Case Problems
Case Problem7.1
Workout Plus
Workout Plus is a health club that offers a full range of services to its clients.
Recently, two other fitness clubs have opened up in town, threatening Workout's
solvency. While Workout is tops among serious fitness buffs, it has not attracted a
wide spectrum of members. Shannon Hiller, owner and manager, has decided it's
time for a face lift. She started the process by sponsoring a week-long “ideathon”
among club members. Nonmembers who frequented an adjacent grocery store were
also canvassed for suggestions. Their comments are provided below, along with the
current facility layout.
Current layout:
Member comments:
● •The cardio machines fill up too fast on rainy days. Then everything else gets
backed up.
● •I don't feel like strutting through the gym from one end to the other just to finish
my workout.
● •How about a quick 30-minute workout routine for busy folks?
● •I like working out with my friends, but aerobics is not for me. What other group
activities are good for cardio?
● •Separate the people who want to gab from the people who want to pump.
● •It's so confusing with all those machines and weights. You need a novice section
that's not so intimidating.
● •It's hard to work yourself in when you come from across the gym. I'd like to see
the machines I'll be using to gauge my time.
● •Circuit training is for wimps. The next thing you know you'll be stopping and
starting the music to tell us when to change machines.
● •We all seem to arrive at the popular machines at once. Can you space us out?
● •I'd like for my kids to get some exercise too while I'm working out. But I don't
want them wandering all over the place trying to find me.
● •This place is too crowded and disorganized. It's not fun anymore.
● •You have classes only at busy times. During the day the gym is empty, but you
don't provide many services. I think you're missing a great opportunity to connect
with the not-so-fit at off-peak times.
1.
How can Workout update its facility to attract new customers? What additional equipment or
services would you suggest? How could something as simple as revising the layout help?
The current layout of Workout Plus is very basic and dull because of its layout that gives
equal space to all four quadrants of the facility which is aerobics room, free weights, cardio
machines and circuit training. As a result of this equal space layout design valuable space
becomes limited and not able to be used to its highest potential. In addition it also lacks the
ability for this space to be used as a means of enhancement to draw new customers in. As for
current paying customers it provides a rather unsatisfying experience for working out. Base
on the health line a majority of members or working out are using the cardio machines and
free weights more than the other facility areas. It would be more beneficial to increase the
size of the cardio area in order to add additional machines such as treadmills and elliptical
machines which prove to typically be most popular. I would like to increase the area space
for the free weights section. Also, I would like to propose to have a designated area available
for novice members where they can talk to trainers in regards to equipment functionality and
brief knowledge and information sessions free of charge.
This area would be placed close to the entrance of the facility along with a map detailing
each area and included equipment for each section. Revising the layout of the facility
provides a more organized flow throughout the floor of the gym while creating a more user
friendly atmosphere and environment for members. The new layout would increase the
useable space for equipment, handle peak capacity of designated areas, and reduce congestion
in high traffic areas. The new proposed layout allows the focus of the gym to satisfy more
members while attracting new customers who are looking for services which Workout Plus
competitors are not offering.
2.
It is your job to design a new layout for Workout Plus. Visit a nearby gym to get ideas.
Watch the customer flow, unused space, and bottlenecks. What aspects of a process layout do
you see? a product layout? cells? Draw a simple diagram of your proposed layout. (You'll
want to be more detailed than the original layout.) How does your layout respond to the
comments collected by Shannon?
Did not submit
Case Problem7.2Photo Op—Please Line Up
Tech is modernizing its college ID system. Beginning this term, all faculty, staff, and students
will be required to carry a “smart” identification card, called a student passport. What makes
it smart is a magnetic strip with information on club memberships, library usage, class
schedules (for taking exams), restrictions (such as no alcohol), medical insurance, emergency
contacts, and medical conditions. If desired, it can also be set up as a debit card to pay fines
or purchase items from the bookstore, vending machines, cash machines, copy machines, and
several local retailers.
University administrators are excited about the revenue potential and increased control of the
passport, but they are not looking forward to the process of issuing approximately 60,000
new cards. If applicants could be processed at the rate of 60 an hour, the entire university
could be issued passports in a month's time (with a little overtime).
The steps in the process and approximate times follow. Steps 1 and 2 must be completed
before step 3 can begin. Steps 3 and 4 must precede step 5, and step 5 must be completed
before step 6.
a.
Is it possible to process one applicant every minute? Explain.
If you are good in assigning tasks to the workers, I think it is possible to process one
applicant every minute, because it took only seconds for it to process.
b.
How would you assign tasks to workers in order to process 60 applicants an hour?
The process they want to do is a little bit hard for the workers to that task, in order to achieve
that task they need to be motivated in doing their jobs. They need to exert efforts in this job.
So, their task is that each worker will do one process. For example, Worker 1 need to do the
process 1, worker 2 need to do process 2. So that all of them will function and make their
work easier and process 60 applicants an hour.
c.
How many workers are required? How efficient is your line?
60 applicants / 2 x 60 = 60/ 120
= 0.5 or 50%
Case Problem7.3The Grab'n Go Café
The GNG Café, a new concept in on-campus dining, features homemade bakery items,
upscale sandwiches and wraps, fresh salads, and signature soups. The modern café-style
design allows customers the freedom to select their menu choices from individual stations
throughout the café. While the restaurant has caught the imagination of the university
community with its nifty interiors and quality food (which is a welcome change from “the
bun”), space and layout restrictions have ensured that the customer when buying anything at
GNG can neither “grab” nor “go.”
It is undeniable that the quality of food offered at GNG is good, but GNG management
should not forget that their target customers are students who possess a modest income. It is
not unusual for students to reach the checkout and find themselves without sufficient funds to
complete their transaction.
The first thing customers do when they enter the restaurant is stand and look for the various
items they want to buy. While the food and drinks are displayed quite neatly and colorfully,
customers still have a hard time figuring out where to go first and what price they should
expect to pay for a particular product. Neither the product options nor their prices are
prominently displayed. This is especially true of made-to-order sandwiches. Since customers
don't have information about the sandwiches beforehand and the options are many, they can
take quite some time deciding what kind of sandwich they want to buy. This causes a traffic
problem, especially at mealtimes, when a lot of people come in at the same time to order, and
then must wait for their food in a small space. The overcrowding and open layout also present
problems with pilfering of food, as students conveniently “forget” to pay upon exiting the
facility.
GNG management has agreed to take on a student project to chart the flow of customers
through the café and to make recommendations on facility changes. A schematic diagram of
the existing layout follows, along with data on the flow of 25 customers. What changes in
layout and operating procedures would you recommend for GNG?
(LIMJOCO)
We will be using Block Diagramming Method to arrange criteria’s layout. Listed
below are the following objectives:
1. Eliminate bottlenecks / minimize queue
2. Eliminate wasted or redundant movement
3. Reduce the possibility of stealing food/ forgot to pay
4. Promote product and service quality
5. Encourage proper maintenance activities
6. Provide visual control of activities
7. Increase capacity
Group 4 BMC 04-18 Operations Management (TQM)
MICHAEL JOHN CAO
BRYAN JAY AGATEP
NADINE KATE LIMJOCO
SOPHIA ABIGAILLE ESCOBER LOUIE TERESA JOY LIGON
ANGELO CRUZ (DID NOT SUBMIT)