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Why must a service organization weigh layout differently from a factory?
ABecause a service layout affects customer behavior
BBecause a service firm has no equipment to place
CBecause service layouts are fixed by local law
DBecause services have no need for any workflow
Answer & Solution
Correct answer: A. Because a service layout affects customer behavior
1. In a factory, layout is judged mainly by how efficiently work moves between stations.
2. In a service organization the customer is physically inside the facility, so layout shapes customer behavior too.
3. Placing freight elevators in the centre of a hospital may be efficient for moving goods.
4. The same choice can block the flow of patients, visitors, and medical personnel between floors and departments.
5. So the efficient answer and the customer-friendly answer can point in opposite directions.
6. Options B and D are simply untrue, because service firms use equipment and have workflows of their own.
_Source: OpenStax Introduction to Business (CC BY 4.0), Ch 10 "Achieving World-Class Operations Management", section Designing the Facility_
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