Supporting Facility and Process Flows

Creating the Right Environment

McGraw-Hill/Irwin Copyright © 2011 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. 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.

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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.

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Servicescape Elements

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Typology of Servicescapes

Who Performs in Servicescape

Physical Complexity of the Servicescape Elaborate Lean

Self-service (customer only)

Golf course Water slide park

Post office kiosk E-commerce

Interpersonal (both)

Luxury hotel Airline terminal

Budget hotel Bus station

Remote service (employee only)

Research lab L.L. Bean

Telemarketing Online tech support

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Facility Design Considerations

Nature and Objectives of Service Organization

Land Availability and Space Requirements

Flexibility Security Aesthetic Factors The Community and Environment

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Types of Services Processes

Process Type ServiceExample

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

Admissions Clerk

GraduateSecretary

GraduateAdvisor

Faculty Panel

Graduate Dean Financial AidRevie

w

Take GRE RequestReferences

Wait

CreateFolder Contact

Applicant

Batch Files

Review Files

TelephoneInterviews

Acceptance Letter

Denial Letter

MakeSelectio

n

Yes

FolderCom

plet

e ?

No

Yes

No Send Letter Close Folder

Application Form

Swim Lane Flowchart of Graduate School Admissions

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Property Survey

Time in Minutes 30 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 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.

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Process Analysis Terminology (cont.)

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.

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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 MortgagesCompleted

ApplicationsMortgageApplications

Final ApprovalCT=15 min.

Yes

No

 

Finish Processing Accept

Mortgages

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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 60

4 90 40

5 180 20

6 120 30

ActivityNumber(s) Capacity per hour Cycle Time in seconds

In Out

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Automobile Driver’s License Office (Improved Layout)

1,4 65 55

3 60 60

3 60 60

1,4 65 55

6 120 30

5 180 20

2 120 30

In

In

Out

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Process Layout:Relative Location Problem

Ocean 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 =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

Pair 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

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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

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Health Maintenance Organization (A)

A B C D E F

Reception A - 30 0 5 0 0

Waiting 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 -7-18

HMO (A) QUESTIONS

1. Beginning with a good initial layout, use operations sequence analysis to determine a better layout that would minimize the walking distance between different areas of the clinic.

2. Defend your final layout based on features other than minimizing walking distance.

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Health Maintenance Organization (B)

Activity Time (sec.)

Receive prescriptions 24

Type 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 how capacity 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 will maximize customer time in the store.

2. What percentage increase in customer time spent in the store is achieved by the proposed layout?

3. What other consumer behavior concepts should be considered in the relative location of departments?

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The Role of the Servicescape

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Concept: a modern farmer’s market for the discerning customer

Aesthetics Force Flow Queuing Results

The Servicescape

“We want to change the way people eat…” Brian Cronin, General Manager 7-24

Aesthetics

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Produce

Flowers

Produce

Produce

Meat

Seafood

Che

ese

InfoCoffee

Entrance

Cafe

Cashiers

Beer & Wine

Dairy Bakery

Deli

Grocery & Staples

Catering

Exit

Force Flow

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Cashiers

Fro

zen

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

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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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“There’s cheese at the end of the maze…”

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 shapes the 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 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 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 programming approach to problem solving. Why might CRAFT not find the optimal solution to a layout problem?

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Interactive Exercise

The class divides into small groups One-half of the groups produce

examples based on work experience with supportive servicescapes in terms of job satisfaction and productivity.

The other one-half of the groups provide examples of poor servicescapes in terms of job satisfaction and productivity.

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