Albatrass Point Essay


In terms of Albatross Anchors manufacturing techniques, there is a current need for asking assistance. The organization was established in 1976 as being a family owned and operated business of four people, and is continue to up and running with a team of 130 that all work in the same building, creating two various kinds of boat anchors. This reveals 37 years of hard work and dedication which has continued the manufacturing of those anchors through the years. This proposal shows what is currently happening and a few ideas as to how changes in the detailed management techniques will give improvements to create not just a break-even stage but a future that holds positive income for the business.


1 . Cost

a) Cost of Creation

The cost of production is dependent on the making costs of $8 pertaining to the bells anchor and $11 pertaining to the tug at hook point. The profit failures of 35% due to detailed inefficiencies be noticeable to be a priority. Many companies include adopted a lean six sigma (LSS) approach by simply uncovering spend in method and minimizing non-value adding activity. This will likely assist in elevating productivity (IBM, 2009). Likewise company's inside the twenty-first hundred years are now exhibiting more concern for the surroundings by heading greener and updating technology within the organization for foreign communications and sales.

b) Economies of Scale in material getting:

The basics at the rear of economies of scale are very well known and simple to retain. As a plant gets larger and volume increases, the average cost per unit of result is supposed to drop, while using costs of fixed expenses staying precisely the same. When looking at Albatross Anchor, in 1976 this started tiny but with demand, has increased in size over the years. In the beginning it created only the mushroom/bell anchors but for keep up with opponents it started to produce the snag catch anchor as well (Kaplan, and. d). The company currently provides a three to four week hold till a larger buy can be manufactured. This is a loss of a large number of sales. The primary reason can be understandable that it usually takes thirty-six hours to switch over production for the correct procedure for the anchor in demand. In reality even though this should certainly be a concern which should be addressed in regards to what changes could be made to the corporation to lessen or perhaps eliminate the recovery time. The prolonged amount of time it requires to do the changeover can also lose consumers, because the organization cannot meet the demand in a timely fashion (Mind Tools, in. d).

c) Cost of Recycleables Sitting Nonproductive in the Storage place:

The raw materials that is seated idle in the warehouse not being used is costing the company money beyond it is original purchase price. The storage place is at their maximum ability and only features limited space for each location. When an purchase comes in that is not extremely large but could require a move in development, I would suggest carrying out a by hand assemblage if possible.

The location of the organic material place in the service is not in a site of relieve or sensibility. If the raw materials are brought in on the rail, they should be easily moved from the receiving office to their holding place without having to cross the whole plant to do it.

d) Cost of Finished Items Sitting Nonproductive in the Storage place:

The expense of the completed goods which might be sitting idle is aiding in using a lower profit margin. A good way to help make revenue with these kinds of finished products would be to available the possibility to selling further than wholesale. Also, utilizing a cost analysis to find what the breakeven point for the nonproductive products, can allow offering a discount to current consumers with their following order. The idea of not producing profit off from those anchors may seem unrealistic but a further analysis might show how not having all those finished merchandise in the factory will actually conserve the company cash. The products that are finished and waiting to become shipped must not take as much place as precisely what is being used inside the...

References: Herman, Justin (2011). Types and benefits of systems used in making industry. Gathered on 03 15, 2013 from: http://justinhermen.blogspot.com/2011/05/technologies-in-manufacturing-industry.html

IBM (2009). Aligning organization process managing, service focused architecture, and lean 6 sigma for real organization results. Retrieved on 03 10, 2013 from: http://www.redbooks.ibm.com/Redbooks.nsf/RedbookAbstracts/redp4447.html?OpenDoOpenDo.

Interlake (2013). Mecalux factory solutions. Mezzanines. Retrieved about March 19, 2013 via: http://www.interlakemecalux.com/standard-rack/mezzanine-flooring?gclid=COj0yvf 2iLYCFYSe4AodoGYADA

Kaplan University (n. d) Albatross Point. Retrieved in March 9, 2013 via: http://content-bus.kaplan.edu/MT435_1204C/images/product/MEDIAASSET_tEpIjEnsd9NFRYtenIIXxw.xml/player.htm.

Head Tools (n. d). Obtaining economies of scale. Understanding why larger can be better. Retrieved in March doze, 2013 coming from: http://www.mindtools.com/pages/article/new STR_63. htm#.

Russell, R. The singer, B. (2011). Operations Administration: Creating Worth along the Supply Chain, 7th Edition. Hoboken, New Jersey: John Wiley and Sons