Operations Management. Please PDF Instructions Essay. Operations

Operations Management. Please PDF instructions essay.

Operations Management

Albatross Anchor's competitiveness

The competitiveness of Albatross Anchor can be assessed from a wide array of angles, including the following most relevant ones:

a) Cost

The cost is similar to that implemented by other anchor manufacturers, as this is imperative to maintain sales. Yet, the real costs encountered by Albatross Anchor are higher than those of its competitors and this is the result of operational inefficiencies.

b) Speed of manufacturing process

The manufacturing process is delayed by the lack of adequate technologies, spaces and facilities, but also by the fact that the company has to continually switch its production lines in order to manufacture both the bell anchor as well as the hook anchor.

c) Flexibility in filling orders

Due to several inefficiencies, the company is only able to manufacture and deliver small product quantities. In case the orders suffer modifications, the company is unable to effectively address them as it is highly inflexible.

d) Technology

At the technological level, the anchor manufacturer possesses limited financial resources and does not as such afford to integrate the latest technological developments, which would give them a competitive advantage.

e) Capacity and facilities

The capacity is restricted and the facilities are dirty and under-equipped. These two elements once again point out to a reduced competitiveness.

f) Service to customers

Finally, at the level of services to customers, the restricted capabilities and resources also reduce the firm's ability to deliver services to customers, such as on site support, repairs and maintenance.

Question Two: Breakeven analysis

The introduction of a new model of manufacturing is pegged to the analysis of the breakeven points of each individual method. In this case, process A, characterized by a sales price per unit of $35.00, total fixed costs of $500,000 and variable costs per unit of $25, would break even at 50,000 units. On the other hand, process B, characterized by the same retail price, but a variable unit cost of $23.00 and total fixed costs of $750,000, would break even at 62,500 units.

This situation indicates that process A is more desirable as it will be the one to generate the quickest return on investment. In other words, it is the one which requires the lowest level of investments and it is as such the one which will more quickly and more efficiently generate profits for Albatross Anchor.

Question Three: Recommendations for the short- and long-term

Within the short-term, the recommendations are for Albatross Anchor to:

Set the basis of strategic partnerships in order to gather know how as well as develop opportunities for expansion, renewal and development. These strategic partnerships would help the company increase its access to resources and become better able to attain goals it initially perceived as unattainable (Van Leeuwen, 2004).

Reallocate the financial resources. This specifically suggests that the company's managerial team becomes more straightforward in allocating more funds to developments, rather than production.