Introduction

The small family owned business, Albatross Anchor, started its operations in 1976. Over the years, Albatross Anchors has grown surprisingly large; however, the company has endured problems with production and administration. The company is experiencing problems that include outdated technology and equipment, disorganized administration and inefficient layout making it less productive. It would be significant if the company upgrades and meet the conditions set by the US. This will allow Albatross Anchors to increase its productions. The paper will provide detailed explanations to three short-term and long-term operational changes that the company should make to gain a competitive advantage in the market. Similarly, the paper will address four operational issues concerning job retention, employee morale and employee dedication that will help the company to improve.

Albatross Anchor will gain a sustainable competitive advantage with the following long-term operational changes. First, the organization needs to improve its technology. It will improve the effectiveness of the various operations within the company. Information technology entails the use of software, hardware, and resources to facilitate the operations of the business (Mahadevan, 2010). Currently, the company is using older technology and outdated equipment that is slowing down the manufacturing process. It can only complete small tasks for the customers. Moreover, the consumers experience delays when it comes to receiving the products. With upgraded technology, the company will be able to complete large tasks within the shortest time possible (Betz, 2011). Besides, the company will also be in a position to lower its prices hence attracting more clients and making more sales.

Second, the company should consider the capacity and facilities. The company has two product lines, and the current space is inadequate. With the current capacity and facilities, it is hard for the company to undergo a quick change over process. Similarly, the company experiences limited storage space for raw materials and finished goods. The two areas that include plant and the office are joined creating a minimal room for operation. The organization needs to separate them to attain higher operational standards. The current layout of the facility makes it difficult for the company to execute a proper workflow. Therefore, the organization will work efficiently if the office space is separated from the work area since there will be a better flow of operations. In addition, the organization should move the storage area closer to the production section since this will save time and resources when moving products around.

Third, the company needs to purchase additional equipment. Currently, the company is sharing its equipment between the two types of anchors that are in operation. With additional equipment, the company will no longer rely on sharing equipment when undertaking the manufacturing process. Similarly, new equipment will increase the manufacturing speed by lowering the lead-time required (Mahadevan, 2010). The use of separate equipment will save the time that the company needs during the changeovers process of the two product lines.

On the other hand, the short-term operational changes that would help Albatross Anchor to gain a sustainable competitive advantage include the following. First, the company needs to divide the administrative staff. Despite the differences that exist, currently, the staff provides services to the clients and the two types of anchors. It would be appropriate if the company dedicates its administrative staff to Snag Hook anchor and Mushroom/Bell anchor. This will allow them to meet the requirements of each customer by serving specific products. Moreover, dividing the administrative staff will give room for separate files and records for the two product lines hence making the staff to focus effectively on each business. Customers and products knowledge, and a focused strategy will position the company at a better level to compete in the market (Mahadevan, 2010). They will make right decisions and enhance their relationship with the customers.

Second, the company needs to ensure they have safety procedures by updating their environmental standards. The company is in a situation whereby it does not meet the US safety and environmental standards. This has resulted in the company experiencing small batch production and long lead-time when producing large orders. Updating the environmental standards will help the company to avoid future fines. Moreover, with guaranteed safety among the workers, the company will experience increased batch production hence gaining a competitive advantage (Mahadevan, 2010).

Third, the company needs to updates and organize the shipping and receiving departments by separating them. Currently, the shipping and receiving departments share the same facility making it difficult to produce enough products for the customers. Similarly, the situation causes errors and decreases the efficiency of the production process. They need to have an exact schedule for shipping and receiving goods to avoid disorganization due to simultaneous materials coming in and out of the same facility.

The following are the operational issues that will help Albatross Anchors to improve job retention, employee morale, and dedication. The first operational issue is cross training. It encompasses training employees to perform tasks that are not part of their job description. Such a move helps the organization to maximize efficiency and flexibility of the staff. Cross training will aid in improving job retention because it familiarizes employees with the operations and functions of various departments in the organization (Schermerhorn, 2012). They will feel encouraged by the more opportunities in the company; they will work in various departments to avoid burning out. With employee morale, cross training will help them feel valued by the organization since they get the chance to work on different tasks (Schermerhorn, 2012). Employees will develop positive morale when they experience more opportunities and valued. Cross training will improve employee dedication to the organization. When employees feel that the company is investing in their skills, value and give them opportunities, they will show their dedication. Besides, they will dedicate themselves to the organization when their hard work is appreciated.

The second operational issue is gain sharing and profit sharing. Gainsharing is a technique that entails employee participation to motivate them to improve performances hence increasing the profitability of the organization (Schermerhorn, 2012). Profit sharing involves giving incentives to employees depending on the profits gained. Gainsharing and profit sharing improve job retention because employees feel that in return for their hard work, they will get payments from the financial success of Albatross Anchor. Employee morale will improve because of financial rewards since they feel appreciated by the company. When the company appreciates the employees’ skills, hard work, and labor, they develop positive morale (Schermerhorn, 2012). Employees will show dedication to the company when they realize that they will benefit from the success of the company. Compensation will make them happy and willing to work hard.

The third operational issue is technology and automation. With the use of advanced technology, Albatross Anchor will create an environment conducive to work. The company will be able to meet the safety and environmental standards. The company will retain its employees when they feel that they have the opportunity to learn and work with up to date technology (Betz, 2011). Therefore, a better working environment improves job retention. The morale of employees reduces when they work in an outdated and unsafe environment. In situations when the company improves the working environment, employees develop positive morale towards the tasks they do. Employees’ dedication to the company will improve when the company invests in advanced technologies and safe working environment (Betz, 2011). With improved working conditions, employees will feel proud and show dedication to their tasks to ensure that the company keeps on providing ideal conditions.

The fourth operational issue is ergonomics. It entails understanding the interaction and working environment of people (McCauley-Bush, 2011). The tasks in Albatross Anchor involve manual labor that results in stress and injuries to workers. Ergonomics will improve job retention since workers will operate in the safe and productive environment. Similarly, when employees’ safety and working conditions are addressed, they are likely to stay (McCauley-Bush, 2011). On the other hand, ergonomic will improve the employees’ morale when they realize that the company is concerned with their welfare. Similarly, employees will develop a positive dedication to the company when they realize that the company prioritizes their physical well-being. Investing in the well-being of the employees would result in dedicated employees.

References

Betz, F. (2011). Managing technological innovation: Competitive advantage from change. Hoboken, N.J: Wiley.

Mahadevan, B. (2010). Operations management: Theory and practice. Upper Saddle River: Pearson.

McCauley-Bush, P. (2011). Ergonomics: foundational principles, applications, and technologies. CRC Press.

Schermerhorn, J. R. (2012). Organizational behavior. Hoboken, N.J: Wiley.

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