MT435 Operations Management
January 22, 2013
Albatross Anchors can change several things to make their business more productive than it has been. They opened in 1976 with only four family members and now employ 130 people; this alone shows massive growth over the past 35+ years. By only selling at a wholesale level, this means that they produce and sell in mass amounts and therefore their supply chain and manufacturing process is extremely important for the company to make succeed. As of right now, Albatross Anchors is not only disorganized but they do not meet the US Safety and Environmental Standards. Albatross Anchors needs to adjust their operations in order to run smoothly and expand their business. 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
One of the first things that Albatross Anchors should do is to change their location and find a plant that is more than double the size than their current location. Since their business has expanded they need to expand their plant and find another location with more space. They produce two types of anchors and need to have the space to produce them at the same time instead of sharing equipment. In addition, their current manufacturing chain is also not running as smoothly as it should be with bottlenecking in the receiving and shipping departments. If Albatross Anchors were to find a location that is larger they will be able to not only streamline their production process they will also be able to separate their administrative offices from the rest of the plant. (02)
Another thing that Albatross Anchors should do long-term in order to improve operations is to update the technology in the entire plant, even the administrative offices. By updating their technology, they will be able to produce their anchors at a faster rate than they currently are and this will allow their administrative offices to become organized and run the office more smoothly. This will allow them to expand their productivity rate and with that, handle a larger customer base; therefore, allowing them to take the lead in the industry. (03)
Lastly, by adopting six-sigma Albatross Anchors will be able to completely refine their manufacturing process and be able to take over the industry. Six-sigma is a way to strive for perfection by eliminating defects within the manufacturing process and while it can be costly to implement, it will save Albatross Anchors more in the end. Several successful companies, such as Ford, have adopted six-sigma and have been very successful because of it. Six-sigma is a very detailed process that takes several years to master, so it is in Albatross Anchors best interest to adopt this process immediately. By implementing these three long-term operational changes, Albatross Anchors will not only streamline their process but they will in turn gain a higher profit and even have the opportunity to produce different types of anchors. (Adopting Six Sigma, n.d.) Short-Term Operational Changes
Until Albatross Anchors can effectively implement the long-term changes, they should at least bring their safety and environmental standards up to date. “In 1970, Congress passed the Occupational Health and Safety Act to encourage employers and employees efforts to reduce the number of occupational safety and health hazards at their places of employment” (OSHA Regulations, n.d.). Companies need to take responsibility for the safety of their employees, and by making sure their...