Unit 3 Operations
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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.
Unit 3 Assignment Questions
Based on the information presented in the scenario/case study discuss Albatross Anchor’s competitiveness in
(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)
(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
Be sure to address all items in the list (above) and provide support for your conclusions.
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:
Unit 3 [MT435: Business Management]
Page 2 of 3
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
Enter your answers into the chart below.
(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
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