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Service Management - Chapter 7

The document discusses the design of service facilities and processes. It covers how the physical environment impacts customer and employee behavior, identifies key design features of service facilities, and how to analyze service processes through flowcharts, metrics, and layout optimization.

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48 views10 pages

Service Management - Chapter 7

The document discusses the design of service facilities and processes. It covers how the physical environment impacts customer and employee behavior, identifies key design features of service facilities, and how to analyze service processes through flowcharts, metrics, and layout optimization.

Uploaded by

ashkanfashami
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Chapter 7

Supporting Facility and Process Flows

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Learning Objectives

1. Describe the impact of the “servicescape” on the behaviour of customers


and employees.
2. Identify and discuss the three environmental dimensions of servicescapes.
3. Identify the six critical design features of a service-supporting facility.
4. Draw a swim lane flowchart, process flow diagram, and a Gantt chart of a
service process.
5. Calculate performance metrics such as throughput time and direct labour
utilisation.
6. Identify the bottleneck operation in a product layout and regroup activities
to create new jobs to increase the overall service capacity.
7. Use operations sequence analysis to determine the relative locations of
departments in a process layout that minimises total flow distance.
2
Environmental Psychology and Orientation

• Orientation is the first behavioural need of an individual when entering a


place.
• Using formula facilities, franchised services have effectively removed the
anxiety of disorientation so that customers know exactly what to do.
• Orientation can also be aided by facility designs that allow customers to
see both into and through the space.
• Orientation aids and signage, such as “You Are Here” maps if properly
aligned with the user’s perspective, can also be effective.

3
Servicescapes

• The physical environment or servicescape of the supporting service facility


influences customer and employee behaviour.
• Because of employees’ absence, the servicescape for a self-service
operation plays a central role.
• An organisation’s service facility reflects its values and is instrumental in
executing its strategy.
• The employee or customer’s internal response to the servicescape is
either approach or avoidance behaviour.
• A well-conceived servicescape will encourage an approach behaviour for
employees (e.g., commitment and desire to remain with the firm) and
customers (e.g., exploration, spending money, and returning).

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• The background of our environment, such as temperature, lighting, noise,
music, and scent, affects all five of our senses.
• The arrangement of furnishings and equipment and their relationships
create a visual and functional landscape for the service's delivery.
• Many items in the physical environment serve as explicit or implicit signals
that communicate acceptable norms of behaviour.
• The physical environment may assume various strategic roles supporting
the service concept.

5
Facility Design

• Service operations can be directly affected by the design of the facility.


• Design and layout represent the supporting facility component of the
service package.
• Clearly, good design and layout enhance the service, from attracting
customers to making them feel more comfortable to ensure their safety.
• The core service's nature should dictate its design parameters.
• Appropriateness of design is important as well.
• The available land for a service facility often comes with many constraints,
such as costs, zoning requirements, and actual area. Good design must
accommodate all these constraints.

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• Successful services are dynamic organisations that can adapt to changes
in the quantity and nature of demand.
• Several airports today have facility problems because designers failed to
anticipate the tremendous growth in the number of people flying.
• Designing for the future often can translate into financial savings.
• Anyone who has flown on a commercial airliner since the terrorist attack
against the United States on September 11, 2001, has observed
modifications in airports.
• Security in facilities can be enhanced by installing surveillance cameras.
• Slightly less obtrusive security measures can be seen at many retail
stores.
• The design of a service facility may be of greatest importance where it
affects the community and its environment.

7
Process Analysis

• Long ago, manufacturing students found it helpful to categorise processes


to derive general management principles that would apply across
industries that share the same process.
• The ability to diagram a process, identify the bottleneck operation, and
determine the system capacity are fundamental skills in managing service
operations and making improvements.
• An activity-based schedule of the mortgage service process provides
another visual representation for understanding and analysis.
• Cycle time (CT) is the average time between completions of successive
units.
• A bottleneck is the factor that limits production.

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• Capacity measures output per unit of time when fully busy (e.g., activity is
never idle).
• Capacity utilisation measures how much output is achieved relative to the
processing capacity when fully busy.
• Throughput time is the time it takes to complete a process from time of
arrival to time of exit.
• Rush order flow time is when it takes to go through the system from
beginning to end without any time in queue.
• Total direct labour content is the sum of all the operations times (i.e., touch
time) in performing the service.
• Direct labour utilisation measures the percentage of time workers
contribute value to a fully busy service organisation.
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Facility Layout

• Some standard services can be divided into an inflexible sequence of


steps or operations that all customers must experience.
• A process layout allows the customers to define the sequence of service
activities to meet their needs and, thus, affords some customisation.
• From the service provider’s perspective, the flow of customers appears to
be intermittent, so there is a need for a waiting area in each department.
• A dramatic and physical example of a service process layout is a university
campus with buildings dedicated to various disciplines.
• The departmental exchange logic of operations sequence analysis was
incorporated into a computer program called CRAFT (Computerised
Relative Allocation of Facilities Technique).

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