1. Chapter 09 The Supporting Facility
Creating the Right Environment
McGraw-Hill/Irwin
Service Management: Operations, Strategy, and Information Technology, 6e
Copyright © 2008 by The McGraw-Hill Companies, Inc. All Rights Reserved.

2. 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.
Describe relationship between processes and layouts
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.
9-2

3. 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.
9-3

4. Typology of Servicescapes
9-4

5. Facility Design Considerations
Nature and Objectives of Service Organization
Land Availability and Space Requirements
Flexibility
Security
Aesthetic Factors
The Community and Environment
9-5

6. Product Process Matrix

7. Types of Services Processes
Process Type
Service
Example
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/Mass
Cafeteria
Fixed sequence of operations
Adjust staffing to demand fluctuations
Continuous
Electric Utility
Uninterrupted delivery
Maintenance and capacity planning
9-7

8. Relationship between Processes and Layouts
Project
Resources are brought to a central site
Job Shop and Batch
Process layout
Flow/Mass
Assembly line or product layout
Continuous

9. Terminology
Workstation is any area that requires one worker or one machine
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.
9-9

10. Process Flow Diagram of Mortgage Services
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
9-10

11. 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 4 90 40 5
180 20 6
120 30 In
Out
Activity
Number(s)
Capacity
per hour
Cycle Time
in seconds
9-11

12. Questions for Product Layout in work allocation problem
Questions for Product Layout in work allocation problem. Assume there is one worker per workstation
What is the cycle time?
Which operation is the bottleneck?
What is the capacity of the system?
What is throughput time?

13. Automobile Driver’s License Office (Improved Layout)
1,4 65 55 3 60 In
Out 2
120 30 5
180 20 6
120 30
1,4 65 55 3 60 In
9-13

14. Process Layout: Relative Location Problem
Ocean World Theme Park Daily Flows
A B C D E F A B C D E F A 7 20 5 6 15 30 15 6 B 8 6 10 2 12 40 10 8
Net
flow C 10 6 15 7 8 20 8 8 D 30 5 10 3 30 6 E 10 10 1 20 6 10 F 6 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.
9-14

15. Ocean World Theme Park (Proposed Layout)
Initial layout (b) Move C close to A
Pair Flow distances Pair Flow distances
AC * 2 = CD * 2 =40
AF * 2 = CF * 2 =16
DC * 2 = DF * 2 = 12
DF * 2 = AF * 2 = 12
Total CE * 2 = 16
Total
(c ) Exchange A and C (d) Exchange B and E and move F
AE * 2 = AB * 2 =30
CF * 2 = AD * 2 = 0
AF * 2 = FB * 2 = 16
AD * 2 = FD * 2 = 12
DF * 2 = Total
Total C A B C A B D E F D E F A A F C B C E D E F D B
9-15

16. 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
9-16