Eastern Gear 1. What are the major problems being faced by Eastern Gear? The major problem’s Eastern Gear is facing is that they are accepting large orders to help pay their overhead‚ also‚ their sales group is not part of the business‚ there is no link between them and manufacturing. Their order entry is inefficient; the tolerance on products is not firm. The layout of their shop is set up to make mistakes and increased lead time has resulted in the need for an expeditor. Lastly‚ they are
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Eastern Gear Week Three Case Study Eastern Gear‚ Inc. Case Study 1. What are the major problems being faced by Eastern Gear? Eastern Gear is a manufacturing company that sells customized gears to their clients. Since the company’s operations began‚ it faces many problems; one of which results from the inconvenience of having a customer base consisting of small laboratories and manufacturers. This makes it so that a gear‚ once customized and sold‚ is rarely sold a second time (Schroeder‚ Goldstein
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Summary The purpose of this report is to assist the production process of Eastern Gear‚ Inc. and increase the profitability of the company. Immediately after picking up large orders‚ Eastern Gear doubled their profit in the last quarter. However‚ there are some negative implications of this change in their strategy and it has caused their business to suffer. There has been some degradation in their production process‚ including increased production time and poor production quality. According to
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Eastern Gear‚ Inc. Is a manufacturer of custom-made gears located in Philadelphia and founded by Roger Rhodes. This company is having troubles shipping its orders on time due to large orders‚ the waste of movement taking the gears throughout the operations‚ changes requested by the customer after the order has been placed‚ no workflow is utilized and poor quality. The company has a total workforce of 50 employees‚ who are highly skilled or semiskilled; this proves that the company can make a high
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Case: Eastern Gear‚ Inc. Q1. (Major problems) * 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
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Eastern Gear Case Study Eastern gear is suffering from many deficiencies. The company operates as a job shop style and this is inefficient to begin with. There are too many desks to cross to get material ordered and products rushed. There is a lot of wasted time with WIP sitting at work stations. 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
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1.0 Introduction Eastern gear Inc. is a manufacturer of custom made gears ranging in weight from a few ounces to over 50 pounds. The gears are made of different metals depending on the customer’s requirements. Eastern gear sells its products primarily to engineering research and development laboratories or very small manufacturers. The president of Eastern Gear decided to accept a few larger orders for 100 gears or more. Although lower prices were accepted on these orders‚ they helped pay the
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An operations strategy focuses on specific capabilities of the operation that give the company a competitive edge. Factors used in developing an operations strategy includes: Cost Competition is used when a company uses cost as a strategy by offering a product at a low price relative to the prices of competing products. Take for example: Wal-Mart‚ this company is cost competitive often outsourcing their labor to impoverished countries that are willing and able to make any product for mere pennies
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Amity Business School Operations Strategy (MBA 482 & MEL 415) for Class of 2011 Amity Business School As a courtesy to those around you Please turn off your cell phones and Close your computers‚ except in the last row Amity Business School Realm of Operations Strategy • How should the organisation satisfy the requirements of its customers? • What intrinsic capabilities should the organisation try and develop as the foundation of its long term success? • How specialised
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In operations strategies‚ there are many examples of strategies an organization might choose from. In virtually every situation‚ operation manager and his team should discover that certain issues or strategies are more important than others. An organizational should identify its goal of operational so that they can set their strategies priorities accordingly. Generally‚ most important strategies in organizational is cost effective or in other words to bring down the cost of production and operation
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