Albatross Anchor Proposal

Introduction solvees and technologies drive home much(prenominal)(prenominal) variables planning, analysis, designing and innovations. millstone vertebral columnman needs to become more than trenchant with the opport social unities and ch entirelyenges in its operating environment. mollymawk operating placement must be capable of producing lumber intersection puts (anchors) that argon n demand inside a time frame that is refreshing to the industry. Question One Based on the information presented in the scenario/case have discuss millstone spinal columns hawkishness in likeness to (please way of life of speaking all items in the below disputation and go out support for your conclusions) 1. woo a) toll or Production The first switch off that needs to be addressed is how often of the fabricating of the anchors could be outsourced? mollymawk, a vertically incorporated keep alliance has an antiquated and technology-deprived plant as halehead as non-co mpliant on synthetic rubber and environmental issues. The factor ins that can make outsourcing wanted to millstone linchpins are persona and speed. Quality, which is normalisation of parts, supplier certification, and supplier involvement in design can change the quality of supplied parts. (www. allbusiness. om) hurry of the supplier can bring out the components quick, with adapt aptitude, flexibleness and reliability then this is a time gather for outsourcing. Albatross Anchors is wanting the turnout capabilities to output products in relation to the industry and nodes demands. Outsourcing would be a benefit to the exertion of the customized and specific anchors and a rich asset to put into action and until now be able to keep the matched edge. Albatross ability to construct the anchors on a giantr scale with fewer, less(prenominal) expensive embody needs to be implemented.engineering, specialized trained employees and book acquire are factors that contribu te to the economic scale. An investiture in specific technological labor techniques would give Albatross more of a free-enterprise(a) advantage over a nonher(prenominal) anchor companies. Increasing merchandise energy would allow Albatross to slim down the conjunctions expenses. Reduced expenses means more cash to spend on operating(a) expansion. Experienced and a specialized practiced labor force would improve Albatross Anchor beca apply the ore expert work force the more capable workers would be to complete intricate tasks. Albatross could hire more skilled labor force to reduce the workforce for their competitors. The advantage of a more extremely skilled workforce is to improve the economies of scales because they could upgrade more anchors in less time. b) Economies of photographic plate The ability to grow and run would top out Albatross to purchase materials in bulk. pot purchasing would allow Albatross Anchor to benefit from a reduced reasonable embody per unit. Economies of scale refers to the decreased per unit cost as output increases. much clearly, the initial investment of capital is piano (spread) over an increasing spell of units of output, and therefore, the fringy cost of producing a good or work decreases as production increases. ) (www. uslaw. com) c) Cost of Raw Materials session Idle in the Warehouse d) Cost of Finished Goods Sitting Idle in the Warehouse To hold up competitive, Albatross needs to implement the Just-in-time entry control system.This system identifies that a terminate product should be puddled just in time for delivery and the raw materials should be delivered just in time for production. (www. referenceforbusiness. com) The Just-in-time system is used so materials and goods never invest idle for extended periods of time. If products or materials amaze for long periods of time in warehouses, Albatross is wasting money and valuable space. prepare stock management is another key factor for th e success of Albatross Anchors. If Albatross wants to uphold an effective gunstock of their materials, timed maintenance needs to be a priority. inventory maintenance on a regular basis needs to 1) review all transportation alternatives and how this affects inventory and warehouse issues, 2) do periodic reviews of inventory, especially raw materials and finished products to en reliable that customers revisions are filled in a timely fashion and 3) show a review system for managing inventory to ensure that obsolete materials are inclined of properly. Success of Albatross Anchors depends on a successful inventory management system. 2. Speed of manufacturing subroutine from order to finished product.Albatross manufacturing speed needs to be improve in order to stay competitive in the industry. Albatross Anchors would benefit from the use of a computerized production scheduler, this scheduler creates schedules for the production shovel in to the very second. Using scatchart s as well as a computer-based scheduler provide take the guess work out of production and increase speed so to improve the lead time, reduce inventories, satisfy customers and so far stay competitive. 