Fitness Plus Case Study

Fitness Plus Case Study

  • Submitted By: mike096
  • Date Submitted: 03/13/2009 4:05 AM
  • Category: Business
  • Words: 2581
  • Page: 11
  • Views: 2278

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...

Similar Essays