Supporting facility & process flow

Physical environment where

Customer & provider co-productionChap. 5

Supporting Facility & Process Flows

Creating the Right Environment

Chapter 5

• Home Depot– Aisles are narrow– Ceiling high merchandise– Lighting is industrial– Check out line is long

• Lowe’s– Copy its rival first– Wide aisles– Bright lighting– Merchandise display

encourage browsing

Physical Environment shapes customer’s behaviors & perceptions

Environmental Orientation Considerations

• Spatial cues are needed to orient visitors.

• Orientation aids and signage such as “You Are Here” maps reduce anxiety. – Color-coded subway

routes

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Environmental Orientation Considerations

• Formula facilities draw on previous experience.

• Entrance atrium allows visitors to gain a quick orientation and observe others for behavioral cues.

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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• 百貨公司、美食街、夜市、名品店

• Spatial Layout and Functionality: reception area, circulation paths of employees and customers, and focal points

• 大賣場、醫院、主題樂園、學校• Signs, Symbols, and Artifacts: selection, orientation,

location, and size of objects

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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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• Behavior in servicescapes– A building communicates a message to both its

customers and employees

– Invoke social interaction between and among customers and employees• Approach or avoidance behavior

Servicescape Elements

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– Ambient conditions• Temperature, lighting, noise, music, and scent

– All of human’s five senses

• Music tempo– Pace of shopping, length of stay, amount of money spent

• Convenience store play “elevator music”– Drive away teenager

» Loitering teen discourage paying customers from entering

• Cookie shop– Open doors to emit fragrance of freshly baked

– Spatial layout and functionality• Arrangement of furniture & equipment

– Visual and functional landscape for service delivery

• Fast food restaurant– Menu are posted over the cash register– Self serve drink between counter and table– Waste containers locate near exits

– Signs, symbols, and artifacts• Explicit and implicit signals

– Explicit

– Implicit» Floor covering» Doctors office

– Servicescape• Visual metaphor for organizational offers

– Home Depot» Orange colors, bare floors, industrial lighting, generally

cluttered look» Masculine image of construction industry

– Lowes» Soft blue, attractively displayed merchandise» Female friendly image for the home improvement

• Facilitate customer orientation– Way finding techniques

» Color coded subway lines» Logical flow planning» Audible assistance» Google maps for store location» Website navigations

• Encourage social interaction– Waiting areas

» with round tables for social interaction» with rows of chairs

• Focus employee’s behavior

• Facility design– Directly impact service operations• Hospital

– Group operating rooms together» Enable surgeons to communicate easily

– Provide ample pleasant place to walk» Encourage early ambulation to promote faster recovery

– Community dinning rooms» Allow patient to get together» Require walking

– Good design and layout enhance service• Adequate lighting• Fire exits• Proper location of dangerous equipment• Privacy & security

– Factors influence facility design• Nature and objectives of service organization• Land availability and space requirement• Flexibility• Security• Aesthetic• Community and environment

– Factors influence facility design• Nature and objectives of service organization

– Most important parameter– Bank

» Spacious and comfortable waiting area» Vaults

– Physicians» Privacy for patient» Modern and advance looks

– Engender immediate recognition of service» 學校外觀、教堂、廟宇

– Factors influence facility design• Land availability and space requirement

– Costs, zoning requirement, actual area– Urban area

» Lot is relatively small» Building expand upward

– Suburban & rural» Lands are larger and more affordable» Zoning laws on land usage & exterior appearance

– Off-street parking– Future expansion

– Factors influence facility design• Flexibility

– Adapt to change in quantity and nature of demand– Design for the future

» Expansion for present service» Accommodate new and different service

• Walk-in, drive-thru» Significant financial saving in the long run

– Airport» Failure to anticipate growth» Security check

– Factors influence facility design• Security

– Airport security after 911» More sophisticate carry-on scanners» Wipes to detect explosive residue» Profiling (Info technology)

– Surveillance camera for buildings» To discourage would-be robbers» To identify violator

– Jails, level 4 labs– Department stores: tags on mechandises

– Factors influence facility design• Aesthetic

– Sense of elegance and attention to customer’s needs» Upscale department store» Floor carpet» Complimentary lighting» Well-groomed salesperson» Roomy fitting rooms

– Sense of bargain» Outlet stores

– Both offer attractive, quality services

– Factors influence facility design• Community and environment

– Traffic congestion due to new stores– Noise and odor of new restaurant– New detention facility

– Zoning

Process analysis:

Types of Services ProcessesProcess

TypeService

ExampleCharacteristic 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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Process analysis

• Flowcharting– Identify bottleneck operation– Determine system capacity– Making improvement

Swim Lane Flowchart of Graduate School Admissions

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• In Class exercise– Do your own service flowchart

Gantt Chart for Mortgage Service

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Visual presentation of activity-based schedule

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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Facility Layout

• Layout– Location arrangement of the service delivery

system– Functional layout• 人力資源部門、會計部門• Indirect labor (maintenance, management)

– Flow process layout• Product

– Job shop layout• Project

• Flow process layout and work allocation problem– Service with predefined activities that all

customers must experience• Cafeteria• Driver license application

– A well-balanced line will have all jobs be of nearly equal duration to avoid bottleneck

• Example 5.2– 6 activities process

• Design #1– Bottleneck activity #3– Requires 6 operators– Capacity: 60 application per hour

• Design #2– Bottlenecks: on 3 activities– Requires 7 person– Capacity: 120 applications per hour

• Design #3– Operator trained to do

all activities 1 – 5– Line is most balanced

• Job shop process layout– No particular fixed sequence• Inter-departmental flow matrix• Cost matrix

– Traveling distance,

– Minimize total cost• CRAFT, computerized Relative Allocation of Facilities

Technique

Job Shop Layout:

Ocean World Theme Park

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• Mini case– Case 5.3 Esquire Department store• 找一個當地百貨公司，某個樓層，畫個簡圖，給些建議

– Case 5.4 Central Market• 找一個市場或夜市，畫個簡圖，給些建議