3. Flexibility in choice order(s)Implementing a flexible manufacturing system would raise and increase the speed of fulfilling the anchor orders of Albatross. The ability to easily make changes in the production of anchors would be a major dominance for flexibility in volume and product. The manufacturing flexibility has three components 1) the flexibility to make water varieties of variant sizes of anchors by utilise the alike machines and producing the same anchors on different machines, 2) the ability to produce new sizes of anchors on the existing machines and 3) using the flexibility of the modern machines to design changes in the anchors.The present time, Albatross has dedicated machinery which lacks flexibility. Utilizing an FMS would produce benefit as less waste, qui cker tool change, better control of quality, economic uses of machinery and labor force, reduction in inventory, quicker shipping and receiving as well as reduction in expenses. 4. Technology Technology in manufacturing operations is a live part of the success of Albatross Anchors. Implementing machine-driven and flexible manufacturing systems can aid the company to make collaborative decisions about the production of specific and different anchors.Applying current process, manufacturing, product and information technologies leave behind benefit Albatross to supply employees, suppliers and customers with the best output for their ocean craft, whether abundant or small. 5. Capacity and facilities The current facility layout for Albatross is inefficient for some(prenominal) reasons. The current flows of work, materials, receiving/shipping are not grouped together. Albatross can reduce manufacturing be and improve profitability by improving the plant layout.Product layout would be the most beneficial for Albatross Anchors. This event of layout is an assembly line and workers have their move with tools, materials to complete the manufacturing process for the anchors. Once the anchors have been manufactured, shipping them to a warehouse for store is the most effective way. Product layout has a sequential arrangement of manufacturing processes, a continuous mass production and assembly, special equipment, a fix path for material handling, counterweight for scheduling and efficiency.Implementing the product layout for Albatross entrust 1) minimize material movement, 2) minimize the cost of handling materials, 3) provide work flow in an orderly and efficient manner sui control board for the repetitive operations of manufacturing anchors. 6. table service to customers (what types of services would an anchor company provide to marine contacts? In any organization, service that is provided to customers must be held at a high standard. Exceptional service willing come back a return of customer and profitability.Services that a marine wholesaler would look for would be databases for products and manufacturers, on-time delivery, cost effective and efficient supply solutions as well as understanding customers requirements. Technical expertise, alliances with strategic partners, logistics, supply strand management and specialized outsourcing provides strength to customer base. (www. anchormarinesupplies. com) Question Two There are many ways that mushroom/ships bell anchors may be manufactured.Albatross Anchor is considering two new manufacturing processes ( mould A and surgical process B) to reduce costs. Analysis of the information below will help determine which process has the lowest breakeven point (this validates the process is more cost effective). For each process the interest fixed costs and variable costs are identified below Anchor and Process Process A Process B Sale price per anchor $ 42. 0 $ 42. 00 Total hardened cost $ 650,000. 00 $950,000. 00 Variable cost per anchor $ 36. 00 $ 29. 99 Based on the information in the table above complete the table below Anchor and Process Process A Process B (a) Fixed costs per anchor 3,900,000 11,409,500 (b) The total shape of anchors to attain 108,334 79,101 breakeven point for Process A and Process B c) Based on your calculations which Process (A or B) that you would remember for adoption (you can get only one). Please make sure to explain how you arrived at your conclusion. I would recommend Process A for Albatross Anchors. The fixed costs per anchor are pull down than the total fixed costs which would generate a profit for the company but, the fleck of anchors to manufacturer is greater. Producing a larger number of anchors is a benefit when Albatross purchases bulk materials for process A.If Albatross can produce a large number of anchors on a monthly basis with disdain production expenses then the company will turn a profit. Process A has the factors that all management supervisors want, low costs with a high number of products culmination off of the production floor. Conclusion Albatross Anchors has the abilities to mass produce anchors for small, medium and large marine vessels. Albatross Anchors is a company that began in 1976 and has grown rapidly.In order for the company to make a large profit, the plant needs to be updated with technology, expand the production of the anchors and be a more friendly manufacturing environment. Providing exceptional service to customers, update the facility, technology, flexibility with fulfillment of orders, speed of the manufacturing process, cost of production and materials as well as utilizing inventory, Albatross can become competitive once again.Through enhancing the manufacturing processes, Albatross Anchors will be the leader in the manufacturing of anchors in the future. References Evans, J. (2005). Total Quality Management, Organization, and Strategy, (4th Ed. ). Thomson, South-Western. Wilson, Dennis R (2004, sue 22). Outsourcing Production and Jobs Cost and benefits.. Retrieved May 10, 2011, from http//www. allbusiness. com www. uslaw. com www. anchormarinesupplies. com www. referenceforbusiness. com