Unit three Written Assignment

Debbie Crabtree

MT435 Operations Management

Kaplan University

February 17, 2014

Introduction

Albatross Anchors is a family owned business that began in 1976 with four family members and has grown over the years now employing 130 people. The company’s facility is located on 12 acres of land and is comprised of only one building. This building includes the administrative offices, shipping and receiving, foundry, manufacturing and large machine area, and raw and finished products areas. Albatross Anchors manufactures two different types of anchors; the mushroom/bell anchor and the snag hook anchor. Because of the different manufacturing processes and the limited size of the facility Albatross Anchors cannot produce either anchor in mass production. They are strictly a wholesale only business distributing their products through middlemen or to OEM customers as a component in the manufacture of boats. We will discuss Albatross Anchors competitiveness in the market and how they may improve their processes.

Question One
Based on the information presented in the scenario/case study discuss Albatross Anchor’s competitiveness in relation to (please address all items in the below list and provide support for your conclusions):
1. Cost a) Cost of Production: Albatross Anchors produces two types of anchors which require their own unique equipment and manufacturing process. The manufacturing area of the plant has to be completely changed over to accommodate the manufacture of the two different types of anchors. The current change over time is 36 hours. Albatross Anchors charges the same per unit for their product as their competitors but because of challenges in the manufacturing process they are most likely not staying as competitive in the market as their competition. While the fixed