Albatross Anchor Proposal
Introduction Processes and technologies have many variables; planning, 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 action and still be able to keep the competitive edge. Albatross’ ability to produce the anchors on a larger scale with fewer, less expensive costs needs to be implemented. Technology, specialized trained employees and bulk purchasing are factors that contribute to the economic scale. An investment in specific technological production techniques would give Albatross more of a competitive advantage over other
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 action and still be able to keep the competitive edge. Albatross’ ability to produce the anchors on a larger scale with fewer, less expensive costs needs to be implemented. Technology, specialized trained employees and bulk purchasing are factors that contribute to the economic scale. An investment in specific technological production techniques would give Albatross more of a competitive advantage over other
References: Evans, J. (2005). Total Quality Management, Organization, and Strategy, (4th Ed.). Thomson, South-Western. Wilson, Dennis R (2004, March 22). Outsourcing Production and Jobs: Cost and benefits.. Retrieved May 10, 2011, from http://www.allbusiness.com www.uslaw.com www.anchormarinesupplies.com www.referenceforbusiness.com