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Albatross Anchor Case Study 3 

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Albatross Anchor Case Study 3

Albatross Anchor is a small family owned business that began in 1976 with four family
members. Albatross anchor has grown exponentially and now employs 130 people. This
one location/facility is situated on 12 acres located in a rural suburb of Smalltown, USA
(Please note* the building and facilities for Albatross Anchor are landlocked).
The plant* and the administrative offices are located in the same building.
(*Note: The plant includes: manufacturing, the shipping department, the receiving department, raw
materials storage, finished product storage, and the foundry).
The administrative offices are in the front of the building and the plant is located directly
behind the administrative offices (see diagram). The administrative offices have issues
because they are somewhat shabby, disorganized, and run inefficiently.
The plant is antiquated, worn, dirty, and technology-deprived and it no longer meets all
U.S. safety and environmental standards.
The owners of this small business have added on various processes as needs arose;
within the limited space of the plant. When Albatross Anchor first opened its doors their
expertise was in the manufacturing of bell/mushroom anchors (using a foundry process).
In 1989, in response to international competition, the owners of Albatross Anchor made
the decision to expand the product line to include fabricated snag hook anchors.
Albatross Anchor is a manufacturing factory that sells only at the wholesale level.
Albatross Anchors sales their products in
The bell anchor is manufactured primarily through a foundry process in which ore is
transformed into a liquid state and then poured into molds as part of the production
process. The bell anchor is used primarily by freshwater marine craft.
The snag hook anchor is fabricated through the bending and welding of iron rods and flat
iron into a hook design. The hook design is best when used in saltwater. This hook design
snags bedrock and seaweed which holds the marine craft at anchor. The snag hook
anchor is used primarily for small to medium sized saltwater marine craft.
Each anchor is produced in multiple sizes to accommodate the type of watercraft, the
size of the watercraft and the place where the anchor will be used (saltwater or
Each anchor type requires its own unique equipment and manufacturing process. Yet,
both manufacturing areas share the same shipping area, receiving area, warehouse area,
and administration offices.
The manufacturing area of the plant has had to change to accommodate the manufacture
of the two separate types of anchors. As each anchor requires its own manufacturing
challenges the manufacturing line must be completely changed over each time the anchor
type is changed. The time to switch over from one manufacturing process/operation to
the other manufacturing process/operation is 36 hours.
The plant space is at a premium and warehousing space for raw materials and finished
product is limited and located at the far south end of the building.
Plant antiquation and safety issues result in small batch production only. As a result of
this limitation, lead time for exceptionally large bulk orders is 3 to 4 weeks.
Current manufacturing costs are $8.00 per pound for mushroom/bell anchors and $11.00
per pound for snag hook anchors. Albatross Anchor charges the same per unit as their
competitors. However, the profit margin can sometimes be as much as 35% less (on
some of the anchors) because of operations inefficiencies.
Shipping challenges
Outgoing freight
Product size, bulk, and weight and maximum load limits require that the anchors be
shipped by large truck, rail, or large ocean-going freighter. Domestic orders are usually
shipped by large truck. International orders are shipped by rail and ultimately by large
ocean-going freighters. These are the only two methods of product shipment.
Incoming freight
Receipt of raw materials is by rail. Prior to the sale of anchors into the international
market all shipments of finished product went out completely by truck and therefore all
shipping activities were limited to the east side of the building.
Now, because of the limitation of shipping product into the international marketplace, all
product shipments for international delivery go out of the receiving dock for the initial leg
of shipment by rail. Prior to expansion into the international marketplace shipping had
been limited to the shipping department and receiving was limited to the receiving area.
However, with this change in international shipping the receiving area must now do
double duty – shipping of international orders as well as receipt of all incoming raw
Please view the below representation of the current building/facility set up.
Case Study 3
Question 1
Refer to the Albatross Anchor scenario/case study. Make recommendations for at least
four of the following challenges:
List of challenges
(a) Time management
(b) Cost management
(c) Quality management
(d) Performance management
(e) Enterprise project management
(f) Technology adoption
(g) Supply chain management
(h) Distribution management
Question 2
As the consultant for KU Consulting, you have been authorized to change the existing
facility (limited construction budget) and/or refine the process flow of the manufacturing
area. All changes must be completed within a 60-day window with the majority of the
changes happening at night when the plant is idle or on the weekend when the plant is
(a) List and detail the proposed changes and/or alterations. Please explain why you
chose what you chose, give the rationale behind your choices and finally, substantiate
your work.
(b) List and detail three implications and three complications that may occur as a result
of the recommended changes. Remember activities in one area of the facility may have
an impact on other areas of the facility.
(c) Create a Gantt chart showing a timeline for when the different changes proposed
should be made, detailing which changes may overlap and showing how long each
change will take to institute. Provide information to support your decisions and to explain
your choices as shown in the Gantt chart.

