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 flowdistance 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

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Typology of Servicescapes
Who Performs in Servicescape Self-service (customer only) Interpersonal (both) Remote service (employee only) Physical Complexity of the Servicescape Elaborate Lean Golf course Water slide park Luxury hotel Airline terminal Research lab L.L. Bean Post office kiosk E-commerce Budget hotel Bus station Telemarketing Online tech support

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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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Types of Services Processes

Process Type Service Example Characteristic Management Challenge

Project
Job Shop

Consulting
Hospital

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

Batch

Airline

Group of customers treated simultaneously Fixed sequence of operations

Flow

Cafeteria

Continuous

Electric Utility

Uninterrupted delivery

Maintenance and capacity planning

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Swim Lane Flowchart of Graduate School Admissions

Applicant Application Form Take GRE Request References Wait

Admissions Clerk

Create Folder

No

Contact Applicant

Send Letter Close Folder

Graduate Secretary Graduate Advisor

Yes

Batch Files

Denial Letter Telephone Interviews

Acceptance Letter

Review Files

No Faculty Panel

Graduate Dean

Yes

Review

Financial Aid
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Gantt Chart for Mortgage Service

Activity
Property Survey

Schedule
1 2 3

Credit Report

Title Search

Final Approval

Time in Minutes

30

60

90

120

150

180

210

240

270

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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. Capacity is a measure of output per unit time when fully busy. Capacity Utilization is a measure of how much output is actually achieved. Throughput Time is the time to complete a process 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 through the system without any queue time. Direct Labor Content is the actual amount of work time consumed. Total Direct Labor Content is the sum of all the operations times. Direct Labor Utilization is a measure of the percentage of time that workers are actually contributing value to the service.

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Process Flow Diagram of Mortgage Services

Property Survey
CT=90 min.

Yes Mortgage Applications Completed Applications Final Approval

CT=15 min.

Approved Mortgages

No Credit Report
CT=45 min.

Title Search
CT=30 min.

Unapproved Mortgages

Accept Mortgages

Finish Processing

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Product Layout: Work Allocation Problem

Automobile Drivers License Office
1 2

15

240

30

120

60

60

40

90

20

180

30

120

In

Review

Payment

Violations Activity Number(s)

Eye Test

Photograph

Issue

Out

Cycle Time in seconds

Capacity per hour

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Automobile Drivers License Office (Improved Layout)

In
1,4 55 65 3 60 60 2 5 6

Out
30
120

30

120

20

180

In

1,4 55

65

3 60

60

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Process Layout: Relative Location Problem

Ocean World Theme Park Daily Flows
A A B
7 8 10 0 10 0 6 30 10 6 5 1 0 20 3 4

C
20 6

D
0 10 15

E
5 0 7 10

F
6 2 8 3 6 Net flow

B
15

C
30 12

D
0 40 20

E
15 10 8 30

F
6 8 8 6 10

B C
D E F

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 A D B E C F Pair Flow distances AC 30 * 2 = 60 AF 6 * 2 = 12 DC 20 * 2 = 40 DF 6 * 2 = 12 Total 124

(b) Move C close to A C Flow distances 20 * 2 =40 D E F 8 * 2 =16 6 * 2 = 12 6 * 2 = 12 8 * 2 = 16 Total 96 (d) Exchange B and E and move F A F Pair Flow distances AB 15 * 2 =30 C E AD 0*2=0 FB 8 * 2 = 16 D B FD 6 * 2 = 12 Total 58
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Pair CD CF DF AF CE

(c ) Exchange A and C A Pair C D B E F

Flow distances AE 15 * 2 = 30 CF 8 * 2 = 16 AF 6 * 2 = 12 AD 0*2= 0 DF 6 * 2 = 12 Total 70

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

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Health Maintenance Organization (A)

A Reception Waiting room A B 10 B 30 C 0 40 D 5 10 E 0 0 F 0 0

Examination
Laboratory X-ray Minor surgery

C
D E F

15
5 0 2

20
18 4 0

1
8 1 0

15
2 0

5
6 1

5
3 4 7-18

HMO (A) QUESTIONS

1.

2.

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. Defend your final layout based on features other than minimizing walking distance.

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Health Maintenance Organization (B)

Activity Receive prescriptions Time (sec.) 24

Type labels
Fill prescriptions

120
60

Check prescriptions
Dispense prescriptions

40
30
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HMO (B) Questions

1.

2.

Identify the bottleneck activity, and show how capacity can be increased by using only two pharmacists and two technicians. In addition to savings on personnel costs, what benefits does this arrangement have?

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Esquire Department Store

1.

2.

3.

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?

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The Role of the Servicescape

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The Servicescape
Concept: a modern farmers market for the discerning customer

Aesthetics Force Flow Queuing Results

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We want to change the way people eat Brian Cronin, General Manager

Aesthetics

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Force Flow
Seafood Dairy Bakery

Meat Produce

Beer & Wine

Produce Grocery & Staples Produce Flowers Cheese

Deli

Cafe Info Coffee Entrance

Cashiers
Exit

Catering

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Normal Grocery Store

Dairy Meat

Produce Frozen

Grocery & Staples

Cashiers

Deli
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Queuing Systems
Express Lanes Checkout

Deli/Meat

6 3

1 5 4 2

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Comparison
Central Market
60k ft2

Average Grocery Store Size

100k ft2

Transactions / Week
25,000 50,000

$40

Sales / Customer

$20

Wine

Product Mix

Groceries
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Theres cheese at the end of the maze

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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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 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 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 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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