Financial resources are also crucial to the procurement of more equipment to enhance the process of service delivery at Talent Dry-Cleaning Company. The equipment would allow the company to reduce the number of turnaround to lower than the three to four days. This makes financial resources critical to the provision of services by the company hence the adoption of the three or four-day turnaround. The manual ironing system and insufficient financial systems would not support the two or one-day turnaround (Plenert, 2009).
The company has the capacity to reduce the turnaround to two or less by focusing on the crucial aspects of the organization. The company needs to address the shortcomings such as financial resources and plant utilization in order to facilitate reduction of the turnaround to two or one. This would allow the company to increase the number of daily drops in relation to garments thus improvement in the profit or revenue levels. The company needs to increase the number of staff members in order to enhance the quality and quantity of services. The company should focus on the clients. This includes providing services in accordance with meeting the preferences of the consumers. The company should also identify and understand how to execute the processes effectively and efficiently. This would involve automating the information recording techniques. The company would also adopt automated ironing system to increase the number of drops per day while reducing the number of turnaround in the provision of services to the clients. The company should also focus on reducing the number of threats or risks and errors (wastes) in the process of meeting the needs of the clients (Drew, 2004).
4. Eze is geared to process a hundred garments a day, but currently is receiving only fifty. How would the economies of the business change if he increased throughput to 70%? What about 80%? You may assume the following cost structure fixed monthly cost of N33, 000; variable cost of processing a typical shirt of N55; tariff of N100.
70% production of garments = 70 garments
The production of the seventy percent of the required quantity will improved the both internal and external economies of the business. Eze will be advanced in both financial and technological thereby attracting massive number of customers and investors.
Variable cost of production= N55 x 70
Total production cost= N33, 000 + N3850 + N100
80% production of garments= 80 garments
The production of the eighty percent of the required quantity will improved the both internal and external economies of the business. Eze will be advanced in both financial and technological thereby attracting massive number of customers and investors.
Variable cost of production= N55 x 80
Total production cost= N33, 000 + N4400 + N100
5. In terms of immediate problems, how should Eze prioritize-achieve better capacity utilization at Anthony, or move out quickly to an area where young professionals seem to be relocating?
In order to utilize fully the capacity at Anthony, Eze should undergo critical financial and accounting training to further his development in handling the business entity. This would allow him to adopt new measures on how to evaluate the company financially with new financial ratios. Eze should also seek financial assistance from prominent bodies to improve the size of the company. Increase in the size of the plant would allow the company to reduce the three or four-day turnaround to two or less. This would improve the profit levels of the company at the end of the financial year. The company should focus on executing the processes effectively thus addressing the needs of the clients (value stream). It is important to perfect the processes in order to maximize the profit and revenue levels (Ruffa, 2008).
Ruffa, S.A. (2008). Going lean: How the best companies apply lean manufacturing principles to shatter uncertainty, drive innovation, and maximize profits. New York: American
Drew, J., McCallum, B., & Roggenhofer, S. (2004). Journey to lean: Making operational change stick. New York: Palgrave Macmillan.