Albatross Anchor is a small family owned business that has been in operation since 1976. The company has grown drastically over the years and now employs over 130 people. They specialize in bell and snag hook anchors and operate as a strictly wholesale organization both domestically and internationally. Their manufacturing facility consists of one building which includes manufacturing, shipping, receiving, raw materials, finished product storage, the foundry and administrative offices. Their manufacturing facility is antiquated, worn, and technology deprived and no longer meets the US safety and environmental standards.
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This can cause issues with shipping and receiving as well as the manufacturing area because it isn’t large enough to accommodate making different types of anchors. More space is needed if they would like to increase batch production as well as fulfill bulk orders faster.
(03) The third long-term change Albatross Anchor’s should make is adding different types of manufacturing equipment for different types of anchors. It takes 36 hours to switch manufacturing operations for different types of orders. This only allows for small batch production; bulk orders take at least three weeks’ notice. If new equipment was purchased that could accommodate both types of anchors, if manufacturing space was increased so that they can hold two different types of manufacturing machines, this would not only decrease build time, but also manufacturing costs.
Short-Term Operational Changes
(01) One short term change Albatross Anchor should make is their shipping and receiving styles. Shipping for international orders and receiving come in through the same area; this can cause delays and make extra work for the receiving facilities since they have to ship out and receive items at the same time. By scheduling international shipments on certain days and receiving raw materials on the other days, this will allow receiving to go much smoother.
(02) A second short-term change should be the administrative offices. The administrative offices are said to be shabby, unkempt, and disorganized. The administrative offices should be cleaned up, be upgraded with new technology (computers, etc.) and have better systems in place for organizing account information, documents, and more; this will allow Albatross Anchors to have better access to their financial documents and information if needed in the future.
(03) The third short-term goal would be inventory management. Due to limited space for storage, inventory management should be monitored more closely to keep costs down until a larger storage space or building is able to accommodate more raw materials or finished goods. By implementing an inventory management system that will provide computerized up to date information, Albatross Anchors will be better informed when they need to order more supplies and how often it should be done.
From the list of 10 operational issues in this assignment instructions select four operational issues. For each of the four operational issues explain in detail that operational issue will help Albatross Anchor improve; 1) job retention, 2) employee morale, and 3) employee dedication.
Operational Issue One:
The first operation issue that will help Albatross Anchor improve is gain sharing and profit sharing. Gain sharing is an incentive plan that includes employees in a common effort to achieve a company’s objectives in which they share in the gains (Russell, pg. 327). A profit sharing plan is a type of plan that gives employers flexibility in designing key...