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Rachel, I have been working extensively on my ass...




Rachel, I have been working extensively on my assignment. To clarify, I've cut and paste what I have done so far. The deadline is by Monday 4PM. You think you could help before the deadline? Let me know as soon as you can. Thanks for your help! My introuduction page begins as follows... Introduction Hello, my name is Andrea Neves and I am a representative from KU Consulting. I was sent to you by my firm to provide you with my level of expertise in Operations Management. Our goal here is to ensure superior quality, reliability, and ultimate satisfaction. Albatross Anchor is growing at a rapid pace, and like most growing businesses, they are confronting operational challenges. Even though pricing may not play a significant role with Albatross Anchor, the company is able to sell products at the market rate. Due to operational inefficiencies however, Albatross is not able to recognize its actual profit. If Albatross is able to overcome these challenges, the company would be able to come to the same profit level as competitors. Albatross will soon be able to invest appropriately for further growth in the business. As a representative for KU Consulting, I am here in support of Albatross Anchor to focus on how things operate in the company as well as utilizing my skills and potential in making tasks operate efficiently, effectively, and to ensure quality is well managed and maintained while achieving results in the process. With our firm?s operations department, we examine how we are able to measure, design, and correct every process, tasks, and procedures. As a representative of the firm, I am here to provide you with key concepts and principles on how KU Consulting is able to establish competitive advantage, employee participation, and become a successful, efficient, manufacturing and production operations department for Albatross Anchor. As a token for our efforts in providing Albatross Anchor?s success in operational excellence, KU Consulting be awarded a 50,000 contract. Question One Based on the information presented in the scenario/case study discuss Albatross Anchor?s competitiveness in relation to (please address all items in the below list and provide support for your conclusions): 1. Cost a) Cost or Production: KU has developed a strategic plan for Albatross Anchor Due to operational inefficiencies, the production cost is much more than it should be leading to decreased profit margin. Albatross Anchors has a cost disadvantage compared to competitors as far as production cost goes. b) Economies of Scale: ?The economies of scale cost less per unit to produce high levels of input (Creating Value along the Supply Chain 2011 Russell, S. Roberta & Taylor III, W. Bernard p.259).? ?Economies of scale will hold true if fixed costs can be spread over a large number of units, production or operating costs do not increase linearly with output level, quantity discounts are available for material purchases, and operating efficiency increases as workers gain experience Creating Value along the Supply Chain 2011 Russell, S. Roberta & Taylor III, W. Bernard p.259-260).?In this case, Albatross Anchor is not able to realize that the economies of scale due to production in small batch sizes. In material purchasing, the Albatross Anchor is able to get economies of scale however, it will lead to large idle inventory sitting at the warehouse. c) Cost of Raw Materials Sitting Idle in the Warehouse: For international orders, finished products keep sitting in warehouse until they are ready to be shipped out. The raw material too sits idle as the production is only in small batches. This leads to large cost of holding both raw material inventory and finished goods inventory. d) Cost of Finished Goods Sitting Idle in the Warehouse: WORK ON! 2. Speed of manufacturing process from order to finished product. Due to limited number of products the manufacturing processes are effectively used. The number of complexities is low; Albatross produces what they can produce at the speed demanded by the marketplace. ADVANTAGE 3. Flexibility in filling order(s) Manufacturing process is not flexible to account for a wide variety of products and is not modular to allow production processes to change output rapidly. For example each type of anchor requires different manufacturing line and the time required to switch from one manufacturing line to other is 36 hours, which is a large timeframe. DISADVANTAGE 4. Technology The manufacturing process is technology deprived and still follows the traditional method of manually engaging in the manufacturing activities. DISADVANTAGE 5. Capacity and facilities The current floor plan is inefficient. The space for raw materials and finished goods is towards the far south of the facility which consumes lot more time in shipping and receiving activities. If the manufacturing area is moved to the end, it would lead to reduction in time for product movement within the facility. The foundry not being a part of manufacturing is another flaw in the floor design. If that can be pushed to the manufacturing space, there would be more leeway for international shipping orders. For mixed model manufacturing, focused factory type would be ideal. A Focused Factory strives for a narrow range of products, customers and processes. The result is a factory that is smaller, simpler and totally focused on one or two Key Manufacturing Tasks. 6. Service to customers (what types of services would an anchor company provide to marine wholesalers? The company is focused on providing a better service to customers. Albatross Anchor delivers a good service to customers by offering quality and variations in both products. It offers a customer satisfaction warranty that covers labor and parts. However, the company is not able to draw upon the resources and capabilities of industry leaders to better serve customers. DISADVANTAGE 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. 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 following fixed costs and variable costs are identified below: Anchor and Process Process A Process B Sale price per anchor $ 42.00 $ 42.00 Total Fixed 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 $650,000 $950,000 (b) The total number of anchors to attain break?even point for Process A and Process B $42 $35 (c) Based on your calculations which Process (A or B) that you would recommend for adoption (you can select only one). Please make sure to explain how you arrived at your conclusion. Based on my calculations, the break-even point equals to Total Fixed costs/ (Sale price ? variable cost). By viewing Process A, the break-even point is equal to $650,000/ ($42.00-$36.00) = 41.99994462 which I rounded up to 42. As we look at Process B, the breakeven point is $950,000/ (35-23) = 34.99997579 which I rounded up to 35. The decision to choose a process would depend on the number of units which are scheduled to be produced. If the small number of units is to be produced, Process A should be selected due that it has a lower breakeven point and lower total fixed costs. However, if large number of units is to be produced, Process B should be selected as it has lower variable cost per unit. Conclusion Albatross Anchors is a small manufacturing firm which has potential to grow much beyond the current growth rate. There are several ways through which the firm can gain competitive advantage, like diversification, technology, operational excellence, employee participation, etc. The firm is into production of specialized products that have a specific use in the marine craft. The opportunity lies in an overhaul of the entire facility for better management of processes as well as improved working environment to further boost productivity. References: References 1. The Focused Factory & Lean Manufacturing. (n.d). Retrieved from 2. Kotelnikov, Vadim. (n.d). Efficiency Improvement, Retrieved from 3. Stuart, Ian & Boyle, Todd. (February 2007). Advancing the adoption of lean in Canadian SMEs, Ivey Business Journal, Retrieved from Operations Management: Creating Value along the Supply Chain 7th Edition 2011 Russell, S. Roberta & Taylor III, W. Bernard,Rachel, I need help on making the assignment APA compliant. And the source that was used for the diagram in the paper. Many thanks! Andrea


Paper#12588 | Written in 18-Jul-2015

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