In the last phase of KU Consulting analysis we will analyze an in-depth expression at Albatross Anchor. Albatross Anchor is a household concern that has been in concern for over 35 old ages. During that period they have built long permanent relationships with concern spouses and recognized in the industry.
They have built strong name acknowledgment and known for their quality merchandise. These are some of the strengths that distinguish Albatross Anchor from competition. KU Consulting will turn to four primary challenges identified and set possible solutions.
Besides there will be treatment about possible edifice alternation that will better Albatross Anchor’s operations. KU Consulting will do it a top precedence to non enforce a high disbursal on Albatross Anchor. but merely include what is necessary to stay best at operations. Question oneChallenge one: Time ManagementThe production timeline for Albatross Anchor’s primary merchandise is presently at a slow gait and impacting their ability to run into their clients demand in a timely mode.
One of the most noticeable is that there is a 36 hr conversion period. This creates a high production cost because during this period the employees are still being paid while no goods are being produced. When companies are puting big orders. they are taking on mean four hebdomads to be made.
Albatross Anchor possibly losing re-peat concern from these clients due to the long clip it takes to bring forth.Albatross Anchor must take action every bit rapidly as possible in order to bring around this job without farther losingss. Albatross Anchor must take all possible actions to seek to extinguish the 36 hr passage period or cut down it to the lowest possible degree. The scientific direction method can assist drastically cut down this clip by analysing each measure and giving it a solution. A closer in depth analysis of each measure would ensue in a better operating process that would increase efficiency. One of the best ways to extinguish this job and long passage period would be the purchase of new equipment and update current stock list ( Russell & A ; Taylor.
2011 ) . This may be a dearly-won disbursal purchasing new equipment and updating the current stock list. but a critical alteration for Albatross Anchor to last.
Albatross Anchor is running behind on losing concern because it can non present on a timely mode. They must put in this equipment in order to get down maintaining up with demand and remain in concern. Challenge two: Cost ManagementThere is a high production cost due to the 36 hr conversion transitional period. The end of a merchandise director is to finish the undertaking on clip within a budget ( Elyse. 2006 ) . Albatross Anchor is chiefly and fabricating installation.
Most of Albatross Anchor’s employees are labourers and during the 36 hr passage period a really high disbursal will be paid out to employees for no end product. Having such an disbursal will ache and impact Albatross Anchor ability to maintain bring forthing in the hereafter. Albatross Anchor is incurring a existent high disbursal and non utilizing effectual cost direction techniques to extinguish this job. If there were 20 employees in charge of the conversion at an mean wage of $ 12. 00.
that would come out to $ 8. 640 loss each clip the passage take topographic point. No ground tackles are being produced and stock list is in idle in the storage country. Each clip this passage period takes topographic point ; there is a possible loss due to the downtime of production. Albatross Anchor can add a 2nd railway goad for international transportation and that would assist ease congestion with the receiving section. This will be less dearly-won and will hold great significance on betterment for the installation.
Challenge three: Technology AdaptationCurrent equipment in the Albatross Anchor installation fails to supply multifunctional capablenesss. This is the primary ground why Albatross Anchor is behind on production and takes a long clip to bring forth its merchandise. The fabrication system is antiquated and needs to be updated. Technology alters the work environment. making new modus operandis and conditions. new jobs develop ( Johnson. 2007 ) . This is the major affect on Albatross Anchor ability to bring forth their merchandises in a timely mode.
Albatross Anchor does non presently have an ordination system and tracking system in topographic point. This is why Albatross Anchor has an idle stock list issue. Albatross Anchor must be willing to decently turn to the engineering issue and update their system in order to decide these jobs.
This will necessitate Albatross Anchor to do a capital investing which can be dearly-won in order to replace current equipment. Replacing this outdated and antiquated equipment will hold a batch of long term benefits towards the company. This alteration is besides a necessity to stay in concern and non put on the line losing top clients due to drawn-out production.
Any constituent on the mill floor that can be replaced by a multifunctional machine should have close attending. The alteration of the current floor to go a one multi-service machine will take attention of the conversion clip and cut down production clip. Challenge four: Supply Chain ManagementThere has been a faulty entrance and surpassing programming that has affected transportation and receiving processs.
