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Operations Management

Albatross Anchor has been started as a family business in 1976. The small business has grown on to become a medium scale concern employing 130 people. The factory of the company in Small town, USA houses both the administrative and manufacturing facilities. The paper will look into the process and the products of the company. Question One Based on the information presented in the scenario discuss Albatross Anchor’s competitiveness in relations to (please address all items in the below list and provide support for your conclusions).

(a) Cost: In the case of cost, the company is facing some problems regarding the competitiveness of the industry. The inefficiency in the production of the company makes the cost of the products go up. To survive the competition, the company is selling at the same price like that of the other companies. However, the increased costs mean that the company is losing 30% of the money. (b) Speed of manufacturing process from order to finished product: The process of the products is slow and it starts from the delivering process by rail.

The machinery in the production process is outdated that does not enable the company to speed up the process. (c) Flexibility in filling

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order(s): The flexibility in filing orders is low too as the manufacturing space is the same. To change from one variety to the other needs 36 hours of time. Therefore, the flexibility in the process is extremely low. (d) Technology: The technology of the company is outdated as compared to the other companies in the industry.

This makes the cost of the products of the company go up as compared to the other companies. This makes the company lose a good amount of money. (e) Capacity and facilities: The capacity of the company is low because of the lack of safety standards. The production cannot be done in large batches. Therefore, there is a restriction in the production of large number of products. (f) Service to customers: There is no separate department in the case of the consumer service.

The company has not given any attention regarding the customer service. In this age of modern business development, it is necessary to take care of the customer service to be successful in business. Question Two There are many ways that mushroom/bell anchors may be manufactured. Analyze and review two new manufacturing processes to determine which process has the lowest breakeven point (this validates the process is more cost effective and report your analysis and supporting conclusion).

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