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
7-4
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
7-8
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
7-9
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
7-14
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
7-26
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?
7-32
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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