Supporting Facility and Process Flows Chapter 7McG.docx
- 1. Supporting Facility and Process Flows Chapter 7 McGraw-Hill/Irwin Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved. * 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)
- 2. Inventory control (Ch 18) * Servicescapes Designing Physical Surroundings to Affect Employee and Customer BehaviorAmbient 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. * Environmental Orientation ConsiderationsNeed for spatial cues to orient visitorsFormula facilities draw on previous experienceEntrance atrium allows visitors to gain a quick orientation and observe others for behavioral cuesOrientation aids and signage such as “You Are Here” maps reduce anxiety Allow customers to see both into and through the space * Facility Design ConsiderationsNature and Objectives of Service OrganizationLand Availability and Space RequirementsFlexibilitySecurityAesthetic FactorsThe Community and Environment *
- 3. Types of Services Processes *Process TypeService ExampleCharacteristicManagement ChallengeProjectConsulting One-of-a-kind engagementStaffing and schedulingJob ShopHospitalMany specialized departments Balancing utilization and scheduling patientsBatchAirlineGroup of customers treated simultaneouslyPricing of perishable asset (seat inventory)FlowCafeteriaFixed sequence of operationsAdjust staffing to demand fluctuationsContinuousElectric UtilityUninterrupted delivery Maintenance and capacity planning Process Flow DiagramsVisualize and document a process Identify bottlenecks Determine system capacity Make improvements * Process Flow Diagram of Mortgage Service Property Survey CT=90 min. Credit Report CT=45 min. Title Search CT=30 min.
- 4. Unapproved Mortgages Approved Mortgages Completed Applications Mortgage Applications Final Approval CT=15 min. Yes No Finish Processing Accept Mortgages * 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 *
- 5. Process Analysis TerminologyCycle 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. * 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. * * BottlenecksWhen 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 bottleneckTime lost on the bottleneck is time lost in the whole process Slide contributed by David Hoyte Work Allocation – Boat Show 1 120
- 6. 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 * * Work Allocation – Boat Show 1 120 30 2 240 15 3 240 15
- 7. 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 * * 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. * Automobile Driver’s License Office
- 8. 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 * Automobile Driver’s License Office (Improved Layout)
- 9. 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 * Health Maintenance Organization (B) * * Must be performed by PharmacistActivityTime (sec.)Receive prescriptions24Type labels120Fill prescriptions *60Check prescriptions *40Dispense prescriptions *30
- 10. 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? * 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 *
- 11. 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 * The Role of the Servicescape Concept: a modern farmer’s market for the discerning customer Aesthetics Force FlowQueuingResults The Servicescape “We want to change the way people eat…” Brian Cronin, General Manager * Aesthetics * Force Flow
- 12. * Normal Grocery Store * Deli/Meat Checkout Express Lanes 1 3 6 2 5
- 13. 4 Queuing Systems * 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 * “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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