PHYSICAL ENVIRONMENT IN

SERVICE FIRMS

Chapter 4
CONTENTS

1. 3.
Physical environment in Arranging facilities in flow
service firms process and job shop
process
2.
Factors affecting
designing physical
environment in a service
firm 2
Physical environment - Servicescape

- Is the combination of facilities required for service delivery

processes of a service firm and the ambience created by
the design and arrangement of these facilities.

- Influences the behavior and perception of the service for

both customers and employees.

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ROLES OF SERVICESCAPES
Physical environment - Servicescape
Reflects firm’s
values and acts as
a tool to execute its
strategy

Tích hợp những Thúc đẩy các

kĩ thuật chỉ dẫn tương tác xã hội
“tìm đường” giữa các khách
hàng

Tăng sự tập trung 5

của nhân viên
Physical environment - Servicescape
Reflects firm’s
values and acts as
a tool to execute its
strategy

Facilitate customer
orientation by
incorporating “way-
finding” techniques

6
Physical environment - Servicescape
Reflects firm’s
values and acts as
a tool to execute its
strategy

Facilitate customer Facilitate social

orientation by interactions
incorporating “way-finding” between
techniques customers

7
Physical environment - Servicescape
Reflects firm’s
values and acts as
a tool to execute its
strategy

Facilitate social
interactions
Give direction between
customers

Improve 8
working
environment
REQUIREMENTS FOR SERVICESCAPES
Requirements for servicescapes

Ensure role of factory – glass cabinet

Ensure space management

Ensure time management

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Requirements for servicescapes

Ensure role of factory – glass cabinet

a. Facilitate production process by:

• Facilitating receiving inputs

• Facilitating releasing output

• Facilitating transformation operations

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Requirements for servicescapes

Ensure role of factory – glass cabinet

b. Ensure appropriate environment for customers to

experience by:

• Showing customers what service looks like

• Facilitating customer participation

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Requirements for servicescapes

Ensure role of factory – glass cabinet

c. Harmonize the two requirements by:

• Determining the key function of each spatial area

• Seeking reconciliation

13
Requirements for servicescapes

Ensure space management

a. Manage customer flows:

• Direction
• Size
• Speed

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Gate1

Waiting Area

Security

Check-in
Requirements for servicescapes

Ensure space management

b. Use space efficiently by:

• Changing the function and environment of a space
• Contributing to processing different customers in the same
space, at different times
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Requirements for servicescapes

Ensure time management

• Ensure the lowest cycle time

• Minimize or optimize waiting time

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 TYPOLOGY OF SERVICESCAPES

Self-service
Elaborate
Remote service
Lean
Interpersonal service

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Who performs within Physical complexity of the servicescape
a servicescape
Management challenges
PHÂN LOẠI CƠ SỞ VẬT CHẤT
Elaborate
KỸ THUẬT
Lean

Self-service Golf course ATM Guiding customer behavior

(customer only) Water park Post office kiosk Designing intuitive interfaces
E-commerce website
Interpersonal Luxury hotel Budget motel Facilitating social interaction
services Restaurant Hot dog stand between employees and
(both customer and Vinpearland customers and among
Bus station
employee) customers
Airline terminal
Remote service Professional Telemarketing Employee satisfaction and
(employee only) services Online technical motivation
support Operational efficiency 19
ENVIRONMENTAL DIMENSIONS
OF SERVICESCAPES
Ambient conditions

•The background of our environment that affects all five of our

senses
(e.g., temperature, lighting, noise, music and scent)

Spatial layout and functionality

•The arrangement of furnishings and equipment and relationships

among them create a visual and functional landscape for delivery of
the service

Signs, symbols and artifacts

•Serve as explicit or implicit signals that communicate acceptable 21

norms of behavior.
 SERVICESCAPES

Why do fast-food restaurants

use reds, yellows and whites
for their furnishings and
decorations?

22

Source: http://news.mcdonalds.com
SERVICESCAPES

SUPERMARKET LAYOUT

See the supermarket layout below and compare with a

supermarket near your place.

