1. Fitness Plus, Part A case (from chapter 6 on capacity planning; pages 223-224)
1. Utilization would be the method I would use to measure the where you would need to add extra capacity or eliminate extra space. In this case we would see that cardio is reaching maximum capacity. Fitness plus has not reached its capacity but it is time to start doing something about space. Capacity could soon be met since the area is growing so fast. January is also going to get busy so it is time to act.
2. The capacity strategy that would be best for Fitness Plus would be sizing capacity cushion which would help to find out if you are reaching a 100% utilization rate. You would then be able to gauge whether you need to increase capacity before it becomes a production issue. It would be ideal to stay around a 40% cushion so that you can keep customers satisfied and to avoid any problems.
3. The operating decisions are directly related to the financial aspects of the business. By increasing membership and utilization you increase profits which is what any business should want. Making changes to the business to meet increasing demand will affect other types of operating decisions in the business. You would have to change marketing and customer service. 2. Experiential Learning: Min-Yo Garment Company (from chapter 7 on constraint management; pages 269-272; question 1 only)
Production is not within capacity it is way over. 3. Video Case: Lean Systems at Autoliv (from chapter 8 on lean systems; pages 303-304) 1. Visual management is when a visual aid/device promotes more efficient and less wasteful processes. As mentioned in the text, a visual aid methodology that is commonly used is the Five S (5S). This method helps to organize, clean, develop, sustain, and sustaining a productive work environment. The 5S’s are: sort, straighten, shine, standardize, and