Mt435 Unit 8 Albatrose Anchorage

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Introduction
In the last stage of KU Consulting analysis we will examine an in-depth look at Albatross Anchor. Albatross Anchor is a family business that has been in business for over 35 years. During that period they have built long lasting relationships with business partners and recognized in the industry. They have built strong name recognition and known for their quality product. These are some of the strengths that distinguish Albatross Anchor from competition. KU Consulting will address four primary challenges identified and set possible solutions. Also there will be discussion about possible building alternation that will improve Albatross Anchor’s operations. KU Consulting will make it a top priority to not impose a high expense on Albatross Anchor, but only include what is necessary to remain best at operations. Question one

Challenge one: Time Management
The production timeline for Albatross Anchor’s primary product is currently at a slow pace and affecting their ability to meet their customers demand in a timely manner. One of the most noticeable is that there is a 36 hour changeover period. This creates a high production cost because during this period the employees are still being paid while no goods are being produced. When companies are placing large orders, they are taking on average four weeks to be made. Albatross Anchor maybe losing re-peat business from these clients due to the long time it takes to produce. Albatross Anchor must take action as quickly as possible in order to cure this problem without further losses. Albatross Anchor must take all possible actions to try to eliminate the 36 hour transition period or reduce it to the lowest possible level. The scientific management method can help drastically reduce this time by analyzing each step and giving it a solution. A closer in depth analysis of each step would result in a better operating procedure that would increase efficiency. One of the best ways to eliminate this problem and long transition period would be the purchase of new equipment and update current inventory (Russell & Taylor, 2011). This may be a costly expense buying new equipment and updating the current inventory, but a vital change for Albatross Anchor to survive. Albatross Anchor is running behind on losing business because it cannot deliver on a timely manner. They must invest in this equipment in order to start keeping up with demand and stay in business. Challenge two: Cost Management

There is a high production cost due to the 36 hour changeover transitional period. The goal of a product manager is to complete the project on time within a budget (Elyse, 2006). Albatross Anchor is primarily and manufacturing facility. Most of Albatross Anchor’s employees are laborers and during the 36 hour transition period a very high expense will be paid out to employees for no output. Having such an expense will hurt and affect Albatross Anchor ability to keep producing in the future. Albatross Anchor is incurring a real high expense and not using effective cost management techniques to eliminate this problem. If there were twenty employees in charge of the changeover at an average salary of $12.00, that would come out to $8,640 loss each time the transition take place. No anchors are being produced and inventory is in idle in the storage area. Each time this transition period takes place; there is a potential loss due to the downtime of production. Albatross Anchor can add a second railroad spur for international shipping and that would help ease congestion with the receiving department. This will be less costly and will have great significance on improvement for the facility. Challenge three: Technology Adaption

Current equipment in the Albatross Anchor facility fails to provide multifunctional capabilities. This is the primary reason why Albatross Anchor is behind on production and takes a long time to produce its product. The manufacturing system is antiquated and needs to be...
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