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24
DESIGNING SERVICESCAPES
DESIGNING SERVICESCAPES

ARRANGING FACILITIES

a. Criteria for layout planning:

▪ Flexibility ▪ Use of space
▪ Cooperation ▪ Movement distance
▪ Accessibility ▪ Comfort
▪ Field of vision ▪ Safety
▪ Security 26
DESIGNING SERVICESCAPES

ARRANGING FACILITIES

a. Criteria for layout planning:

▪ Flexibility ▪ Use of space
▪ Cooperation ▪ Movement distance
▪ Accessibility ▪ Comfort
▪ Field of vision ▪ Safety
▪ Security 27
DESIGNING SERVICESCAPES

ARRANGING FACILITIES

a. Criteria for layout planning:

▪ Flexibility ▪ Use of space
▪ Cooperation ▪ Movement distance
▪ Accessibility ▪ Comfort
▪ Field of vision ▪ Safety
▪ Security 28
DESIGNING SERVICESCAPES

ARRANGING FACILITIES

a. Criteria for layout planning:

▪ Flexibility ▪ Use of space
▪ Cooperation ▪ Movement distance
▪ Accessibility ▪ Comfort
▪ Field of vision ▪ Safety
▪ Security 29
DESIGNING SERVICESCAPES

ARRANGING FACILITIES

a. Criteria for layout planning:

▪ Flexibility ▪ Use of space
▪ Cooperation ▪ Movement distance
▪ Accessibility ▪ Comfort
▪ Field of vision ▪ Safety
▪ Security 30
DESIGNING SERVICESCAPES

This is a restaurant
reopened after a shut
down due to COVID-19 in
Germany in 2020.

Which criteria is designing

servicescapes of this
restaurant trying to meet?
DESIGNING SERVICESCAPES

Models of facilities layout

By process

I II

Customers Service counter Cash

deposit/withdrawal
counter
32

Facilities are arranged along with the service process in a bank

DESIGNING SERVICESCAPES

Models of facilities layout

By products

A Savings counter

B Account management counter

33
Facilities are arranged to serve specific need(s)
DESIGNING SERVICESCAPES

Models of facilities layout

By customer groups

Counter for individual

C
customers

Counter for organizational

D customers
34

Facilities are arranged to serve

FACTORS AFFECTING
DESIGNING SERVICESCAPES
DESIGNING SERVICESCAPES
Nature and
objectives of Land
Flexibility
service availability
organization

FACTORS AFFECTING
DESIGNING
SERVICESCAPES

The community
Aesthetic 36
Security and
factors
environment
DESIGNING SERVICESCAPES
Nature and
objectives of
service Family clinic
organization Source: Ongbachau.vn

FACTORS AFFECTING
DESIGNING
SERVICESCAPES

37
Harvey Specter’s office
Source: Pinterest.co.uk
DESIGNING SERVICESCAPES

Land
availability

Source: Fanpage The Coffee House

FACTORS AFFECTING
DESIGNING
SERVICESCAPES

38
DESIGNING SERVICESCAPES

FACTORS AFFECTING
DESIGNING
SERVICESCAPES

Security 40
 DESIGNING SERVICESCAPES

Source: Fanpage Salavi Shop Đà Nẵng

Source: Thongtindiadiem.com

FACTORS AFFECTING
DESIGNING
SERVICESCAPES

Aesthetic 41
factors
DESIGNING SERVICESCAPES

FACTORS AFFECTING
DESIGNING
SERVICESCAPES

The community
42
and
environment
Arranging facilities in flow
process and job shop process
TYPES OF PROCESSES

Process
Service Example Characteristic Management Challenge
Type
One-of-a-kind
Project Consulting Staffing and scheduling
engagement

Many specialized Balancing utilization and

Job shop Hospital
departments scheduling patients

Group of customers Pricing perishable asset

Batch Airline
treated simultaneously (seat inventory)

Fixed sequence of Adjust staffing to demand

Flow Cafeteria
operations fluctuations
Maintenance and capacity
Continuous Electric Utility Uninterrupted delivery
planning
Designing servicescapes in job shop process

