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Supporting Facility and ProcessFlows
Creating the Right Environment
McGraw-Hill/Irwin Copyright 2011 by The McGraw-Hill Companies, Inc. All rights reserved.
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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 performancemetrics.
Identify the bottleneck operation in a product layout andrebalance for increased capacity.
Use operations sequence analysis to minimize flow-distance in a process layout.
Recommend facility design features to remove anxiety ofdisorientation. 7-2
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ServicescapesDesigning Physical Surroundings to Affect
Employee and Customer Behavior
Ambient Conditions: background characteristicssuch as noise level, music, lighting,temperature, and scent.
Spatial Layout and Functionality: reception
area, circulation paths of employees andcustomers, and focal points.
Signs, Symbols, and Artifacts: selection,
orientation, location, and size of objects. 7-3
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Servicescape Elements
7-4
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Typology of ServicescapesWho Performs in
Servicescape
Physical Complexity of the Servicescape
Elaborate Lean
Self-service(customer only)
Golf courseWater slide park
Post office kioskE-commerce
Interpersonal
(both)
Luxury hotel
Airline terminal
Budget hotel
Bus station
Remote service
(employee only)
Research lab
L.L. Bean
Telemarketing
Online tech support
7-5
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Facility Design Considerations Nature and Objectives of Service
Organization
Land Availability and SpaceRequirements
Flexibility
Security
Aesthetic Factors
The Community and Environment
7-6
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Types of Services ProcessesProcess Type Service
Example
Characteristic Management Challenge
Project Consulting One-of-a-kind engagement Staffing and scheduling
Job Shop Hospital Many specialized departments Balancing utilization and
scheduling patients
Batch Airline Group of customers treated
simultaneously
Pricing of perishable
asset (seat inventory)
Flow Cafeteria Fixed sequence of operations Adjust staffing to demand
fluctuations
Continuous Electric Utility Uninterrupted delivery Maintenance and
capacity planning
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Applicant
AdmissionsClerk
GraduateSecretary
GraduateAdvisor
FacultyPanel
GraduateDean Financial AidReview
Take GRE RequestReferences Wait
CreateFolder Contact
Applicant
Batch Files
ReviewFiles
TelephoneInterviews
AcceptanceLetter
DenialLetter
Yes
No
Yes
NoSend LetterClose Folder
ApplicationForm
Swim Lane Flowchart of GraduateSchool Admissions
7-8
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Property Survey
Time in Minutes30 60 90 120 150 180 210 240 270
Credit Report
Title Search
Final Approval
Activity Schedule
1 2 3
1 2 3
1 2 3
1 2 3
Gantt Chart for Mortgage Service
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Process Analysis Terminology Cycle Time is the average time between
completions of successive units.
Bottleneck is the factor that limits productionusually the slowest operation.
Capacity is a measure of output per unit timewhen fully busy.
Capacity Utilization is a measure of how muchoutput is actually achieved.
Throughput Time is the time to complete aprocess 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 throughthe system without any queue time.
Direct Labor Content is the actual amount ofwork time consumed.
Total Direct Labor Content is the sum of all theoperations times.
Direct Labor Utilization is a measure of thepercentage of time that workers are actuallycontributing value to the service.
7-11
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Process Flow Diagram of
Mortgage Services
Property SurveyCT=90 min.
Credit ReportCT=45 min.
Title SearchCT=30 min.
Unapproved
Mortgages
Approved
MortgagesCompletedApplicationsMortgage
Applications
Final ApprovalCT=15 min.
