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Unit three Written AssignmentKU Consulting has been asked to bid on a large consulting job with Albatross Anchor. In order to win the contract for this consulting job a well written, logical and highly organized proposal must be written. It is your task/challenge to write the proposal for re-vamping Albatross Anchors Operations systems so that KU Consulting may win the $ 50,000 contract.The proposal is separated into three sections but covers the same scenario/case study. You will work on and prepare the proposal in Units three, six, and eight.Using the mandatory template (found in DocSharing) prepare your proposal by answering (in detail) all of the questions posed below….. attached
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Unit three Written Assignment
KU Consulting
has been asked to bid on a large consulting job with Albatross
Anchor. In order to win the contract for this consulting job a well written, logical
and highly organized proposal must be written. It is your task/challenge to write
the proposal for re-vamping Albatross Anchors Operations systems so that KU
Consulting may win the $ 50,000 contract.
The proposal is separated into three sections but covers the same scenario/case
study. You will work on and prepare the proposal in Units three, six, and eight.
Using the mandatory template (found in DocSharing) prepare your proposal by
answering (in detail) all of the questions posed below.
Your answers must demonstrate your
understanding of the concepts and
principles identified within the textbook,
course information and activities, but also
from independent academic quality
research to solve these challenges.
While it is acceptable to use the textbook
as foundational material you must
conduct independent research, as well,
using the Kaplan virtual library and the
Internet to find information that supports
your findings and conclusions. A
minimum of three academic
resources, in addition to the
textbook, is required for each section of
the proposal.
Please note: Quotations should make up no more than 10% of your proposal.
Requirements for successful completion of each section of the proposal
include:
o Prepared using the mandatory template for each section of the proposal
(the templates for each section can be found in Doc Sharing of this virtual
classroom). Failure to use the mandatory template will result in an
automatic reduction of one grade level.
KU Consulting
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o Proposal Cover page.
o APA style reference page.
o The body of the paper must be between six and eight pages long (this does
not include the cover or reference pages).
o Body of the paper must be double-spaced (this includes spacing between
paragraphs and before/after headings).
o One inch margins on all four sides of the page.
o Times New Roman 12-font only.
o Indent the first sentence of each new paragraph ½ inch (this is already set in
MS Word as the first “Tab” setting”)
o Grammatically and mechanically sound.
o Introductory and concluding paragraph(s).
o A minimum of three academic quality research sources in addition to the
textbook).
o Citations, within the body of the paper, identifying source materials and in
APA format are required along with corresponding reference page listings.
The following documents are in doc sharing.
(01) Unit three written assignment template (use of the template is
mandatory)
(02) Directions for completing the unit three written assignment template
(03) Unit three written assignment directions
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Please note*
1. Do not use Wikipedia, wiki’s, Answers.com, Ask.com, online dictionaries, or
online encyclopedias for this project. As a senior level student you are responsible
for independent research and for veracity of source.
2. A search engine is not a source but a tool used to find a resource. For
information on APA referencing of internet based information use the information
on APA formatting contained within the Kaplan Writing Center for more information
or you may use the Kaplan Guide to Successful Writing that is located in the doc
sharing area of this virtual classroom.
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Albatross Anchor Case Study (Note: This is not a real company)
Introduction
Albatross Anchor is a small family owned business that began in 1976 with four
family members. Albatross anchor has grown exponentially and now employs one
hundred and thirty people. This one location/facility is situated on twelve 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, technology-deprived and it no longer meets all
US 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.
Customers
Albatross Anchor is a manufacturing factory that sells only at the wholesale level.
Albatross Anchors sales their products in two ways:
(01) Distributors that act as the middleman. The distributor accepts bulk
delivery of anchors at their large distribution centers. At the distribution
center the bulk shipment of anchors is broken up into smaller batches and
shipped to individual retail locations.
(02) OEM customers that purchase anchors in large batches to be used as a
component in the manufacture of boats.
Albatross Anchor does not sell retail. They are strictly a wholesale organization.
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Products
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 fresh water 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 w
here
the anchor will be used (salt water or
fresh water).
Manufacturing
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 three to four
weeks.
Costs
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
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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 materials.
Please view the below representation of the current building/facility set up.
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Unit 3 Project Questions
Question One
Based on the information presented in the scenario/case study discuss Albatross
Anchor’s competitiveness in relation to:
(a) Cost (i.e. consider cost of production, economies of scale in material
purchasing, cost or raw materials and finished goods sitting idle in the
warehouse).
(b) Speed of manufacturing process from order to finished product.
(c) Flexibility in filling order(s)
(d) Technology
(e) Capacity and facilities. The current floor plan is inefficient. Please tell
what about the current floor plan makes it inefficient and give
recommendations for improvement. What type of factory would be best for
mixed model manufacturing?
(f) Service to customers (what types of services would an anchor company
provide to marine
wholesalers?
Be sure to address all items in the list (above) and provide support for
your conclusions.
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. From the available information below determine which process has
the lowest breakeven point (this validates the process is more cost effective) and
report your analysis and supporting conclusion.
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 $ 29.9
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Based on the above information identify:
(a) The total fixed costs per anchor
for Process A and Process B
(b) The total number of anchors needed to break even for Process A and for
Process B.
Enter your answers into the chart below.
Anchor and Process Process A Process B
(a) Fixed costs per anchor
(b) The total number of anchors to attain
break–even point for Process A and Process B
(c) From your calculations identify whether you would recommend Process A
or Process B for adoption (select only one). Please make sure to explain how
you arrived at your conclusion.
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DIRECTIONS FOR SUCCESSFULLY COMPLETING
THE REQUIRED COURSE TEMPLATE
Unit three Written Assignment
KU Consulting Proposal for Albatross Anchor
Your name
MT435 Operations Management
Kaplan University
Date
Erase the
words Your
name
and
type in your
name
Erase the
word Date
and type in
the date.
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Introduction
Type the introduction to the paper
here.
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):
(a) Cost
1) Cost of Production:
Type the answer for cost of production here.
2) Economies of scale in material purchasing:
Type the answer for cost of economies of scale in material purchasing here.
3) Raw materials sitting idle in the warehouse:
Type the answer for cost of raw materials sitting idle in the warehouse.
4) Finished goods sitting idle in the warehouse
Type the answer for finished goods sitting idle in the warehouse
here
(b). Speed of manufacturing process from order to finished product.
Type the answer for the speed of manufacturing process from order to finished product
here.
(c). Flexibility in filling order(s)
Type the answer for flexibility in filling orders here.
(d). Technology
Type the answer for technology here.
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(e) Capacity and facilities
Type the answer for capacity and facilities here.
(f). Service to customers (what types of services would an anchor company provide to marine
wholesalers?
Type the answer for service to customers here.
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 $ 46.00 $ 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
XX XX
(b) The total number of anchors to attain break–even point
for Process A and Process B
XX XX
Type the
answer for
Item B
Process B
here
Type the
answer for
Item A
Process B
here
Type the
answer for
Item A
Process A
here
Type the
answer for
Item B
Process A
here
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(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.
Provide the answer to which process would you recommend and be sure to justify your
reasons.
Conclusion
Type the conclusion for this paper here.
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References
Type the references here.
