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Chapter 5

The Supporting Facility &

Process Flow

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 Environmental Orientation Considerations

• Need for spatial cues to orient visitors.

• Based 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.

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 Services capes
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 Antiquity: selection, orientation,

location, and size of objects.
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Servicescapes

 Physical facility should be designed with an image and feel

that is matching with the service concept;

 The design of the physical surroundings positively affect

employee and customer behavior.

 The internal response measured cognitively, emotionally,

and physiologically is moderated by one’s personal mood.

 Encourage a proper social interaction between and

among customers and employees
 Figure 5.1 Typology of Services capes
Who Performs in Physical Complexity of the Servicescape
Servicescape
Elaborate Lean

Self-service Golf course Post office kiosk

(customer only) Water slide park E-commerce
Interpersonal Luxury hotel Budget hotel/ Bus
(customer n Airline terminal station
employee)
Remote service Research lab Telemarketing
(employee only) Amazon Online tech
support

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 Figure 5.2 Servicescape Framework

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 Facility Design Considerations
• Nature and Objectives of Service Organization.
• Land Availability and Space requirements.
• Flexibility.
• Security.
• Aesthetic Factors.
• The Community and Environment.

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 Table 5.1 Service Process Types with
Management Challenges
Management
Process Type Service Example Characteristic Challenge
Project Consulting One-of-a-kind Staffing and
engagement scheduling
Job Shop Hospital Many specialized Balancing
departments utilization and
scheduling
patients
Batch Airline Group of Pricing of
customers treated perishable asset
simultaneously (seat inventory)
Flow Cafeteria Fixed sequence of Adjust staffing to
operations demand
fluctuations
Continuous Electric Utility Uninterrupted Maintenance and
delivery capacity planning

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 Process Layout in service

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 Signs used in flow chart

8-
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 Figure 5.3 Swim Lane Flowchart of
Graduate School Admissions

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 Process Flow Diagram of Mortgage
Services

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 Figure 5.5 Gantt Chart for Mortgage
Service

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 Process Analysis Terminology 1

• Cycle Time is the average time between completions of successive

units.

• Bottleneck is the factor that limits production usually the slowest

operation.

• Capacity is a measure of output per unit time when fully busy.

• Capacity Utilization is a measure of how much output is actually

achieved against available capacity
• .

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 Process Analysis Terminology (cont.)

➢Throughput Time is the time to complete a process from time of

arrival to time of exit (= sum of critical path + average time in
queues). =90+15+Q1+Q2
➢Rush Order Flow Time is the time to go through the system
without any queue time.=90+15=105
➢Direct Labor Content is the actual amount of work time
consumed.
➢Total Direct Labor Content is the sum of all the operations
times.=90+45+30+15=180
➢Direct Labor Utilization is a measure of the percentage of time
that workers are actually contributing value to the service.
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Direct labour utilization

Direct Labor Utilization is a measure of the percentage

of time that workers are actually contributing value to
the service.
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Example
 The state automobile driver’s license office is under pressure to increase
its productivity to accommodate 120 applicants per hour with the addition
of only one clerk to its present staff. The license renewal process
currently is designed as a service line, with customers being processed
in the fixed sequence listed in Table 7.2 .
 Activity 1 (i.e., review application for correctness) must be performed
first, and activity 6 (i.e., issue temporary license) must be the last step
and, by state policy, be handled by a uniformed officer.
 Activity 5 (i.e., photograph applicant) requires an expensive digital
camera and color printer .
 The process flow diagram for the current arrangement, as shown in
Figure 7.6 a , identifies the bottleneck activity , as activity 3 (i.e., check
for violations and restrictions), which limits the current capacity to 60
applicants per hour
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Table 7.2
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Product Layout
Work Allocation Problem
Automobile Driver’s License Office

Review Payment Violations Eye Test Photograph Issue

1 2 3 4 5 6
In 240 120 60 90 180 120
Out
15 30 60 40 20 30

Activity
Number(s)
Capacity
per hour
Cycle Time
in seconds
 Figure 5.7 Reengineered Driver’s License
Office

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 DMV Office (Flexible Layout)

5-24
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 Figure 5.9 Final Site Plan for Ocean World
Theme Park

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 Process Layout
Relative Location Problem
Ocean World Theme Park Daily Flow

A B C D E F A B C D E F
A 7 20 0 5 6 15 30 15 6
B 8 6 10 0 2
Net
C 10 6 15 7 8 flow
D 0 30 5 10 3
E 10 10 1 20 6
F 0 6 0 3 4

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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 Table 5.3 Daily Flow of Visitors between
Attractions, Hundreds*
Ocean World Theme Park Daily Flows

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 Figure 5.8 Ocean World Site Planning
Using Operations Sequence Analysis

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 Health Maintenance Organization (A)
Case 5.1

A B C D E F
Reception A - 30 0 5 0 0
Waiting 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, use operations
sequence analysis to determine a better layout that would
minimize the walking distance between different areas of
the clinic.
2. Defend your final layout based on features other than
minimizing walking distance.

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 Health Maintenance Organization (B)
Case 5.2

Activity Time (sec.)

Receive prescriptions 24
Type 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 how capacity 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 (Case 5.3)
1. Use CRAFT logic to develop a layout that will maximize
customer time in the store.
2. What percentage increase in customer time spent in the
store is achieved by the proposed layout?
3. What other consumer behavior concepts should be
considered in the relative location of departments?

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 Central Market (Case 5.4)
Concept: a modern farmer’s market for the discerning
customer

• Aesthetics.
• Force Flow.
• Queuing.
• Results.

“We want to change the way people eat…” Brian Cronin,

General Manager

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 Figure 5.12 Central Market Floor Plan

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 Normal Grocery Store

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 Comparison

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 Questions
1. 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 shapes the behaviors
of both customers and employees?

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 Topics for Discussion
• Compare the attention to aesthetics in waiting rooms that you
have visited. How did the different environments affect your
mood?
• Give an example of a servicescape that supports the service
concept and another that detracts. 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.
• For Example 5.3, 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 programming
approach to problem solving. Why might CRAFT not find the
optimal solution to a layout problem?
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 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.
• The other one-half of the groups provide examples of poor
servicescapes in terms of job satisfaction and productivity.

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44

Learning Objectives
• Describe the impact of “servicescape” on behavior of customers and
employees.
• Identify and discuss environmental dimensions of servicescapes.
• Identify critical design features of a service supporting facility.
• Draw a swim lane flowchart, process flow diagram, and a Gantt chart of
a service process.
• Calculate performance metrics such as throughput time and direct labor
utilization.
• Identify bottleneck operation in a product layout, and regroup activities
to create new jobs that will increase the overall service capacity.
• Use operations sequence analysis to determine relative locations of
departments in a process layout that minimize total flow-distance.