Albatross Anchor is a small family owned business that started operations in 1976 with a few family members. The company has grown significantly over the years which have created some issues with production as well as the administrative area. The facility is technology deprived, dirty, disorganized, and not meeting US safety and environmental standards. As the company expanded additional processes began and due to the limited space, production was not running as smoothly as the company should. When Albatross Anchor first began production their expertise was in the manufacturing of bell/mushroom anchors. Due to international competition, in 1989 the owners of Albatross Anchor made the decision to expand the product line to include fabricated snag hook anchors. Albatross Anchor is a manufacturing factory that sells only at the wholesale level (Russell, R. S., & Taylor, B. W., III, 2011). The owners must rethink the overall process and layout design of the facility in order to help them sustain a competitive advantage for Albatross Anchor.
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
(01) Due to the plant being overall outdated and technology deprived as well as the administrative offices being dirty, disorganized, and run inefficiently. The plant is antiquated, worn dirty, and no longer meets all US safety and environmental standards. To become in compliance the company should follow US Safety and environmental standards and update technology in order to meet these standards (EPA, 2013). Improving technology in an effort to increase efficiency as well as effectiveness throughout the plant, considering the long term operational changes a five year plan should be constructed in order to address these issues.
(02) The situation of the change over of manufacturing equipment in the production of each anchor type is changed for processing; the time to switch over from one manufacturing process to another is 36 hours. New equipment should be purchased and better processes implemented, this will allow the company to process goods or provide services that involve a multiple processing requirements. Once the 36 hour switch is eliminated the results should show increased efficiency and effectiveness throughout the plant.
(03) The separation of the manufacturing areas for the snag hook anchor and the bell anchors will increase production and make the process more streamline. This will tie the technology portion as well as the new equipment portion together in order to create two separate manufacturing areas.
Short-Term Operational Changes
(01) In order to remain in compliance and enforcing US Safety and environment standards is both a short-term and long-term change. This is a requirement that needs to be monitored continuously throughout the operation of the plant as long as it is in operation. If the plant continues to disregard these safety standards it is in danger of possibly being closed down and/or have large amounts of fines could be required to keep the plant running. It is very important that Albatross Anchor update the environmental standards of the plant to bring them up to code (OSHA, 2014). An immediate investment in the area will definitely save money in the future and possibly save the plant from being shut down for continued violations.
(02) The administrative offices are located in the front of the building and the plant is located directly behind the offices. Some of the issues of the administrative offices include them being dirty, disorganized, and...
References: Environmental Protection Agency (2013)
Our Mission and What We Do Retrieved from http://www2.epa.gov/aboutepa/our-mission-and-what-we-do
Occupational Safety & Health Administration (2014)
About OSHA Retrieved from https://www.osha.gov/about.html
Russell, R. S., & Taylor, B. W., III. (2011)
Operations management: Creating value along the supply chain, 7th ed. Hoboken, NJ: Wiley Chapter 6 & 7. Reference received from https://online.vitalsource.com/#/books/9781118062463/content/element/19985
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