CHAPTER 7: SUPPORTING FACILITY AND PROCESS FLOWS

CASE: CENTRAL MARKET

1. How do the environmental dimensions of the servicescape explain the success of Central Market?

The environmental dimensions of “ambient conditions,” “space/function,” and “signs, symbols, & artifacts” can
be found in Figure 9.2 the servicescape framework.

Ambient Conditions: Central Market is an enclosed “cool” shopping environment unlike an outdoor farmers’
market that would be hot and uncomfortable in the Texas summer. Thus, shoppers would tend to remain longer
and purchase more. Food is kept at appropriate temperature to insure quality and minimize spoilage. The aroma
of fresh coffee and baked goods would encourage impulse purchases. The large and colorful displays attract
shoppers to stop and sample.

Space/function:

The “force flow” layout found in Figure 9.10 requires shoppers to visit ever corner of the market with many
opportunities to purchase more than intended. The sequence of the “force flow” also would allow for memory
jogging because items are placed in order of meal consumption.

Signs, symbols, & artifacts:

There are few signs but the style of décor reinforces the feel of a European city market compete with concrete
floors and stall like displays. The experience of shopping becomes an escape to an older and simpler time
resulting in return trips and longer stays.

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

The servicescape framework of Figure 7.2 is applied to Central Market to explain its impact on customers and
employees. For customers the environmental dimensions, in particular, the forced flow subtly directs shoppers
through the market in a logical sequence. The perceived servicescape is an organized European city market
resulting is a nostalgic and slow paced shopping experience. Exploration, discovery, and staying longer is the
desired behavior resulting in larger grocery sales.

For employees, the environmental dimensions create a cool and colorful environment in which to work with many
opportunities to interact directly with customers. Working at Central Market is less hurried and more oriented to
fresh food rather than canned goods. Commitment to Central Market as a unique concept is strong leading to
lower turnover of personnel.

CHAPTER QUIZ QUESTIONS

True/False
1. The servicescape can influence perceived quality. (T)
2. The design of facilities is dependent entirely on the construction and operating costs of the facilities. (F)
3. A well conceived servicescape can communicate desired customer behavior. (T)
4. Heuristic algorithms are not only appealing intuitively, but they also guarantee optimal solutions. (F)
5. Servicescapes are most important in their affect on customers. (F)
6. In a product layout, the bottleneck operation defines the capacity of the service. (T)

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 7. The product layout often requires special equipment and special skills to deal with high volume of demand for
service that is anticipated. These factors create a very inflexible layout. (T)
8. The line-balancing problem attempts to resolve the inconsistencies in the capacities at various stages in a
product layout. (T)
9. A process layout, done correctly, promotes standardized service. (F)
10. The relative location problem deals with the problem of allocating n departments to n locations. Complete
enumeration is time consuming because there is a total of n! possible arrangements. (T)
11. A well-balanced line would have all jobs of nearly equal duration to avoid unnecessary idleness in work
assignments. (T)
12. The physical complexity of the servicescape for L.L. Bean is categorized as lean. (F)
13. A fixed sequence of steps that all customers must experience is characteristic of process layouts. (F)
14. The procedure to improve flow distance in a process layout by arranging the relative location of departments
is known as operations sequence analysis. (T)
15. A product layout affords some degree of customization. (F)
16. Mid-Columbia Medical Center has a special employee-only entrance to enhance security. (F)
17. The automobile driver’s license office is an example of a product layout. (T)
18. At a roadside snake farm, both customer and employee perform within the servicescape. (T)
19. Signage is not an environmental dimension of the servicescape. (F)
20. Bottlenecks are usually associated with process layouts. (F)
21. Rush order flow time and throughput time are identical when the system is empty. (T)
22. Capacity utilization of individual operations is a dangerous performance metric. (T)
23. The entire system capacity is measured by the inverse of the bottleneck CT. (T)
24. Cycle time is the average time to compete a service operation. (F)
25. The swim lane flowchart highlights the handoffs between functional activities. (T)
26. The bottleneck activity of a process is a shown as an unbroken bar in the Gantt chart. (T)
Multiple Choice
1. Which one of the following is not a major factor that could influence facility design?
a. Objectives and nature of the service
b. Flexibility in operations
c. Availability of land
d. Site location*
2. A product layout would facilitate the concept of:
a. service in series.*
b. service in parallel.
c. a first come, first served policy.
d. balanced flow.

