Unit three Written Assignment
MT435 Operations Management
June 26, 2012
A small family owned business that they started in 1976 with four family members is Albatross Anchors. Now Albatross Anchors now employees one hundred and thirty.
The building sits on 12 acres in a small town. We know that the adminidtravie offices are disorganized, dirty and are un inefficiently. The plant is old worn, dirty and not up to date with the new technology and it does not meet all US safety and environmental standards. In 1989 Albatross Anchors started fabricated snag hook anchors to be able to compete internationally.
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C) Cost of Raw Materials Sitting Idle in the Warehouse:
With albatross Anchors making two different styles, thus taking more room, storing raw materials does not allow for manufacturing high volume, will the lead time is three to four weeks for large qualities so row materials sit.
D) Cost of Finished Goods Sitting Idle in the Warehouse:
Albatross Anchors are limited to using the rail or large ocean freighters for the international orders, because of size, weight and other limits on loads. Having the layout of the building, you have the foundry in the middle of the shiooingand receiving area, so it slows down the flow of shipping. It slows down the International shipping allowing for finished product to sit making the cost higher and losing money for having product just sitting around.
2. Speed of manufacturing process from order to finished product.
The speed of manufacturing from order to finished product is most likely a slow process. One reason could the administration offices or not organized, and ran poorly. Also raw materials might not be received in a timely manner, because of shipping going on at the same time. The speed is a factor when they have some down time, one other factor is the age and safety issues can limit the volume of the production.
3. Flexibility in filling order(s)
I think that the additional product would be hard to be done in the same place, once again due to organization of the administration office, and its current location.
Albatross Anchors could and would benefit with upgrades in the offices and maybe they should invest in some automated plant machinery that would speed up the process from order to finished product.
5. Capacity and facilities
With the current building not meeting US safety and environmental standards Albatross Anchors could go out of business because they cannot produce the different product at the same time. Albatross could run at a higher volume output by building a bigger plant and the growth could be a lot higher than it is now. Also could go out of business, due to the fact that they cannot keep up with their completers.
6. Service to customers
The services that albatross Anchors offered to the marine wholesalers could be different sizes and maybe parts for the anchors that could be fixed rather they having to replace, it could offer bulk shipment to the different companies around the world.