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University Of Southern New Hampshire Operation Management Case Study : Fitness Plus Amen Mukhlis 7/15/2011

Fitness Plus Background

Fitness Plus is a full service Health and Sports Club in Greenbro , North Carolina … the Club Has a wide range of activities that support three main areas  Fitness. Fitness activities take place in four areas :  the aerobics (can accommodate 35 people per class).  free weight room.  a work put room with 24 pieces of nautilus.  A large workout room containing 29 pieces of cardiovascular equipment.  Recreation.  8 racquetball courts.  6 tennis courts.  an outdoor pool.  Relaxation.  Yoga class (Held twice a week in the aerobics room)  whirlpool and massage located in the locker room fitness plus opened its doors in 1995 during the first two years membership was small and the use of the facility was small but by 1997 membership has grown as well as the club it self along with the growth the use of equipment has grown too . In 2000 the club has had looked at their records in order to measure the capacity and come up with the strategy for handling their capacity and their future planning.

Capacity Numbers Based on the 2000 Records  15 members check in a typical day.  Slow periods 6-8 members per Hour usually Check in.  Peak Days such as Monday 7-4 the Number of members that checked in is as High as 40 per Hour Hours Of Operations

Monday – Thursday 6.30 am – 11:00 pm

Friday – Saturday 6:30 am – 8:00 pm

Sunday 12:00 pm – 8:00 pm

Capacity Numbers Based on the 2005 Records  25 members checked in a typical day.  Slow periods 10 members checked in.  Peak Days/Hours such as Monday 80 members checked in. Data Collected  individuals work out an average of 60 minutes.       30% of members do aerobics 40% of members use cardiovascular equipment 25% of the members use the nautilus machines 20 % of the members use the free weights 15% of the members use the racquetball courts 10 % of the members use the tennis courts.

The Question     Owners want to know if the capacity levels are being stretched Were the capacities of the existing facilities constrained and If so were !? If expansion was necessary can it be done in this facility and Where ? If resources were being stretched expansion should be considered (its may now and construction takes 4 months … putting in mind that January is the busiest month in terms of enrollments. (Peak in enrollment numbers) and to accommodate the new members construction should be before January.

Competition

 YMCA Has Opened In Town With Full services for a low Cost  Oasis Has Opened Around 10-15 Minutes Away Provide Services To Young Adults and Restricts Children Under 16 !  Gold Gym Provides Excellent Free Weight and Cardiovascular Activities.

Analysis Looking at data from 2000 -2005 even with the 3 other Facilities Opened in the Area Fitness Plus has increased the number of members … The Following Table Shows the Distribution of members in the Gym Areas Using The 2000 AND 2005 data Using peak time as an indicator Aerobics 30.00% 12 24 Cardiovascul ar 40.00% 16 32 Nautilus 25.00% 10 20 Free Weights Racquetball 20.00% 8 16 15.00% 6 12 Tennis 10.00% 4 8

Capacity we need to use the time-series analysis to measure the capacity and capacity usage of Fitness Plus

Activity Capacity Members

Aerobics 35 24

Cardiovascu Nautilus lar 29 32 24 20

Free Weights Assume 20 16

Racquetba ll 8 12

Tennis 6 8

The Capacity Table above Assume that Each member is using the area once and for 60 minutes , but especially with Cardiovascular and Nautilus , the assumption would be that Each member will Use the Machine for 30 minutes , the Same will go to the Nautilus

Analyzing those numbers  Aerobics Has enough capacity  Cardiovascular Does not have enough capacity  Nautilus Has not enough capacity  Free Weights Assume No Problems … Since turn over in Weights is too fast  Racquetball Has not enough space  Tennis Has not enough space

Actions and Action Plan Fitness Plus Has an indication on what the capacity for the Gym is and the distribution of this capacity and where the members are Going and What they are using , these figures are not accurate and need to have an accurate numbers to have a better understanding for what need to be Done, Fitness Plus can collect accurate data through Badge activated doors for each section , employees records , Classes records and Machines memory. Having these Records will help more identify the places or activities that might need expansion looking at the numbers in the Table above we can see that tennis and racquetball account for 25% of the whole number with total of 14 courts. That accommodate 20 people which makes it not enough for Racquetball and we have enough room for tennis. 6 courts of tennis and an average of 8 people means you can use the area of the 2 tennis courts for expansion , as even Growth later would not affect the tennis percentage a lot , Since only 10 % of the total members is tennis want to play which is less influential than cardiovascular which might need expansion.

 Managing aerobics classes and class timing could prove efficient especially if it was scheduled off Peak hours without affecting the number of members coming to those classes.  Expansion seems to be a good solution for the current location as a final solution as the problem might lay in how to manage both time and space , and if the Fitness Plus was more organized  the club might Used a check in system and book in advance system for some of the activities which would make it easier to manage their space and resources.  Giving incentives and bonus benefits for off peak customers , Which will result in better distribution for members on the time available and thus resources.  The numbers suggest that 3 of the main activities for Fitness Plus are overflowing with members which managing it with out expansion might be little difficult.  A minor expansion using whatever area available might be hard to do due to the limited area that we can use , but using one or two of the Tennis courts to expand one of the other activities might work as a temporary solution , and even if it would affect the tennis activity it will still serve the other activities which has more percentage of Customers.  A large expansion is another solution in downtown or a new location but the Case suggest resources and time would not really help , which means that Fitness Plus has to do with the resources available and manage without the much needed major expansion that can be important for the business.