Written Case Study Report Custom Gear Inc.doc

Written Case Study Report Custom Gear Inc
Written Case Study Report: Custom Gear Inc
Issue and Problem Statements
Issue
Inappropriate flow of production process, inadequate target market, poor management control system, inefficient and ineffective supplier had lower the profit earned by Custom Gear Inc.
Statement of the problem
First and foremost, the major problems being faced by Custom Gear are the sales targets are primarily engineering research and development laboratories or very small manufacturers. This limits their sales revenue as they will only receive small orders from those customers. Apart from that, it is also found that pany has a very low quality of operation management in production process. It is found that the larger orders caused many of the small orders to wait for a long time before processed. These materials often take from 1 to 2 weeks to arrive, depending on the supplier and type of material ordered. In the past the production process for most gears has taken about 2 weeks after receiving raw materials. Recently, this production time has increased to 4 weeks. As a result, it clearly shows that the production time has greatly increased pared to the past.
In addition, Joe Irvine, the foreman of pany has found out another problem which is the bottlenecks that appear in the production process. For example, one week the bottleneck may be in one machine centre, and the next week it is in another. These bottlenecks make it difficult to get the orders out on time. The main concern is that there are plenty of problems within the production process and these problems are difficult to be tracked.
Apart from that, it is also found that there is constant interference of the orders being processed in the shop. The typical order spends 90 percent of its time waiting in line for a machine to e available. However, it was only 10 percent of the time is actually spent processing the order on machine. As a result, this is the reason wh