DE LA SALLE LIPA

COLLEGE OF INFORMATION
TECHNOLOGY
GRADED TASK 1 AND
Designing the Service Enterprise Part 1
ENGINEERING
I. GROUP MEMBERS
1. Magsambol, Ryan Aldrin
2. Nazareth, Kate
3. Pasahol, Arabella
4. Orense, Aleia Coleen Service Management
II. OBJECTIVE SY 2023-2024 2nd Semester
 Understand the basics of
designing a service enterprise

III. ACTIVITY INSTRUCTIONS (Total Points: 100)

1. Think of a service business that your group prefers to design. Specify the name of the
business, the product name, type of business, and brief explanation of how it operates (3
sentences only). (11 points)

Name of Business (2 point)

- FitFlex Gym

Service/s provided (2 point)

- The gym business offers a range of fitness services, including group exercise
classes, personalized training sessions, and access to state-of-the-art equipment.
Clients can achieve their
INDUSTRIAL ENGINEERING DEPARTMENT
fitness goals in a supportive
environment with expert guidance from certified trainers.

Type of Service (2 point)

- Fitness and Wellness Services

Brief one-sentence explanation of how it operates (5 points)

- FitFlex Gym offers personalized training sessions tailored to each client’s fitness
goals and needs, conducted by certified fitness trainers in a state-of-the-art facility,
promoting health and well-being through targeted exercise programs.

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2. Provide the Service Design Elements of the business. (32 points)

Structural

Element Application to the business Photo/s

Delivery 1. Process Structure:
System - Membership Sign-up:
Potential members sign up for
memberships either online or
in-person.
- Initial Consultation: New
members undergo an initial
consultation with a fitness
trainer to assess their fitness
level, goals, and any special
considerations.
- Personal Training
Sessions: Members can opt
for personal training sessions
to receive personalized
workout plans and guidance
from certified trainers.
- Group Fitness Classes:
The gym offers a variety of
group fitness classes such as
yoga, spinning, HIIT, and
strength training.
- Equipment Use: Members
have access to a range of
exercise equipment including
cardio machines, weight
machines, and free weights.
- Facility Maintenance:
Regular maintenance of
equipment and facilities to
ensure cleanliness, safety,
and functionality.
- Feedback and
Improvement: Gathering
feedback from members to
continuously improve services

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and facilities.

2. Service Blueprint:

Frontstage: Reception Area

- Reception Area: Where
potential members inquire
about memberships and
existing members check-in.
- Fitness Floor: Where
members use exercise
equipment, participate in
group classes, and interact
with trainers.
- Personal Training Area:
Fitness Floor
Dedicated space for one-on-
one training sessions.

Backstage:
- Staff Offices: Where
administrative tasks such as
scheduling, billing, and
member inquiries are handled.
- Maintenance Room:
Where equipment
maintenance and repairs take Personal Training Area
place.
- Support Processes:
- Online Membership
Portal: Allows for online
membership sign-ups, class
reservations, and account
management.
- Training and Certification:
Ensuring all trainers are
certified and continually Staff Offices
updating their skills.
- Cleaning Schedule:
Regular cleaning and
sanitation protocols to
maintain a clean and hygienic
environment.

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3. Strategic Positioning:
- Target Market: Identify the
target demographic, such as
fitness enthusiasts, beginners,
athletes, or specific age
groups.
- Differentiation: Highlight
unique selling points such as
state-of-the-art equipment,
expert trainers, specialized
classes, or a focus on holistic
wellness.
- Pricing Strategy: Determine
pricing options such as
monthly memberships, class
packages, or pay-per-session
rates, balancing affordability
with value.
- Location: Select a
convenient and accessible
location with sufficient space
for facilities and parking.
- Branding and Marketing:
Develop a strong brand
identity and marketing
campaigns to attract and
retain members, leveraging
social media, local advertising,
and community events.
- Partnerships: Forge
partnerships with local
businesses, health
professionals, or fitness
influencers to expand reach
and enhance credibility.

