Service Management

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Quiz 5 :

Supporting Facility and Process Flows

Quiz 5 :

Supporting Facility and Process Flows

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Comment on how the servicescape shapes the behaviors of both customers and employees.
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Servicescape model is developed to facilitate good environmental design and enhances the facility layout to make the customers feel a comfortable shopping experience.
The servicescape of supporting service facility will have impact on the behavior of both customers and employees. The physical environment of a store must be designed that is likely to service concept.
The impact of servicescape shaping the behavior of customer and employees is illustrated as shown below:
• The parties who involve in servicescape of a business or store are namely, customers and employees. The internal response of employee or customer towards servicescape is either using approach behavior or avoidance behavior. It is modified using personal attributes and psychological attributes that are cognitive, emotional, and physiological.
• A well-designed servicescape will enhance the approach behavior of both employees and customers. For example, employees would have commitment to work for a same company, but a customer would look to explore new products or spend money on purchasing.
• The physical environment provokes an emotional response and behavior of the service facility which can mold the behavior of participants to support objectives of organization
Thus, it can be concluded that the servicescape is designed to invoke social interactions between customers and employees.

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Revisit the Automobile Driver's License Office example. a. What is the direct labor utilization for the process shown in Figure 7.6 a ? b. What is the direct labor utilization for the process shown in Figure 7.6 b ? c. What is the direct labor utilization for the process shown in Figure 7.7? d. What do you conclude from these calculations? img img
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Cycle time (CT) is the maximum time each step takes to get completed.
Bottleneck is the step having maximum cycle time. It is the step that slows down the entire process.
Total direct labor content refers to the sum of the activity times of all steps in the process.
Direct Labor Utilization refers to the ratio of the total direct labor content and the total time spent on the process by the workers.
The activity times for all steps in the license renewal process is given below:
img a.
The present process flow diagram is given below:
img The legend for the above diagram is:
img Note : The capacity per hour is calculated by dividing 3,600 seconds (1 hour) by the average time.
The total direct labor content is the sum of the above activity time. Thus,
img Out of all the activities, activity 3 has the maximum cycle time. Thus, it becomes the bottleneck and the cycle time of the process is 60 seconds.
Now, there are 6 officers - one for each step in the process.
Thus, the direct labor utilization for the above process is:
img Thus, the direct labor utilization for the present process is
img .
b.
The proposed process flow diagram is given below:
img The total direct labor content is the sum of the above activity time. Thus,
img Activities 1 and 4 have been grouped together and are being worked on by 2 officers. As a result, the cycle time for 1 and 4 becomes 55 seconds/2 = 27.5 seconds.
Similarly, the cycle time for activity 3 is 60/2 = 30 seconds.
Out of all the activities, activity 3,2 and 6 have the maximum cycle time. Thus, they are the bottlenecks and the cycle time of the process is 30 seconds.
Now, there are 7 officers required for this process flow.
Thus, the direct labor utilization for the above process is:
img Thus, the direct labor utilization for the proposed process is
img .
c.
The reengineered process flow diagram is given below:
6 officials would be working on activities 1-5 simultaneously, each with a cycle time of 165 seconds (adding up the times of all 5 activities). The 7 th official would be working on activity 6.
The resultant cycle time for activities 1-5 is 165/6 = 27.5 seconds.
img The total direct labor content is the sum of the above activity time. Thus,
img Out of all the activities, activity 6 has the maximum cycle time. Thus, it becomes the bottleneck and the cycle time of the process is 30 seconds.
Now, there are 7 officers.
Thus, the direct labor utilization for the above process is:
img Thus, the direct labor utilization for the reengineered process is
img .
d.
From the above calculations, one can conclude that adding one official leads to a considerable increase in the labor utilization as well as a decrease in the cycle time of the process.
Further reengineering of the activities with 7 workers almost triples the labor utilization of the process.

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Consider the Mortgage Service Process shown in Figure 7.3, and assume the Title Search cycle time has changed to 60 minutes. a. What is the bottleneck operation and corresponding system capacity? b. What is the rush order flow time? c. What is the system capacity, if the same person performs Credit Report and Title Search? img
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Cycle time (CT) is the maximum time each step takes to get completed.
Bottleneck is the step having maximum cycle time. It is the step that slows down the entire process.
Capacity is the output per unit of time when the system is fully utilized.
Rush order flow time is the total time it takes to complete the entire process.
The process flow diagram of Mortgage Service is given below:
img a.
In the entire process, property survey has the maximum cycle time of 90 minutes.
Thus, the bottleneck operation of the process is Property Survey.
The system capacity is determined using the capacity of the bottleneck step i.e. Property Survey.
The system capacity is calculated as follows:
img Thus, the system capacity is
img .
b.
The rush order flow time will be the sum of the cycle times on the critical path.
Since the cycle time of title search is 60 minutes, the critical path for the Mortgage Process becomes Credit report Title Search Final Approval.
Thus, the rush order flow time becomes:
45 + 60 + 15 = 120 minutes
Thus, the rush order flow time is
img .
c.
If the same person is performing the Credit Report and Title search, then the bottleneck operation changes to these two. Since the same person is performing these two tasks, they fall under the same operation with a cycle time 105 minutes.
The changed system capacity becomes:
img Thus, the system capacity decreases to
img when the same person performs the Credit report and Title search.

