Talent Dry Cleaners Service Operational Challenges - Case Study Example

?Talent Dry Cleaners Service Operational Challenges Talent Dry Cleaners Service Operational Challenges Executive Summary This case study aims at investigating the operation of talent in business processes. At the end of the analysis, problems facing the company shall have been discovered; method of improving the business will be discussed to help in the improvement of the company. This will be done effectively by identifying the challenges within the Talent Dry Cleaners operational service as well as the challenges experienced in operating the business. Among the problems emphasized in this report include low profit margins that hinder expansion into more markets. Talent dry-cleaner has the capability of having quality services than most of other companies but also has different challenges that act as obstacles to its growth (Takaki, 2008). This study will show that the business`s operation state. The business`s capacity utilization is 85.94% with an average turnaround time of 3-4 hours and it is a profitable as per the returns. The study will examine the challenges this business is currently experiencing and the possible solutions that have been drafted to counter such challenges. The understanding of such challenges will lead to appropriate recommendations that would help the company achieve the desired growth, goals, and objectives. Background This case study evaluates and analysis many perceptions in the service operation administration. It shows the business satiation of Patrick Eze who is trying so much to expand his business but he hardly got capital for the expansion and building of an institution to train dry cleaners. Problem Statement During the operation of the business, it took longer to register one client’s clothes. The company did not have a system of doing the registration hence wasting a lot of time in the registration of customers. Talent dry cleaners do not have strict payment tracks methods. The client is the one to decide when to pay either when dropping off or when picking the clothes. This can lead to wastage of resources because other clients can avoid paying their fees if strict laws of payment are not in place. The business has only two collection points. Moreover, it is not well marketed and the owner feels that there are needs to advertise his dry cleaner (Yelowitz, 2011). The dry cleaner has one dry-cleaning machine that takes five kilograms of garments and takes twelve minutes to wash. This is a long time and lead to time wastage. Therefore, the owner should buy a machine with a bigger capacity. The company is usually overwhelmed during peak season when there are many customers. Analysis The most essential solution towards the growth and development of this business is that the owner needs to notice that in small businesses, there need ensure that the level of hard work matches the complexity needed for the intended growth (Takaki, 2008). The owner did not consider this before the establishment of his business. Eze`s previous business had a well experienced manager who made the vital business decision that were essential for the success of his business. Eze has no experience in planning and handling business venture because prior to him starting the business, he did not take his time to study operational challenges he was likely to experience in running the business. Analysing from his background, Eze worked for fifteen years in his the previous employment; however, this did not equip him with strong management and leadership skills for successfully running a personal business. Notably, he only has basic skills for operating business since he no experience in marketing that could have led to the growth of his small business. Additionally, he had no experience in planning large business ventures; thus, whenever he had a large number of customers, his problems increased (Takaki, 2008). Lack of experience and information are major problems in any business venture. Furthermore, poor planning usually leads to waste of time and this is experienced in the registration of customers in this firm. This phenomenon increases the turnaround time. Time is a very important resource in running of a business and Eze`s business wasted a lot of it. The business worked less work per and this reduced production since the business was not exploiting the available resources fully especially time and workforce. Therefore, the growth of this business will be pegged on proper management of time and workforce through proper planning. Answers to the Case Study Questions Question 1: Figure 1: Process flow map for Eze`s business Question 2: Throughput is the rate of delivery of service by a specific company while facing different challenges or the constraints. Throughput is best measured by income received in a given a given time. Mathematically, the throughput is often expressed as: Therefore, maximum throughput achievable would be = 50items * 8hrs = 400-Throughput Several factors usually affect throughput including: Processing time, process yield and Productive capacity. The figure below shows factors affecting throughput that translates to the work done by a specific company. Question 3: The turn around time of Eze`s company was 3 to 4 day and this was determined by: the workload for the company, number of employees and The machine capacity. To reduce the turnaround time for this business, it must ensure that there is maximum utilization of resources available, getting a bigger machine with high capacity of washing, and increasing the number of workers for the company. The period the staff will work per day, daily will determine the number of customers the company receives. Therefore, Eze opted for the turnaround of three days because he had less labour force and the capability of his machine was very minimal (Owen & Erjavec, 2004). The business had also fewer customers and they were not in hurry to accomplish tasks. This time can be reduced by increasing the number of the staff and maximizing capacity utilization of the available resources. Question 4: When the workload increases our concerns is if the company will be able to handle work at hand towards facilitating the desired growth of the business. Economic value added is calculated by the total profit minus total business expenses When the throughput is 70% EVA is =1050*100-300000 = 195000 When throughput is 80% EVA is =1200*100-300000 = 90000 Question 5: The Talent drycleaners owner is likely to make more income if he aligns his business well with the increased throughput. This will only be achieved through employing more work forces to the business and ensuring that they work for longer hours to ensure better utilization of the available resources. Recommendation and conclusion Success in business is measured by profitability and the growth experienced in running a business. For the owner of Talent dry cleaners` to succeed in his business, he must be willing to initiate and implement new management skills in the business (Chon and Maier, 2010). New goals should be set for the company and its daily activities should align to the desired achievements. Eze will only be achieved these goals and objectives through effective strategic plan, proper management, and operation of the. Additionally, he should embark of effective research and development that will help him in Planning and focusing on the future goals that are only pegged on his long term goals and objectives. Additionally, Eze`s business should have clear cash flow. Good record keeping will help the business reduce time wastage. Moreover, proper advertising of the Talent dry cleaner`s venture will widen its market thereby increasing profit margin due too increased customers. Eze feels that he needs to advertise through the media which would be a perfect means of advertisement his business. More staff needs to be hired to increase the capacity utilization and reduction of wastage of resources available for business (Burns, 2002). Talent dry cleaner is in high-tech society; therefore, should be taking advantage of information systems in running their business. They should run their business’ activities through automated system that will reduce time wastage and are better in record keeping. They should even set up a website to promote marketing of their services (Woodside at el., 2008). Record keeping and registration of customers, should be done by an electronic system to reduce time wasting. When the business experiences growth and generates enough income, they should open more shops for the business to increase their turnover. References Top of Form Bottom of Form Top of Form Bottom of Form Top of Form Bottom of Form Top of Form Top of Form Top of Form Burns, R. B. (2002). The adult learner at work: The challenges of lifelong education in the new millennium. Crows Nest, N.S.W: Allen & Unwin. Chon, K. S., & Maier, T. A. (2010). Welcome to hospitality: An introduction / Kaye (Kye-Sung) Chon, Thomas A. Maier. Clifton Park, NY: Delmar/CENGAGE Learning. Owen, C., & Erjavec, J. (2004). Automotive brake systems. Australia: Delmar/Thomson Learning. Takaki, R. T. (2008). A different mirror: A history of multicultural America. New York: Back Bay Books/Little, Brown, and Co. Woodside, A. G., Golfetto, F., & Gibbert, M. (2008). Creating and managing superior customer value. Bingley, Eng.: Emerald JAI. Yelowitz, J. (2011). Bathrobe millionaire: Confessions of an unemployed job-hopper who made a fortune without work. S.l.: Iuniverse Inc. Bottom of Form Bottom of Form Bottom of Form Read More