Category Archives: Operations Management homework help

Case Study #1 Albatross Anchor Proposal

Question

Case Study #1 Written Assignment

Your name

MT435 Operations Management

Kaplan University

Date

 

 

 

 

Introduction

 

Question 1

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):

  1. Cost
  2. a) Cost or Production:

 

  1. b) Economies of Scale:

 

  1. c) Cost of Raw Materials Sitting Idle in the Warehouse:

 

  1. d) Cost of Finished Goods Sitting Idle in the Warehouse:

 

  1. Speed of manufacturing process from order to finished product.

 

  1. Flexibility in filling order(s)

 

  1. Technology

 

  1. Capacity and facilities

 

  1. Service to customers (what types of services would an anchor company provide to marine wholesalers?

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.  Analysis of the information below will help determine which process has the lowest break-even 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 $45.00 $45.00
Total Fixed cost $650,000.00 $950,000.00
Variable cost per anchor $36.00 $29.99

 

Related Paper :Operation Management

Based on the information in the table above complete 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) 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.

 

Conclusion

 

Case Study #1 Albatross Anchor Proposal

Your name

MT435 Operations Management

Kaplan University

Date

 

 

Introduction

KU Consulting is a large international consulting firm that has been in operation for over a decade. The firm provides consulting services at the local and international levels. Having been in the industry for over a decade, the firm has acquired critical skills and knowledge concerning the manufacturing industry. The firm has been able to utilize the skills and knowledge gained in the industry to helping small businesses and manufacturing firms to counter competition from large international firms and to improve their market presence. Over the years, Albatross Anchor has experienced exponential growth. However, this has resulted to a number of operational challenges which must be addressed if the firm is to remain competitive in the future. This proposal is tendered to Albatross Anchor to assist in process improvement in a variety of manufacturing areas such as technology, cost improvements, storage, and other areas as well as a recommendation of an appropriate manufacturing process.

Question 1

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):

  1. Cost

  2. a) Cost or Production:

The main challenge in keeping the costs down relates to operations inefficiencies. There is need to continually improve operational efficiency in order for the firm to remain competitive. Albatross Anchor can improve operational efficiency by implementing real time process feedback. Real time process feedback enables corrections in errors to be made as they arise rather than after they lead to problems. Operator screens can be used to monitor the entire production system. This can reduce downtimes and improve production efficiencies at the firm. If the production inefficiencies are high, Albatross Anchor should consider re-engineering the production systems. This may involve implementing structural changes in the production process such adopting a product-based structure instead of a functional structure and revamping the value chain (Naga, 2011).

  1. b) Economies of Scale:

Economies of scale refer to the cost advantages that a firm may experience as it increases in size or as the scale of its production increases. According to Hill & Jones (2009), the cost per unit of goods produced will reduce as the scale of production increases. The main reason behind this is that the firm’s fixed costs will tend to remain relatively the same with additional units of output. In addition, since the firm will obtain raw materials and other production inputs in bulk, it can be able to obtain good price discounts thus lowering the cost of raw materials. Currently, production at Albatross Anchors is only possible through small batches due to the type of machinery in use and safety issues. This has greatly hindered the firm from enjoyed economies of scale. The firm must devise ways of improving production so that it can enjoy economies of large scale production. For instance, though acquisition of new production equipment, the firm can be able to reduce the current lead time of bulk orders from three to one week.

  1. c) Cost of Raw Materials Sitting Idle in the Warehouse:

There is limited space for holding raw materials at the firm. In addition, the cost of holding the raw materials may be high. Albatross Anchor should adopt just-in-time (JIT) management philosophy that is commonly used by large organizations. This management philosophy advocates for demand driven production (Cheng, Podolsky, & Jarvis, 1996). In other words, the firm should purchase the right raw materials at the right quantity, right place and also time. In summary, JIT philosophy calls for minimum stock of raw materials, work in progress, and stock of finished goods.

  1. d) Cost of Finished Goods Sitting Idle in the Warehouse:

In order to reduce the cost of finished goods, just-in-time production can also be applied. JIT philosophy advocates for demand driven production, meaning that the firm should produce goods as per projected or actual demand. This can reduce the amount of finished goods at the warehouse.

  1. Speed of manufacturing process from order to finished product.

There is need to focus on the speed of the manufacturing process. Currently, both type of anchors are produced in the same area, yet they undergo different manufacturing process. In order to improve the speed of manufacturing process, there is need to separate the manufacturing area for both anchors. This will eliminate the wasted time during a switch from one manufacturing process to another. The speed of manufacturing process can also be improved by acquisition of modern manufacturing equipment that are fast and cost effective.

  1. Flexibility in filling order(s)

Albatross Anchor is inflexible in filling orders. This is caused by the lengthy lead time experienced in production of a single batch. In addition, there is a lot of time wasted in shifting from one production process to another.