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A school cafeteria is operated by five persons performing the activities listed below in the average times shown. img a. What are the bottleneck activity and the maximum service capacity per hour? b. Suggest a reallocation of activities that would increase capacity and use only four employees, and draw a product flow diagram. What is the capacity of your improved system? c. Recommend a way to maintain the serving capacity found in part b using only three employees.
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Compare the attention to aesthetics in waiting rooms that you have visited. How did the different environments affect your mood ?
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Select a service and discuss how the design and layout of the facility meet the five factors of nature and objectives of the organization, land availability and space requirements, flexibility, aesthetics, and the community and environment.
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Use CRAFT logic to develop a layout that will maximize customer time in the store.
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In addition to savings on personnel costs, what benefits does this arrangement have ?
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In January 2012, Joan Taylor, the administrator of the Life-Time Insurance Company HMO in Buffalo, New York, was pleased with the Austin, Texas, location that was selected for a new ambulatory health center. (The process used to select this site is discussed in Chapter 8, Service Facility Location.) The center not only would serve as a clinic for the acutely ill but also as a center for preventive health services. An important goal of the HMO was to offer programs that would encourage members to stay healthy. Various programs already had been planned, including those on smoking cessation, proper nutrition, diet, and exercise. The clinic portion of the health center would be quite large; however, certain constraints in the layout would be necessary. Acutely ill patients would need to be separated from well patients. In addition, federal safety regulations prohibited the radiography department from being adjacent to the main waiting room. It was very important to Ms. Taylor to minimize the walking distance for both the patients and the HMO personnel. The matrix below provides the expected flow between departments based on 35 patients per day. Beginning with a good initial layout, use operations sequence analysis to determine a better layout that would minimize the walking distance between different areas in the clinic.
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Identify the bottleneck activity, and show how capacity can be increased by using only two pharmacists and two technicians.
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In January 2012, Joan Taylor, the administrator of the Life-Time Insurance Company HMO in Buffalo, New York, was pleased with the Austin, Texas, location that was selected for a new ambulatory health center. (The process used to select this site is discussed in Chapter 8, Service Facility Location.) The center not only would serve as a clinic for the acutely ill but also as a center for preventive health services. An important goal of the HMO was to offer programs that would encourage members to stay healthy. Various programs already had been planned, including those on smoking cessation, proper nutrition, diet, and exercise. The clinic portion of the health center would be quite large; however, certain constraints in the layout would be necessary. Acutely ill patients would need to be separated from well patients. In addition, federal safety regulations prohibited the radiography department from being adjacent to the main waiting room. It was very important to Ms. Taylor to minimize the walking distance for both the patients and the HMO personnel. The matrix below provides the expected flow between departments based on 35 patients per day. Defend your final layout based on features other than minimizing walking distance.
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Revisit the Automobile Driver's License Office, and assume that some of our previous recommendations for investment have been implemented. For example, "checking for violations and restrictions" will be done on a computer terminal, with that activity now taking 30 instead of 60 seconds. However, no additional eye-test machines or cameras were purchased. a. Assuming that one worker is assigned to each activity, what is the bottleneck activity and the maximum number of applicants who can be seen per hour? b. Suggest a reallocation of activities among the six workers that would result in a service capacity of 120 applicants per hour. What investment would be required to implement your layout recommendation?
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Getting a physical examination at a physician's office involves a series of steps. The table below lists these activities and their average times. The activities can occur in any order, but the doctor's consultation must be the last. Three nurses are assigned to perform activities 1, 2, and 4. img a. What are the bottleneck activity and the maximum number of patients who can be seen per hour? b. Suggest a reallocation of nursing and/or doctor activities that would result in increased service capacity, and draw a product flow diagram. What is the capacity of your improved system?
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Passengers arriving at an airport departure gate must first wait for their row to be called before proceeding to the gate to have their boarding pass authenticated. If the boarding pass does not match the departing flight, the passenger is directed to the appropriate gate. A passenger attempting to carry on an excessively large bag is directed to check the luggage piece and return. Passengers with the proper boarding pass and appropriate sized carry-on are allowed to enter the jet way and board the plane. Draw a process flow diagram of the departure gate process. How might this process be improved to avoid delays?
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From a customer perspective, give an example of a servicescape that supports the service concept and an example that detracts from the service concept. Explain the success and failure in terms of the servicescape dimensions.
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For Example 7.3, the Ocean World theme park, make an argument for not locating popular attractions next to each other.
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The CRAFT program is an example of a heuristic programming approach to problem solving. Why may CRAFT not find the optimal solution to a layout problem ?
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How do the environmental dimensions of the servicescape explain the success of Central Market?
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What other consumer behavior concepts should be considered in the relative location of departments ?
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What percentage increase in customer time spent in the store is achieved by the proposed layout ?
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