Chapter – 8 The Supporting Facility

1. 8 Service Management (5e) Operations, Strategy, Information Technology By Fitzsimmons and Fitzsimmons Chapter – 8 The Supporting Facility

2. 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.

3. 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

4. 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.

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

6. 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.

7. 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.

8. 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.

9. 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 Process Flow Diagram of Mortgage Services

10. 2 120 30 4 90 40 1 240 15 3 60 60 5 180 20 6 120 30 Activity Number(s) Capacity per hour Cycle Time in seconds Product Layout Work Allocation Problem Automobile Driver’s License Office Review Payment ViolationsEye Test PhotographIssue InOut

11. 1,4 65 55 3 60 60 • In Out 2 120 30 5 180 20 6 120 30 1,4 65 55 3 60 60 In Automobile Driver’s License Office (Improved Layout)

12. A B C D E F A B C D E F A 7 20 0 5 6 15 30 0 15 6 B 8 6 10 0 2 12 40 10 8 Net flow C 10 6 15 7 8 20 8 8 D 0 30 5 10 3 30 6 E 10 10 1 20 6 10 F 0 6 0 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. Process LayoutRelative Location Problem Ocean World Theme Park Daily Flows

13. C A B C A B D E F D E F A A F C B C E D E F D B 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

14. 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

15. 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?