1. Facility Design and Layout
Creating the Right Environment

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

7. 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

8. 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.

9. 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

10. 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

11. 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

12. 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)

13. 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

14. Product Layout
Single server
Parallel
Series
Series+parallel

15. 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

16. 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

17. 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

18. 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

19. 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; )

20. 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.

21. Ocean World Theme Park (Proposed Layout)
(a) Initial layout (b) Move C close to A
Pair Flow distances Pair Flow distances
AC * 2 = CD * 2 =40
AF * 2 = CF * 2 =16
DC * 2 = DF * 2 = 12
DF * 2 = AF * 2 = 12
Total CE * 2 = 16
Total
(c ) Exchange A and C (d) Exchange B and E and move F
AE * 2 = AB * 2 =30
CF * 2 = AD * 2 = 0
AF * 2 = FB * 2 = 16
AD * 2 = FD * 2 = 12
DF * 2 = Total
Total C A B C A B D E F D E F A A F C B C E D E F D B

22. 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.

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

24. Credit Card Processing (After)
Distance Time Activity
Customer requests check
30 ft min D Server walks
0.5 min D Server prepares check
0.5 min D Server fills out slip
30 ft min D Server walks
0.25 min D Server presents check and slip
30 ft 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 min D Server walks
0.5 min D Server processes slip an card
1.0 min D Server obtains authorization
30 ft 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.

25. 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.