...Unit three Written Assignment Vanna Mata MT435 Operations Management Kaplan University September 22, 2011 Albatross Anchor has been in business since 1976. They are manufacturer of bell/mushroom anchors. They are only deal with wholesale; there is no retail service at all. Their building consists of their administrative offices, foundry, shipping and receiving, raw materials and finished materials storage, and manufacturing. Their building is not up to standards and is very old. In this case study, I will discuss as how to improve Albatross Anchor competitiveness and see if there is a new process to help bring down the costs. 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: Since Albatross Anchor keeps all departments in one building; this keeps the fixed cost down. The cost of manufacturing for the mushroom/bell anchors are $8.00 per pound and $11.00 per pound for the snag hook anchors. The charge the same per unit as their competitors due but since all departments are housed under one building, there are operations inefficiencies. This can bring down their profit margins. This would mean that Albatross Anchor has a cost disadvantage compared to competitors. b) Economies of Scale in material purchasing: “Economies of scale, also called increasing returns...
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...Introduction Albatross Anchor is a small family owned business that has been in operation since 1976. The company has grown drastically over the years and now employs over 130 people. They specialize in bell and snag hook anchors and operate as a strictly wholesale organization both domestically and internationally. Their manufacturing facility consists of one building which includes manufacturing, shipping, receiving, raw materials, finished product storage, the foundry and administrative offices. Their manufacturing facility is antiquated, worn, and technology deprived and no longer meets the US safety and environmental standards. Question 1 Carefully review the assignment scenario/case study. From the limited information in the scenario/case study, identify at least three direct and specific long-term and three direct and specific short term operations changes that Albatross Anchor must make to gain a clear and sustainable competitive advantage (provide detailed information to validate and support each recommended change). Long-Term Operational Changes (01) The first long-term change that Albatross Anchor should make to gain a clear and sustainable competitive advantage is technology. Since Albatross Anchor was founded in 1976, they haven’t updated the ways that they manufacture anchors. Each type of anchor they produce uses different types of manufacturing styles and they need to be changed each time to accommodate a different anchor. The machinery is obsolete,...
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...Introduction A small family owned business that they started in 1976 with four family members is Albatross Anchors. Now Albatross Anchors now employees one hundred and thirty. The building sits on 12 acres in a small town. We know that the adminidtravie offices are disorganized, dirty and are un inefficiently. The plant is old worn, dirty and not up to date with the new technology and it does not meet all US safety and environmental standards. In 1989 Albatross Anchors started fabricated snag hook anchors to be able to compete internationally. 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 has manufacturing costs set at $8.00 per pound for bell/mushroom anchors and $11.00 per pound for snag hook anchors. Even though they charge the same as their competitors, Albatross Anchors is experiencing a profit of 35% less. The losses seem to be caused by inefficiencies, and have affected the profit margin. B) Economies of Scale in material purchasing: In 1989 when Albatross Anchors starting manufacturing the snag hook, they needed new equipment. When the did that they did not expand the building, now both anchors have to share the one building. Since the different anchors have a different process for manufacturing, it takes 36 hours to switch out, so there is some...
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...Unit Six Written Assignment KU Consulting Proposal for Albatross Anchor Your Name MT 435 Operations Management University Date Introduction: Albatross is a family owned business with employee strength of 130. It has manufacturing, shipping department, raw material, finished product storage and the foundry. The administrative offices are disorganized and run inefficiently. The plant does not meet US safety and Environmental standards. Albatross sells the product at wholesale level only. There are two major types of products manufactured by Albatross i.e. Bell Anchors and Snag Anchors. Both the products cannot be manufactured simultaneously. Albatross is experiencing loss because of inefficient operations; shipping of the product is also challenge. Products of Albatross: S. No Product Name Manufacturing Process Usage Sizes 1 Bell Anchor Foundry Fresh water marine craft Multiple sizes 2 Snag Anchor Bending and Welding Salt Water marine craft Multiple sizes Departments of Albatross: 1. Manufacturing 4. Raw Material Storage 2. Shipping 5. Finished Product Storage 3. Receiving 6. Foundry Question One Carefully review the assignment scenario/case study. From the limited information in the scenario/case study, along with your answers to the unit three written assignment, identify at least three direct and specific long-term and three direct and specific short term operations changes that Albatross Anchor must make to gain a clear and sustainable competitive...
