Case Study: Albatross Anchor
Unit three Written Assignment
MT435 Operations Management
Kaplan University
December 27th 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:
Hi my name is Cynthia, and I have been asked by KU to help Albatross Anchor. Here’s what I know so far, after doing my case study I found that Albatross Anchor is a well-known family owned business that deals with so many operational challenges. These challenges need to be confronted so that the y can run smoothly. I have noticed that they are being faced with …show more content…
They cannot meet the capacity to utilize within the plant because of the operational inefficiencies due to this they are only producing small batches.
c) Cost of Raw Materials Sitting Idle in the Warehouse:
Since the raw materials sit in idle in the warehouse until they are ready to be shipped. This will lead to a large holding cost of the inventory. d) Cost of Finished Goods Sitting Idle in the Warehouse:
They are able to ship any of the finished products effectively. This will help the cost of the inventory and will have the products shipped on time
2. Speed of manufacturing process from order to finished product.
This can be very challenging since anchor requires its own unique equipment. They would have to completely change all the manufacturing equipment for each of the anchors. This process will be time consuming and will double the work load for its employees
3. Flexibility in filling …show more content…
Capacity and facilities
I have found that the current floor plan is not very efficient. They seem to have products that are all over the place and lack a product flow. This needs to be effective in the manufacturing. For example, I found that the warehouse is located in the south part of the building. Basically, they need more space to be more productive.
6. Service to customers
Albatross Anchor has only been selling at the wholesale level they sell the products to distributors or OEM customers. These products are purchased by the distributors which then proceed to deliver to the individual locations. The OEM customers prefer to purchase the products in batches.
Question Two
There are many ways that mushroom/bell anchors may be manufactured. Albatross Anchor is considering two new manufacturing processes (Process A and Process B) to reduce costs. Analysis of the information below will help determine which process has the lowest breakeven point (this validates the process is more cost effective).
For each process the following fixed costs and variable costs are identified below:
Anchor and
MT435 Operations Management
Kaplan University
December 27th 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:
Hi my name is Cynthia, and I have been asked by KU to help Albatross Anchor. Here’s what I know so far, after doing my case study I found that Albatross Anchor is a well-known family owned business that deals with so many operational challenges. These challenges need to be confronted so that the y can run smoothly. I have noticed that they are being faced with …show more content…
They cannot meet the capacity to utilize within the plant because of the operational inefficiencies due to this they are only producing small batches.
c) Cost of Raw Materials Sitting Idle in the Warehouse:
Since the raw materials sit in idle in the warehouse until they are ready to be shipped. This will lead to a large holding cost of the inventory. d) Cost of Finished Goods Sitting Idle in the Warehouse:
They are able to ship any of the finished products effectively. This will help the cost of the inventory and will have the products shipped on time
2. Speed of manufacturing process from order to finished product.
This can be very challenging since anchor requires its own unique equipment. They would have to completely change all the manufacturing equipment for each of the anchors. This process will be time consuming and will double the work load for its employees
3. Flexibility in filling …show more content…
Capacity and facilities
I have found that the current floor plan is not very efficient. They seem to have products that are all over the place and lack a product flow. This needs to be effective in the manufacturing. For example, I found that the warehouse is located in the south part of the building. Basically, they need more space to be more productive.
6. Service to customers
Albatross Anchor has only been selling at the wholesale level they sell the products to distributors or OEM customers. These products are purchased by the distributors which then proceed to deliver to the individual locations. The OEM customers prefer to purchase the products in batches.
Question Two
There are many ways that mushroom/bell anchors may be manufactured. Albatross Anchor is considering two new manufacturing processes (Process A and Process B) to reduce costs. Analysis of the information below will help determine which process has the lowest breakeven point (this validates the process is more cost effective).
For each process the following fixed costs and variable costs are identified below:
Anchor and