Incoming natural stuff and international transportation are conducted at the same rail route goad. This can make a struggle and slows the procedure down. Albatross Anchor’s stock list prediction is non managed good which consequences in drawn-out delay times on some orders or idle stock list. These inefficiencies are due to a deficiency of system that controls stock list and orders. There should be a system that covers orders from having through bringing. Albatross Anchor must set up a agenda of the railway goad to cut down any opportunity of clash. Introducing a system like ERP or MRP can be a important measure for Albatross Anchor. This system will be able to more accurately calculate heavy tonss and cut down or extinguish idle stock list.
This will do every section aware of its specific demands. This will besides let having to guarantee the necessary natural stuff is in stock. direct labour staff provided.
and timely updates. This will let the disposal to function the client in a more antiphonal mode ( Russell & A ; Taylor. 2011 ) .Question two( a )Proposed alterations: Initial proposed alterations are utilizing resources chiefly towards the replacing of equipment.
This is one of the most of import alterations that need to take topographic point. The fabrication floor must be reorganized and there should be proper arrangement of the machinery. Raw merchandise storage would be located towards the western wall. This would be a direct connexion between having natural stuff and storage country. Making this will extinguish any unneeded pes traffic.
After this would be travel the finished merchandise storage to the northern terminal of the installation and make two separate transportation sections. International transportation and domestic transportation. the domestic transportation section would be located where the general transportation country is presently. The international transportation would be following to the having country. The finished merchandise would be stored in an country between the domestic and international transportation subdivision.
The mill floor would busy the majority of the southeasterly corner of the installation. This should let for a smoother passage from one phase to the following. ( B )Deduction oneTraveling the natural merchandise storage to the rear of the installation will put it closer to the receiving section and will do needful stuffs more available. This will hold a decrease in motion across the fabrication floor when natural stuff is received. Implication twoAlbatross Anchor will hold a larger production floor. There will be more infinite in the larger floor that will embrace the multifunctional machinery. Having a layout like this will let the workers to travel more freely and expeditiously. This will besides impact cost of production by cut downing cost and addition in production.
Implication threeWith the finished merchandise storage country next to the international/domestic transportation countries will minimise the motion of finished goods throughout the installation. This will guarantee speedy and prompt motion of the concluding merchandise to the designated transportation finish. Complication oneIt will take clip to set. There may be minimum downtime while employees adjust and to the full understand the new system. There needs to be developing and experient staff ready to develop everyone about new alterations coming to the installation. Complication twoUpdating the installation may necessitate a long period of clip. The sum of work that needs to be done a new floor program.
building on the installation. and update of the equipment can be a clip devouring procedure. Complication threeHaving two countries for transportation may necessitate double stock list of the same merchandise.
This can do dual stock list. but would supply a higher degree of efficiency for Albatross Anchor that will heighten their service among their clients. ( degree Celsius )( 01 ) Gannt chart( 02 ) Explanation of the Gannt ChartThe chart lays out a basic timeline of how the advancement will take topographic point in the Albatross Anchor installation. The redevelopment will take 60 yearss to finish. The southern storage of the installation will be redesigned as a part of the mill floor. It would be a practical thought to hold an surrogate location is constructed for the floor to let for continued production.
The building should include a fenced in. covered storage country for natural and finished merchandise. A security guard needs to be hired to guarantee no larceny occurs after hours.
Inventory will be relocated so the destruction procedure can get down. Once the country is cleared the equipment will be relocated to the amalgamate floor. The new natural merchandise storage country will be constructed along the western wall. and the stock list will be returned. The concluding measure will include new building of the new transportation and finished merchandise countries. After completion all stock list will be returned and impermanent construction will be removed.
DecisionKU Consulting mission is the success of Albatross Anchor. The success of Albatross Anchor is what keeps companies like KU Consulting in concern. KU Consulting established a cost effectual budget that will let Albatross Anchor achieve greater gross revenues and uninterrupted service of their clients. KU Consulting understands that alteration can be hard and will stand by their client Albatross Anchor to guarantee that they meet the needed alteration necessary to win. KU Consulting will help Albatross Anchor in future related aid and base by their clients.MentionsAlbatross Anchor Case StudyElyse. ( 2006 ) .
Cost Management Planning. Retrieved 11-15-2011. fromhypertext transfer protocol: //www. anticlue.
net/archives/000716. htmJohnson. W ( 2007 ) . Technology Adaptation Theory.
Retrieved 11/15/2011. from hypertext transfer protocol: //www. ehow. com/about_6515759_technology-adaptation-theory. hypertext markup languageRussell.
R. S. . Taylor III.
B. W. ( 2011 ) . Operations direction: making value along the supply concatenation ; 7th edition. Danvers: John Wiley & A ; Sons. Inc.