Albatross Anchor Case Study 3 

Albatross Anchor Case Study 3  Sample essay

Case Study 3: Written Assignment

Your name

MT435 Operations Management

Kaplan University



Albatross Anchor is a small family business that manufactures bell/mushroom anchors and fabricated snag hook anchors. Albatross Anchor is currently experiencing a number of technical and managerial challenges that threaten to erode its profitability with time. With increasing competition from companies manufacturing similar products, the company has found its future operational existence under constant threat unless there is concrete action to reverse the current trend. The current manufacturing process employed by Albatross utilizes outdated technology making it inefficient and ineffective. The company also experiences significant challenges in management that increase the overall inefficiency and add to the cost of production. This proposal gives appropriate recommendations that Albatross Anchor can adopt to improve its production efficiency and reduce costs.

Question 1

Challenge 1: Time management

Albatross Anchor has poor time management skills. Currently, there is a lot of time wastage during the complete change over from one production process to another to suit production of the two different anchors. It takes the company about 36 hours to completely shift from one production process to another, which contributes greatly to inefficiencies through lost production time. Time is a great resource in manufacturing. The longer it takes to complete a project or a particular task, the higher the operational costs. According to Sivakumar (2010), companies should apply time management strategies in order to complete projects or processes efficiently and deliver to customers in a timely manner. Albatross Anchor can improve time management through implementing an additional manufacturing line to avoid time wastage during the changeover period. Although the initial costs may be high, the long-term benefits are attractive since the company will significantly improve its production capacity and reduce time wastage.

Challenge 2: Cost management

There is need for Albatross Anchor to improve its cost management strategies. Currently, the company’s profit margin varies significantly due to operations inefficiencies. The profit margin can vary by about 35 percent, which is a significant amount. Albatross Anchor can cut costs through four key strategies that include reduction strategies, elimination strategies, innovation, and through modification (Swamidass, 2000). Reduction strategies should focus on cutting down production time and the waiting period. Elimination strategy should aim at reducing waste, eliminating barriers and reducing bottlenecks in production. Innovation may entail re-engineering the entire production process, equipment in use, or replacing the production methods. Modification aims at reducing costs through new design of product.

Challenge 3: Enterprise project management (EPM)

Enterprise project management is a significant area in a company experiencing radical transformation or change. Over the years, Albatross Anchors has increased in size from a small family owned production plant to a larger facility serving the international market and having 130 employees. This transformation from a small family owned business has led to new managerial and technical challenges. EPM can enable the company to manage changes and integrate with new production techniques or technologies (Schwindt, 2005).

Challenge 4: Technology adoption

The current plant at Albatross Anchor uses outdated technology that does not meet all the safety and environmental standards outlined by regulatory authorities in the U.S. There is dire need to adopt the latest technology in production to boost plant capacity and increase efficiency in operations. In the modern manufacturing world, automation has become a common phenomenon replacing old methods of production such as manual work by hand in manufacturing and fabrication process. Automation of the manufacturing process has enabled companies to mass-produce high quality products and to maintain similar standards for all products. Application of modern technology is also critical in reducing wastage and improving the overall efficiency. In the current period, automation is a major determining factor in the competitiveness of a particular company.

Question 2

  • Proposed changes: After much deliberation, KU Consulting recommends changing the existing facility as the best strategy especially with regard to the long-term goals of the Albatross Anchor. Since each of the anchors require unique equipment and manufacturing process, there is need to carry out production in separate areas. This will increase the production capacity of Albatross Anchor and reduce time wastage. Currently, shifting from one production process to another takes 36 hours, which represents a huge share of labor hours lost. Changing the existing facility will enable Albatross anchor acquire latest equipment or technology which conforms to the U.S. safety and environmental standards. The quality of products will improve in addition to low production costs…………………………………………………………………..

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Solved:What specific variables would be needed by that organization in order to forecast

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Successful organizations are also those who are able to make relatively accurate forecasts about the future needs (inventory, facilities, capacity, manufacturing, manpower) for the products produced or the services delivered.

Forecasting is an uncertain science since it calls for predictions but current theoretical and mathematical models (quantitative and qualitative) make it possible for organizations to predict with an acceptable margin of error. Think about it this way; without forecasting organizations would always be responding rather than acting.

  1. Select one industry from the list below: Bank, restaurant, health clinic/hospital, airline, or university.
  2. What specific variables would be needed by that organization in order to forecast? Be sure you explain why you selected each variable and why it is important to forecasting.


organization forecast Sample essay

organization forecast

Author’s name

Institutional affiliation

Date of submission


Everything in life nowadays needs planning particularly business organization. Forecasting is one of the planning tools that provide an insight and prediction of the future of the organization especially the financial status of the organization. The primary purpose of forecasting is to eliminate or reduce effects of uncertainty in all aspects and levels of business.  For prediction to be useful, an organization needs to use both the past and present data to project the future outcome (Box, 2015). This paper seeks to discuss the variables that are necessary to forecast processes in the hotel industry.