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Facility 1. Servicescapes: The gym’s
Design environment should be
designed to evoke a sense of
energy, motivation, and well-
being. Bright colors,
motivational quotes, and
energetic music can create an
uplifting atmosphere.
Additionally, clean and well-
maintained equipment and
facilities are essential to instill
trust and professionalism.
2. Architecture: The gym’s
architecture should prioritize
functionality and flexibility. It
should accommodate various
workout zones such as cardio
areas, strength training
sections, and functional
training spaces. Additionally,
ample natural light and
ventilation can enhance the
overall ambiance and
contribute to a pleasant
workout experience.
3. Process Flows: Efficient
process flows are crucial for
smooth operations. This
includes the check-in process,
equipment maintenance
schedules, and cleaning
routines. Designing clear
pathways within the gym to
navigate between different
workout areas and ensuring
easy access to amenities like
water stations and locker
rooms can enhance user
experience and streamline
operations.
4. Layout: The layout should
be organized and intuitive,
with clear signage and
designated zones for different
types of workouts. Cardio
equipment could be placed
near the entrance for easy
access, while weightlifting

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 areas may be located towards
the back for a more focused
environment. Group fitness
studios should be separated
from individual training areas
to minimize distractions.
Additionally, creating
designated spaces for
stretching, foam rolling, and
cooldown exercises can
enhance the overall
functionality of the gym layout.
Location 1. Geographic Demand:
- Analyze demographics:
Understand the demographic
profile of the area, including
age, income levels, lifestyle
preferences, and fitness
interests.
- Market research: Assess
the demand for fitness
services in the local
community by conducting
surveys, studying competitor
offerings, and analyzing
trends.
- Population density:
Consider the population
density and growth trends in
the area to gauge the potential
customer base.
- Lifestyle factors: Evaluate
factors such as health
consciousness, urbanization,
and recreational preferences
that influence the demand for
gym services.

2. Site Selection
- Accessibility: Choose a
location that is easily
accessible to the target
market, with good visibility and
proximity to major roads or
public transportation hubs.
- Parking availability: Ensure
ample parking space for
members, considering both

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on-site parking and nearby
options.
- Foot traffic: Select a
location with high foot traffic or
within a busy commercial area
to attract potential customers.
- Zoning regulations: Verify
that the chosen site complies
with local zoning regulations
and permits for commercial
use, fitness facilities, and
signage.
- Competition analysis:
Evaluate the proximity and
offerings of existing gyms and
fitness centers in the area to
identify gaps and opportunities
for differentiation.

3. Location Strategy:
- Convenience: Position the
gym in a convenient location
for the target market,
considering factors such as
proximity to residential areas,
workplaces, and shopping
centers.
- Brand alignment: Ensure
that the location aligns with the
brand image and target
demographic of the gym
business, whether it's a luxury
boutique gym, a budget-
friendly chain, or a specialty
fitness center.
- Market saturation: Avoid
oversaturated areas with
numerous competing gyms
unless there is a clear
opportunity to offer a unique
value proposition or target
underserved segments.
- Expansion potential:
Evaluate the scalability and
growth potential of the
location, considering factors
such as available space for
expansion, lease terms, and

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 market dynamics..

Capacity 1. Strategic Role: FitFlex

Planning Gym needs to strategically
plan its capacity to meet the
demands of its members while
maintaining profitability. This
involves forecasting
membership growth,
understanding seasonal
trends, and adjusting capacity
accordingly. Additionally, the
gym should consider the
strategic role of its amenities
and services in attracting and
retaining members, such as
offering diverse fitness classes
or investing in specialized
equipment.
2. Queuing Models:
Implementing queuing models
can help optimize resource
utilization and minimize wait
times for members. FitFlex
Gym can utilize queuing
theory to determine the
optimal number of staff
members needed at peak
times, allocate equipment
efficiently, and schedule group
fitness classes to distribute
demand evenly throughout the
day. This ensures a smoother
and more enjoyable
experience for members while
maximizing revenue potential.
3. Planning Criteria: FitFlex
Gym’s capacity planning
criteria should consider factors
such as facility size,
equipment availability, staff
availability, and member
preferences. By analyzing
historical data and conducting
surveys or feedback sessions
with members, the gym can
identify peak hours, popular
amenities, and areas for
improvement. Planning criteria

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 should also account for
potential fluctuations in
demand due to external
factors such as holidays or
local events, allowing the gym
to adapt its capacity
accordingly.

