Fitness Plus

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Students should begin by analyzing the capacity of the facility; however, the analysis is not as straightforward as it first may seem. There is an issue of how capacity should be measured. Students should quickly recognize that an overall measure of capacity for the facility isn’t much help in determining if Fitness Plus is capacity constrained. If the service delivery process for each member were homogeneous, such as a cafeteria or airline flight, then an overall measure of capacity, such as the number of members serviced over a given period of time, would be an appropriate measure of capacity. However, the service delivery process at Fitness Plus is a menu-driven process where each member chooses from a range of services the club provides. Therefore, capacity must be measured for each service item provided. In some areas of the club, such as aerobics, this may be an “output measure” of capacity, such as the number of members per hour that can do aerobics. In other areas, such as the Nautilus equipment, the measure may be an “input measure,” the number of machines available. A second set of complicating issues deals with the impact that management policies and assumptions have on capacity measures. In their analysis the students need to determine how many members can be serviced in each area of the club. The number served per hour in the cardiovascular area, for example, will depend on whether management chooses to limit the time on each machine during peak hours of demand. Many health clubs limit the use to 30 minutes per member during periods of heavy load. This would, in effect, double the output measure of capacity per hour, but it would not affect the input measure of total machine hours available. An assumption that could be made is that each member takes one minute for each piece of Nautilus equipment used. If management arranges the equipment in a sequential flow so that members begin at the first station and continue through the equipment in a set...
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