Chapter 09 The Supporting Facility Creating the Right Environment McGraw-Hill/Irwin Service Management: Operations, Strategy, and Information Technology, 6e Copyright © 2008 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. Describe relationship between processes and layouts 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 flow-distance in a process layout. Recommend facility design features to remove anxiety of disorientation. 9-2

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. 9-3

Typology of Servicescapes 9-4

Facility Design Considerations Nature and Objectives of Service Organization Land Availability and Space Requirements Flexibility Security Aesthetic Factors The Community and Environment 9-5

Product Process Matrix

Types of Services Processes Process 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/Mass Cafeteria Fixed sequence of operations Adjust staffing to demand fluctuations Continuous Electric Utility Uninterrupted delivery Maintenance and capacity planning 9-7

Relationship between Processes and Layouts Project Resources are brought to a central site Job Shop and Batch Process layout Flow/Mass Assembly line or product layout Continuous

Terminology Workstation is any area that requires one worker or one machine 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. 9-9

Process Flow Diagram of Mortgage Services   Property Survey CT=90 min. Yes Final Approval CT=15 min. Mortgage Applications Completed Applications Approved Mortgages Credit Report CT=45 min. Title Search CT=30 min. No Unapproved Mortgages 9-10

Product Layout: Work Allocation Problem Automobile Driver’s License Office Review Payment Violations Eye Test Photograph Issue 1 240 15 2 120 30 3 60 4 90 40 5 180 20 6 120 30 In Out Activity Number(s) Capacity per hour Cycle Time in seconds 9-11

Questions for Product Layout in work allocation problem Questions for Product Layout in work allocation problem. Assume there is one worker per workstation What is the cycle time? Which operation is the bottleneck? What is the capacity of the system? What is throughput time?

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 9-13

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. 9-14

Ocean World Theme Park (Proposed Layout) 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 9-15

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 9-16