Managerial

Element Application to the business Photo/s

Information 1. Technology: With the
integration of technology and the
internet, FitFlex can offer
accessibility to their services
beyond physical locations. This
includes providing online workout
plans, virtual classes, and
personalized fitness tracking tools
FitFlex accessible through mobile
apps or web platforms. It ensures
that customers can engage with
the gym's offerings anytime,
anywhere, making fitness more
convenient and flexible.
2. Scalability: Leveraging
technology and the internet allows
gym businesses to scale their
services efficiently. For example,
virtual classes can accommodate
a larger number of participants
without physical space limitations.
Online membership management
systems streamline administrative
processes, enabling gyms to
handle growing memberships
seamlessly.
3. Use of Internet: Utilizing
internet-based platforms and tools
enables FitFlex to enhance
customer experiences and
streamline operations. For
instance, FitFlex can implement
online booking systems for classes
and appointments, allowing
members to schedule their
workouts conveniently. Internet-
connected fitness equipment can

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 track workout data and provide
real-time feedback to users,
enhancing the effectiveness of
their workouts.
Quality 1. Measurement: Implementing
precise metrics to quantify the
performance of the gym facilities,
equipment, staff, and customer
satisfaction levels. This involves
gathering data on key
performance indicators such as
equipment uptime, member
retention rates, average wait
times, and feedback scores.
2. Design Quality: Utilizing Six
Sigma methodologies to design
and develop gym facilities,
services, and programs that meet
and exceed customer
expectations. This includes
understanding customer needs,
identifying areas for improvement,
and designing solutions that
enhance the overall gym
experience.
3. Recovery: Establishing strong
processes for handling customer
complaints, feedback, and service
recovery. Six Sigma tools like Root
Cause Analysis (RCA) can help in
identifying the underlying causes
of issues and implement effective
corrective actions to prevent
recurrence.
4. Tools: Leveraging Six Sigma
tools such as DMAIC (Define,
Measure, Analyze, Improve,
Control) to systematically improve
our business processes. These
tools provide a structured
approach to problem-solving,
process optimization, and
continuous improvement.
5. Six-Sigma: Providing
comprehensive training and
certification programs in Six Sigma
methodologies to the staff. This
empowers employees at all levels

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 to contribute to quality
improvement initiatives, drive
efficiency gains, and foster a
culture of continuous improvement
within the organization.
Service 1. Encounter Triad: FitFlex thrives
Encounter on the Encounter Triad,
emphasizing interactions among
service providers, customers, and
fellow gym-goers. Staff members
are trained to offer guidance and
assistance and to cultivate an
atmosphere of inclusivity and
motivation during workouts.
Customers are encouraged to feel
welcomed, valued, and supported
in their fitness journey, creating a
sense of belonging and
camaraderie within the gym
community.
2. Culture: Establishing a strong
and positive gym culture is
essential for shaping the service
encounter. This culture revolves
around promoting health, fitness,
and well-being as core values,
permeating every aspect of the
gym's operations. Regular
communication and engagement
activities, such as group classes,
fitness challenges, and social
events, are organized to
strengthen the gym's culture and
foster a sense of community
among members.
3. Supply Relationships: Building
strong relationships with suppliers
and vendors is crucial for ensuring
the availability of high-quality
equipment, amenities, and
supplies in the gym. Negotiating
favorable terms and contracts with
suppliers helps in minimizing costs
while maintaining quality
standards and reliability.
4. Outsourcing: Outsourcing
certain non-core activities, such as
janitorial services, maintenance, or

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 IT support, can streamline
operations, reduce costs, and
allow the gym to focus resources
on core competencies. Clear
communication channels and
performance metrics with
outsourced partners ensure
accountability and adherence to
service level agreements.

