Chapter – 8 The Supporting Facility Service Management (5e) Operations, Strategy, Information Technology By Fitzsimmons and Fitzsimmons Chapter – 8 The Supporting Facility

Learning Objectives Discuss the impact of the “servicescape” on the behavior of customers and employees. Describe the critical facility design features. Draw a process flow diagram. Identify the bottleneck operation in a product layout and rebalance for increased capacity. Use operations sequence analysis to minimize flow-distance in a process layout. Recommend facility design features to remove anxiety of disorientation.

Servicescapes Physical facility should be designed with an image and feel that is congruent with the service concept; because the design of the physical surroundings positively affect employee and customer behavior. The internal response measured cognitively, emotionally, and physiologically is moderated by one’s personal mood. A well conceived servicescape will encourage a proper social interaction between and among customers and employees

Environmental dimensions of servicescape 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.

Facility Design Considerations Nature and Objectives of Service Organization Land Availability and Space Requirements Flexibility Security Aesthetic Factors The Community and Environment

Signs used in flow chart Operation: a rectangle encloses the operation name and cycle time Decision: a diamond encloses the operation name and cycle time Wait: a triangle represents customers waiting or inventory of goods Flow: an arrow shows movement of customers, goods, or information.

Process Analysis Terminology Cycle Time (CT) 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 of an operation = 1/CT Capacity of the entire system = 1/bottleneck capacity Capacity Utilization is a measure of how much output is actually achieved compared to the process capacity.

Process Analysis Terminology (cont.) Throughput Time is the time to complete a process from time of arrival to time of exit (= sum of critical path + average time in queues). 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.

Process Flow Diagram of Mortgage Services Property Survey CT=90 min. Credit Report CT=45 min. Title Search CT=30 min. Unapproved Mortgages Approved Mortgages Completed Applications Mortgage Final Approval CT=15 min. Yes No  

Product Layout Work Allocation 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 Activity Number(s) Capacity per hour Cycle Time in seconds

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

Process Layout Relative Location Problem Ocean World Theme Park Daily Flows 10 6 7 5 20 4 3 1 15 2 8 30 40 12 A B C D E F A B C D E F A B C D E F Net flow 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 A B C D E F

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

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 8.3, the Ocean World theme park, make an argument for not locating popular attractions next to each other. The CRAAFT program is an example of a heuristic programming approach to problem solving. Why might CRAFT not find the optimal solution to a layout problem?