Talent Drycleaners

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Executive Summary
The following case study is an analysis of a dry cleaning business operating under the name of “Talent Drycleaners and Stain Clinic”. The focus of the case is to achieve further company growth while dealing with the challenges that this particular market presents to its owner. Among all the challenges facing the company, the ones included in this report emphasize capacity utilization, throughput and turnaround time, and the profitability of expanding into different markets. Talent Drycleaners found itself in the position of having the best quality of service available, but also had severe limitations discouraging potential growth (Ojadi, 2007). Firstly, research will indicate that the then current state of operations used an adequate amount of capacity utilization (85.94%), an average standard in turnaround time (3 to 4 days), and a profitable return for its added collection facilities in the town of Oshodi. Additionally, an analysis will be conducted to illustrate why the current state of operations is limited in potential growth, and will also be used to set up the stage for subsequent recommendations.

Finally the recommendations will suggest that Talent Drycleaners hire an additional staff member and extend working to 9.5 hours per day (7am to 5:30 pm). The recommendation is made aiming to realize an increase in average drop offs per day (7). The additional working hours and laborer will also yield 94% capacity utilization and will enable an increase of N27,000 to company profit. Having accessibility to an excess amount of profit will help Talent Drycleaners plan for future development of the company and can ultimately allow for the implementation of a dry cleaning school…a desired project of the owner, Patrick Eze.

Background
Talent Drycleaners is a case study issued by Pan-African University which analyses several concepts in service operations management. It depicts the business situation of a man by the name of Patrick Eze, who in 2006, owned and operated a company by the name of “Talent Drycleaners and Stain Clinic”. Mr. Eze originally opened the company in 2004, using the shorter name of “Talent Drycleaners”, however, he quickly knew that he wanted to further differentiate himself from the competition. He passionately felt that many dry cleaners who were in the business added nothing of value to the profession, rather served only to diminish the ability to be profitable (Ojadi, 2007). In light of this, he wanted his customers to know that he was saw himself as a “Doctor of Stains”, with the ability to alleviate any stain that could be presented to him…thus the name, Stain Clinic. Patrick Eze had 15 years of experience in the dry cleaning business when he decided to open his own company. He identified a market in an area called “Anthony Village”, which he thought was a good place to start since it was inhabited by many upcoming white collar professionals and had no local dry cleaning companies. Setting up the business was tough for Patrick due to limited financial capability. Nevertheless he bought and refurbished a washing machine for N350,000 , acquired other accessories for a cheap price, rented a 30 square meter apartment, and launched his dry cleaning business (Ojadi, 2007). Talent Drycleaners quickly encountered issues with customer volume, competitor pricing, and other variables such as delivery time and quality of service. He witnessed a failed marketing campaign, noticed competitor tariffs as low as N120 per shirt, and was concerned with capacity utilization and turnaround time delivered by his operation (Ojadi, 2007). The latter was an issue that gave rise to the question of whether improvements in the floor plan may help to alleviate cycle time from start to finish (see attached floor plan in the appendix). All of these issues will further be analyzed in the analysis section of the paper. Finally, Patrick acknowledged the possible need for expansion. With the pressures of market...
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