Question 1

The hospitality industry goes beyond the hotel as it includes lodgings, event planning, and theme parks. Below are some of the key variables that should be included in the forecasting process of a restaurant.

  1. Sales – sales in a hotel forms the essential part of all business operations. As a matter of fact, the hotel needs to know how much sales it makes per day to come up with both food and beverage cost.
  2. The number of customers – in most cases, the hotel industry is highly affected by the seasons of the year. During the peak periods, there are large numbers of customers but during the low peak periods, there are few guests. The number of customers helps the hotel to plan on how to purchase their foodstuffs(Box, 2015).

Question 2

However, variables can also be divided into short term and long terms depending on their effects on the daily operations of the business.

  1. Sales can be grouped as a long-term variable considering that sales of food, beverages, and beds are the main source of income and revenue for hotels. Without sales or with reduced sales, the hotel cannot operate efficiently because the cost may exceed revenue.
  2. The number of customers can be grouped as a short-term variable since it only affects the hotel for a few days especially if the hotels uses the reorder time as a week or a month. Mostly, the re-order level is influenced by lead time(Box, 2015)



Box, G. E. (2015). time series analysis: forecasting and control. John Wiley & Sons.



Operation Management Discussion Sample paper

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 Operation Management Discussion Sample paper

Operation Management Discussion


Institutional Affiliation

The term trade-off represents a situation whereby a business is forced to give up one item as a compromise for another. In project management, speed of service delivery is of great essence. This determines the time of project completion. On the other hand, the quality of services provided is of great importance in satisfying clients. When the business tries to improve speed or reduce the time for the project, quality of service delivery is negatively impacted. Therefore, there exists a trade-off between the project duration and the quality of services provided. However, increase in speed may lower the overall costs of the project. According to Eckbo (2008), organizations facing trade-off situations will only agree to take action if there are particular benefits to be derived from the actions taken.

I chose time because it is very critical in project management. The time taken for a project to be completed determines the costs to be incurred in the particular project. With regard to mitigating the adverse impact from the reduction in cost and quality, I would ensure that the project is completed within the set timeline. This would eliminate additional and unplanned project costs. Quality can still be achieved while ensuring the project is completed within the set timeline.

The discussion by Robert Scott analyzes trade-off between cost and quality & time of a project. A reduction in cost may lead to low quality of work and possibly an increase in project duration. The discussion concludes by giving an effective way of mitigating the trade-off, which is identified as allowing more time for the project. The discussion by Veda Lewis analyzes scheduling. This does not fall under any of the areas discussed in the Iron Triangle, which include time, quality and cost. The discussion fails to give a clear mention of the trade-offs discussed.


Eckbo, B. E. (2008). Empirical Corporate Finance. Burlington: Elsevier.


  • Provide a realistic example of a trade-off, where one of these three items is optimized at the detriment of the other two items.
  • Explain why you selected the one item to optimize.
  • Explain how you will work to mitigate adverse impact from the reduction in the other two areas of the Iron Triangle.

Provide a response to the below discussion.


Robert Scott

Hello Professor and Classmates,

The Iron Triangle is time, money and quality of the project. In construction you can try to lower cost, however by doing this it will ultimately lower the quality of work being done and will increase the time needed to do the project and it be a success (Bronte-Stewart,2015).

I selected cost because often organization will do whatever it takes to decrease cost and increase profit.

The best way to mitigate this trade-off allow more time for the project so the cost can stay low and the quality should not suffer. ultimately profit is what the organization is looking for so if you can increase profit while maintaining quality then taking a little longer is not a bad trade-off.
Thank you,
Robert Scott




Veda Lewis

6/25/2016 4:21:07 PM

Discussion 6

Hello Professor and Class! I’m not sure if I’m doing this the correct way but here goes…. The trade-off that I have optimized is scheduling. Let’s use a cake maker/designer for example. This designer has been getting many new clients and has overbooked herself. The is supposed to have a wedding cake done for a wedding that is at 5. It’s 4:30 and she hasn’t even started on it. Cost will be affected because there’s a huge chance the couple will not pay her and since she paid money for the ingredients for a cake that will not be purchased, she will also lose money. Performance is affected because she is not going to be on time with her other orders because she is overbooking herself. I chose scheduling because it is typically the most critical element in the project management process, especially during the implementation phase and is the source of most conflict and problems. (Russell, p. 377). This is why much thought and planning needs to be involved when scheduling a project to be completed. Ways that the cake-maker can mitigate inverse impact on cost and performance would be to stop with the overbooking of clients.

Russell, Roberta S., Taylor, B.W. (2014) Operations and Supply Chain Management, 8th Edition. {Vitalsource Bookshelf Online}. Retrieved from https://kaplan.vitalsource.com/#/books/9781118909164/



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