Operations Management

Unit 8 Assignment

MT435 Operations Management

Kaplan University

May 18, 2014

Introduction

Albatross Anchor is a small family owned business that has grown beyond its current capabilities and is no longer meeting U.S. safety and environmental standards. In previous units KU consulting has recommended that Albatross Anchor implement lean manufacturing to simplify the manufacturing process and eliminate waste. KU consulting has determined that several factors are affecting Albatross’ bottom line.

Question One

Refer back to your answers in Assignment #3 and Assignment #6. Select four of the challenges listed in the assignment instructions. For each of the challenges selected identify specific and detailed recommendations related to each challenge to assist and improve Albatross Anchor.

Challenge #1: (Technology adoption)

What is the issue/problem to be addressed

The plant is technology deprived and as a result Albatross Anchor’s bottom line is suffering and they are only able to make small batches of anchors at a time

What is the recommendation

KU Consulting recommends that Albatross Anchor upgrade or replace their existing technology and machinery. As discussed in the previous case analysis a capital investment will need to be made, this is done by committing funds now with an expectation of returns over some future time (Russell & Taylor, 2011). At the current moment Albatross Anchor is making up to 35% less than their competitors’ because of operation inefficiencies due to out dated technology. KU consulting would like Albatross Anchor to install Just in Time (JIT) software to help track inventory. “Just in time emphasizes minimizing inventory and soothing the flow of materials arrived just as it is needed” (Russell & Taylor, 2011, p. 722).

Justification (how will your recommendation solve the issue)

By investing in technology, Albatross Anchor will see an increase in efficiency, a...