The graph shows that the staff working at the gym, no matter where they are on the hierarchy list, feels that cost is also the most important objective for the company.
The last graph compares the customer feedback against the staff feedback.
2.1 Findings
The final graph shows that the customers find cost more important than the staff. This may be because that the gyms primary clientele are students. The gym is based at a university. Students in full time education do have time to have a full time job, so get very little income. This is why the cost of becoming a member and using the equipment is important to them. Setting the right cost effects all the objectives so is very important in all aspects, including staff costs, facility fees and material costs.
Another finding shows that customers find flexibility more important than the staff. This is because students have varying and different timetables. Other students do extra curricular activities in the evenings. This means that the gym needs flexible opening times to facilitate all the students and co-inside with their other activities.
The staff have shown that they find dependability more important than the customers do. An organisation needs strong dependability so that the customers feel catered for. The staff want their customers to be able to trust them and rely on them if they need to change anything. “Each part of the operation can concentrate on improving its own area of responsibility without having its attention continually diverted by a lack of dependable service from the other parts” (Slack et al 2001).
3.0 “Lean Philosophy”
A lean philosophy is ‘the reduction of cost through the elimination of waste in the process, and the full appreciation and utilisation of the workers’ capabilities’ (A, Reichart., M, Holweg. (2007)). The overall goal is to reduce waste from the system in order to increase operating efficiency, thereby increasing the actual value-added. “Lean is most efficient when production is steady and predictable” (Scott, B 2005). This lean philosophy applies to the five performance objectives of the gym. The key issues of the gym are to eliminate waste, involve everyone and have a continuous rate of improvement.
3.1 Five Performance Objectives
Quality: The gym needs to uphold a high level of merit, for example the equipment and services provided need to be of a high and safe standard. Quality means doing things right. The gym as an operation needs to be clean and tidy, have an appropriate and attractive décor and make sure that the staff are friendly and helpful. Quality reduces costs and increases dependability.
Flexibility: The gym needs to flexible so that it can facilitate to any changes. Different products and services need to be available, for example the opening times need to be varied as the main customers (students) have varying timetables.
Cost: The membership prices need to be a suitable price to facilitate students and people with different financial situations. The cost of hiring employment needs to be considered as well as the cost of the upkeep of the gym itself, e.g. updates of equipment. The lower the cost of producing their services, the lower the cost to the customer will be. This is a very attractive attribute, especially to students.
Speed: The gym does not want their customers to have to wait to use the facilities. The speed of the internal processes can reduce inventories and reduce risks.
Dependability: The staff at the gym want to be able to do things in time for the customers to receive their services. Being reliable causes the customers to become more loyal over time. Dependability can save time, save money and give support throughout the operation, internally and externally.
3.2 Just In Time Philosophy
To achieve a lean operation seven other elements need to be considered. Just-In-Time (JIT) is “producing goods and services exactly when they are needed” (Slack et al 2001). “The Japanese JIT philosophy of reducing waste and efficiently using inventory can profoundly influence organisational efficiency and effectiveness” (Cox, J and Snyder, C 1986). JIT has seven wastes which have to be addressed.
- Inventory
Inventory is “the stored accumulation of material resources in a transformation system” (Slack et al 2001). Inventory exists because there is a difference in the timing or rate of supply and demand. The Hartpury Gym can reduce inventory by addressing these costs:
- Cost of placing the order
- Price discount costs
- Stock – out costs
- Working capital costs
- Storage costs
- Production inefficiency costs
The economic order quantity formula (EOQ) can assist with cutting down these costs therefore reducing waste.
- Over Production
This is the greatest source of waste in any operation. The Hartpury Gym may employ too many staff at one time, therefore costing them a lot of money. The buffer inventory can be used as a safe method of compensating for the uncertainties inherent in supply and demand.
- Waiting Time
Waiting time can be caused by machine and labour inefficiency. At the Hartpury gym members have to sign in by manually writing down their name and membership number on a register style form. To eliminate wasting time by doing this, a card-swiping system could be installed. So that when members enter the gym they swipe their card to gain entry. This system would also keep an electronic log of who is registered in case of an emergency. Another way of cutting down waiting time at the Hartpury gym is by having all the cardio equipment in one area. This way, if all the exercise bikes are occupied, there is a near alternative piece of equipment to use. Also the cleaning staff could come at an off peak time or even when the gym is closed so that they do not create an obstacle for the customers.
- Transport
By making changes to the layout transport can be reduced. This can reduce waste and help move equipment around the gym.
- Process
The process of going to the gym may have sources of waste within it.
- Motion
“Simplification of work is a rich course of reduction on the waste of motion” (Slack et al 2001). At the gym having a member of staff making sure everyone has signed in is a waste of motion. If they had a swipe card system they could be doing something more productive, or may not even need to be there which would cut down employment costs.
- Defective Goods
To eliminate defective goods as a waste, every morning a member of staff could complete a safety maintenance check. This will diminish problems before they occur. For example, if the belt on one of the exercise bikes is wearing thin, the member of staff can realise this early enough and order a new one before it breaks.
4.0 Conclusion
“Limited financial resources and the lack of negotiating power are realistic constraints in external factors for a small firm” (Brown, K. and Inman, R 1992).
5.0 References
A, Reichart., M, Holweg. (2007) Lean Distribution. International Journal of Production Research. 45:16, 3699.
K,L., Brown., A,R., Inman. (1993) International Journal of Operations & Production Management. Vol. 13 Issue 3.
J,F, Cox., C,A., Synder,. (1986) Improving Productivity In Distribution--A Systems Approach. Industrial Management. Vol. 28 Issue 4.
Scott, B. (2005) Johnson Controls levels schedules in a lean manufacturing environment. Manufacturing Business Technology. Vol. 23 Issue 3
