Albatross Anchor

Albatross Anchors Business Improvements

Patrick White

MT435 Operations Management

Kaplan University

4-11-14

Introduction

Albatross Anchor is a family owned business specializing in the manufacture of boat anchors. The two styles of anchors they produce fill a need by fresh and saltwater boaters. The company has hired KU Consulting to perform a comprehensive review of operational management processes. At the KU Consulting appreciates the opportunity to provide analysis data and recommendations and at the conclusion of the review recommendations will be provided to enhance current operations or a recommendation of constructing a new plant will can be built. The review will cover all aspects of the business from receiving, shipping, cost controls, flexibility of change and technology use.

Question One

Based on the information presented in the scenario/case study discuss Albatross Anchor’s competitiveness in relation to (please address all items in the below list and provide support for your conclusions):

1. Cost

a) Cost of Production:

The cost associated with the production can fluctuate as much as 30%. The cost difference is a direct reflection of the outdated facilities and process management and control. Employees that are the training in process control can identify and correct minor day to day problems (Russell & Taylor, 2009). The process change empowers the employees to make decisions that affect operations of the company for the good. The results will benefit the employees.

Another cost associated with the production is utility's cost. The raw materials must be transformed into a finished product by melting the raw materials. Recent test revealed that using electricity to melt metals proved to be cheaper than with the use of gas. The savings are due to the abundant amount of raw material lost through the melting process (Rayteg, n.d.). It was proven that the metal had better strength properties when melted with...