Albatross Anchor Case Study
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Question One
Carefully review the assignment scenario/case study. From the limited information in the
scenario/case study, along with your answers to the unit three written assignment, identify at
least three direct and specific long-term and three direct and specific short term operations
changes that Albatross Anchor must make to gain a clear and sustainable competitive advantage
(provide detailed information to validate and support each recommended change)
Question Two
From the list of ten operational issues in the Unit 6 assignment instructions select four
operational issues. For each of the four operational issues explain in detail that operational
issue will help Albatross Anchor improve; 1) job retention, 2) employee morale, and 3)
employee dedication.
Class Book in APA: Russell, R. & Taylor, B. (2009). Operations Management. Hoboken, Wiley & Sons
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Solution Summary
This solution provides a perspective on long- and short-term operational changes recommended for Albatross Anchor company to increase competitive advantage. In addition, the solution provides recommendations for addressing operational issues that largely impact employee relations with the impact to employee retention, moral and dedication addressed.
The solutions covers: manufacturing technology, manufacturing floor layout, safety procedures, administrative support, employee cross-training, profit sharing, ergonomics and automation.
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The Albatross Anchor Company suffers from a myriad of operation issues ranging from sub-optimal floor design to inefficient administrative functions. These operation issues have negatively impacted Albatross Anchor such that they are unable to successfully compete against the competition. There is much room for improvements for Albatross including both long and short term solutions. These solutions can help Albatross more effectively and efficiently operate such that they can better perform against the competition. In addition, given the substandard work environment, Albatross suffers with employee issues such as job retention, poor morale and lack of employee dedication. Addressing a few operational issues can drastically improve these measures.
Long Term Operational Changes
(01)
Contemporize manufacturing technology. Better technology will allow for a safer and faster production of product. Albatross is currently limited to small batch orders with large batch orders taking up to 4 weeks. Updated manufacturing technology will allow Albatross to produce large batch orders with less lead time being able to better serve the client base versus the competition. In addition, given the increase in efficiencies, Albatross can explore price reductions to gain further competitive advantage.
(02)
Divide manufacturing area. The manufacturing area should be divided with area dedicated to the product of both anchor types. Currently, there is 36 hours of down-time with the change-over of manufacturing process. While manufacturing floor area would be reduced for each anchor type, Albatross could increase productivity due to the loss of down-time. Albatross will be able to produce more product in less time, which will increase customer satisfaction and better profit margins. In addition, given the increase in efficiencies, Albatross can explore price reductions to gain further competitive advantage.
(03)
Move shipping to West end of the building. Before Albatross expanded into the international market, it made sense to keep shipping on the East end of the building as shipments were going out via truck. Now that Albatross has expanded into the international market shipping is both via truck and via rail, with rail access located at the West side of the building. Moving shipping to the West side will allow for the consolidation of shipping out of one area and will free up receiving for receipt of materials only. ...
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