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Operations Management case study 5
Transcript of Operations Management case study 5
October 20, 2014
Alvarez, Arel, Hill, Purdon
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
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?
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.
Increase in membership numbers and income
Increase in facility space
Larger capacity cushion
Which capacity strategy would be appropriate for Fitness Plus?
Fitness Plus should use a combination of
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.
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.
-Yoga Classes (2x per week)
-Locker rooms include a whirlpool tub
-Trained massage therapists
-Large outdoor pool
-6 Tennis Courts
-8 Racquetball Courts
-Volleyball, Softball, and swim leagues
-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
-2 rowing machines
-2 cross aerobics machines
-3 airdyne bikes
-6 cycle bikes
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.
Service to support: fitness, recreation, and relaxation
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