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...Case study on Albatross Anchor MT435 Operations Manageme 11/27/12 Introduction Albatross Anchor is a small family owned business located in Small Ville, MA. Albatross Anchor is located on 12 acres of land. They started out with four employees in 1976 and grow over the years to over 100. The company manufactures two types of anchors in different sizes. The types are the mushroom/bell anchor and the snap hook anchor. Albatross Anchor has many manufacturing problems which are the cause of the company not doing as well as it should be. The company build old, worn and does not meet government guidelines. Albatross can be a company of the future with the application of much need upgrades and expansions. 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 and Production: Albatross Anchor‘s competitiveness in relations to cost below their competitors. They are 35% lower than their competitors. The cause of this is all the operation inefficiencies. They need to correct all of their problems in order to get in line with the competitors. The cost to manufacture is the same as the competitors $8.00 per/lb. for mushroom/bell anchors and $11.00 per /lb. for snag hook anchors. But, with the high price of shipping raw materials in finished goods not shipping out...
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...Introduction Albatross Anchor has been in business since 1976, and are the manufacturer of bell/mushroom anchors. They are strictly a wholesale organization; there is no retail service. Their building is comprised of their administrative offices, foundry, shipping and receiving, raw materials and finished product storage, and manufacturing. The plant is located directly behind the administrative offices in a building that is outdated and no longer meets US safety and environmental standards. In this case study, I will discuss possibilities to improve Albatross Anchor’s competitiveness, and determine if a new process will help to reduce costs. 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 Anchor’s competitiveness in relation to cost is about 35% lower than their competitors as a result of operational inefficiencies. They need to address the problems causing their inefficiencies in order to be in line with their competitors. The cost to manufacture mushroom/bell anchors is the same as their competitors at $8.00 per pound, and $11.00 per pound for snag hook anchors. Some of the problems causing the company to lose money include shipping challenges, and raw materials costs. Due to the size, bulk, and weight the anchors are limited in the...
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...Case Study #1 Written Assignment Kimberly McFarland MT435 Operations Management Kaplan University Date: 7/9/2014 Introduction As a consultant for KU Consulting I am going to take a look at Albatross Anchor’s operations. I am going to take a look at their cost structure to see where they can take a closer look at their capacity to see how they can maintain maximum output. I am going to look at their manufacturing process to see how quickly they can produce their anchors. I want to see how flexible Albatross Anchor is at filling their orders for their anchors. I want to take a look at their outdated technology to see how they can maybe update their technology to help the factory run more smoothly. Next I will take a look at how Albatross Anchor can work on their layout. In doing this I want to see how they can utilize their capacity and have a better layout for the factory. I also will look to see how Albatross Anchors can better serve their customers or answer any questions their customers may have. Lastly I want to look at two separate processes for manufacturing the bell/mushroom anchor to see what one is a better process for Albatross. Question 1 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 or Production: In looking at the cost of production for Albatross Anchor you need to keep in...
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...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...
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...MT435 Operations Management Kaplan University July 25, 2011 Introduction Question One Albatross Anchor started as a small family business of four people in the 70s and expanded quickly to a facility on 12 acres an employees of over 130. By 1989, the product line was expanded to include snag hook anchors suitable for saltwater marine crafts. This expansion of products allowed Albatross to compete internationally; however, the technology-deprived and out of date facility has run inefficiently for years causing loss on their bottom line. 1. Cost a) Cost of Production: Currently Albatross Anchors is experiencing a profit margin 35% less on some of the anchors produced than their competitors, even though the prices they charge are the same. Albatross has manufacturing costs set at $8.00 per pound for the mushroom/bell anchors and $11.00 per pound for the snag hook anchors they manufacture (Albatross Anchor [case study]). These losses in the profit margin have been determined to be caused by inefficiencies in the operations. b) Economies of Scale: When Albatross decided to begin manufacturing the snag hook anchor in addition to the mushroom/bell anchor in 1989, they invested in the new machinery necessary for the snag hook anchors design and manufacturing process. However, no expansion was made to the building so all machinery for both anchor types share the same plant space. Since each manufacturing process is unique to the designs and requires...
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...Unit three Written Assignment Denise M Salazar MT435 Operations Management Kaplan University November 29, 2012 Introduction This case study delves into Albatross Anchor; a small family owned company that produces both fresh and saltwater anchors. This company has grown over the years from 4 employees to 130; but has not shown growth in the operational side. Some of the challenges they face are lack of space and disorganization within the administration of the front office. This coupled with old, outdated technology and safety issues have hindered them in creating a larger profit margin. These issues must be addressed if Albatross Anchors is to improve in their market segment. 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: Cost of production of the two types of anchors they manufacture are as follows: A) Freshwater Mushroom/Bell Anchors: $8.00 per pound B) Saltwater Snag Hook Anchors: $11.00 per pound As Albatross Anchors price per unit are on scale with their competitors, concerns need to be address as to the issues of profit margin being under 35% on some of their products. Outdated technologies as well as inefficient manufacturing practices need to be revised and implemented to make the manufacturing process more efficient. b) Economies...
