Albatross Anchor Operational Changes
MT435 Operations Management
Albatross Anchor Operational Changes
Albatross Anchors is a small family owned business that began in 1976. The company has grown exponentially over the years with more than one hundred and thirty employees. As the company grew, their operational issues in the production and administrative area grew as well. The organization has been faced with a lack of updated technology, out dated equipment, an inefficient layout which violates the U.S. safety and environmental standards, and a disorganized administration office. Therefore, production is not running smoothly, especially since in 1989 the company's owner decided to expand the product line to include fabricated sang hook anchors along with manufacturing the original product line (bell/mushroom anchor). The company only sells on a wholesale level. There are many areas that the owner must plan and consider to improve in order to be successful and sustain its competitive advantage in the market place.
To find solutions for the problems, we begin by performing a process analysis and strategy and evaluate the performance of the current system that is in place. This will be the starting point for which the rest of the analysis and proposal will be based upon. This paper will cover three long and short term solutions to operational changes, and address four operational issues with regards to improve job retention, employee morale, and employee dedication to help the Albatross Anchor operation system improvement. 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
Information technology includes all the software, hardware and resources that collect, process, observe and execute information required for different activities of the business. The greater use of IT has been made possible with the advent of the latest technologies and tools which are developed to facilitate all business processes. In manufacturing, use of IT refers to the multitude of business applications and computer technologies. Large wholesale quantities are now scheduled and managed properly with the use of different computer tools. MRP and ERP are important software for manufacturing businesses that help wholesale manufacturers to know what quantities are in hand, how much is needed further and when. Thus the use of them eliminates the need of storing extra inventories. Therefore, cost of inventory storage is also minimized which helps in overall reduction of operational costs. In addition, the role of IT in dropshipping seems to be more significant. Use of order tracking software and delivery tracking software are an essential part of this business model (Edgar, 2003).
Albatross currently has outdated obsolete machinery that could be the reason that the plant is unsafe and not up to workplace standard with a low level of production. Therefore, the company needs to invest in updated technology to not only speed up the production process effectively and efficiently, but also, to create a safer environment for employees. This will increase the workers' morale with the belief that the company cares for their safety and ultimately, it will result in higher productivity and more profit with less cost. (02) Building Renovation:
Currently, the company has about three to four weeks lead time on exceptionally large bulk orders. This suggests that they most likely are unable to...