...Unit three Written Assignment Carrie Flood MT435 Operations Management Kaplan University 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...
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...Unit six Written Assignment Tamisha Matus MT435 Operations Management Kaplan University December 16, 2011 Introduction 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) 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...
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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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...Albatross Anchor Unit 6 Unit Six Written Assignment Ury Salinas MT435 Operations Management Introduction 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) An improvement in technology can increase efficiency and effectiveness throughout the plant. It is obvious that technology changes at such a rapid rate, older technology can slow down or inhibit the manufacturing process, making it longer for the products to reach the consumer. A plan over the span of 3 to 5 years to update technology is realistic because it gives enough time for the updates to be made effectively. (02) The purchase of additional equipment can take away the need to share manufacturing equipment between the two different types of anchors. The new equipment should be top of the line, because this will not only fall in line with the upgrades to technology, but will be the most cost-effective. Time is what will be saved primarily, since the separate equipment will do away with the 36 hours that are needed during equipment change-overs between production...
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...Unit Six Written Assignment Naomi Grier 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...
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...Unit three Written Assignment Christine Carter MT435 Operations Management Kaplan University September 13, 2013 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: ” In a recent paper, Glock (2010a) studied the impact of variable production rates on the build-up of inventory in a two-stage production system and showed that deviating from the ‘design production rate’ of the system may reduce the system’s total costs. This is important, as varying the production rate gives production planners flexibility in smoothing material flows and in avoiding the accumulation of inventory at bottleneck stations.” Since Albatross Anchors has such inefficiencies when it comes to not only the production of their anchors, it also has inefficiencies when it comes to the shipping. With the design layout of the receiving department also being the shipping department for international orders, this is causing a bottleneck situation which is lowering their profit margin. With the cost of manufacturing mushroom anchors at $8.00 per pound and $11.00 per pound for the snag hook anchor Albatross Anchors needs to re-evaluate their production methods and warehouse layout in order to maximize their profits. b) Economies of Scale in material purchasing: c) Cost of Raw...
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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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...Unit three Written Assignment Lacy Smith MT435 Operations Management Kaplan University July 1, 2013 Introduction Albatross Anchor’s is a family owned business that started in 1976 that grew to employ one hundred and thirty employees. All departments of the company are in one building and the departments consist of an administrative office, manufacturing, shipping, receiving, raw materials storage, finished goods storage and the foundry. Through the years the standards of the department has decreased and Albatross needs to revamp their company to be up to those standards of the US and environmental. 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 $8.00 per pound for mushroom/bell anchors and $11.00 per pound for snag hook anchors. The cost of production definition is the cost of making or acquiring goods and services that directly generates revenue for a firm. It consists of direct and indirect costs. (Cost of Production, 2013) b) Economies of Scale in material purchasing: An economy of scale is the reduction in long-run average and marginal costs arising from an increase in size of an operating unit. (Economies of Scale, 2013) It can be external or internal; external will increase the productivity of the industry and will result...
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...Unit three Written Assignment Lisa Schwartz MT435 Operations Management Kaplan University June 26, 2012 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...
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...MT435 Operations Management 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 fixed costs are down due to the fact that they house all departments in one location. The cost of manufacturing is $8.00 per pound for mushrooms and bell anchors and $11.00 per pound for snag hook anchors. Although, the advantage of housing all departments in one location is that their fixed cost is down the disadvantage is greater because they are operating inefficiently. In the long run this brings down their profit margin giving them a disadvantage when compared to competitors. b) Economies of Scale in material purchasing: Economies of Scale focuses on the company/plant getting larger and volume increasing, making the average cost per unit of output to drop. Albatross Anchor’s is not able to realize the economies of scale because they produce small batch sizes c) Cost of Raw Materials Sitting Idle in the Warehouse: Because raw materials just sit there until they are ready to be shipped out the cost is high. The company’s material purchasing department is able to get economies of scale but I assume this is what leads to the large idle inventory sitting in the warehouse. d) Cost of Finished Goods Sitting Idle in the Warehouse: Finished products also...
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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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...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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...Unit three Written Assignment Alicia Turner MT435-02 Operations Management Kaplan University Professor: J, Jackson April 09, 2012 Introduction Albatross Anchor is a company that is located in a small town. The company has been in business for over 30 years and has grown tremendously since the first day of their opening. Throughout the years the company has produced the same type of anchor and made changes to produce a better anchor with a higher quality. The company has been conducting business in a building that has been deemed to be not up to code and not so clean. This is beginning to generate some issues. 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 Albatross Company has managed to keep all departments of the company within the same building, including manufacturing their products and this has helped keep costs down tremendously. Albatross’ manufacturing costs for the anchors are $8 per pound for the mushroom/bell and $11 per pound for the snag anchors. These prices that Albatross has set are the same prices as their competitors and yet they cut costs at a better level than their competition. b) Economies of Scale in material purchasing: Albatross produces their anchors by using the batch production method and finished products have...
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...Unit Three Written Assignment MT435 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 ...
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...Unit three 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...
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