Albatross Anchor Case Study

Words: 1658
Pages: 7

arAs a representative and consultant for KU Consulting firm your task is to use your expertise in Operations Management to assist Albatross Anchor.
Write a report answering all the questions posed regarding the case study of Albatross Anchor. Demonstrate your understanding of course content by using concepts and principles from your textbook and from academic quality research to solve these challenges.
Albatross Anchor Case Study (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 one hundred and thirty people. This one location/facility is situated on twelve acres located in a rural
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Please view the below representation of the current building/facility set up.7

Question One
Based on the information presented in the scenario/case study discuss Albatross Anchor’s competitiveness in relation to:

(a) Cost (i.e. consider cost of production, economies of scale in material purchasing, cost or raw materials and finished goods sitting idle in the warehouse).
(b) Speed of manufacturing process from order to finished product.
(c) Flexibility in filling order(s)
(d) Technology
(e) Capacity and facilities. The current floor plan is inefficient. Please tell what about the current floor plan makes it inefficient and give recommendations for improvement. What type of factory would be best for mixed model manufacturing?

(f) Service to customers (what types of services would an anchor company provide to marine wholesalers?)

Be sure to address all items in the list (above) and provide support for your conclusions.

Question Two
There are many ways that mushroom/bell anchors may be manufactured. Albatross Anchor is considering two new manufacturing processes (Process A and Process B) to reduce costs. From the available information below determine which process has the lowest breakeven point (this validates the process is more cost effective) and report your analysis and supporting conclusion. For each process the following fixed costs and