GSM 5113: OPERATIONS MANAGEMENT
LECTURER: MR. AZMINUDDIN AHMAD
CASE STUDY 2 WRITE UP: CUSTOM GEAR INC.
GROUP 4 MEMBERS:
NAME | MATRIC ID |
BUVANESWAREN NAIR | PBS1211018 |
VIVEKSARATI A/L SANDRASIGARAN | PBS1311014 |
MOHD FARIZ SHAHRAN | GM05251 |
DR. RAIMOND SELKE | GM05322 |
AHMAD FAIZ MOHD SALLEH | GM04755 |
1. What are the major problems being faced by Custom Gear?
* Increased production time. Production time increased from 3-4 weeks to 5-6 weeks, decreasing the capability to handle more orders.
* Policies not being agreed upon with customers ahead of time. Any changes after production time results in a waste of the previous efforts and raw materials, and has caused an increase in non-value added cost. In addition, agreements should be made with customers to make sure their prints have the tolerances or finishes required by Eastern Gear’s machining.
* Bottlenecks in the production process make it difficult to get orders out on time. Too much time is spent in the production process waiting for a machine to become available.
* Poor layout results in a jumbled flow of production through the shop. Tools are not centralized and equipments are organized by type instead of being placed in proper production order.
* The company is booming while the production structure is not well organized enough. At this moment 20% of the orders have rushed tags on them. When the demand for products is increasing, this will probably become worse in the future.
* Many things are returned because of the fact that the production process has not been done very well.
* So the major problems are in fact in the production area. Many orders are too late or do not have the required quality. This is because the company is not producing every time the same gear. Every single order is different, so there has to be made a different design and...