Specifically, they found that projects are completed faster when the fi rm does fewer of them,
that increasing bottleneck capacity pays large dividends to the investment,
and that eliminating unnecessary workload and
processes decreases the variation in service times (p. 134). Levy etal. (1997) also adopt
queuing theory to deal with multi product management. They illustrate calculations for the
“cost of waiting in line,” the “cost of under utilizing” a facility with capacity greater than
the demand for it, and “the cost of delayed projects.” They also discuss ways of reducing
these costs.