Managing 1. Strategies: FitFlex Gym can

Capacity & implement several strategies to
Demand manage capacity and demand.
These include offering different
membership tiers with varying
access levels, implementing a
reservation system for popular
classes or peak hours, providing
promotions for off-peak hours,
optimizing group fitness class
schedules, and implementing peak
pricing for high-demand services.
2. Yield Management: FitFlex
Gym can utilize yield management
techniques to dynamically adjust
pricing and capacity based on
demand. This includes
implementing dynamic pricing,
utilizing member analytics to
optimize pricing strategies, setting
capacity controls for different
areas of the gym, and offering
flexible membership options such
as pay-per-use passes.
3. Queue Management: FitFlex
Gym can optimize queue
management practices to reduce
wait times and improve the
member experience. This includes
implementing digital check-in
systems, virtual queues for
popular classes or equipment,
providing real-time queue updates
and estimated wait times, offering

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 priority access for premium
members or those with
reservations, and strategically
allocating staff resources to
manage queues effectively.

Rubric for each application:

Description Points
The explanation is logical, complete, and consistent, and it provided 4
photos that visually presents the idea.
The explanation is logical, complete, and consistent, but no photos were 3
provided.
The explanation is neither logical, complete, nor consistent. 2
No explanation provided. 0

3. Determine one (1) the service design approach that will be applied in the selected
business. (6 points)
Reason for
Approach Specific Approach How it will work
Selection
Customer Contact Degree of Customer This approach is FitFlex Gym
Approach Contact ideal for FitFlex ensures a high
Gym because it degree of
emphasizes the customer contact
importance of through
direct interaction personalized
between the training sessions
fitness trainers led by certified
and clients. fitness trainers.
Since Trainers conduct
personalized initial
training sessions assessments, offer
are a core hands-on guidance
service offering, during sessions,
maximizing and provide
customer contact ongoing support to
ensures that help clients
clients receive achieve their
individualized fitness goals safely
attention, and effectively.
guidance, and This personalized
support tailored approach creates
to their specific a supportive
fitness goals and environment,
needs. This maximizing the
approach fosters effectiveness of

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 strong each session and
relationships with enhancing overall
clients, client satisfaction.
understand their
preferences and
progress, and
provide a
superior service
experience.

Rubric:

Description Points
The explanation is comprehensively connected to the approach, and it is 3
logical, complete, and consistent.
The explanation is connected to the approach, and it is logical, complete, 2
and consistent.
The explanation is neither logical, complete, nor consistent. 1
No explanation provided. 0

4. Determine one (1) mode of contact that will be utilized by the selected business. (6
points)
Mode of Specific Mode
Reason for Selection How it will work
Contact of Contact
Face-to-Face Technology- FitFlex business is 1. Online Membership
Contact Facilitated considered a Management: FitFlex
Service technology-facilitated Gym offers online
Encounter service encounter due platforms or mobile
to the widespread use apps where members
of technology in various can sign up for
aspects of its memberships, book
operations. This classes, manage their
includes membership accounts, and even
management systems, track their fitness
fitness tracking apps progress. These digital
and wearables, virtual platforms enhance
training platforms, convenience and
digital equipment, and accessibility for
online communities. members, allowing
These technological them to engage with
tools enhance the the gym's services
overall service remotely.
experience by providing
convenience, 2. Fitness Tracking
personalization, and Devices: With the
connectivity for proliferation of

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members, making it wearable fitness
easier for them to track trackers and apps,
their progress, engage gym-goers can monitor
with the gym's their workouts, track
offerings, and stay their performance
connected with fellow metrics such as heart
members and trainers. rate and calories
burned, and set fitness
goals. Integration with
these devices allows
gyms to provide
personalized
recommendations and
feedback to members
based on their activity
levels and progress.

3. Virtual Training and

Classes: FitFlex gym
offers a virtual training
sessions and on-
demand workout
classes through
streaming platforms or
interactive apps. This
technology allows
members to access
professional guidance
and participate in group
fitness sessions from
the comfort of their
homes, extending the
reach of the gym's
services beyond its
physical location.