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 3. Which of the following is not a method service facilities use to provide orientation for customers?
a. Signs and color codes to indicate direction
b. Use of walled cubicles to ensure privacy*
c. Use of artifacts
d. Franchised services that use formula facilities
4. The line balancing problem arises because of:
a. mismatched capacities of the various operations.*
b. mismatched labor inputs required at various operations.
c. large waiting lines.
d. inflexibility of the line.
5. The CRAFT program for facility layout uses an initial solution to:
a. be tested for improvement.*
b. arrive at a feasible solution.
c. provide an analytical solution.
d. define the layout problem.

6. One of the advantages of a product layout approach to service design is:

a. the elimination of bottlenecks.
b. achieving equal division of labor.*
c. the ease of customization.
d. increased flexibility.
7. Identify the bottleneck operation in the following exclusive hairdressing salon.
Activity Average time, min.
a. Pre-counseling 15
b. Shampoo 10
c. Haircut* 30
d. Manicure 20
8. The inability of a jewelry store to expand its current operations to include, for example, an in-store repair and
manufacturing facility in response to customer demands, is neglecting which factor of service facility design?
a. Land availability and space requirements*
b. Flexibility
c. The nature and objectives of the service organization
d. Community and environment
9. A batch type of service process has the characteristic of
a. many specialized departments.

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 b. a group of customers treated simultaneously.*
c. uninterrupted delivery.
d. a one-of-a-kind engagement.
10. The customer is a(n) ________ in the service process and his/her impression of the service quality is
influenced by many __________.
a. observer/perceptions
b. observer/observations
c. participant/perceptions*
d. participant/observations
11. What defines the capacity of a service product layout?
a. The activity requiring the most time per customer.*
b. The size of the queue.
c. How tasks are allocated among servers.
d. Ability of workers to change the process speed.
12. In the design of a fitness center, where would be the most advantageous location of a juice bar? Consider
such factors as traffic flow, impulse buying, and orientation/visibility.
a. At the back of the gym near the aerobic equipment.
b. Near the entrance/exit of the gym.*
c. In a small alcove set to one side of the gym.
d. Upstairs in a separate enclosed room marked by a sign.
13. Which of the following retail servicescapes would best support an upscale store image?
a. stark tile floors.
b. exposed, bright lighting.
c. store personnel waiting at cash registers.
d. well-spaced, lightly stocked shelving.*
14. In order to reduce disorientation, Richard Wener argues that the following features should be incorporated
into a facility design: previous experience, design legibility, and one of the following:
a. a formula design.
b. orientation aids.*
c. adequate lighting.
d. an entry atrium.
15. Facility layout is discussed with attention to traffic flow, space planning and one of the following:
a. need to avoid unnecessary travel*
b. eliminating bottlenecks
c. aesthetic factors
d. cost of providing service

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 16. Which one of the following is an example of a process layout?
a. fast-food restaurant
b. cafeteria
c. hospital*
d. none of the above
17. The advent of the “hub and spoke” airline network following deregulation is an example of:
a. nature and objectives of service organizations
b. flexibility *
c. aesthetic factors
d. land availability and space requirements
18. All but one of the following impacts the user friendliness of the facility and the ability to serve customers
effectively:
a. floorplan
b. layout of equipment
c. equipment design
d. time of day *
19. Which among the following choices might not be representative of security measures taken by retail stores?
a. reducing the number of extremely valuable items sold *
b. a row of bollards outside the entrance
c. doing away with big windows
d. none of the above
20. ___________ is the time it takes to complete a process from time of arrival to time of departure.
a. Rush order flow time
b. Cycle time
c. Throughput time*
d. Direct labor time

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