Case: Analyzing Casino Money-Handling Processes
This case analysis really is quite simple from a management perspective. Management is considering the purchase of a second coin wrapping machine. To make the proper buy/no-buy decision, management has asked for answers to the following questions:
Q1: How long should it take to complete the drop process for 300 silver dollar slot machines?
Q2: How long should it take to complete the hard count process for 300 silver dollar slot machines – assuming that each slot machine has an average of 750 silver dollars when it is emptied?
Q3: The casino is considering the purchase of a second coin wrapping machine. What impact would this have on the hard count process? Is this the most desirable machine to purchase?
Question 1
To do this properly, we must first design the workflow processes to map out and provide a clear timeline of each of the activities involved in each process beginning with the drop process lifecycle. See Figure 1 Below.
Figure 1: The Drop Process Workflow
So, to answer question 1 we must determine the amount of time that it should take to do the drop process for 300 silver dollar slot machines. See Figure 2 below to get an accurate depiction of the time it takes to complete the drop process on 300 silver dollar slot machines.
Figure 2: Drop Process Time Workflow
Question 2
Question 2 dictates that we draw a diagram of the hard count process much like that of the drop process in Question 1. The management team would like to know how long the hard count process will take to complete for 300 silver dollar slot machines assuming that each slot machine has 750 silver dollars when emptied. Let us take a look at the process flowchart in Figure 3 below.
Figure 3: The Hard Count Process Flowchart
So, how long does this process actually take to complete? Well, we know that the weigh scale test takes 10 minutes, and the process of weighing and recording takes 7 minutes per bucket. We also know that twenty-five silver dollars are wrapped in each roll at a rate of 10 rolls per minute, and we know that each can contains 40 rolls. The canning process itself takes 5 minutes per can. The computer report and recording process in the weigh/wrap verification report takes 5 minutes, and the manual recount takes another 2 minutes per can. This is a bit hard to follow, so I have flowcharted the calculations for the hard count process. The time needed to Process 300 Silver Dollar Slot Machines = (Time to Calibrate Scale) + (Weigh and Record Each Bucket) + (Time to Wrap Each Roll) + (Time to Place Rolls into Cans) + (Run Summary) + (Manually Verify Can Counts) = 10 Minutes + 2100 Minutes + 900 Minutes + 1125 Minutes + 5 Minutes + 450 Minutes = 4590 Minutes = 76.5 Hours. See Figure 4 below.
Figure 4: Time Calculation for Hard Count Process
Question 3
Question 3 gets to the pointed heart of our case study. As stated earlier, management wants to know how long each process takes so that they can make a purchasing decision. Although not used here, the text provides several methods of ranking investments. (Jacobs, Chase, & Aquilano, 2009) In figure five below we explore the possibilities of advantages gained by purchasing a second coin wrapper machine (indicated in blue). Below that is the potential time gained if the casino where to instead buy an additional weighing machine (indicated in green). Given this chart, it is clear that the hours gained by purchasing the additional coin wrapper would yield only 7.5 hours for the 300 silver dollar slot machines.
Figure 5: Comparison of Investment Decision
If the casino where to purchase an additional weighing machine it would yield them 17.5 hours for the same 300 silver dollar slot machines.
Conclusion
In conclusion, it would be a larger savings to invest in a new weigh machine instead of a new wrapper machine. In conducting my research, I uncovered a few recent industry changes that are game changing and make this case study seem a bit dated. Crane Corporation was established in 1855 and in 2006 acquired a company and brand called CashCode one™ which provide rapid yet accurate bill validation for slot machines. CashCode one™ also incorporates a cross-channel security sensor to detect post-note devices, such as strings or tape. Although fascinating technology, this is only the razor edge of its vast and suave casino gaming operations streamlining capabilities.
In less than 2.7 seconds, the CashCode one™ completes the entire transaction cycle—including document insertion, validation and note stacking to include drop bucket accounting. (John Wilson, 2010) The one™ performs many tasks. The first is an automated centering mechanism that centers the bill and properly orients it. Perhaps more importantly is its ability to print a large series of barcodes that include information identifying the validator, total currency in the drop-box and a break-down of the types of vouchers, tickets and bills accepted. (CRANE, 2010)
The final report also streamlines the entire drop process which could create significant savings to the casino if applied to the scenario in Figure 1. The drop team generates this report and then, if it is inserted into the validator within 10 seconds, the unit is taken out of service. The cash box can then be removed and replaced with an empty one. Using the old method, if you recall, takes about 10 minutes per machine. The validator is then enabled, allowing revenue recognition operations. This removes the necessity of matching drop boxes with specific machines, allowing any drop box to be installed with any bill validator unit. The printed report contains all of the information relating to the bill validator, the slot machine and the location of the unit. When taken to the back room, the drop box is opened and the ticket scanned, the system knows how much currency there is and where it was originated. ‘Fast, secure, easy’ … three words casino operators welcome hearing from their staff and vendors. (Back, 2010)
Figure 6: Schematic drawing of a casino bill validator
References
Back, E. (2010, September 14). Data Financial, Inc. Simplifies Daily Slot Drops with LabelPro System. Retrieved September 28, 2010, from PR Web: http://www.prweb.com/releases/2010/09/prweb4503684.htm
CRANE. (2010, September 14). CashCode a CRANE Co. Company. Retrieved October 1, 2010, from Crane Payment Solutions: http://www.cashcode.com/products/gaming_.html
Jacobs, F. R., Chase, R. B., & Aquilano, N. J. (2009). Operations & Supply Management. In F. R. Jacobs, R. B. Chase, & N. J. Aquilano, Operations & Supply Management (pp. 724-728). New York: The McGraw-Hill Companies, Inc.
John Wilson. (2010, August 30 ). CashCode: The Lean and Mean Bill Validator Machine. Retrieved October 2, 2010, from Casino Enterprise Management: http://www.casinoenterprisemanagement.com/articles/september-2010/cashcode-lean-and-mean-bill-validator-machine
Source: http://www.cashcode.com/