4. Equipment
Integration: Modern
gym equipment is
increasingly equipped
with technology
features such as touch
screens, interactive
displays, and built-in
workout programs.
These features
enhance the user
experience by providing

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 real-time feedback,
instructional videos,
and personalized
workout routines,
making the gym
environment more
engaging and effective
for members.

5. Data Analytics and

Personalization:
FitFlex Gym leverages
data analytics to gain
insights into member
behavior, preferences,
and performance
trends. By analyzing
this data, gyms can
tailor their services,
marketing efforts, and
facility layout to better
meet the needs and
preferences of their
members, enhancing
the overall service
experience.

6. Communication
Channels: Technology
enables seamless
communication
between gym staff and
members through
various channels such
as email, text
messaging, social
media, and instant
messaging apps. This
allows gyms to provide
timely updates,
reminders, and
customer support,
fostering stronger
relationships and
engagement with
members.

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 Rubric:

Description Points
The explanation is comprehensively connected to the mode of contact, 3
and it is logical, complete, and consistent.
The explanation is connected to the mode of contact, and it is logical, 2
complete, and consistent.
The explanation is neither logical, complete, nor consistent. 1
No explanation provided. 0

5. Determine of the dimensions of service quality will be applied to the selected business to
ensure that customer expectations will be met. (15 points)

Dimension Application to the business

Reliability FitFlex Gym ensures consistency and dependability in delivering its
fitness services. This includes providing reliable access to gym
facilities, and personalized training sessions as promised to clients.
Also, it entails maintaining equipment in optimal working conditions
to avoid disruptions during workouts.
Responsiveness It demonstrates responsiveness by promptly addressing customer
inquiries, concerns, and feedback. This includes providing timely
responses to membership inquiries, scheduling changes, and
resolving any issues or complaints that may arise during training
sessions.
Assurance FitFlex Gym instills confidence and trust in its clients through the
assurance of quality service delivery. This involves employing
certified fitness trainers who possess the necessary expertise and
qualifications to guide clients effectively towards their fitness goals.
Additionally, the gym ensures a safe and supportive environment
conducive to achieving optimal results.
Empathy Also, it practices empathy by understanding and addressing the
individual needs and preferences of its clients. This involves
attentive listening to client goals, concerns, and limitations, and
customizing fitness programs accordingly. Trainers demonstrate
empathy by providing encouragement, motivation, and support
throughout the fitness journey.
Tangibles It emphasizes the physical facilities, equipment, and amenities
provided to enhance the overall customer experience. This
includes maintaining a clean and well-equipped gym environment,
offering modern exercise equipment, and providing amenities such
as locker rooms, showers, and refreshment areas to ensure client
comfort and satisfaction.

Rubric:

Description Points

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 The explanation is comprehensively connected to the dimension, and it is 3
logical, complete, and consistent.
The explanation is connected to the dimension, and it is logical, complete, 2
and consistent.
The explanation is neither logical, complete, nor consistent. 1
No explanation provided. 0

6. Determine one (1) cost per cost category that will be incurred by the business to ensure
quality. (24 points)

Cost Category Costs to be incurred and Purpose of monitoring the

explanation cost
Prevention Investment in Staff Training - Monitoring the cost of
Programs staff training programs
- FitFlex Gym will incur allows FitFlex Gym to
costs related to staff assess the
training programs to effectiveness of its
prevent service quality investment in
issues and ensure that preventing service
employees possess the quality issues. By
necessary skills and tracking expenses
knowledge to deliver high- related to training
quality fitness services. initiatives and
This investment includes evaluating their impact
expenses such as hiring on reducing errors,
professional trainers, enhancing employee
conducting regular training competence, and
sessions on fitness improving customer
techniques, customer experiences, the gym
service skills, and safety can make informed
protocols. By investing in decisions about
staff training, the gym resource allocation and
aims to prevent errors, continuous
accidents, and customer improvement efforts.
dissatisfaction, ultimately Regular monitoring
improving service quality helps ensure that the
and customer satisfaction. cost of prevention
remains justified by the
benefits of improved
service quality and
customer satisfaction.
Detection Implementation of Quality - It enables FitFlex Gym
Control Measures to proactively identify
- It will incur costs and address any
associated with service quality issues
implementing quality before they escalate,
control measures to detect ensuring that

