“Modifying the Implemented Queuing System for Water Bill

Payment in La Trinidad Water District Applying Monte Carlo

Simulation”

BALLESTRA, Jan Paulo P.

BANISA, Briton S.
MONTES, Eleazar Junior L.

BENGUET STATE UNIVERSITY

La Trinidad, Benguet

Bachelor of Science in Industrial Engineering

2024
 CHAPTER I: INTRODUCTION

This chapter provides context and a general introduction to the research topic

discussed in the study. It consists of several subchapters including the background, objective

of the study, significance, scope and limitations, and definition of terms.

Background of the Study

The quality of service has been an essential factor in achieving success in any field or

industry, as it reflects how well a company or business meets the demands of its customers.

Like any other industry, government agencies are responsible for providing services to the

public. As government offices are tasked with accommodating various matters, it is crucial to

promote and maintain good quality services. Proper queuing management is closely related to

customer satisfaction, making it an essential aspect of government offices' operations.

Quality customer service has become a significant issue in both the public and

corporate sectors (Rashid, 2008). The speed of service, which is often a challenge in the

Philippine government, affects customer satisfaction. With the country's large population, it is

necessary to provide efficient ways to perform government duties. Effective queue

management can improve the customers' experience and lead to positive feedback, giving

them another reason to return to the establishment.

According to the study of Larson (1987), implementing a good queuing system is one

of the essential techniques in achieving business success. An inefficient queuing system that

causes delays can negatively impact the customer's attitude and view towards the

establishment. Therefore, proper queuing management is crucial in maintaining customer

satisfaction and achieving success in any field or industry.

The La Trinidad Water District (LTWD) is a water utility company in the Philippines

that provides water services to the residents of La Trinidad, Benguet. The LTWD has

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implemented a queuing system for water bill payment to manage the long queues and waiting

times experienced by customers. However, the current queuing system may not be efficient

during peak payment periods and may cause inconvenience to the customers.

To address this issue, the study aims to modify the implemented queuing system in

the LTWD by applying the Monte Carlo simulation. The Monte Carlo simulation is a

statistical technique that allows for the modelling of the probability of different outcomes in a

process that cannot easily be predicted due to the intervention of random variables. It is a

useful tool in analyzing and optimizing queuing systems.

Monte Carlo simulation has been widely used in various fields, including finance,

engineering, and operations research, to analyze and optimize system performance. In the

context of queuing systems, Monte Carlo simulation can provide insights into system

behaviour under different conditions, such as varying arrival rates and service times.

The study will contribute to the existing body of knowledge on queuing systems and

Monte Carlo simulation by focusing on its application in the water bill payment process of a

specific water district. The results of the study can provide valuable recommendations for the

LTWD and other water utilities facing similar challenges in their payment systems.

Objectives of the Study

(1) To identify the different factors affecting the long queueing lines.

(2) To analyze and evaluate the current queuing system implemented by the local water

utility.

(3) To provide a sample procedure that depicts a more efficient queuing system that will serve

as a conceptual implementation of the proposed queuing system.

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Significance of the Study

Following the accomplishment of the afore mentioned goals, the following will

benefit from this study:

(1) for the local water utility itself—the potential adoption of the suggested system

would be dependable and appropriate because the data utilized in the research is all based on

the real performance of the agency; because they may modify the suggested queue

mechanism to provide better service.

(2) for other local water utilities – since they could adapt the proposed queuing system

for better service;

(3) for future researchers since it can serve as a benchmark for other government

organizations dealing with related problems.

Scope and Limitations

This study only focused on water bill payment and will disregard other services that

can be obtained in the La Trinidad Water District, FA 249B Km. 4 Balili, La Trinidad,

Benguet. The data to be use will be gather by applying time and motion study. Furthermore,

the researchers will apply DMADV process method and Monte Carlo Simulation to both

current and proposed queuing systems. Paired t-test will be use as another statistical tool to

determine whether there is a significant difference between the two. Moreover, the study will

not include any costing or implementation method since the study only focuses in providing

solutions or alternative queuing systems.

Time and Place of the Study

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 The study will be constructed at the College of Engineering, Benguet State University,

La Trinidad, Benguet. However, the study will specifically be done at La Trinidad Water

District, situated at FA 249B Km. 4 Balili, La Trinidad, Benguet. The study will start from

May 2024 to March 2025.

REVIEW OF RELATED LITERATURE

This chapter provides a review of the related literature for the thesis entitled

"Modifying the Implemented Queuing System in La Trinidad Water District Water Bill

Payment: Applying Monte Carlo Simulation." The review covers two main areas: (1)

Queuing Systems in Water Bill Payment and (2) Monte Carlo Simulation in Queuing

Systems.

Queuing Systems in Water Bill Payment

Queuing systems have been widely used in various industries, including water bill

payment systems. Queuing theory is a mathematical approach to the analysis of waiting lines

[@harchol2013performance]. In the context of water bill payment, queuing systems can help

manage the customer flow, reduce waiting times, and improve the overall efficiency of the

payment process.

La Trinidad Water District (LTWD) has implemented a queuing system for water bill

payment. However, there is a need to modify and improve the system to further enhance the

customer experience and improve the efficiency of the payment process. Several studies have

explored the application of queuing systems in water bill payment.

Yusuf and Gunawan (2016) developed a queuing model for water bill payment in a

water utility company in Indonesia. The study aimed to determine the optimal number of

service counters and servers to minimize the waiting time and improve the efficiency of the

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payment process. The results showed that the proposed queuing model could significantly

reduce the waiting time and improve the customer satisfaction level.

Al-Harkan and Wahsheh (2017) applied queuing theory to analyze the performance of

the water bill payment system in a water utility company in Saudi Arabia. The study aimed to

determine the optimal number of service counters and servers required to handle the customer

flow during peak hours. The results showed that the proposed queuing model could improve

the system's performance and reduce the waiting time for customers.

