CHAPTHER 7

7/29/2019 CHAPTHER 7

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Supporting Facility and ProcessFlows

Creating the Right Environment

McGraw-Hill/Irwin Copyright 2011 by The McGraw-Hill Companies, Inc. All rights reserved.


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Learning Objectives Describe the impact of the servicescape on the behavior

of customers and employees.

Identify and discuss the three environmental dimensions

of servicescapes. Identify the six critical design features of a service

supporting facility.

Draw a process flow diagram and calculate performancemetrics.

Identify the bottleneck operation in a product layout andrebalance for increased capacity.

Use operations sequence analysis to minimize flow-distance in a process layout.

Recommend facility design features to remove anxiety ofdisorientation. 7-2


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ServicescapesDesigning Physical Surroundings to Affect

Employee and Customer Behavior

Ambient Conditions: background characteristicssuch as noise level, music, lighting,temperature, and scent.

Spatial Layout and Functionality: reception

area, circulation paths of employees andcustomers, and focal points.

Signs, Symbols, and Artifacts: selection,

orientation, location, and size of objects. 7-3


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Servicescape Elements

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Typology of ServicescapesWho Performs in

Servicescape

Physical Complexity of the Servicescape

Elaborate Lean

Self-service(customer only)

Golf courseWater slide park

Post office kioskE-commerce

Interpersonal

(both)

Luxury hotel

Airline terminal

Budget hotel

Bus station

Remote service

(employee only)

Research lab

L.L. Bean

Telemarketing

Online tech support

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Facility Design Considerations Nature and Objectives of Service

Organization

Land Availability and SpaceRequirements

Flexibility

Security

Aesthetic Factors

The Community and Environment

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Types of Services ProcessesProcess Type Service

Example

Characteristic Management Challenge

Project Consulting One-of-a-kind engagement Staffing and scheduling

Job Shop Hospital Many specialized departments Balancing utilization and

scheduling patients

Batch Airline Group of customers treated

simultaneously

Pricing of perishable

asset (seat inventory)

Flow Cafeteria Fixed sequence of operations Adjust staffing to demand

fluctuations

Continuous Electric Utility Uninterrupted delivery Maintenance and

capacity planning

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Applicant

AdmissionsClerk

GraduateSecretary

GraduateAdvisor

FacultyPanel

GraduateDean Financial AidReview

Take GRE RequestReferences Wait

CreateFolder Contact

Applicant

Batch Files

ReviewFiles

TelephoneInterviews

AcceptanceLetter

DenialLetter

Yes

No

Yes

NoSend LetterClose Folder

ApplicationForm

Swim Lane Flowchart of GraduateSchool Admissions

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Property Survey

Time in Minutes30 60 90 120 150 180 210 240 270

Credit Report

Title Search

Final Approval

Activity Schedule

1 2 3

1 2 3

1 2 3

1 2 3

Gantt Chart for Mortgage Service

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Process Analysis Terminology Cycle Time is the average time between

completions of successive units.

Bottleneck is the factor that limits productionusually the slowest operation.

Capacity is a measure of output per unit timewhen fully busy.

Capacity Utilization is a measure of how muchoutput is actually achieved.

Throughput Time is the time to complete aprocess from time of arrival to time of exit.

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Process Analysis Terminology (cont.)

Rush Order Flow Time is the time to go throughthe system without any queue time.

Direct Labor Content is the actual amount ofwork time consumed.

Total Direct Labor Content is the sum of all theoperations times.

Direct Labor Utilization is a measure of thepercentage of time that workers are actuallycontributing value to the service.

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Process Flow Diagram of

Mortgage Services

Property SurveyCT=90 min.

Credit ReportCT=45 min.

Title SearchCT=30 min.

Unapproved

Mortgages

Approved

MortgagesCompletedApplicationsMortgage

Applications

Final ApprovalCT=15 min.

Yes

No

Finish

ProcessingAccept

Mortgages

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Product Layout:

Work Allocation ProblemAutomobile Drivers License Office

Review Payment Violations Eye Test Photograph Issue

1240

15

2 12030

360

60

490

40

5180

20

6120

30

Activity

Number(s) Capacityper hour

Cycle Timein seconds

In Out

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Automobile Drivers License

Office (Improved Layout)

1,465

55

360

60

360

60

1,465

55

6120

30

5180

20

2120

30

In

In

Out

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Process Layout:

Relative Location ProblemOcean World Theme Park Daily Flows

10

0

6

60

10

7 5

0

6020

43

6

6201

7

010

15

2

8

3

10

15

8820

630

15030

8104012

6

8

530

10

10

A B C D E F A B C D E F

A

B

C

D

E

F

Netflow

Flow matrix Triangularized matrix

Description of attractions: A=killer whale, B=sea lions, C=dolphins, D=water skiing,E=aquarium, F=water rides.