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...analysis, designing and innovations. Albatross Anchor needs to become more effective with the opportunities and challenges in its operating environment. Albatross’ operating system must be capable of producing quality products (anchors) that are n demand within a time frame that is acceptable to the industry. 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 or Production: The first issue that needs to be addressed is; how much of the fabricating of the anchors could be outsourced? Albatross, a vertically integrated company has an antiquated and technology-deprived plant as well as non-compliant on safety and environmental issues. The factors that can make outsourcing desirable to Albatross Anchors are quality and speed. Quality, which is “standardization of parts, supplier certification, and supplier involvement in design can improve the quality of supplied parts.” (www.allbusiness.com) Speed of the supplier can produce the components quicker, with adaptability, flexibility and reliability then this is a time benefit for outsourcing. Albatross Anchors is lacking the production capabilities to output products in relation to the industry and customers demands. Outsourcing would be a benefit to the production of the customized and specific anchors and a valuable asset to put into...
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...six Unit Written Assignment Erica R Watson MT435 Operations Management Kaplan University June 28, 2011 Introduction Albatross Anchors manufactures two different types of anchors to satisfy their wholesale customers. The company once only manufactured the mushroom or bell anchor but when the competition heated up they began producing the snag hook anchor as well, this occurred in 1989. (Case Study) Being that Albatross Anchors is a major manufacturer and that they are continuing to grow it seems as though a bigger more organized workspace is needed to speed up both production and shipment of each anchor order. Question One Carefully review the assignment scenario/case study. From the limited information in the scenario/case study, along with your answers to the unit three written assignment, identify at least three direct and specific long-term and three direct and specific short term operations changes that Albatross Anchor must make to gain a clear and sustainable competitive advantage (provide detailed information to validate and support each recommended change) Long-Term Operational Changes (01) A long term operation change that Albatross Anchor needs to make is building another Administrative office that is detached from the warehouse in order to make it both safe and more efficient for all employees. (02)Installing up to date technology into the warehouse and administrative offices will help to gain business and give the company a more smooth transition when taking orders...
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...Unit three Written Assignment MT435 Operations Management Kaplan University 1/23/2012 Introduction In the following case study, an overview of the competitiveness of a small family owned business, Albatross Anchors will be provided. In addition an analysis of two differing manufacturing process cost models will be included. 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: The cost of production for Albatross Anchors has two variables: 1) Mushroom/Bell Anchors: $8.00 per pound 2) Snag Hook Anchors: $11.00 per pound The cost for the consumer is comparable to other competitors at the unit level. They will need to make operational improvements in order to keep their profit potential in line with competitors. b) Economies of Scale in material purchasing: According to Investopedia, and economy of scale is “The increase in efficiency of production as the number of goods being produced increases.” (Investopedia, 2011) In terms of material purchasing participation in an economy of scale is not practical. The orders are processed in small batches as orders are received. If the business where to participate in an economy of scale they would have to house the material in the Warehouse in the mean time which would cause an increase...
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...Written Assignment DeAngela Rivers MT435 Operations Management Kaplan University March 26, 2012 Introduction The case of Albatross Anchor is a manufacturing factory that sells only at the wholesale level. The organization has been faced with operational issues over the past couple of years and they are aiming to find a company to revamp their operations systems to receive the maximum amount of profits minus the excess operational issues. KU Consulting is an organization aimed at helping organizations receives the maximum amount of profits; therefore, I feel that they will get the job done. In order to solve these issues the company must develop an operational management plan that will help them to receive the same amount or maybe more profits than its competitors as well as help the organization’s growth. We are certain that the organization has the potential to meet the needs of the customers, but we must make some minor adjustments through an operational management plan. There doesn’t seem to be a major problem with the pricing because they are able to sell the product at the same price and the customers are purchasing the product at that rate. Also, there haven’t been any formal complaints on the pricing of the product, thus far. Now KU Consulting must develop an operational management plan to sweep Albatross Anchor off their feet as well as help them to earn the maximum amount of profits and/or match the profits of its competitors. The organization...
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...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: Cost of production is costs incurred by Albatross Anchor when manufacturing an anchor. The company can run into two different costs; variable and/or fixed costs. Variable costs depends on what’s needed to make the anchors. What is needed differs with how many anchors Albatross produces. Then there is fixed costs; utilities and rent, these two are always present no matter the volume of anchors being produced (Russell & Taylor, 2011, p. 230). The cost to manufacture is $11/lb. - hook anchor and $8/lb. for a mushroom anchor. Albatross sells anchors for the same price as competitors, which is how they are losing money. They should sell the anchors for a little less because then they would in return get more business and have a chance of doing better than their competitors. b) Economies of Scale in material purchasing: When a company achieves economies of scale lowers their average cost per unit through increasing production since fixed costs are shared over an increased number of goods (Hindle,2008). When a company starts growing and their production units starts increasing, the company will have better luck decreasing the costs of their product. Economic growth may be achieved when economies of...
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