Evaluate ways to improve capacity utilisation through demand growth, flexible working, outsourcing, relocation, investment, production changes and resource planning.
Extract B Kirklees Active Leisure (KAL) K A L is a UK-based charity focusing on the provision of leisure services. It was established by Kirklees Council in 2002. KAL operates 12 leisure centres, all of which include several health and fitness facilities. Some have tennis courts, some have football pitches and six have swimming pools. Off-peak membership costs £19.95 per month to use the facilities at less busy times and £29.95 per month at peak times, when demand is highest. It includes access to all health and leisure facilities, fitness classes and swimming pools. KAL has a high number of members so many of its peak time classes are full each week, leading to complaints from members. Following the global health crisis and changes in economic variables, such as increased energy costs, KAL has been under considerable financial pressure. At the end of 2022, it was decided that KAL's costs could only be reduced significantly by temporary reductions in the number of facilities operated. Two of the swimming pools and two of the leisure centres were closed completely during the winter of 2022/23. However, one of the pools closed was used by a number of local schools and re-opened in early 2023. Members were consulted on ideas to decrease costs and/or increase revenue. These included raising the monthly membership fee, reducing opening times of facilities, increasing the number of volunteers instead of paid employees and reducing the temperature of the swimming pools.
Extract C Selected information from KAL's statement of comprehensive income for the year ended 31 March 2022
Analyse two ways that KAL could reduce capacity utilisation at these classes.