Chapter

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
  ones 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
Process Flow Diagram of Mortgage Services
10
Product Layout Work Allocation Problem

• Automobile Drivers License Office
• Review Payment
  Violations Eye Test
  Photograph Issue
• In
  
  
  Out

11
Automobile Drivers License Office (Improved
Layout)

12
Process LayoutRelative Location Problem

• Ocean World Theme Park Daily Flows

13
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?