Facility Design and Layout Creating the Right Environment

Facility Design and the Servicescape Designing Physical Surroundings to Affect Employee and Customer Behavior

Facility Design and the Servicescape The servicescape must be in line with the service concept Self-service: it must guide customers (signs, hot buttons on website) Remote service: motivate employee and achieve operational efficiency Professional services: project competence and authority

Servicescapes Ambient Conditions: noise, music (tempo), lighting, temperature, scent (cookies), color (performance). Spatial Layout and Functionality: reception area, circulation paths of employees and customers, and focal points. (efficiency/uncertainty) Signs, Symbols, and Artifacts: selection, orientation, location, and size of objects.

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

Strategic Role of Servicescapes Visually conveys usage and quality of service Facilitates the delivery of the service (employees & customers) (floorplan, layout of website); can encourage social interaction (waiting room) Acts as a market differentiator by signalling the intended market segment (signs of restaurants); conveys distinctiveness from competitors

Facility Design Considerations Nature and Objectives of Service Organization: internal as well as external design (church, mosque, ski lodge, Chinese restaurant) Land Availability and Space Requirements (future expansion, parking) Flexibility for changes in demand or service specification (Burger King walk-in+drive through) Cost of initial excess capacity for growth vs cost of later adjustments) Aesthetic Factors The Community and Environment: Impact on traffic, noise, pollution, waste disposal. zoning regulations, action groups

Facility Layout Volume of demand Variability in the service provided Degree of personalization Skills, attributes of employees Nature of consumer interaction (self-service) Cost of providing the service Implicit and explicit cost to the customer Flexibility Consistency (reproducibility)

Product Layout Limited variety of services to a large number of customers Operations are arranged in the sequence of their performance Series and parallel arrangements

Product Layout Single server Parallel Series Series+parallel

Product Layout Line-balancing Problem Automobile Driver’s License Office Review Payment Violations Eye Test Photograph Issue In Out 1 240 15 2 120 30 3 60 4 90 40 5 180 20 6 120 30 Activity numbers Flow rate per hour Time in seconds

Automobile Driver’s License Office (Improved Layout) 1,4 65 55 3 60 In Out 2 120 30 5 180 20 6 120 30 1,4 65 55 3 60 In

Process Layout Similar ops grouped together Intermittent flow Employee skills or equipment Type of service Attitude/expectations of customers Intermittent flow Variability in type of service Variability in sequence of service delivery

Process Layout Point of control: scheduling Flexibility through: Employees with broad skills General purpose equipment Labour intensive Capacity to privide wide variety of services Cater for individual needs

Process Layout How will layout affect attitude of customers? (Distance walked, proximity to rest rooms, view from window) How will layout affect quality of service? (attitude of employees, communication with other depts, compatibility with organizational hierarchy) Costs associated with layout (fixed & variable costs, cost to customer) n! Possible layouts (n=10; 3 128 800)

Process Layout Relative Location Problem Ocean World Theme Park Daily Flows A B C D E F A B C D E F A 7 20 5 6 15 30 15 6 B 8 6 10 2 12 40 10 8 Net flow C 10 6 15 7 8 20 8 8 D 30 5 10 3 30 6 E 10 10 1 20 6 10 F 6 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.

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 =40 AF 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 F 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 C A B C A B D E F D E F A A F C B C E D E F D B

Process Flow Charting Symbols Category Symbol Description Operation An operation performed by the server off-line or customers self-service. A possible service failure point. Customer An occasion when server and customer interact. An contact opportunity to influence customer service perceptions. Travel The movement of customers, servers, or information between operations. Delay D Delay resulting in a queue and a need for waiting space for customers. Inspection An activity by customer or server to measure service quality.

Credit Card Processing (Before) Distance Time Activity Customer requests check 30 ft. 0.5 min. D Server walks 0.5 min. D Server prepares check 30 ft. 0.5 min. D Server walks 0.25 min. D Server presents check 30 ft. 0.5 min. D Server walks 0.5 min. D Customer inspects, puts card out 30 ft. 0.5 min. D Server returns to table 0.25 min D Server picks up card 30 ft. 0.5 min. D Server walks to process 0.5 min D Server fills out slip 0.5 min. D Server processes slip 1.0 min. D Server obtains preauthorization 30 ft. 0.5 min. D Server walks 0.25 min. D Server presents slip 30 ft. 0.5 min. D Server walks 0.5 min. D Customer signs (leaves) 0.25 min. D Server picks up slip 30 ft. 0.5 min. D (Customer leaves) Server walks Total time: Server:9 min. (270 ft.) Customer: 7.75 min.

Credit Card Processing (After) Distance Time Activity Customer requests check 30 ft. 0.5 min. D Server walks 0.5 min. D Server prepares check 0.5 min. D Server fills out slip 30 ft. 0.5 min. D Server walks 0.25 min. D Server presents check and slip 30 ft. 0.5 min. D Server returns to table 0.5 min D Customer inspects, puts card out, signs slip 0.25 min D Server picks up card and slip 30 ft. 0.5 min. D Server walks 0.5 min. D Server processes slip an card 1.0 min. D Server obtains authorization 30 ft. 0.5 min. D Server walks 0.25 min. D Server presents card and receipt D Customer leaves Total time: Server: 7.5 min. (210 ft.) Customer: 6.75 min.

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 Based on your work experience, contrast a supportive servicescape with a poor one in terms of job satisfaction and productivity.