Fitness Plus, Part A
A. Synopsis
Fitness Plus is a full-service health and sports club situated in a large suburban office park. They provide facilities and services for three primary activities: fitness, recreation, and relaxation. There are four primary areas of the club where the fitness activities take; the aerobics room, the free weight room, a workout room with Nautilus equipment and a larger workout room with cardio equipment. In addition, there are eight racquetball courts, six tennis courts, and a large outdoor pool. The club has experienced significant growth in membership which has brought an increase in demand and use of its facilities. The club also has large shifts in demand which vary by hour, day and time of day. The club has continued to grow which has led to complaints from members about overcrowding and unavailability of equipment; most of which centered on the Nautilus, cardiovascular, and aerobics fitness areas. The club is also experiencing competition from three new facilities that have opened nearby. The owners now need to figure out what the existing capacity of each area of the club is and is it actually constrained. They also need to decide if now is the time to expand the current facilities or renovate and open a completely new facility near downtown to serve a new market.
B. Purpose
The purpose of this case study is to discuss and better understand the issues of capacity and capacity planning. This particular case pertains to the service industry rather than product industry. I will try and address the issues of measuring the current capacity of the club and whether or not each area should be measured separately. I will also attempt to distinguish between capacity levels at peak times and regular times. Also, is there a capacity cushion and if not, should there be one and how much? Next I will attempt to analyze the issue of capacity expansion, both at the current facility and possibly at a new facility. Once