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Anne Janssens 0845954
Minor logistics: Operations
Mrs. Osentoski-Monsma
Week 1 – Assignment – “Case study Eastern Gear”
1. What are the major problems being faced by Eastern Gear?
- The large orders caused many of the small orders to wait for a long time before being
processed. As a result, some deliveries of small orders were late.
- Bottlenecks that appear in the production process make it difficult to get the orders
out on time.
- The typical order spends 90 percent of its time waiting in line for a machine to
become available. As a result, it takes a relatively long time for an order to make its
way through the shop.
- The company is currently experiencing about a 6 percent return rate on completed
orders due to poor quality. In 75 percent of the cases, the returned orders have failed
to undergo one or more operations or the operations have been improperly done.
2. What action should Rhodes take to solve this problems?
Rhodes should make some major decisions about the process, the quality, the capacity
and the inventory.
Process: How should we produce gears?
- The process needs to be improved to slow down the increased production time.
- The time orders need to wait in line for a machine needs to become shorter. A way to
do this is to improve the job shop layout in a way it decreases the constant
interference in the orders being processed in the shop. A way to do this is make
machine groups, existing out of different machines that can handle specific kind of
orders.