  1. Technology

Albatross Anchor employs outdated technology in the manufacture of the anchors. Over the recent years, the firm has experienced growth driven by market demand. Application of modern technologies can enable the firm improve efficiency. For instance, Materials Requirement Planning (MRP) systems can be important in helping the firm integrate the production process, sourcing of materials, quality checks, and sales into a single seamless process. MRP is a computer-based production system that can be applied in inventory control and production planning (Lussier, 2008). This system can help the firm maintain optimum inventory levels of raw materials and finished products.

  1. Capacity and facilities

There is need for a new facility to handle production of one type of anchor. Separation of the two manufacturing processes can help reduce inefficiencies. The floor plan arrangement is also causing inefficiencies. The floor plan should be arranged in such a way that the raw materials are received on one end and undergo through the process to come out as finished products on the final end. The manufacturing area should be pushed to the southern end of the building. Once raw materials are received, they should be kept where the Foundry is currently stationed. The foundry should be moved to the manufacturing area. Shipping should be conducted at the southern end of the building.

  1. Service to customers (what types of services would an anchor company provide to marine wholesalers?

Albatross Anchor can provide its customers with product warranties for specified periods of time. This can lead to more purchases of the firm’s products. The firm can also provide marine wholesalers with financial services. For instance, it can help them acquire the products on credit with a good repayment plan.

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.  Analysis of the information below will help determine which process has the lowest break-even 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 $45.00 $45.00
Total Fixed cost $650,000.00 $950,000.00
Variable cost per anchor $36.00 $29.99

 

 

Based on the information in the table above complete the chart below:

 

Anchor and Process Process A Process B
(a) Fixed costs per anchor $90 $15
(b) The total number of anchors to attain break–even point for Process A and Process B        72,222 63,291

 

 

(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.

From my calculations, I would recommend Process B. This is because it has a lower break-even point (the firm will produce fewer anchors in Process B to start making profit than in Process A). In addition, Process B ($15 per unit) has low fixed costs per unit compared to Process A ($90 per unit).

Conclusion

In conclusion, there is need for Albatross Anchor to implement the outlined changes in order to improve the production process. There is a greater need to improve the speed of the production process which will lead to reduced lead time. Customers are keen on quality of products and their availability. If customers do not find the firm’s product at the purchase point, they are most likely to buy those of competitors. With improved production system, the firm can be able to implement just-in-time management philosophy.

References

Cheng, T., Podolsky, S., & Jarvis, P. (1996). Just-in-time manufacturing: An introduction. London, Angleterre: Chapman and Hall.

Dolllery, B., & Wallis, J. (n.d.). The .

Hill, C., & Jones, G. R. (2009). Strategic managment theory: an integrated approach. Boston, MA: Houghton Mifflin.

Lussier, R. N. (2008). Management fundamentals: concepts, applications, skill development. Mason, OH: South-Western/Cengage Learning.

Naga, A. (2011). Strategic Management. India: Vikas Publishing House.

 

 

Unit 5: Human resource management

Unit 5: Human resource management

Empowerment

Human resource has become one of the most valuable assets that a company can ever own. As a result, human resource management has become paramount to the most organization. Empowerment of employees constitutes the delegation of power and authority to various individuals in a group and all levels.  Equipping the human resource department with more skills at the strategic levels ensures that individual employees are empowered to conduct various duties and responsibility without close supervision from the management (Storey, 2007). Human resource empowerment can only be achieved when an organization earns credibility as a unit rather than individual staffs.

Compensation

Each and every employee has personal reasons and interest that make him work in a particular organization. One of the most common interests is monetary compensation. Compensation in human resource refers to something or a reward that an employee expects at the end after offering his service to the organization. Money payment is one but not the only reward that an organization can use to motivate its staffs. Each employee should be adequately compensated on the basis of his work and service to the organization.

Diversity

Having different people from different backgrounds, race, ethnicity and location can either be a strength or a weakness to the team. Diversity in the workplace and human resource constitutes of having staffs with varying characteristics ranging from political beliefs, gender, sexual orientation and religious beliefs. However, diversity should be used as a strength where by the human resource should exploit the strengths of various employees for the greater good of the company (Boxall, 2011). Diversity can also be used as a cover up of other staff weakness since people have different strengths and weaknesses.

References

Boxall, P. &. (2011). Strategy and human resource management. . Palgrave Macmillan.

Storey, J. (2007). Human resource management: A critical text. Cengage Learning EMEA.

 

Control of TFE’s at Hallenvale Hospital Case

Control of TFE’s at Hallenvale Hospital Case

Assignment Details

In this assignment you are required to complete  the Control of TFE’s at Hallenvale Hospital Case which is in chapter 8 and also discuss chapter 9 questions.

What all about   Control of TFE’s at Hallenvale Hospital Case?

Hallenvale Hospital Case requires you to evaluate the rate of infection at the hospital and then do the following calculations:

  • Determine average percent of infections.

  • Draw the correct control chart with both lower and upper control limits.

  • State the actions that should be undertaken by management.

  • Determine what the appropriate TFE for management to use to monitor future data.

 

Control of TFE’s at Hallenvale Hospital Case  Sample paper

Discussion Question 7

  1. The publication team for an engineering department wants to improve the accuracy of its user documentation but is unsure of why documents are not error free.

