Unit 4 [MT435:Operations Management]
Page 1 of 11
Assignment Details and Rubric
Unit 4 Assignment: Case Study 1
Written Assignment
As a representative and consultant for KU Consulting firm
your task is to use your expertise in
Operations Management to assist Albatross Anchor.
Write a report answering all the questions posed regarding
the case study of Albatross Anchor.
Demonstrate your understanding of course content by using
concepts and principles from your
textbook and from academic quality research to solve these
challenges.
All necessary materials for these Assignments are available
below as well as in Doc Sharing. Submit
your Written Assignment by the end of Unit 4 to the
“Unit 4 Assignment” Dropbox. For help on
accessing the Dropbox, see the Dropbox Guide link located in
the Academic Tools tab.
Unit 4 Assignment Questions
Question 1
Based on the information presented in the scenario/case
study discuss Albatross Anchors
competitiveness in relation to:
(a) Cost (i.e., consider cost of production, economies of
scale in material purchasing, cost of
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? Unit 4
[MT435:Operations Management]
Page 2 of 11
(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 2
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:
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.Unit 4
[MT435:Operations Management]
Page 3 of 11
(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.
MT435 Unit 4 Assignment: Albatross
Anchors Case Study 1
Content (50%) 30 pts. (4 Full Pages of
Content)
Point
s
Possi
ble
Points
Earne
d
For Question 1:
Discuss the companys competitiveness
using six assigned factors:
? Cost
? Speed of manufacturing
? Flexibility in filling orders
? Technology
? Capacity and facilities
? Service to customers
10
For Question 2:
Fixed Cost Calculations
Break-even determination for Process A
and Process B
10Unit 4 [MT435:Operations Management]
Page 4 of 11
Recommendation to select either Process
A or Process B based on calculated data,
with supported explanation of selection
Template Used Appropriately 10
Analysis (30%) 18 pts.
Work demonstrates synthesis of concepts,
research, and experience. 6
Work demonstrates the students ability to
tie relevant information to real life
applications.
6
Analysis exceeds basic comprehension to
demonstrate higher order thinking.
(Including math).
6
Writing (20%) 12 pts.
Correct use of APA 6th edition format, all
sources used to support the paper are
referenced, 4 references minimum
4
Sentences are clear, concise, and direct;
tone is appropriate 4
Spelling, grammar, and punctuation are
correct 4
Total 60Unit 4 [MT435:Operations Management]
Page 5 of 11
Case Study 1
KU Consulting
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.
Using the mandatory template (found in Doc Sharing) 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 four
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:
? 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.
? Proposal Cover Page
? APA style reference page.
? The body of the paper must be
4 full pages long (this does not include the cover or reference
pages).
? Body of the paper must be
double-spaced (this includes spacing between paragraphs and
before/after headings).
? One inch margins on all four
sides of the page. Unit 4 [MT435:Operations Management]
Page 6 of 11
? Times New Roman 12-font only.
? Indent the first sentence of
each new paragraph inch (this is already set in MS Word as the
first Tab setting)
? Grammatically and mechanically
sound.
? Introductory and concluding
paragraph(s).
? A minimum of four academic
quality research sources in addition to the textbook.
? 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.
? MT435 Case Study 1.pdf
? MT435 Case Study 1 Template.doc (Template is required)
Please note*
1. Do not use Wikipedia, wikis, 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.Unit 4 [MT435:Operations Management]
Page 7 of 11
Albatross Anchor Case Study 1 (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 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.
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.Unit 4 [MT435:Operations Management]
Page 8 of 11
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 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 freshwater).
