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Operations Management case study 5

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michela purdon

on 20 October 2014

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Transcript of Operations Management case study 5

Fitness Plus
MGMT 365-05
October 20, 2014
Alvarez, Arel, Hill, Purdon
Fitness Plus
Membership peaked in 2000
Average of 15 members/hour check into the club per day.
Slow has 6-8 members/hour
Busy averages 40 members/hour
May of 2005 usage made an all time high averages
Average of 25 members/hour
Slow has 10 members/hour
Busy 80 members/hour


Case Questions
1. What method would you use the capacity of Fitness Plus? Has Fitness Plus reached its capacity?

2. Which capacity strategy would be appropriate for Fitness Plus?

3. How would you link the capacity decision being made by Fitness Plus to other types of operating decisions?

Question 1
What method would you use the capacity of Fitness Plus? Has Fitness Plus reached its capacity?

Utilization method- No, Fitness Plus does have room for more members, but it would be smarter to please the new and old members by expanding and adding more space.

Operations Management
Opportunities
Increase in membership numbers and income

Increase in facility space

Larger capacity cushion
Question 2
Which capacity strategy would be appropriate for Fitness Plus?

Fitness Plus should use a combination of
expansionist
along with testing the
sizing capacity cushion
.
Timing and sizing would allow the gym to utilize their facilities more.
The biggest issue with Fitness Plus is that they lack in demand.

Question 3
How would you link the capacity decision being made by Fitness Plus to other types of operating decisions?


First, the gym needs to find who their market is. From there, after an expansion, Fitness Plus would have to market the gym more to increase membership.
Facts
Fitness:
-Aerobics room
-Free Weights
-Workout room
-Cardio Room
Relaxation:
-Yoga Classes (2x per week)
-Locker rooms include a whirlpool tub
-Trained massage therapists

Recreation:
-Large outdoor pool
-6 Tennis Courts
-8 Racquetball Courts
-Volleyball, Softball, and swim leagues
Aerobics Room
Free Weights
Workout Room
Cardio Room
-30% member utilization
-Can fit 35 members in each class
-20% member utilization
-Not specified on capacity
-25% member utilization
- 24 pieces of Nautilus equipment
-40% member utilization
-29 pieces of cardio equipment
-1 climber
-2 rowing machines
-2 cross aerobics machines
-3 airdyne bikes
-6 cycle bikes
-6 treadmills
-9 stair-steppers
Fitness Plus
Full service health and sports club in Greensboro, North Carolina and opened in 1995.
Has and aerobics room, free weights room, workout room, large cardio room.
Provides:
Gym facilities
Cardiovascular equipment
Service to support: fitness, recreation, and relaxation
Problems
Increase in competition
Gold’s Gym opened up and so did a YMCA and Oasis Gym

Complaints from members about there not being enough room

Expansion would shut the gym down
Full transcript