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 any deviations from customers receive
service standards and consistent and
identify potential issues satisfactory
early on. This includes experiences. By
expenses related to allocating resources to
regular inspections of detection activities, the
equipment and facilities, gym can maintain high
conducting performance service standards,
assessments of trainers, minimize the risk of
and gathering feedback customer complaints or
from members. dissatisfaction, and
Additionally, investments protect its reputation in
in monitoring tools and the market. Regular
technology to track service monitoring helps
quality metrics and evaluate the
customer satisfaction effectiveness of
levels contribute to the detection efforts and
detection cost. allows for adjustments
to improve the overall
quality management
process.
Internal Failure Employee Training and - It allows FitFlex Gym to
Development Programs mitigate the risk of
- FitFlex Gym will invest in internal failures, such
employee training and as inadequate service
development programs to provision or errors in
minimize internal failures instruction, which can
related to service delivery. lead to customer
These costs include dissatisfaction and
expenses associated with reputational damage.
conducting training By investing in
sessions for staff employee skill
members, hiring qualified development, the gym
trainers, and providing aims to enhance
ongoing education to service quality,
ensure that employees increase customer
possess the necessary satisfaction, and
skills and knowledge to minimize the
deliver high-quality occurrence of internal
services. Additionally, failures that may impact
resources allocated to business operations
performance improvement and profitability.
initiatives, such as Regular evaluation of
mentorship programs and training effectiveness
skill enhancement helps identify areas for
workshops, contribute to improvement and
reducing internal failure ensures that
costs by addressing any employees remain

19
 deficiencies in service equipped to meet
delivery within the customer expectations.
organization.
External Failure Customer Compensation and - It helps FitFlex Gym
Recovery Efforts manage the financial
- may incur costs related to impact of external
external failures, such as failures and mitigate
customer compensation potential losses
and recovery efforts, to resulting from customer
address service dissatisfaction. By
deficiencies that result in allocating resources to
customer dissatisfaction or address service
complaints. These costs deficiencies promptly
include refunds, discounts, and effectively, the gym
or complimentary services aims to retain customer
provided to affected loyalty, minimize
customers as a form of reputational damage,
compensation for any and safeguard long-
service failures term business
experienced. Additionally, sustainability. Regular
expenses associated with evaluation of external
implementing recovery failure costs allows the
strategies, such as gym to assess the
outreach programs, effectiveness of its
apology letters, or follow- customer recovery
up communications to initiatives and make
regain customer trust and necessary adjustments
loyalty, contribute to to improve service
external failure costs. quality and prevent
recurrence of similar
issues in the future.

Rubric:

Description Points
The explanation is comprehensively connected to the dimension, and it is 3
logical, complete, and consistent.
The explanation is connected to the dimension, and it is logical, complete, 2
and consistent.
The explanation is neither logical, complete, nor consistent. 1
No explanation provided. 0

7. Determine one (1) service recovery approach that will be used by the selected business.
(6 points)
Approach Reason for selection How it will work
Systematic This approach involves For example, the gym

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 Response Approach implementing standardized establishes a protocol for
procedures or protocols for handling equipment
handling common service malfunctions. When a
issues. It can be useful for member reports a
streamlining the service malfunctioning treadmill, staff
recovery process and ensuring follow a predetermined
consistency in how problems procedure to tag the
are addressed. equipment as out of order,
notify maintenance, and offer
the member alternative
workout options.

Rubric:

Description Points
The explanation is comprehensively connected to the dimension, and it is 3
logical, complete, and consistent.
The explanation is connected to the dimension, and it is logical, complete, 2
and consistent.
The explanation is neither logical, complete, nor consistent. 1
No explanation provided. 0

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