Abstract

ATMs are among the most important service facilities in the banking industry. The main objective of ATM for bank is to keep away the customers from coming to bank and make the process easy for them to avoid the basic procedure they have to do in the bank. But ATMs themselves have as a result become subjects of large service demands which directly translate to queues for services when these demands cannot be quickly satisfied specially during weekend periods and month endings (salary times) where the demand for cash is high. In this study Arena simulation model was developed for the ATM service found in the commercial bank of Ethiopia, Sabyan branch to analyse its service performance. In the ATM center the customer inter arrival time of the customers followed the exponential distribution with a mean of 29 seconds and the service time is a Poisson distribution with a mean of 44.3 seconds. From the Arena simulation run results, we can conclude that the service is not efficient in the ATM Centre as there is excessive waste of time in the ATM center (71.3 seconds) and higher number of customers waiting in the queue (4 customers). To improve the ATM service efficiency of the case company and to keep satisfaction of the customers, we recommend the company to follow the following ways. To improve the ATM service efficiency of the case company and to keep satisfaction of the customers, we recommend the company the following ways. One way can be increasing the ATM facility number from two to three and another way can be increasing the service time of the available ATM services by improving the speed of the system. Both ways can be taken as good options since the operating cost of the new mechanisms is minimal compared with cost of losing customers due to low quality of service.