In this particular case, the engineering department should focus on determining the main cause of error in user documentation. The best tool to employ to achieve this is the fishbone diagram. This is a tool that assists in organizing of idea with intention of understanding the association between the possible sources of a problem and the problem or effect by organizing, arranging, and formatting causes identified into sub-themes and themes in an effort to identify the main possible cause of the problem. This tool can offer efforts for problem-solving by collecting and arranging the possible causes, attaining a common comprehension of the problem, showing gap in current knowledge, grading the most possible causes, and analyzing every cause (Neyestani, 2017). In this particular case the main problem is user documentation error. This can be caused by a number of issues which include system design error, human errors, or external factors. These causes of errors may be attributed to other factors for instance human errors may be attributed to rule-based mistakes, knowledge error, slips, lapses or mode.

causes of errors

The engineering department members will need to do analysis of all possible causes of errors, maybe through a survey, observation and system design review to be able rank these causes based on their possibility of occurring. With this information, the department will be able to determine the right cause of action to take. In this case, the problem may be initiated by one particular cause or multiple causes. It is thus important to review all these causes to be able to rule out those that do not make any contribution to the problem. In case human error is identified as the main problem the publication department users will need to be provided with extra training on the use of the publication application system and be caution about being careful and attentive while using the system to improve accuracy. In case the problem is related with the system design, then the department will have to suspend its operations to give the engineering department an opportunity to review the system design and make the required correction. In case the errors are caused by external factors, then possible solutions should be defined to eliminate these factors.

  1. A rental car agency is getting numerous complaints about the length of time that customers have to wait to obtain a car. They need to get a better handle on the factors that relate to the wait time.

In this particular case, it is clear that the agency does not demonstrate total efficiency while providing its services. Either there is delay at specific time of the day or at specific time when the agency is experiencing unusual situation. Although the delay has been reported, the agency is not sure of when they mostly happen and factors that contribute to their occurrence. In this regard, the rental car agency should focus on getting a clear understanding on aspects that relate to the waiting time before a customer get a car  he or she has ordered or would wish to order. The agency would wish to understand the average waiting time to be able to determine the cause of delay and when it mostly takes place during the company’s operations in terms of time of the day, or days of the week. To do this, the company should consider using Pareto charts to determine the main contributor to the reported delay. Pareto chart refers to a special form of histogram which can be easily used to prioritize and find quality conditions, problems or their causes in the organization. It can also be perceived as s form of bar chart which demonstrates the relative significance of variables. The Pareto chart aim is to discover the different form of nonconformity from data figures (Obolewicz & Dabrowski, 2018). Pareto chart can as well generate a way for investigating concerning efficiency improvement, quality improvement, resource management, safety issues and cost management among other things. Pareto is a tool that assists in studying and evaluating the occurrences or frequency of an occurrence in a process and identify is main contributors. The tool will that be very viable in studying frequency of delay occurrences in the car rental agency and identify the main contributor to these delays or causes of these delays. With this information, the agency will focus on determining the best possible way to eliminate the problem to enhance the service provision efficiency. Pareto chart can be as shown below where bars represent possible cause of problem, and the line graph represent the level of delay

Pareto chart graph representing level of delay

  1. A travel agency is interested in gaining a better understanding of how call volume varies by time of year in order to adjust staffing schedules.

The travel agency needs to understand how customer calls vary with time of the year after noting a high level of irregularity as seasons change. To understand this, the travel agency will need to monitor calls throughout the year and keep record of their variation with time. To do this, the agency will need to employ the control chart tool. Control chart is probably the most technically sophisticated tool for quality control. It is a special kind of run chart that shows the nature and amount of distinction in the process over a period of time (Costantino et al., 2014). Control chart can as well describe and draw what has been taking place in the process. It is therefore very essential to use control chart since it can monitor and observe process to examine process, which is in statistical control based on the samplings. The chart may display data in the upper control limit, average and lower control limit (Costantino et al., 2014). An example of control chart is as shown below:

chart with upper and lower control limit

In this case, the volume of calls will be matched with months of the years to determine the month that receives the highest level of calls in a year, those that receive low volume of calls in the year and those that receive average calls during the year. With this information, the travel agency will be able to balance its workers schedule to ensure that there are no excess workers in the call stations when the volume is low or that there are no less workers in the station when the volume of calls is very high. The company will be able to balance its schedule and to establish workers management process that fits the company the best.

References

Costantino, F., Di Gavio, G., Shaban, A., & Tronci, M. (2014). Inventory control system based on control charts to improve supply chain performances. International Journal of Simulation Model, 13(3), 263-275.

Neyestani, B. (2017). Seven basic tools of quality control: the appropriate quality techniques for solving quality problems in the organizations. doi.org/10.5281/zenodo.400832

Obolewicz, J., & Dabrowski, A. (2018). An application of the Pareto method in surveys to diagnose managers’ and workers’ perception of occupational safety and health on selected polish construction sites.  International Journal of Occupational Safety and Ergonomics, 24(3), 406-421.