MT435 Unit eight
January 31, 2013
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.
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
Albatross Anchor needs to become more effective with the opportunities and challenges in its operating environment. Albatross’ operating system must be capable of producing quality products (anchors) that are in demand within a time frame that is acceptable to the industry. Albatross Anchor updates the environmental standards of the plant to bring them up to code. I chose this because environmental analysis refers to the study and analysis of short and long term effects on the environment by businesses, households, and individuals. In any business you need long and short term goals to make the business run more effectively. Environmental analysis is relatively qualitative and involves the identification of and analysis of environmental variables, which affect the business. This type of analysis is relatively qualitative and involves the identifying, scanning, analyzing and forecasting of the environmental variables. This where the operational changes occur. Implication one Environmental Analysis
1. The work place is cramped and crowded and...