Ku Albatross Unit 3 Assignment

Albatross Anchor Evaluation

Mary Kinney

MT435 Operations Management

Kaplan University

June 5, 2012

Albatross Anchor Evaluation

Introduction

KU Consulting Company was asked to help bid on a consulting job with Albatross Anchor. I will examine, evaluate, and propose a revamping of all the companies operations systems. By performing a process analysis, strategy, and elevate the performance of the current system, that is currently being used. I will be able to use this as a starting point to base the analysis, and proposal on. My paper will also cover the cost of production, economies of scale, costs of materials, speed, technology, and I will also conduct a cost analysis for the current production, to determine how to be able to make the company more productive, competitive, and create a positive work flow.

Albatross Anchor Evaluation

Question One

Based on the information presented in the case study, Albatross Anchors Company was very outdated, space limited, and technology deprived. The only good thing is the administrative building is housed within the same confines as, that of the production facility, shipping and receiving, as well as the storage of completed and raw materials are all located. All of these issues must be addressed, or given a much needed overhaul before the company can gain a competitive edge beginning with the cost of production.

Cost of production is defined as the cost of producing finished merchandise or goods (Warren, 2007). Albatross is currently producing two types of anchors, the bell, and snag hooks. Both anchors are produced in the same facility with different manufacturing needs for each one, which causes a delay in production, and revenue when having to stop production from one anchor to switch over to the next. Due to the company’s inefficiencies and by charging the same amount as their competitors for each unit...