Albatross Anchor Case Study 3 (Note: This is not a real company)
Albatross Anchor is a small family owned business that began in 1976 with four family members. Albatross anchor has grown exponentially and now employs 130 people. This one location/facility is situated on 12 acres located in a rural suburb of Smalltown, USA (Please note* the building and facilities for Albatross Anchor are landlocked).
The plant* and the administrative offices are located in the same building.
(*Note: The plant includes: manufacturing, the shipping department, the receiving department, raw materials storage, finished product storage, and the foundry).
The administrative offices are in ...view middle of the document...
Albatross Anchor does not sell retail. They are strictly a wholesale organization. Unit 10 [MT435:Operations Management]
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The bell anchor is manufactured primarily through a foundry process in which ore is transformed into a liquid state and then poured into molds as part of the production process. The bell anchor is used primarily by freshwater marine craft.
The snag hook anchor is fabricated through the bending and welding of iron rods and flat iron into a hook design. The hook design is best when used in saltwater. This hook design snags bedrock and seaweed which holds the marine craft at anchor. The snag hook anchor is used primarily for small to medium sized saltwater marine craft.
Each anchor is produced in multiple sizes to accommodate the type of watercraft, the size of the watercraft and the place where the anchor will be used (saltwater or freshwater).
Each anchor type requires its own unique equipment and manufacturing process. Yet, both manufacturing areas share the same shipping area, receiving area, warehouse area, and administration offices.
The manufacturing area of the plant has had to change to accommodate the manufacture of the two separate types of anchors. As each anchor requires its own manufacturing challenges the manufacturing line must be completely changed over each time the anchor type is changed. The time to switch over from one manufacturing process/operation to the other manufacturing process/operation is 36 hours.
The plant space is at a premium and warehousing space for raw materials and finished product is limited and located at the far south end of the building.
Plant antiquation and safety issues result in small batch...