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QUIZ will include 17 multiple-choice questions which must be completed within 40 minutes. The content coverage for each quiz is listed below.
Chapters 6, 7 and 8 and related videos
WILL provide videos to teacher
MUST GET AN “A”
PLEASE BE SMART
Supporting Facility and Process Flows
Chapter 7
McGraw-Hill/Irwin
Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved.
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Course Overview
Define, describe and classify services (Ch 1,2)
Strategic view of service design & development (Ch 3,4)
Process view of quality improvement
(Ch 6,7,8)
Encounter view of customers & employees (Ch 9)
VIEWS
SPECIAL TOPICS
TOOLS
Capacity planning & queuing models
(Ch 11,12,16)
Project management (Ch 15)
Information technology (Ch 5)
Supply Chains & Outsourcing (Ch 13)
Globalization (Ch 14)
Facility location
(Ch 10)
Inventory control
(Ch 18)
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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.
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.
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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
Allow customers to see both into and through the space
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Facility Design Considerations
Nature and Objectives of Service Organization
Land Availability and Space Requirements
Flexibility
Security
Aesthetic Factors
The Community and Environment
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Types of Services Processes
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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 Cafeteria Fixed sequence of operations Adjust staffing to demand fluctuations
Continuous Electric Utility Uninterrupted delivery Maintenance and capacity planning
Process Flow Diagrams
Visualize and document a process
Identify bottlenecks
Determine system capacity
Make improvements
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Process Flow Diagram of Mortgage Service
Property Survey
CT=90 min.
Credit Report
CT=45 min.
Title Search
CT=30 min.
Unapproved Mortgages
Approved Mortgages
Completed
Applications
Mortgage
Applications
Final Approval
CT=15 min.
Yes
No
Finish
Processing
Accept
Mortgages
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Mortgage Service Process Gantt Chart
1
2
Every 90 min a new mortgage is completed
3
Rush Order Flow Time = 90 + 15 = 105 min
Process Cycle Time
Fig. 7.5, pg 163
Slide contributed by David Hoyte
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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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Bottlenecks
When flow is not synchronized, process rate is limited by the “bottleneck”
The bottleneck constrains throughput. The rate of total throughput is the rate of the bottleneck
Time lost on the bottleneck is time lost in the whole process
Slide contributed by David Hoyte
Work Allocation – Boat Show
1
120
30
2
240
15
3
240
15
In
Out
Collect Payment
Hand Stamp + program
Apply wrist band
What is the Process Capacity?
Where is the Bottleneck?
What if 1 more person is added?
Slide contributed by David Hoyte
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Work Allocation – Boat Show
1
120
30
2
240
15
3
240
15
In
Out
Collect Payment
Hand Stamp + program
Apply wrist band
What is the Process Capacity now?
1
120
30
In
Slide contributed by David Hoyte
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Options for Eliminating a Bottleneck
Add another worker to the job.
Provide aid to reduce activity time. (e.g. automating an activity)
Regroup the tasks to create a new line balance with different activity assignments.
Goal: all jobs/activities should be of nearly equal duration.
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Automobile Driver’s License Office
Review Payment Violations Eye Test Photograph Issue
1
240
15
2
120
30
3
60
60
4
90
40
5
180
20
6
120
30
Activity
Number(s)
Capacity
per hour
Cycle Time
in seconds
In
Out
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Automobile Driver’s License Office (Improved Layout)
1,4
65
55
3
60
60
3
60
60
1,4
65
55
6
120
30
5
180
20
2
120
30
In
In
Out
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Health Maintenance Organization (B)
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* Must be performed by Pharmacist
Activity Time (sec.)
Receive prescriptions 24
Type labels 120
Fill prescriptions * 60
Check prescriptions * 40
Dispense prescriptions * 30
HMO (B) Questions
Identify the bottleneck activity, and show how capacity can be increased by using only two pharmacists and two technicians.
In addition to savings on personnel costs, what benefits does this arrangement have?
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HMO (B) Process Flow
1
2
3
4
5
24
Activity
Cycle time
Capacity per hour
150
30
120
60
60
90
40
30
120
What is the bottleneck operation? What is the capacity of the system? Why? How can capacity be increased?
Current staffing: 2 Techs & 3 Pharmacists, each doing one task
Slide contributed by David Hoyte
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HMO (B) Process Flow (old vs. new)
2 Techs
2 Techs 2 Pharma
2 Techs 3 Pharma
Capacity 30 / hr
Capacity 50 / hr
What other benefit do the two symmetrical “cells” provide?
Slide contributed by David Hoyte
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The Role of the Servicescape
Concept: a modern farmer’s market for the discerning customer
Aesthetics
Force Flow
Queuing
Results
The Servicescape
“We want to change the way people eat…” Brian Cronin, General Manager
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Aesthetics
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Force Flow
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Normal Grocery Store
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Deli/Meat
Checkout
Express Lanes
1
3
6
2
5
4
Queuing Systems
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Central Market
Average Grocery Store
60k ft2
100k ft2
Size
Sales / Customer
$40
$20
Transactions / Week
25,000
50,000
Product Mix
Wine
Groceries
Comparison
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“There’s cheese at the end of the maze…”
Questions
How do the environmental dimensions of the servicescape (ambient conditions, space/function, signs, symbols & artifacts) explain the success of Central Market?
Comment on how the servicescape shapes the behaviors of both customers and employees?
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