Achieving Optimal Performance in the Operations of Small and Medium Scale Enterprises in Nigeria: An Application of the Queuing Model

Abstract

The objective of this paper is to determine the cause of queues in hair dressing salons, the average time a customer spends in the salon as a result of the queue, the applicability of a mathematical model (Queuing Models) for use in the management of waiting line problems in hair-dressing salons in Nigeria and its challenges. The main hypothesis of the study was formulated around the dependence of the distribution of arrival and service rates. Appropriate data were collected through questionnaires, interviews, and direct observation of procedure at selected hair-dressing salon. Secondary data were obtained from texts, journals and other unpublished works. The data obtained were analyzed and the hypothesis was tested using the Chi-square method of statistical analysis. Other data were analyzed using the queuing models for multiple channels. It was found that delay in the provision of services, inadequate service points, and power failure are the main causes of queues in hair dressing salons; and that queuing models can be used to solve the waiting problems in hair-dressing salons in order to achieve optimal performance. It was recommended, among other things, that hair-dressing salons in Nigeria should adopt the use of queuing model method for the management of waiting line problems; that more academic institutions and vocational centres in the country should include Hair Dressing and indeed, quantitative techniques in their curriculum so that operators of SMEs and their staff could learn and appreciate the use of mathematical models for decision making.

Keywords: SME's, Queue, Waiting Lines, Arrival Rate, Service Rate

JEL Classification: C6, C61, C63, C67, D24, M1, M13, M21