Homework

Case 1

1. What are the major problems being faced by Eastern Gear?

The major problem’s is The process design of the shop is inefficient. They also are lacking an organized quality control program. This has resulted in the doubling of production times and a six percent return rate on orders. Eastern Gear is facing is that they are hiring too many employees for the company’s needs. Gears in most orders are small. The exact same gear is rarely ordered more than once. Some deliveries of small orders are too late because of it took a long time before they were being produced. Production sometimes has to be stopped because raw materials are not available or the design has still have to be clarified. (orders are not clear enough) Production time is pretty high and therefore it is difficult to get the orders out on time. (´´one week the bottleneck may be in one machine center, and the next week it is another´´ every production sector is not well organized)

2. What action should Mr Rhodes take to solve his problems?

The layout of work process need to be change to avoid jumbled flow; arrangement change on order line to cut the waiting time; large and small orders should be distinguished to be more efficient; keep raw materials on hand- typical metals used; Move torwards assemble-to-order; Leave one assembly line for rush orders; Implement total quality Management; rather than having stations they should make multiple assembly lines

3. How can this case be related to operations strategy and process design concepts?