Financial; institutions:; banks. (search for similar items in EconPapers)
Date: 2003
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Citations: View citations in EconPapers (1)

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