arAs a representative and consultant for KU Consulting firm your task is to use your expertise in Operations Management to assist Albatross Anchor. Write a report answering all the questions posed regarding the case study of Albatross Anchor. Demonstrate your understanding of course content by using concepts and principles from your textbook and from academic quality research to solve these challenges. Albatross Anchor Case Study (Note: This is not a real company) Introduction Albatross
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product lines- Valves‚ Pumps and Flow Controllers (Exhibit 2). Overheads are simply charged at 185% constant for three diverse products. The fact that there is huge variance in the number of units produced per production run- it is 375 for valves and 18 for flow controllers per production run. This shows the reason for high overheads cost too. Hence it calls for checking the cost allocation system of the company. Since Sippican produces three different products which comprise of different components
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and profitability. In this report we have analysed the effects of these differences between the plants and we recommend a model that Applichem can use to minimise its total costs. Figure 1: Current Production status in Plants Market Designed 1982 Idle Yield Last update in capacity Production capacity Equipment Gary North America 18.5 14 4.5 94.7% 1964 Canada 3.7 2.6 1.1 91.1% 1955 Mexico 22 17.2 4.8 91.7% 1978 Frankfurt Western Europe 47 38 9 98.9% 1974 Venezuela Latin America 4.5 4.1
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1. Introduction Piele SA started a budget committee consisting of the chief accountant‚ a cost accountant‚ a technical director‚ and heads of the production departments. The committee was formed to help develop a budget using the zero-based budgeting system. Piele SA’s budget was based on the expected level of activity in sales that the firm expected to generate during the year. Piele SA started its budget from zero‚ and continued to re-evaluate and adjust targets throughout the operating year;
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both chemicals. Plantwise Sales‚ Production‚ Capacity(2005) Highcal Region Latin America Europe Asia w/o Japan Japan Mexico U.S Plant Brazil Germany India Japan Mexico U.S Capacity 18 45 18 10 30 22 Sales 7 15 5 7 3 18 Productio n 11 15 10 2 12 5 Sales 7 12 3 8 3 17 Relax productio n 7 0 8 0 18 17 Main points continued Japanese plant is best in terms of its ability to handle regulatory and environmental issues. Germany has got the best production ability. German plant has routinely
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shuts down any plant‚ its weekly costs will change‚ as fixed costs are lower for a non-operating plant. Table 1 shows production costs at each plant‚ both variable at regular time and overtime‚ and fixed when operating and shut down. Table 2 shows distribution costs from each plant to each warehouse (distribution centre). Table 1: Andrew-carter‚ Inc. Variable costs and fixed production costs/ week. Plant Variable Cost Fixed cost per week Operating Not Operating No. 1‚ regular time $2.8 /
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out the process there exists possibility for yield loss. The average yield of release-ease on raw material A is a key indicator of the overall performance of the release-ease manufacturing process at different plants. Exhibit 4 gives the Annual Production Capacity‚ Annual Design Capacity‚ Average Yield and the Annual
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the price comparisons. Issues The Fineprint Company faced two major internal issues. First is the fact that it is operating its production facility at near capacity. This leaves little room for new jobs and threatens to increase the fixed cost associated with the capacity. Second‚ FPC is relying heavily on temporary labor to meet volume changes in production. With the use of temporary workers comes the burden of fluctuating labor costs through wage changes and constant training. FPC also has
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two plants in Ogden and Sandy. The first factory‚ in Ogden‚ is the new one. Sandy is the older one. For the coming year‚ the plan for the Portal Corporation is to produce 120 000 laser printers. The purpose of this document is to analyze how the production of 120 000 units should be distributed between the two plants to maximize operating income. Analysis According to the efficiency data both of the plants can typically work for 240 days‚ but maximum annual capacity is 300 days. Newer company‚ Ogden
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• System capacity affects: – Response rate to market changes • How quickly the system can produce or serve customers – Overall product cost structure • Fixed and variable production cost‚ regular/overtime pay‚ subcontracting fess – Composition of workforce • Regular vs temporary‚ shifts‚ overtime‚ etc – Level of production technology utilized • Long-term installation vs short-term adjustment – Extent of management and staff support • Resource allocation and coordination – General inventory strategy
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