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Servicescapes

SUPPORTING FACILTY AND


PROCESS FLOWS Designing Physical Surroundings to Affect
Employee and Customer Behavior
Creating the Right Environment
Chapter 5 o Ambient Conditions: background characteristics
such as noise level, music, lighting, temperature, and
scent
o Spatial Layout and Functionality: reception area,
circulation paths of employees and customers, and
focal points
o Signs, Symbols, and Artifacts: selection, orientation,
location, and size of objects

© Thompson Teo | DSC3203 Service Operations Management 5 ‐ 2

Impact of Scent

An online poll with more


than 750 respondents
was done in 2015 about
the A&F flagship store in
Central, Hong Kong.

Source: http://hongkong.coconuts.co/2015/11/09/abercrombie-fitch-smell-foul-or-fragrant-video

© Thompson Teo | DSC3203 Service Operations Management 5 ‐ 3 © Thompson Teo | DSC3203 Service Operations Management 5 ‐ 4


Discussion (Slow vs fast music)

o Time taken to serve customers once seated


o Time spent at restaurant?
o Average waiting time?
o Spending on food?
o Spending on bar purchases (drinks)?
o Gross sales?

© Thompson Teo | DSC3203 Service Operations Management 5 ‐ 5 © Thompson Teo | DSC3203 Service Operations Management 5 ‐ 6

Typology of Servicescapes

Physical Complexity of Service scape

Who Performs in
Elaborate Lean
Servicescape

Self-service Golf Course Post office kiosk


(customer only) Water slide park E-commerce

Interpersonal Luxury hotel Budget hotel


(both) Airline terminal Bus station

Remote service Research lab Telemarketing


(employee only) L.L. Bean Online tech support

© Thompson Teo | DSC3203 Service Operations Management 5 ‐ 7 © Thompson Teo | DSC3203 Service Operations Management 5 ‐ 8


Servicescape Elements

© Thompson Teo | DSC3203 Service Operations Management 5 ‐ 9 © Thompson Teo | DSC3203 Service Operations Management 5 ‐

Environmental Orientation
Considerations
o Spatial cues are needed to orient visitors.

o Formula facilities draw on previous experience.

o Entrance atrium allows visitors to gain a quick


orientation and observe others for behavioral cues.

o Orientation aids and signage such as “You Are Here”


maps reduce anxiety.

© Thompson Teo | DSC3203 Service Operations Management 5 ‐11 © Thompson Teo | DSC3203 Service Operations Management 5 ‐12


Process Flow Diagram of Mortgage
Facility Design Considerations Services

o Nature and Objectives of Service Organization

o Land Availability and Space requirements

o Flexibility

o Security

o Aesthetic Factors

o The Community and Environment

© Thompson Teo | DSC3203 Service Operations Management 5 ‐13 © Thompson Teo | DSC3203 Service Operations Management 5 ‐14

Gantt Chart for Mortgage Service Process Analysis Terminology


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

© Thompson Teo | DSC3203 Service Operations Management 5 ‐15 © Thompson Teo | DSC3203 Service Operations Management 5 ‐16


Product Layout:
Process Analysis Terminology (cont.) Work Allocation Problem

o Rush Order Flow Time is the time to go through the


system without any queue time.
o Total Direct Labor Content is the sum of all the
operations times.
o Direct Labor Utilization is a measure of the percentage
Target output=120/hour
of time that workers are actually contributing value to Target cycle time=30s
the service. Reconfigure such that all cycle time of
various processes are 30s and below

© Thompson Teo | DSC3203 Service Operations Management 5 ‐17 © Thompson Teo | DSC3203 Service Operations Management 5 ‐18

Automobile Driver’s License Office


(Improved Layout) DMV Office
(Flexible Layout)

© Thompson Teo | DSC3203 Service Operations Management 5 ‐19 © Thompson Teo | DSC3203 Service Operations Management 5 ‐20


Process Layout: Process Layout:
Ocean World Theme Park Relative Location Problem

Ocean World Theme Park Daily Flows

A B C D E F A B C D E F
A 7 20 0 5 6 15 30 0 15 6
B 8 6 10 0 2 12 40 10 8
Net
C 10 6 15 7 8 flow 20 8 8
D 0 30 5 10 3 30 6
E 10 10 1 20 6 10
F 0 6 0 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.

© Thompson Teo | DSC3203 Service Operations Management 5 ‐21 © Thompson Teo | DSC3203 Service Operations Management 5 ‐22

Ocean World Theme Park


(Proposed Layout) What did you learn today?
(a) Initial layout (b) Move C close to A

Pair Flow distances Pair Flow distances


C
A B C AC 30 x 2 = 60 CD 20 x 2 =40
AF 6 x 2 = 12 A B CF 8 x 2 =16
D E F DC 20 x 2 = 40 DF 6 x 2 = 12
D E F
DF 6 x 2 = 12 AF 6 x 2 = 12
Total 124 CE 8 x 2 = 16
Total 96

(c ) Exchange A and C (d) Exchange B and E and move F


Pair Flow distances Pair Flow distances
A AE 15 x 2 = 30 A F AB 15 x 2 = 30
CF 8 x 2 = 16 AD 0x2= 0
C B C E
AF 6 x 2 = 12 FB 8 x 2 = 16
D E F AD 0x2= 0 FD 6 x 2 = 12
D B
DF 6 x 2 = 12 Total 58
Total 70

© Thompson Teo | DSC3203 Service Operations Management 5 ‐23 © Thompson Teo | DSC3203 Service Operations Management 5 ‐24

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