Yes
No
Finish
ProcessingAccept
Mortgages
7-12
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Product Layout:
Work Allocation ProblemAutomobile Drivers License Office
Review Payment Violations Eye Test Photograph Issue
1240
15
2 12030
360
60
490
40
5180
20
6120
30
Activity
Number(s) Capacityper hour
Cycle Timein seconds
In Out
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Automobile Drivers License
Office (Improved Layout)
1,465
55
360
60
360
60
1,465
55
6120
30
5180
20
2120
30
In
In
Out
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Process Layout:
Relative Location ProblemOcean World Theme Park Daily Flows
10
0
6
60
10
7 5
0
6020
43
6
6201
7
010
15
2
8
3
10
15
8820
630
15030
8104012
6
8
530
10
10
A B C D E F A B C D E F
A
B
C
D
E
F
Netflow
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 (b) Move C close to A
Pair Flow distances Pair Flow distances
AC 30 * 2 = 60 CD 20 * 2 =40AF 6 * 2 = 12 CF 8 * 2 =16
DC 20 * 2 = 40 DF 6 * 2 = 12
DF 6 * 2 = 12 AF 6 * 2 = 12
Total 124 CE 8 * 2 = 16
Total 96
(c ) Exchange A and C (d) Exchange B and E and move FPair Flow distances Pair Flow distances
AE 15 * 2 = 30 AB 15 * 2 =30
CF 8 * 2 = 16 AD 0 * 2 = 0
AF 6 * 2 = 12 FB 8 * 2 = 16
AD 0 * 2 = 0 FD 6 * 2 = 12
DF 6 * 2 = 12 Total 58
Total 70
A B C
D E F
A
C
D
B
E F
C
A
D
B
FE
A F
C E
D B
7-16
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Environmental OrientationConsiderations
Need for spatial cues to orient visitors
Formula facilities draw on previous experience
Entrance atrium allows visitors to gain a quickorientation and observe others for behavioralcues
Orientation aids and signage such as You AreHere maps reduce anxiety
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Health MaintenanceOrganization (A)
A B C D E F
Reception A - 30 0 5 0 0Waiting 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, useoperations sequence analysis to determine a
better layout that would minimize the walkingdistance between different areas of the clinic.
2. Defend your final layout based on featuresother than minimizing walking distance.
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Health MaintenanceOrganization (B)
Activity Time (sec.)
Receive prescriptions 24Type 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 howcapacity 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
1. Use CRAFT logic to develop a layout that willmaximize customer time in the store.
2. What percentage increase in customer timespent in the store is achieved by the proposedlayout?
3. What other consumer behavior conceptsshould be considered in the relative locationof departments?
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The Role of the Servicescape
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Concept: a modern farmers market forthe discerning customer
Aesthetics
Force Flow
Queuing
Results
The Servicescape
We want to change the way people eat Brian Cronin, General Manager7-24
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Aesthetics
7-25
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Produce
Flowers
Produce
Produce
Meat
Seafood
C
heese
Info
Coffee
Entrance
Cafe
Cashiers
Beer & Wine
Dairy Bakery
Deli
Grocery & Staples
Catering
Exit
Force Flow
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Cashiers
Frozen
Dairy Meat
Produce
Deli
Grocery & Staples
Normal Grocery Store
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Deli/Meat
CheckoutExpress Lanes
1
3
6
2
5
4
Queuing Systems
7-28
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Central Market Average Grocery Store
60k ft2 100k ft2Size
Sales / Customer$40 $20
Transactions / Week25,000 50,000
Product MixWine Groceries
Comparison
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Theres cheese at the end of themaze
Questions1. 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 shapesthe 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 youhave visited. How did the different environments affect yourmood?
Give an example of a servicescape that supports the serviceconcept and another that detracts. Explain the success or failurein terms of the servicescape dimensions
Select a service and discuss how the design and layout of thefacility 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 programmingapproach to problem solving. Why might CRAFT not find the
optimal solution to a layout problem?7-32
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Interactive Exercise
The class divides into small groups
One-half of the groups produce examples
based on work experience with supportiveservicescapes in terms of job satisfaction andproductivity.
The other one-half of the groups provideexamples ofpoorservicescapes in terms of
job satisfaction and productivity.
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