Fitness Plus Operations Improvement Plan

Fitness Plus Operations Improvement Plan

Learning Team C

Steve Delahunty

Thomas McDonough

Merilee Nathe

Joan Schwartz

University of Phoenix, Operations Management for Total Quality

May 13, 2002

Dr. Richard Schuttler, Ph.D.

Abstract

Fitness Plus is a workout facility located in North Carolina. Due to growth in membership and large shifts in demand, Fitness Plus is overcrowded. The result is the exercise equipment being unavailable for use by patrons. This paper will focus on the current capacity issue, and the decision to expand the existing facilities or build a new facility.

Fitness Plus Operations Improvement Plan

Fitness Plus is a workout facility located in North Carolina. Due to growth in membership and large shifts in demand, Fitness Plus is overcrowded. The result is the exercise equipment being unavailable for use by patrons. As noted by Krajewski & Ritzman (1999) “capacity planning is central to the long-term success of an organization” (p. 301). This paper will focus on the current capacity issues facing Fitness Plus, and the decision to expand the existing facilities or build a new facility.

Background

In 1988, Fitness Plus opened in Greensboro, North Carolina. Recently, membership has increased to a point of overcapacity during peak times of the day. Figure 1 provides an excellent graphical representation of the flow within the facility, as well as various capacity measurements. Studies were completed on existing members, illustrating that the average person works out for 60 minutes per session. Fitness Plus has two options to solve the capacity issue—expand the existing facility, which would take four months, or open a new facility, which would take six months. It is currently May, and peak enrollment season is January each year. In addition, the downtown area is beginning to repopulate with businesses. New competitors in the area include: the YMCA (which offers a full range of services at a low cost), the Oasis (which caters to young adults, age 16+), and Gold’s Gym (which is weight and cardiovascular training only).

Following are the specific activities offered by Fitness Plus, and their respective capacity:

Fitness Activities

• Aerobics room (35 people/class)

• Free weights

• Workout room (24 Nautilus machines)

• Cardiovascular workout room (9 stair steppers, 6 treadmills, 6 life-cycle bikes, 3 airdyne bikes, 2 cross-aerobics machines, 2 rowing machines, and 1 climber)

Recreation Activities

• Racquetball (8 courts)

• Tennis (6 courts)

• Outdoor pool

• City sports teams (softball, volleyball, and swim teams)

Relaxation Activities

• Yoga classes (2/week in aerobics room)

• Whirlpool tubs (1/locker room)

• Trained massage therapist

Hours of Operation

Monday through Thursday 6:30 a.m. to 11:00 p.m.

Friday and Saturday 6:30 a.m. to 8:00 p.m.

Sunday 12:00 p.m. to 8:00 p.m.

Capacity Assumptions

Focus for the capacity solution will be on the three areas of customer complaints: aerobics, cardiovascular, and nautilus areas. Limits should be placed on use of the three areas due to peak demand, as depicted below. This provides a measurement in members per hour (mph) for capacity planning. A critical aspect of capacity planning for this situation is to note that the peak demand is three hours daily. Additionally, an issue that makes capacity planning more complex is that one member may use all three of these high-demand areas, and may even use one area more than once.

Peak Demand

The following peak demand information is provided for the purposes of reviewing problem areas and peak usage of certain specific areas of the facility.

• Aerobics = 35 mph (one class per hour, 35 members maximum). We will assume that no members will complete more than one aerobics class.

• Cardiovascular = 58 mph (equipment limited to 30 minutes per member, 29 pieces of equipment). However, note that one member may use more than one piece of equipment, which makes the peak demand capacity planning more complex.

• Nautilus = 48 mph, assuming that room is not empty at the beginning of the peak demand (members flow through at steady rate and in sequence, 24 pieces of equipment, members use 1 minute per piece of equipment, some waiting and movement between stations). We should also make the assumption that normally no member will use any piece of equipment twice; however, a member may just use a few pieces and drop out of the sequence.

Analysis

Looking at the capacity chart depicted in Figure 2, it would seem that the club areas of aerobics, cardiovascular, and nautilus could easily accommodate peak demand, if the room limitations are adhered-to using employee monitoring. But there are complaints. The suspected reason for this is that members use more than one area of the club. Moreover, it is likely that members visiting more than one area during their workout heavily use the aerobics, cardiovascular, and nautilus areas. Many members may also workout for more than one hour.

Measurement Strategy

The problem identified is capacity, and being that Fitness Plus is a flexible flow process, i.e., members choose their own workouts, input measures are being used. At the current time and with the current flow of members, Fitness Plus has large periods of operating near peak capacity in multiple areas. This is causing flow issues, including bottlenecking in the more popular workout areas. Members are using more than one area of the fitness center during each visit, but there is a lack of data to depict actual usage of these areas. For instance, we know that approximately 80 mph enter the fitness center during our three peak hours, but we do not know which areas the members visit specifically. Therefore, the fitness center intends to measure use of the three problem areas (aerobics, cardio, nautilus) during the peak three-hour period. Members will utilize their membership card to enter and leave all areas of the center. The average utilization of each area will be computed and the results will be depicted in a chart, such as the attached example Figure 3. This will show actual usage during peak hours of the fitness center. Measurement should be over a fairly short period of time since member complaints have recently increased. Some action is needed in the short-term.

Key Indicators

Certain key indicators have been identified based on case information, which results in a capacity forecast approach. Indicators include:

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