...Albatross Anchor Case Study 3 (Note: This is not a real company) Introduction Albatross Anchor is a small family owned business that began in 1976 with four family members. Albatross anchor has grown exponentially and now employs 130 people. This one location/facility is situated on 12 acres located in a rural suburb of Smalltown, USA (Please note* the building and facilities for Albatross Anchor are landlocked). The plant* and the administrative offices are located in the same building. (*Note: The plant includes: manufacturing, the shipping department, the receiving department, raw materials storage, finished product storage, and the foundry). The administrative offices are in the front of the building and the plant is located directly behind the administrative offices (see diagram). The administrative offices have issues because they are somewhat shabby, disorganized, and run inefficiently. The plant is antiquated, worn, dirty, and technology-deprived and it no longer meets all U.S. safety and environmental standards. The owners of this small business have added on various processes as needs arose; within the limited space of the plant. When Albatross Anchor first opened its doors their expertise was in the manufacturing of bell/mushroom anchors (using a foundry process). In 1989, in response to international competition, the owners of Albatross Anchor made the decision to expand the product line to include fabricated snag hook anchors. Customers Albatross...
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...Introduction Albatross Anchors is a small family-owned business that started in 1976.Beginning with only four family members, Albatross Anchors has grown tremendously over the years and now employs 130 people. The owners have added on various processes as needs arose, but the plant and buildings are antiquated, dirty, technology deprived, and no longer meet U.S. safety and environmental standards. In order to be able to compete in an ever-expanding market, Albatross Anchors needs to make some upgrades so they can be compliant with the 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) Albatross Anchors first and foremost needs to update their technology in order to increase efficiency and effectiveness throughout the whole plants is the essential link between all supply chain processes and member (Russell, 2014).While a new technology system will be an expensive addition, in the long run it will save the company money. E-business is now replacing physical processes in the business environment by using data interchange, email, EFT, electronic publishing, image processing, shared...
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...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) Improved technology to increase efficiency and effectiveness throughout the plant. Without a doubt, old technology makes it harder for the manufacturing process and takes longer to get the products to the end user. A five year plan to update technology would be more cost effective and can address the technology issues on a predetermined plan over the five year term. (02) Purchase new equipment to eliminate sharing manufacturing equipment between the two different types of anchors. The new equipment should be state of the art to assist with the technology upgrades and to get the most for the money. The separate equipment will eliminate the 36 hours of down time necessary to change over the equipment between production runs. (03) Separate manufacturing areas for the snag hook anchor and the bell anchors to increase production. This will tie the technology portion as well as the new equipment portion altogether to create two separate manufacturing areas. Short-Term Operational Changes (01) Update US safety and environmental standards. According...
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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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...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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... October 6, 2012 Introduction 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 charges about the same price as the competitors do. However the inefficiency of their operations can sometimes reduce their profit margin by 35% which leads me to believe that it could be better for them to outsource the product (Russell & Taylor, 2011). If they were to outsource it would reduce their overhead which includes labor and materials and they wouldn’t have to incur those costs anymore therefore making them more profitable (Russell & Taylor, 2011). b) Economies of Scale in material purchasing: Albatross is able to spread their fixed costs over the number of units they produce because they produce them in large quantities and do not sell individual orders or to retail stores (Wise Geek, 2012). c) Cost of Raw Materials Sitting Idle in the Warehouse: Albatross receives all their raw material by rail. In order to keep the cost of raw materials down, Albatross has to plan the utilization of these products so that they do not sit very long (Voortman, 2004). d) Cost of Finished Goods Sitting Idle in the Warehouse: It is important for Albatross to get out product as soon as it’s finished. If they don’t keep the product flowing they will just have it tied up in idle stock...
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...Margaret Beasley Unit 9 Final Project May 1,2012 Attention Energy Cooperation, there are certain ethical violations that are taken place in this business. First issue is if it is a nonprofit organization why do the board members receive a fee, if board members receive a fee then so should the rest of the members. The way to fix this issue is to give everyone a nominal fee or give it no one. Furthermore, this is a non- profit organization so you should not expect pay. The way this issue would affect the stakeholder is no one will look for a fee because it is a nonprofit organization. Also, next, being that they have no allegiance to any particular company they could tell one company one thing and another company something totally different to get them to agree with them. The way to fix this is make everyone pick one company and you are solely responsible for one company. They are not allowed to interfere with any other business but the one that they are responsible for. By doing this you are making sure that everyone gets the same information nothing more nothing less. Stakeholders which include the companies you are representing will not be affected. Finally, I don’t agree that they should be able to say that they are directors unless they truly work for that company. Use real board members to tell the people they are on the board of directors. As a board member you must make sure that everyone is acting accordingly to the rules that have been set by the organization...