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 3 to 4
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
Product size, bulk, and weight and maximum load limits
require that the anchors be shipped by large Unit 4 [MT435:Operations
Management]
Page 9 of 11
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.Unit 4 [MT435:Operations Management]
Page 10 of 11
Case Study 1
Question 1
Based on the information presented in the scenario/case
study discuss Albatross Anchors
competitiveness in relation to:
(a) Cost (i.e., consider cost of production, economies of
scale in material purchasing, cost of
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 2
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 $45.00 $45.00
Total Fixed cost $650,000.00 $950,000.00
Variable cost per anchor $36.00 $29.99 Unit 4
[MT435:Operations Management]
Page 11 of 11
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.Unit 4 [MT435:Operations Management]Page 1 of 11Assignment Details and RubricUnit 4 Assignment: Case Study 1Written AssignmentAs a representative and consultant for KU Consulting firm
your task is to use your expertise in Operations Management to assist Albatross Anchor.Write a report answering all the questions posed regarding
the case study of Albatross Anchor. Demonstrate your understanding of course content by using
concepts and principles from your textbook and from academic quality research to solve these
challenges.All necessary materials for these Assignments are available
below as well as in Doc Sharing. Submit your Written Assignment by the end of Unit 4 to the
“Unit 4 Assignment” Dropbox. For help on accessing the Dropbox, see the Dropbox Guide link located in
the Academic Tools tab.Unit 4 Assignment Questions Question 1 Based on the information presented in the scenario/case
study discuss Albatross Anchors competitiveness in relation to:(a) Cost (i.e., consider cost of production, economies of
scale in material purchasing, cost ofraw 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? Unit 4
[MT435:Operations Management]Page 2 of 11(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 2 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: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.Unit 4
[MT435:Operations Management]Page 3 of 11(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.MT435 Unit 4 Assignment: Albatross Anchors Case Study 1Content (50%) 30 pts. (4 Full Pages of Content)Points PossiblePoints EarnedFor Question 1:Discuss the companys competitiveness using six assigned factors:? Cost? Speed of manufacturing? Flexibility in filling orders? Technology? Capacity and facilities? Service to customers10For Question 2:Fixed Cost CalculationsBreak-even determination for Process A and Process B10Unit 4 [MT435:Operations Management]Page 4 of 11Recommendation to select either Process A or Process B based on calculated data, with supported explanation of selectionTemplate Used Appropriately 10Analysis (30%) 18 pts.Work demonstrates synthesis of concepts, research, and experience. 6Work demonstrates the students ability to tie relevant information to real lifeapplications.6Analysis exceeds basic comprehension to demonstrate higher order thinking. (Including math).6Writing (20%) 12 pts.Correct use of APA 6th edition format, all sources used to support the paper are referenced, 4 references minimum4Sentences are clear, concise, and direct; tone is appropriate 4Spelling, grammar, and punctuation are correct 4Total 60Unit 4 [MT435:Operations Management]Page 5 of 11Case Study 1KU ConsultingKU 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. Using the mandatory template (found in Doc Sharing) 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 four 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: ? 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. ? Proposal Cover Page? APA style reference page. ? The body of the paper must be
4 full pages long (this does not include the cover or reference pages). ? Body of the paper must be
double-spaced (this includes spacing between paragraphs and before/after headings). ? One inch margins on all four
sides of the page. Unit 4 [MT435:Operations Management]Page 6 of 11? Times New Roman 12-font only. ? Indent the first sentence of
each new paragraph inch (this is already set in MS Word as the first Tab setting) ? Grammatically and mechanically
sound. ? Introductory and concluding
paragraph(s). ? A minimum of four academic
quality research sources in addition to the textbook. ? 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. ? MT435 Case Study 1.pdf ? MT435 Case Study 1 Template.doc (Template is required)Please note* 1. Do not use Wikipedia, wikis, 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 containedwithin 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.Unit 4 [MT435:Operations Management]Page 7 of 11Albatross Anchor Case Study 1 (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 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. 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.Unit 4 [MT435:Operations Management]Page 8 of 11ProductsThe 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 freshwater). 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 3 to 4
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 freightProduct size, bulk, and weight and maximum load limits
require that the anchors be shipped by large Unit 4 [MT435:Operations
Management]Page 9 of 11truck, 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.Unit 4 [MT435:Operations Management]Page 10 of 11Case Study 1 Question 1 Based on the information presented in the scenario/case
study discuss Albatross Anchors competitiveness in relation to: (a) Cost (i.e., consider cost of production, economies of
scale in material purchasing, cost of 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 2 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 theavailable 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 BSale price per anchor $45.00 $45.00 Total Fixed cost $650,000.00 $950,000.00 Variable cost per anchor $36.00 $29.99 Unit 4
[MT435:Operations Management]Page 11 of 11Based 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.