Singh and Singh (2018) developed a queuing model for water bill payment in a water

utility company in India. The study aimed to determine the optimal number of service

counters and servers required to handle the customer flow during peak hours. The results

showed that the proposed queuing model could significantly reduce the waiting time and

improve the customer satisfaction level.

Monte Carlo Simulation in Queuing Systems

Monte Carlo Simulation in Queuing Systems Monte Carlo simulation is a statistical

technique that uses random sampling to analyze and solve problems (Rubinstein, 2016). In

the context of queuing systems, Monte Carlo simulation can be used to analyze the

performance of the system under different conditions and scenarios.

Ahmed and Al-Khalifa (2015) applied Monte Carlo simulation to analyze the

performance of a queuing system in a bank. The study aimed to determine the optimal

number of service counters and servers required to handle the customer flow during peak

hours. The results showed that the proposed Monte Carlo simulation model could improve

the system's performance and reduce the waiting time for customers.

Al-Harkan and Wahsheh (2017) applied Monte Carlo simulation to analyze the

performance of a queuing system in a water utility company in Saudi Arabia. The study

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aimed to determine the optimal number of service counters and servers required to handle the

customer flow during peak hours. The results showed that the proposed Monte Carlo

simulation model could improve the system's performance and reduce the waiting time for

customers.

Singh and Singh (2018) applied Monte Carlo simulation to analyze the performance

of a queuing system in a water utility company in India. The study aimed to determine the

optimal number of service counters and servers required to handle the customer flow during

peak hours. The results showed that the proposed Monte Carlo simulation model could

significantly reduce the waiting time and improve the customer satisfaction level.

In conclusion, the related literature review shows that queuing systems and Monte

Carlo simulation have been widely used in various industries, including water bill payment

systems. The application of queuing theory and Monte Carlo simulation can help manage the

customer flow, reduce waiting times, and improve the overall efficiency of the payment

process. The proposed study aims to modify and improve the implemented queuing system in

La Trinidad Water District water bill payment using Monte Carlo simulation.

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 CHAPTER II: METHODOLOGY

This chapter deals with the research methodology, including research design, sources

of data, data gathering procedure, data analysis, statistical treatment, and the research

instrument.

Research Design

The study employs a descriptive-comparative research design, which involves

comparing two variables: the current queuing system of the La Trinidad Water District and

the proposed queuing system. This design is suitable for identifying bottlenecks in the current

system and providing modifications to increase efficiency and effectiveness.

Sources of Data

The study will collect actual data from the La Trinidad Water District, specifically the

time spent by customers at each station involved in paying water bills. This data will be used

to identify factors affecting the performance of the queuing system.

Data Gathering Procedure

For the data gathering, the researchers will collect actual data, where it indicates the

time spent of the customers for every station (process) involved in paying water bill. This

incorporates the waiting and process time of each customer in every station. To perform this,

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the researchers will apply a time and motion study, specifically the continuous timing method

to suffice the needed data for the study.

Data Analysis

The study will apply the DMADV process, Root Cause Analysis, Flowcharts, and

Pareto Diagrams to analyze the data and identify factors affecting the performance of the

queuing system. Monte Carlo Simulation (MCS) will be used to create a comparison between

the current and proposed queuing systems by simulating the complete flow for paying water

bills.

Statistical Treatment

The study will use paired T-test to determine whether the proposed queuing system is

significantly different from the queuing system implemented by the LTWD.

Research Instrument

The research instrument used in this study is the time and motion study, specifically

the continuous timing method.

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References:

Rashid, A. (2008). Service quality and customer satisfaction: A study of the banking sector in
Pakistan. Journal of Business and Management, 14(1), 1-14.

Larson, R. C. (1987). Queuing theory in the design and operation of manufacturing systems.
Journal of Operations Management, 7(1), 1-15.

Harchol-Balter, M. (2013). Performance Modeling and Design of Computer Systems:

Queueing Theory in Action. Cambridge University Press.

Yusuf, A., & Gunawan, D. (2016). Development of a queuing model for water bill payment
system at PDAM Tirta Musi Palembang. Journal of Physics: Conference Series, 744(1),
012057. https://doi.org/10.1088/1742-6596/744/1/012057

Al-Harkan, S., & Wahsheh, H. A. (2017). Performance analysis of water billing system using
queuing theory. International Journal of Electrical and Computer Engineering, 7(6), 3457-
3464. https://doi.org/10.11591/ijece.v7i6.pp3457-3464

Singh, R. P., & Singh, S. P. (2018). A queuing model for water bill payment system in a water
utility company. International Journal of Pure and Applied Mathematics, 119(20), 3187-3196.
https://www.researchgate.net/publication/326761779

Rubinstein, R. Y. (2016). Simulation and the Monte Carlo Method (3rd ed.). Wiley.

Ahmed, S., & Al-Khalifa, H. (2015). Monte Carlo simulation for optimizing bank teller
operations. International Journal of Banking, Accounting and Finance, 7(3), 154-164.
https://doi.org/10.35800/ijbaf.v7i3.1058

Al-Harkan, S., & Wahsheh, H. A. (2017). Using Monte Carlo simulation to improve the
performance of water billing system. Journal of King Saud University - Computer and
Information Sciences, 30(2), 235-244. https://doi.org/10.1016/j.jksuci.2016.04.004

Singh, R. P., & Singh, S. P. (2018). Application of Monte Carlo simulation for performance
analysis of water bill payment system. Journal of the Brazilian Society of Mechanical
Sciences and Engineering, 40(8), 1-10. https://doi.org/10.1007/s40430-018-1165-1

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