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...Running head: XCEL ENERGY PAYS FOR EMPLOYEES WHO EXCEL Xcel Energy Dyneaka Harrison Kaplan University MT203: Human Resources Management Instructor Sarah Scott April 16, 2011 Xcel Energy Pays for Employees who Excel Introduction Excel Energy based in Minneapolis, Minnesota, is a public utility company that generates electric power and transmits and sells electricity and natural gas to customers in Colorado, Michigan, Minnesota, New Mexico, North Dakota, South Dakota, Texas, and Wisconsin. Xcel serves 3.3 million electricity customers and 1.8 million natural gas customers in these eight states. In 2007, Xcel was the 260th biggest corporation in the U.S., and the 15th biggest gas & electric utility in the country. Xcel Energy has decided to implement merit bonuses; which are paid for individual, group and corporate performances. Merit pay refers to the process of determining employee compensation “base salary or bonuses,” in part, on the basis of how well each employee performs at work. (Xcel 2011) Review/Analysis of the Case 1. Based on the information given, do you agree with management’s conclusion that merit pay can support Xcel’s strategy better than paying for suggestions? Why or why not? Based on the information given I do agree with managements conclusion that merit pay can support Xcel’s strategy better than paying for suggestions. Management and leaders must continually encourage and reward fresh thinking, promoting and keep open loops...
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...Unit 9: Importance of Science in Everyday Life Jacob Barac Kaplan University SC300- 16: Big Ideas in Science Instructor: Holly Painter October 27, 2012 Importance of Science in everyday Life For all the millenniums that humans have lived on the Earth, the most important aspect of existence has been the application of science in people’s life. Everything that occurs on earth, whether it is technological advancement or domestication of animals and crops is done by using science as the main catalyst or the driving force behind everyday humans’ success. It should not be surprising to anyone to see that science and its application of various methods is central and so essential to all the discoveries that people make around the world. Methodically, science is use as a guide to everything that humans do, and without it, life would be almost impossible to attain because human beings are not like other animals. The physical characteristics that humans have separate them from other known mammals. Therefore, innovative approach by means or through application of science and technology close the gap that exists between other animals and humans. With that being said, science is a machine that makes life easier to all humans on the planet. It is not surprising to witness humans looking for answers and solutions to all sorts of problem. This is so because humans are fond of using science to make discoveries. As normal as the life itself, the fact that light did not come on is not...
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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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...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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...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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...operational challenges that Albatross Anchor is currently facing. The pricing is not a huge issue for the organization and it is able to sell its products at a consistent market rate; however it is unable to realize its full profit potential due to the presence of a lot of operational inefficiencies. It is clear that if the firm is able to overcome all of these challenges, it can make the same level of profits as that of other competitors and can also direct their future growth exponentially. We have reached a conclusion regarding the benefits the company can reap by using the strategies in their operational management plan. 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: Due to the presence of operational inefficiencies, Albatross Anchor is unable to reduce their costs as a result of which they have a lower profit margin. Therefore, they have a cost of production disadvantage as compared to their competitors. b) Economies of Scale in material purchasing. They can enjoy Economies of Scale when it comes to purchasing materials. Buying in bulk means they can get discounts from the suppliers on their purchase c) Cost of Raw Materials Sitting Idle in the Warehouse: The increased amount of goods stored in the warehouse means that Albatross Anchor also needs to use higher...
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...Operations Management Kaplan University 4 June 2013 Introduction This case study is about a small business that manufactures anchors for marine craft. This company has grown over the years and employees one hundred and thirty people. It is located in a small rural suburb town of Smalltown, USA. This company faces operational challenges, the plant is old and worn and the technology is outdated. At the same time the plant is not meeting US safety and environmental standards. So for this company to survive these issues need to be taken care. 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 manufacturing is $8.00 per pound for mushroom/bell anchors and $11.00 per pound for snag hook anchors. b) Economies of Scale in material purchasing: According to our reading Economies of Scale is defined as, “When it costs less to produce high level of output”(Wiley, 2011, p.259). Albatross struggles here because each anchor requires its own unique equipment and they produce what is requested. They only have one manufacturing line and it takes 36 hours to switch the line to produce the other anchor. So due to this they are unable to provide an economy of scales, they can’t produce large quantities. c) Cost of Raw...
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...MT435 Operations Management Kaplan University March 26, 2012 Introduction Albatross Anchor is a small family owned business that began in 1976 with few family members. The company has grown tremendously over the years causing issues with production and the administrative area is also affected. The plant is technology deprived, dirty, disorganized, and not meeting US safety and environmental standards. As the company grew more processes were added and with the limited space, production was not running smoothly. When Albatross Anchor first opened its doors their expertise was in the manufacturing of bell/mushroom anchors. In 1989, in response to international competition, the owners of Albatross Anchor made the decision to expand the product line to include fabricated snag hook anchors. Albatross Anchor is a manufacturing factory that sells only at the wholesale level. The owners will need to rethink the overall process and layout design of the facility. Once these areas are identified and implemented it will help will sustain a competitive advantage for Albatross Anchor. 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...
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