• Baruch College, CUNY

• MANA 3121

 The design and layout of service facilities is dictated by the service package, and the atmosphere that is created should enhance the value of the service. The environment of the service facility is referred to as a servicescape that influences the behavior of both customers and employees. The design of the facility needs to consider several issues including nature of the organization, land availability, security, flexibility, and the neighborhood community. Being able to draw a process flow diagram is central to an understanding of service performance as measured by metrics such as throughput time. A distinction is made between a product and a process layout. The work allocation problem is shown as an opportunity to increase capacity in a product layout without a need to add personnel. The relative location problem is treated as a central issue in the design of a process layout. We have found that students enjoy applying the simple graphical techniques for work allocation and process layout, because good solutions require some imagination on their part. The concept of environmental psychology addresses the issue of customer orientation in unfamiliar surroundings. SUPPLEMENTARY MATERIALS Case: Shouldice Hospital Limited (HBS case 683-068) A hospital located in a Canadian suburb of Toronto provides the limited service of repairing inguinal hernias using a unique surgical technique developed by Dr. Earle Shouldice. The surgery, which is accompanied by an active recovery regimen at the resort-like facility, has proved very successful. Case: Transforming Singapore’s Public Libraries (HBS case 9-802-009) A reengineering effort has transformed Singapore’s public libraries to create a new experience for visitors to facilitate learning, exploring, and discovering in support of the national aim of becoming a “learning nation.” The success of the effort is quantifiable in terms of low capital cost, a modest increase in operating budget, a doubling of membership, and dramatically improved service standards (e.g. waiting lines, material availability, ease of access, and librarian help). LECTURE OUTLINE I. Environmental Psychology and Orientation II. Servicescapes (Figure 7.1) Behaviors in Servicescapes (Figure 7.2) Environmental Dimensions of Servicescapes III. Facility Design Nature and Objectives of Organizations Land Availability and Space Requirements Flexibility 7-1 Security Aesthetic Factors The Community and the Environment IV. Process Analysis Types of Processes (Table 7.1) Flowcharting (Figure 7.3 and Figure 7.4) Gantt chart (Figure 7.5) Process Terminology V. Facility Layout Product Layout and the Work Allocation Problem (Table 7.2, Figs. 7.6, 7.7) Process Layout and the Relative Location Problem (Table 7.3, Figs. 7.8, 7.9, 7.10) TOPICS FOR DISCUSSION 1. Compare the attention to aesthetics in waiting rooms that you have visited. How did the different environments affect your mood? [This response was submitted by student Roger Bhalla] Waiting rooms tend to fall into two broad categories: ones that were specifically designed with the customer in mind and those that were installed solely out of necessity or as an afterthought. In fact some waiting rooms may be designed to keep people from wanting to wait in them! In every case, however, the aesthetics of the waiting area do affect the customer's mood. Some service providers do as much as possible to make the customer "feel at home" while they wait. Two examples of this situation that I have had were seen in professional offices. My dentist's office is designed with soft-colored wood paneling, green plants and pictures of peaceful settings that help the patient to relax. The dentist sees patients in an a