The Supporting Facility Creating the Right Environment Learning

The Supporting Facility Creating the Right Environment

Learning Objectives u Discuss the impact of the “servicescape” on the behavior of customers and employees. u Describe the critical facility design features. u Draw a process flow diagram. u Identify the bottleneck operation in a product layout and rebalance for increased capacity. u Use operations sequence analysis to minimize flow-distance in a process layout. u Recommend facility design features to remove anxiety of disorientation.

Servicescapes Designing Physical Surroundings to Affect Employee and Customer Behavior u Ambient Conditions: background characteristics such as noise level, music, lighting, temperature, and scent. u Spatial Layout and Functionality: reception area, circulation paths of employees and customers, and focal points. u Signs, Symbols, and Artifacts: selection, orientation, location, and size of objects.

Typology of Servicescapes

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

Process Analysis Terminology u Cycle Time is the average time between completions of successive units. u Bottleneck is the factor that limits production usually the slowest operation. u Capacity is a measure of output per unit time when fully busy. u Capacity Utilization is a measure of how much output is actually achieved. u Throughput Time is the time to complete a process from time of arrival to time of exit.

Process Analysis Terminology (cont. ) u Rush Order Flow Time is the time to go through the system without any queue time. u Direct Labor Content is the actual amount of work time consumed. u Total Direct Labor Content is the sum of all the operations times. u Direct Labor Utilization is a measure of the percentage of time that workers are actually contributing value to the service.

Process Flow Diagram of Mortgage Services Property Survey CT=90 min. Yes Final Approval Mortgage Applications Completed Applications Credit Report Title Search CT=45 min. CT=30 min. CT=15 min. No Unapproved Mortgages Approved Mortgages

Product Layout Work Allocation Problem Automobile Driver’s License Office Review Payment Violations Eye Test Photograph Issue 2 4 1 3 5 6 120 90 In Out 240 60 180 120 30 40 15 60 20 30 Activity Number(s) Capacity per hour Cycle Time in seconds

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

Process Layout Relative Location Problem u Ocean World Theme Park Daily Flows A B C D E F A B C D E F A B C D E F 7 8 20 0 5 6 6 10 0 2 15 7 8 10 3 10 6 0 30 5 10 10 1 20 0 6 0 3 15 Net flow 30 0 15 6 12 40 10 8 20 8 8 30 6 6 4 Flow matrix Triangularized matrix Description of attractions: A=killer whale, B=sea lions, C=dolphins, D=water skiing, E=aquarium, F=water rides. 10

Ocean World Theme Park (Proposed Layout) (a) Initial layout (b) Move C close to A Pair Flow distances C A B C AC 30 * 2 = 60 CD 20 * 2 =40 A B AF 6 * 2 = 12 CF 8 * 2 =16 D E F DC 20 * 2 = 40 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 A A F AE 15 * 2 = 30 AB 15 * 2 =30 C B CF 8 * 2 = 16 AD 0 * 2 = 0 C E AF 6 * 2 = 12 FB 8 * 2 = 16 D E F D B AD 0 * 2 = 0 FD 6 * 2 = 12 DF 6 * 2 = 12 Total 58 Total 70

Environmental Orientation Considerations u Need for spatial cues to orient visitors u Formula facilities draw on previous experience u Entrance atrium allows visitors to gain a quick orientation and observe others for behavioral cues u Orientation aids and signage such as “You Are Here” maps reduce anxiety

Topics for Discussion u Compare the attention to aesthetics in waiting rooms that you have visited. How did the different environments affect your mood? u 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

Topics for Discussion (cont. ) u Select a service and discuss how the design and layout of the facility meets the five factors of nature and objectives of the organization. u For Example 8. 3, the Ocean World theme park, make an argument for not locating popular attractions next to each other. u 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?

Interactive Exercise The class divides into small groups. Onehalf 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.