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 …show more content…

The next step in the analysis is to focus the students on estimating the demands that are placed on the club facilities. Because this is a service being provided, the focus should be on looking at the club’s ability to satisfy peak demand. Students should quickly derive the following estimates of peak demand:
Arrival rate at peak = 80 members/hour
Aerobics @ 30% = 24 members/hour
Cardiovascular @ 40% = 32 members/hour
Nautilus @ 25% = 20 members/hour
Racquetball @ 15% = 12 members/hour
Tennis @ 10% = 8 members/hour
Free-Weights @ 20% = 16 members/hour
These potential demand rates during the peak times indicate a number of things. First, when compared to the area capacities calculated earlier, there seems to be plenty of excess capacity in all areas of the club. Second, it is obvious that members use more than one area of the club during their visits, as the total potential demand across all areas of the club adds to 112-person hours, impossible with only 80 members arriving per hour.
At this time, the instructor needs to direct the students’ attention and discussion toward the issue of determining the size of capacity cushion that Fitness Plus should target to maintain acceptable service levels for its members. One reason complaints may be occurring, even though the comparison of demands and capacities looks fine, is that a member may enter the club,