Supporting Facility and Process Flows

Creating the Right Environment

McGraw-Hill/Irwin

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

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 performance metrics. Identify the bottleneck operation in a product layout and rebalance for increased capacity. Use operations sequence analysis to minimize flow-distance in a process layout. Recommend facility design features to remove anxiety of disorientation.

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Servicescapes

Designing Physical Surroundings to Affect Employee and Customer Behavior Ambient Conditions: background characteristics such as noise level, music, lighting, temperature, and scent. Spatial Layout and Functionality: reception area, circulation paths of employees and customers, and focal points. Signs, Symbols, and Artifacts: selection, orientation, location, and size of objects.

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Servicescape Elements 7-4 .

Typology of Servicescapes Who Perfo Servicesca 7-5 .

Facility Design Considerations       Nature and Objectives of Service Organization Land Availability and Space Requirements Flexibility Security Aesthetic Factors The Community and Environment 7-6 .

Types of Services Processes Process Type Service Example Consulting Hospital Characteristic Management Challenge Project Job Shop One-of-a-kind engagement Many specialized departments Staffing and scheduling Balancing utilization and scheduling patients Pricing of perishable asset (seat inventory) Adjust staffing to demand fluctuations Maintenance and capacity planning Batch Airline Group of customers treated simultaneously Fixed sequence of operations Flow Cafeteria Continuous Electric Utility Uninterrupted delivery 7-7 .

Swim Lane Flowchart of Graduate School Admissions Applican t Applicatio n Form Create Folder Take GRE Request Reference s No Wait Admission s Clerk Co Fol e m der pl et ? Contact Applicant Send Letter Close Folder Denial Letter Acceptan ce Letter Graduate Secretary Graduate Advisor Yes Batch Files Revie w Files Telephon e Interviews Se Ma n le ke ct io No Faculty Panel Graduate Dean Yes Revie w Financial Aid 7-8 .

Gantt Chart for Mortgage Service Activit y Property Survey Credit Report 1 Schedul e 2 3 1 2 3 Title Search 1 2 3 Final Approval 1 2 3 Time in Minutes 30 60 90 120 150 180 210 240 270 7-9 .

Throughput Time is the time to complete a process from time of arrival to time of exit. Capacity Utilization is a measure of how much output is actually achieved. 7-10 . Capacity is a measure of output per unit time when fully busy.Process Analysis Terminology      Cycle Time is the average time between completions of successive units. Bottleneck is the factor that limits production usually the slowest operation.

)     Rush Order Flow Time is the time to go through the system without any queue time. Direct Labor Utilization is a measure of the percentage of time that workers are actually contributing value to the service. 7-11 . Total Direct Labor Content is the sum of all the operations times. Direct Labor Content is the actual amount of work time consumed.Process Analysis Terminology (cont.

Unapproved Mortgages Accept Mortgages Finish Processing 7-12 .Process Flow Diagram of Mortgage Services Property Survey CT=90 min. Approved Mortgages No Credit Report CT=45 min. Mortgage Applications Completed Applications Yes Final Approval CT=15 min. Title Search CT=30 min.

Product Layout: Work Allocation Problem Automobile Driver’s License Office 1 240 15 2 120 30 Payment 3 60 60 Violations Activity Number(s) Capacity per hour Cycle Time in seconds 4 90 40 Eye Test 5 180 20 Photograph 30 6 120 In Review Out Issue 7-13 .

4 65 55 3 60 60 7-14 .Automobile Driver’s License Office (Improved Layout) In 1.4 65 55 60 2 120 30 20 5 180 30 6 120 3 60 Out In 1.

D=water skiing. C=dolphins. F=water rides. B=sea lions. 7-15 . E=aquarium.Process Layout: Relative Location Problem A A B C D E F 8 10 0 10 0 6 30 10 6 5 1 0 20 3 4 Ocean World Theme Park Daily B Flows C D E F A B C D 7 20 6 0 10 15 5 0 7 10 6 2 8 3 6 Net flow 15 30 12 0 40 20 15 10 8 30 E 6 8 8 6 10 F Flow matrix Triangularized matrix Description of attractions: A=killer whale.

