Mt435 Unit 8 Assignment
Cheryl L. Jones
MT435 Unit eight
Kaplan University
19 November 2012
Introduction
Question one
Challenge one: Material Purchasing, Albatross Anchor has small storage that are located away from the production area requiring smaller amounts of material to be order due to lack of storage. Increasing storage will allow for larger amount of raw materials to be kept on hand and reduce the cost associated with order multiple smaller batches of raw materials.
Challenge two: Inventory/Shipping: Shipping and receiving are sharing facilities due to one railroad spur being available. The company is having problems producing enough products for the customers. This lack of production cause large quantities of finished materials to be stored until the order is completed for shipment. Moving the offices and expanding the operational areas will allow more products to be produced minimizing the amount of storage needed for storage of the produced product. The company needs to have a designated area for shipping and receiving instead of a combined area.
Challenge three: Finances: Albatross Anchors will need to have a plan in place to ensure that all the proposed changes do not cause them to overspend. A budget will need to be put into place that shows a breakdown by the month to show what spending is proposed and then the actual amount spent for the month. They will need a budget that shows what they are able to spend on the proposed changes to, equipment, raises, training, and operational expenses.
Challenge four: Speed of manufacturing process from order to finished product.
The speed of manufacturing process from order to finish product is very challenging since each anchor requires its own unique equipment. Currently they have to completely change the over the manufacturing line for each type of anchor. This process makes it more time consuming and creates more work for employees.
Question two
(a) Operational Issue One: Environmental Analysis
MT435 Unit eight
Kaplan University
19 November 2012
Introduction
Question one
Challenge one: Material Purchasing, Albatross Anchor has small storage that are located away from the production area requiring smaller amounts of material to be order due to lack of storage. Increasing storage will allow for larger amount of raw materials to be kept on hand and reduce the cost associated with order multiple smaller batches of raw materials.
Challenge two: Inventory/Shipping: Shipping and receiving are sharing facilities due to one railroad spur being available. The company is having problems producing enough products for the customers. This lack of production cause large quantities of finished materials to be stored until the order is completed for shipment. Moving the offices and expanding the operational areas will allow more products to be produced minimizing the amount of storage needed for storage of the produced product. The company needs to have a designated area for shipping and receiving instead of a combined area.
Challenge three: Finances: Albatross Anchors will need to have a plan in place to ensure that all the proposed changes do not cause them to overspend. A budget will need to be put into place that shows a breakdown by the month to show what spending is proposed and then the actual amount spent for the month. They will need a budget that shows what they are able to spend on the proposed changes to, equipment, raises, training, and operational expenses.
Challenge four: Speed of manufacturing process from order to finished product.
The speed of manufacturing process from order to finish product is very challenging since each anchor requires its own unique equipment. Currently they have to completely change the over the manufacturing line for each type of anchor. This process makes it more time consuming and creates more work for employees.
Question two
(a) Operational Issue One: Environmental Analysis
References: Torek, Robert; Cordon, Patrick J.(2002). Operational profitability: Systematic Approaches for Continuous Improvement. New York: John Wiley & Sons. http://tutor2u.net/business/gcse/production_economies_of_scale.htm Author: Jim Riley Last updated: Sunday 23 September, 2012 Russell& Taylor 2010 7th Ed. Operations Management Russell, R.S. (2011) Operations Management: Creating Value along the Supply Chain 7th Edition, John Wiley & Sons, Hoboken, NJ Ergonomics Retrieved from http://www.osha.gov/SLTC/ergonomics/ 20 July 2012 Reasons cross training employees benefit your business. Retrieved from http://leighgoesslbusinessmusings.blogspot.com/2009/06/reasons-cross-training-employees.html 20 July 2012. Emerson Process Management. Retrieved from http://www2.emersonprocess.com/en-US/Pages/Home.aspx 20 July 2012