Cheryl L. Jones
MT435 Unit eight
19 November 2012
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.
(a) Operational Issue One: Environmental Analysis
Implication one Environmental Analysis
The work place is cramped and crowded and does not flow well for optimum production. 2.
US Safety standards have not been implemented as they were developed and the plant is not up to code. 3.
Employees and visitors could befall hard due to the lack of being up to US safety standards and codes. 4.
The company has an obligation to provide a safe work environment for their employees. They need to redesign the facilities and follow US safety codes and standards to provide a safe place to work. Providing their employees a safer place to work will improve morale and boost production.
(b) Cost of Finished Goods Sitting Idle in the Warehouse: They are able to ship out
finished products effectively.
Implication two Operational Issue Two: Ergonomics.
Ergonomics is the science of fitting workplace conditions and job demands to the capabilities of the working population (Ergonomics). 2.
Ergonomics has not been used because the company is still using old and outdated equipment and not up to code. 3.
The company needs to invest in ergonomically correct and up to date equipment that will minimize the possibility of employees getting hurt. Ergonomically correct equipment is more comfortable to operate and will cause the employees less fatigue and this will result in more pride in their work increasing production in the end.
Implication three Operational Issue Three: Cross training.
1. Cross training will allow more employees to be able to do the same job and reduce the amount of boredom and accidents. 2. Cross training increases team confidence and creates a team building environment (Reasons). 3. Cross Training will allow employees more freedom to take vacation because someone from the company will already be trained to fill in for them. 4. Cross training will also allow employees the freedom to move from one position to another while at the same time learning the full operation of the plant. 5. Cross...
References: Torek, Robert; Cordon, Patrick J.(2002). Operational profitability: Systematic Approaches for Continuous Improvement. New York: John Wiley & Sons.
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
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