Operations Management

Unit Eight Written Assignment

Charity Barnes

MT435 Operations Management

Kaplan University

June 10, 2012

Introduction

Albatross Anchor is a small family owned business that began in 1976 with four family members. Albatross anchor has grown exponentially and now employs one hundred and thirty people. Their one location/facility is situated on twelve acres of land located in a rural suburb of Small-town, USA. The manufacturing plant and the main office are located in the same building with the manufacturing. The administrative offices are in the front of the building and the manufacturing area is in the back of the building. Albatross Anchor is confronting operational challenges. Despite the fact that pricing is not a problem with the firm and it is able to sell products at the market rate, due to operational inefficiencies, the firm is not able to realize actual profit. If the firm were able to overcome these challenges, it would be able to come to the same profit level as competitors and would be able to invest appropriately for further growth in the business (Albatross Anchor, 2012).

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: Supply Chain Management-Albatross Anchor does not currently have adequate space to store the raw materials for finished product needed to fill customer orders. The lead-time for the supply of goods to customers is high so in order to correct this problem, Albatross should improve its communication and relationship with suppliers and customers.

Challenge #2: Cost Management- Albatross currently manufactures high cost anchors. In order to cut costs, they can keep a tighter rein on inventory. Only have what is needed in...