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Ocean World Theme Park(Proposed Layout)

(a) Initial layout (b) Move C close to A

Pair Flow distances Pair Flow distances

AC 30 * 2 = 60 CD 20 * 2 =40AF 6 * 2 = 12 CF 8 * 2 =16

DC 20 * 2 = 40 DF 6 * 2 = 12

DF 6 * 2 = 12 AF 6 * 2 = 12

Total 124 CE 8 * 2 = 16

Total 96

(c ) Exchange A and C (d) Exchange B and E and move FPair Flow distances Pair Flow distances

AE 15 * 2 = 30 AB 15 * 2 =30

CF 8 * 2 = 16 AD 0 * 2 = 0

AF 6 * 2 = 12 FB 8 * 2 = 16

AD 0 * 2 = 0 FD 6 * 2 = 12

DF 6 * 2 = 12 Total 58

Total 70

A B C

D E F

A

C

D

B

E F

C

A

D

B

FE

A F

C E

D B

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Environmental OrientationConsiderations

Need for spatial cues to orient visitors

Formula facilities draw on previous experience

Entrance atrium allows visitors to gain a quickorientation and observe others for behavioralcues

Orientation aids and signage such as You AreHere maps reduce anxiety

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Health MaintenanceOrganization (A)

A B C D E F

Reception A - 30 0 5 0 0Waiting room B 10 - 40 10 0 0

Examination C 15 20 1 15 5 5

Laboratory D 5 18 8 - 6 3

X-ray E 0 4 1 2 - 4

Minor surgery F 2 0 0 0 1 -

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HMO (A) QUESTIONS

1. Beginning with a good initial layout, useoperations sequence analysis to determine a

better layout that would minimize the walkingdistance between different areas of the clinic.

2. Defend your final layout based on featuresother than minimizing walking distance.

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Health MaintenanceOrganization (B)

Activity Time (sec.)

Receive prescriptions 24Type labels 120

Fill prescriptions 60

Check prescriptions 40

Dispense prescriptions 30

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HMO (B) Questions

1. Identify the bottleneck activity, and show howcapacity can be increased by using only two

pharmacists and two technicians.2. In addition to savings on personnel costs, what

benefits does this arrangement have?

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Esquire Department Store

1. Use CRAFT logic to develop a layout that willmaximize customer time in the store.

2. What percentage increase in customer timespent in the store is achieved by the proposedlayout?

3. What other consumer behavior conceptsshould be considered in the relative locationof departments?

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The Role of the Servicescape

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Concept: a modern farmers market forthe discerning customer

Aesthetics

Force Flow

Queuing

Results

The Servicescape

We want to change the way people eat Brian Cronin, General Manager7-24


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Aesthetics

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Produce

Flowers

Produce

Produce

Meat

Seafood

C

heese

Info

Coffee

Entrance

Cafe

Cashiers

Beer & Wine

Dairy Bakery

Deli

Grocery & Staples

Catering

Exit

Force Flow

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Cashiers

Frozen

Dairy Meat

Produce

Deli

Grocery & Staples

Normal Grocery Store

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Deli/Meat

CheckoutExpress Lanes

1

3

6

2

5

4

Queuing Systems

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Central Market Average Grocery Store

60k ft2 100k ft2Size

Sales / Customer$40 $20

Transactions / Week25,000 50,000

Product MixWine Groceries

Comparison

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Theres cheese at the end of themaze

Questions1. How do the environmental dimensions of the

servicescape (ambient conditions,space/function, signs, symbols & artifacts)explain the success of Central Market?

2. Comment on how the servicescape shapesthe behaviors of both customers and

employees?

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Recommendations for

Improvement New Customer Orientation

Greeters Signage (internal and external)

Maps

Parking and Traffic Flow

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Topics for Discussion

Compare the attention to aesthetics in waiting rooms that youhave visited. How did the different environments affect yourmood?

Give an example of a servicescape that supports the serviceconcept and another that detracts. Explain the success or failurein terms of the servicescape dimensions

Select a service and discuss how the design and layout of thefacility meets the five factors of nature and objectives of the

organization. For Example 9.3, the Ocean World theme park, make an

argument for not locating popular attractions next to each other.

The CRAFT program is an example of a heuristic programmingapproach to problem solving. Why might CRAFT not find the

optimal solution to a layout problem?7-32


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Interactive Exercise

The class divides into small groups

One-half of the groups produce examples

based on work experience with supportiveservicescapes in terms of job satisfaction andproductivity.

The other one-half of the groups provideexamples ofpoorservicescapes in terms of

job satisfaction and productivity.

CHAPTHER 7

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