Ocean World Theme Park (Proposed Layout) (a) Initial layout (b) Move C close to A A D B E C F C Pair Flow distances AC 30 * 2 = 60 AF 6 * 2 = 12 DC 20 * 2 = 40 DF 6 * 2 = 12 Total 124 Pair Flow distances CD 20 * 2 =40 8 * 2 =16 D E FCF DF 6 * 2 = 12 AF 6 * 2 = 12 CE 8 * 2 = 16 Total 96 (d) Exchange B and E and move F A B (c ) Exchange A and C Pair AE CF AF AD DF Flow distances 15 * 2 = 30 8 * 2 = 16 6 * 2 = 12 0*2= 0 6 * 2 = 12 70 A C D B E F A C D F E B Pair Flow distances AB 15 * 2 =30 AD 0*2=0 FB 8 * 2 = 16 FD 6 * 2 = 12 Total 58 Total 7-16 .

Environmental Orientation Considerations     Need for spatial cues to orient visitors Formula facilities draw on previous experience Entrance atrium allows visitors to gain a quick orientation and observe others for behavioral cues Orientation aids and signage such as “You Are Here” maps reduce anxiety 7-17 .

Health Maintenance Organization (A) Reception Waiting room Examination Laboratory X-ray Minor surgery A B C D E F A 10 15 5 0 2 B 30 20 18 4 0 C 0 40 1 8 1 0 D 5 10 15 2 0 E 0 0 5 6 1 F 0 0 5 3 4 7-18 .

2. 7-19 . Beginning with a good initial layout. Defend your final layout based on features other than minimizing walking distance. use operations sequence analysis to determine a better layout that would minimize the walking distance between different areas of the clinic.HMO (A) QUESTIONS 1.

) 24 120 60 40 30 7-20 .Health Maintenance Organization (B) Activity Receive prescriptions Type labels Fill prescriptions Check prescriptions Dispense prescriptions Time (sec.

and show how capacity can be increased by using only two pharmacists and two technicians. Identify the bottleneck activity. 2. In addition to savings on personnel costs.HMO (B) Questions 1. what benefits does this arrangement have? 7-21 .

Use CRAFT logic to develop a layout that will maximize customer time in the store. What percentage increase in customer time spent in the store is achieved by the proposed layout? What other consumer behavior concepts should be considered in the relative location of departments? 7-22 . 3.Esquire Department Store 1. 2.

The Role of the Servicescape 7-23 .

The Servicescape Concept: a modern farmer’s market for the discerning customer     Aesthetics Force Flow Queuing Results 7-24 “We want to change the way people eat…” Brian Cronin. General Manager .

Aesthetics 7-25 .

Force Flow Seafood Dairy Bakery Meat Produce Beer & Wine Produce Grocery & Staples Produce Flowers Info Coffee Entrance Deli Cheese Cafe Cashiers Exit Catering 7-26 .

Normal Grocery Store Dairy Meat Produce Frozen Grocery & Staples Cashiers Deli 7-27 .

Queuing Systems Express Lanes Checkout Deli/Meat 6 3 1 5 4 2 7-28 .

000 $40 Sales / Customer Product Mix $20 Wine Groceries 7-29 .Comparison Central Market 60k ft2 Average Grocery Store Size 100k ft2 25.000 Transactions / Week 50.

signs. Comment on how the servicescape shapes the behaviors of both customers and employees? 7-30 . symbols & artifacts) explain the success of Central Market? 2. How do the environmental dimensions of the servicescape (ambient conditions.“There’s cheese at the end of the maze…” Questions 1. space/function.

Recommendations for Improvement  New Customer Orientation    Greeters Signage (internal and external) Maps  Parking and Traffic Flow 7-31 .

How did the different environments affect your mood? Give an example of a servicescape that supports the service concept and another that detracts.3. The CRAFT program is an example of a heuristic programming approach to problem solving. the Ocean World theme park. Explain the success or failure in terms of the servicescape dimensions Select a service and discuss how the design and layout of the facility meets the five factors of nature and objectives of the organization. Why might CRAFT not find the optimal solution to a layout problem? 7-32 . make an argument for not locating popular attractions next to each other.Topics for Discussion      Compare the attention to aesthetics in waiting rooms that you have visited. For Example 9.

The other one-half of the groups provide examples of poor servicescapes in terms of job satisfaction and productivity. 7-33 .Interactive Exercise   The class divides into small groups One-half of the groups produce examples based on work experience with supportive servicescapes in terms of job satisfaction and productivity.

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