Introduction
Albatross Anchor is a small family owned business that has been in operation since 1976. The company has grown drastically over the years and now employs over 130 people. They specialize in bell and snag hook anchors and operate as a strictly wholesale organization both domestically and internationally. Their manufacturing facility consists of one building which includes manufacturing, shipping, receiving, raw materials, finished product storage, the foundry and administrative offices. Their manufacturing facility is antiquated, worn, and technology deprived and no longer meets the US safety and environmental standards.

Question 1
Carefully review the assignment scenario/case study. From the limited information in the scenario/case study, identify at least three direct and specific long-term and three direct and specific short term operations changes that Albatross Anchor must make to gain a clear and sustainable competitive advantage (provide detailed information to validate and support each recommended change).

Long-Term Operational Changes
(01) The first long-term change that Albatross Anchor should make to gain a clear and sustainable competitive advantage is technology. Since Albatross Anchor was founded in 1976, they haven’t updated the ways that they manufacture anchors. Each type of anchor they produce uses different types of manufacturing styles and they need to be changed each time to accommodate a different anchor. The machinery is obsolete, outdated, and is no longer meeting the environmental standards in the US. Some of their competitors may have access to newer technology which can be more efficient and less expensive.

(02) The second long-term change that Albatross Anchor’s should make would be their building. The facility consists of one building which includes manufacturing, shipping, receiving, raw materials, finished product storage, the foundry and administrative offices. This can cause issues with shipping and receiving as well as the manufacturing area because it isn’t large enough to accommodate making different types of anchors. More space is needed if they would like to increase batch production as well as fulfill bulk orders faster.

(03) The third long-term change Albatross Anchor’s should make is adding different types of manufacturing equipment for different types of anchors. It takes 36 hours to switch manufacturing operations for different types of orders. This only allows for small batch production; bulk orders take at least three weeks’ notice. If new equipment was purchased that could accommodate both types of anchors, if manufacturing space was increased so that they can hold two different types of manufacturing machines, this would not only decrease build time, but also manufacturing costs.

Short-Term Operational Changes
(01) One short term change Albatross Anchor should make is their shipping and receiving styles. Shipping for international orders and receiving come in through the same area; this can cause delays and make extra work for the receiving facilities since they have to ship out and receive items at the same time. By scheduling international shipments on certain days and receiving raw materials on the other days, this will allow receiving to go much smoother.

(02) A second short-term change should be the administrative offices. The administrative offices are said to be shabby, unkempt, and disorganized. The administrative offices should be cleaned up, be upgraded with new technology (computers, etc.) and have better systems in place for organizing account information, documents, and more; this will allow Albatross Anchors to have better access to their financial documents and information if needed in the future.

(03) The third short-term goal would be inventory management. Due to limited space for storage, inventory management should be monitored more closely to keep costs down until a larger storage space or building is able to accommodate more raw materials or finished goods. By implementing an inventory management system that will provide computerized up to date information, Albatross Anchors will be better informed when they need to order more supplies and how often it should be done.

Question 2
From the list of 10 operational issues in this assignment instructions select four operational issues. For each of the four operational issues explain in detail that operational issue will help Albatross Anchor improve; 1) job retention, 2) employee morale, and 3) employee dedication.

Operational Issue One:
The first operation issue that will help Albatross Anchor improve is gain sharing and profit sharing. Gain sharing is an incentive plan that includes employees in a common effort to achieve a company’s objectives in which they share in the gains (Russell, pg. 327). A profit sharing plan is a type of plan that gives employers flexibility in designing key features (Profit Sharing Plans for Small Businesses, 2015). Both programs result in increased employee productivity, and morale since employees are receiving payouts and bonuses for getting their jobs done. This will lower employee turnaround since they receive incentives for working there.

Operational Issue Two:
The second operation issue that will help Albatross Anchor improve is environmental analysis. The physical location of working in Albatross Anchor’s isn’t great. The machines are out of date, the administrative offices are disorganized and shabby, and there isn’t much room to get around. By providing employees with a clean work environment with proper ventilation and limited noise, this will increase morale, and employee dedication.

Operational Issue Three:
A third operation issue that may be advantageous would be cross training. Cross-training programs are a way to more formally organize the process of getting employees prepared to be able to do more than a single job. These programs offer a wide variety of benefits for businesses. Cross-training can help reduce costs, improve employee morale, reduce turnover, and increase productivity. Perhaps the most important benefit that accrues to companies that implement cross-training programs is greater job satisfaction among employees. Cross-training demonstrates that the company has faith in employees' abilities; and wants to provide them with opportunities for career growth. Cross-trained employees often feel that their jobs have been enriched, and they are often able to contribute more (Cross-Training, 2015).
Operational Issue Four:
An additional operational issue that can improve Albatross Anchor’s is ergonomics. Ergonomics is described as fitting the job to the person and not the other way around (Safety and Health Topics | Ergonomics). Since Albatross deals with manufacturing, it would be a good idea to have more user friendly and updated machinery. The administrative offices should be equipped with enough lighting, computers, and any other resources they may need. By increasing ergonomics this will lead to less turnover, happier employees, as well as meet legislative requirements for health and safety.

Conclusion While Albatross Anchor’s has been around for many years and has grown drastically over time, there are definitely ways to improve their operations to provide a safe and efficient working environment. If they were to utilize new age technology, they can bring Albatross Anchor’s into the 21st century and increase profits.

References
Cross-Training. (n.d.). Retrieved June 15, 2015, from http://www.inc.com/encyclopedia/cross- training.html Profit Sharing Plans for Small Businesses. (n.d.). Retrieved June 15, 2015, from http://www.dol.gov/ebsa/publications/profitsharing.html Russell, Roberta S., Bernard Taylor. Operations and Supply Chain Management, 8th Edition.
Safety and Health Topics | Ergonomics. (n.d.). Retrieved June 15, 2015, from
https://www.osha.gov/SLTC/ergonomics/