MT435 Operations Management
Albatross is a family owned company that was opened in 1976 by just a few family members. Over the years the company has seen tremendous growth which seems to be causing a lot of issues their production and administrative areas. They haven’t taken much up with newer technologies which makes what they have disorganized and not meeting the standards of most other companies in their business. As the company has grown they have added many more new processes which have been put in to the limited production spaces they have which already seemed to be maxed out. When they first went into business their expertise was in the manufacturing of the bell/mushroom anchors. In the 80’s they made the decision to expand their product line to include the snag hook anchors. This company sells its products only at the wholesale level. Since that requires them to store more product the company really needs to rethink their overall processes and layout design of their facility. Once they can make decisions on this, it will help to give them a competitive advantage over other competitors in this market.
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(01) The biggest thing I see is that the plant is very old and their technology is so outdated. Their administrative offices are to say the least a bit disorganized and run very inefficiently. There is no way they can be meeting the safety standards set by the US. To make sure they get in compliance with these agencies they should get up to date to meet these standards by updating their procedures and their technology. “For a small business, a technology should not be evaluated on its own merits but rather for the ways its implementation will allow your business to accomplish things that are impossible for your competitors” (Davidson, 2011). If they can improve on the technology that they have then this will help to increase their efficiency throughout the plant. I think they should be able to do this by setting up a 5-7 year plan because the costs of technology can be very expensive.
(02) Another issue that I noticed would be the manufacturing areas that they use for the snag hook and bell anchors should be separated. I think that this would help them increase the production on each anchor and make the processes more streamlined. It would also help so there isn’t any downtime in between the processes while you are bringing the machines up and down for the production of each anchor. This should help by giving them two separate areas where they would be manufactured which means downtime would dramatically decrease.
(03) The final issue I think is the sharing of equipment that is used to create the two types of anchors that they have. The time right now to switch from making one anchor to the other is 36 hours which is a crazy amount of wasted time that they have. If they purchase new equipment and put better production processes in place for these anchors this will allow the company to produce their goods in a more efficient manner . This can definitely help the low efficiency that they have and raise it so that all anchors can be made a lot faster.
Short-Term Operational Changes
(01) I think that the biggest thing that needs to happen in a short amount of time is trying to get up to date so they are meeting the standards that are set by the government. It is something that once they put into place will need to be monitored on a...