 No fixed sequence of operations exists, so service can be

customized to meet the needs of the customer.
 Requires more highly skilled service providers
 There is a need for a waiting area in each department
 The variability in demand at each department results when
customers choose different sequences of services and
place different demands on the service provided.
▪ Use operations sequence analysis to identify good layout
for the relative location problem.
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Designing servicescapes in job shop process

46
Basic methods to determine location and
movement distance

Job shop j
yj
Vector dij  ( xi  x j ) 2  ( yi  y j ) 2
method

yi
Job shop i Triangular
method
dij  xi  x j  yi  y j
47

xi xj
Operations sequence analysis

▪ List spatial areas/ departments/ facilities that need

to be located. For example, area A, B, C, D, E, F

▪ Use a matrix of flows between these areas/

departments/ facilities as input and a grid showing
the geographic center location for department
assignments. 48
Operations sequence analysis

Matrix of flows between areas/ departments/

facilities:
A B C D E F
A XAB XAC XAD XAE XAF
B XBA XBC XBD XBE XBF
C XCA XCB XCD XCE XCF
D XDA XDB XDC XDE XDF
E XEA XEB XEC XED XEF
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F XFA XFB XFC XFD XFE
Operations sequence analysis

Triangularized matrix of flows between areas/

departments/ facilities:
A B C D E F
A XA-B XA-C XA-D XA-E XA-F
B XB-C XB-D XB-E XB-F
C XC-D XC-E XC-F
D XD-E XD-F
E XE-F
50
F
Operations sequence analysis
Example: Layout of Ocean World Theme Park
A B C D E F A B C D E F
A 7 20 0 5 6 A 15 30 0 15 6
B 8 6 10 0 2 B 12 40 10 8
C 10 6 15 7 8 C 20 8 8
D 0 30 5 10 3 D 30 6
E 10 10 1 20 6 E 10
F 0 6 0 3 4 F
Flow matrix Triangularized matrix
Description of attractions: A = killer whale, B = sea lions, C = dolphins, D = water skiing, E = 51
aquarium, F =water rides
Operations sequence analysis

Initial layout

A B C

D E F

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Operations sequence analysis

53

Ocean World site planning using operations sequence analysis

Operations sequence analysis

Note:
 The departmental exchange logic of operations sequence analysis
was incorporated into a computer program known as CRAFT -
Computerized Relative Allocation of Facilities Technique
 The goal when locating departments/ areas/ facilities is not always to
minimize movement distance

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Exercises

2. Revisit the Ocean World Theme Park, and use the daily flow of visitors
between attractions found in Table 4.4 for a different analysis.
a. Recommend a layout that would maximize the total travel distance
between attractions.
b. What benefit would such a layout have for the owners of Ocean
World Theme Park.

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Exercises

1. The Second Best Discount Store is considering rearranging its stockroom to

improve customer service. Currently, stock pickers are given customer orders
to fill from six warehouse areas. Movement between these areas is noted in
the flow matrix below:
A B C D E F
A _ 1 4 2 0 3
B 0 _ 2 0 2 1
C 2 2 _ 4 5 2
D 3 0 2 _ 0 2
E 1 4 3 1 _ 4 56

F 4 3 1 2 0 _
Exercises

1. The Second Best Discount Store is considering rearranging its stockroom to

improve customer service. Currently, stock pickers are given customer orders
to fill from six warehouse areas. Movement between these areas is noted in
the flow matrix below:
A B C D E F
A _ 1 6 5 1 7
B _ 4 0 6 4
C _ 6 8 3
D _ 1 4
E _ 4 57

F _
Exercises
A convenience store is considering changing its layout to encourage impulse
buying. The triangular flow matrix below gives the measure of association
between different product groups (e.g., beer, milk, magazines). A plus sign (+)
indicates a high association, such as between beer and peanuts; a minus sign (-)
indicates a repulsion, such as between beer and milk; and a zero (0) indicates no
association.
Determine a layout that will encourage impulse buying by placing high-association
product groups close to one another.
A B C D E F
A + + 0 0 -
B + 0 - -
C + + 0
D + + 60
E 0
F
THANKS!
Any questions?
You can find me at:
▪ viennk@due.udn.vn

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