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Course Learning Outcomes for Unit II Upon completion of this unit, students should be able to: 1. Explain product design and operations management. 1.1 Explain the problems in product design and operations management that a company faces. 1.2 Recommend a course of action for a company with respect to its product design and operations management systems. 2. Describe process design to include process selection, service process design, choosing technology, and conducting processflow analysis. 2.1 Describe how modifications in process selection and technology will affect a company. 2.2 Compile a process flow analysis.
Running head: OPERATION MANAGEMENT AT EASTERN GEAR, INC Operation Management at Eastern Gear Inc., Dang Dinh Hong Columbia Southern University OPERATION MANAGEMENT AT EASTERN GEAR, INC Introduction This assignment is to analyze the Eastern Gear (EG) case, Each step in a business process denotes a task that is assigned to a participant manufacturer of custom- made gears in the US However, the EG should a revolution in processing selection and technology in order to improve efficiency in production, thus increase the business’s performance To find the problem the company is facing, then analyze and propose suitable solution for the sustainable development of the company Current & future problems faced by Eastern Gear Firstly, EG does not have oriented business for the further period The company received orders with diversified quantity and quality This leads to disability in controlling the order, delaying time for shipping and dependence in customers’ demand In this case, the company accepts almost deal without selection and calculation of effectiveness Moreover, sometimes it receives the urgent order, thus pointing out one separate staff to deal with As a result, the process flow of other order could be affected, leading to late shipment and low quality of the product The lack of objectives in operation should be the biggest problem which results in low productivity, unsatisfaction of customer and low performance of business Secondly, EG faces with the in-effective layout of production The company uses the manual process, which each product shift from the order of stage in production That is why the manufacturing only uses 10% of capability; especially the bottlenecks make delay order for the customer (Schroeder, Goldstein, & Rungtusanatham, 2013) In the future, EG should operation research to find out the right process selection and invest more in technologies When the company receives the large scale order, the automatic process will deal with smoothly, reducing cost in each product, as well as quality improvement and due date shipping OPERATION MANAGEMENT AT EASTERN GEAR, INC Thirdly, the organization chart of EG is family-type management, which is not suitable for high volume of production Each staff should play a clearer role, are responsible for each stage of process Moreover, the company is lack of quality controller The completion of order is ship to the customer without re-check the quality, even the order is returned to the manufacture Below is a compiling of process flow for Eastern Gear Receiving Department Receiving and raw Milling (2) material storage (1) Finishing finished goods Shipping storage (6) department Heat treating and grinding center (5) (4) Tool crib Lunch room Drilling (3) (Schroeder et al, 2013)As mention in the chart, the process layout is due to functional that make the worker takes time to move from other department to finish the production Furthermore, the layout can not utilize the capacity of each stage, only 10% of the time is actually spent processing (Cornell Engineering, n.d) In the future, the company receives the large volume; this layout should be adjusted to increase productivity Analysis on Eastern Gear’s modification in process selection and Technologies In the equipment manufacturing, process selection and application of advance technologies play a crucial role In the EG case, each order is produced separately, passed over every department before completion This kind of flow is suitable for small volume and customized order, but when the company changes its strategy, process selection should be shifted to batch flow to adapt to multiple quality and quantity order Moreover, the company can easily deal with urgent order;ensure the on time OPERATION MANAGEMENT AT EASTERN GEAR, INC shipment with flexible demands of customer As mention in the case study, the labor force is 50 workers dealing with manual process Applications of modern technology would make the process automatically, reducing cost for staff and improve quality of the product as it identify and eliminate bottlenecks in the assembly line (Reuven, 1994) There will be no longer late shipment or goods return, vice versa, productivity will be increased, and thus the company gets high turnover and profit Recommendations on course of action for Eastern Gear Research the market, the rivals, SWOT analysis, inorder to rebuild the strategy of the company Change from Business orientation small size customized order to large Time volume order to increase production and Immediately turnover shift to batch flow, re arrange the (T) department and staff: Modification of process - Set up policy of order’s quality - and quantity Set up policy of inventory, flow Technology materials, capacity Investment in automatic machines Staff rearrangement: expediter should be T+1 month T+1 month Organization incharge of quality controller T+ month Reference Cornell Engineering (n.d) Operation Research and Engineering Retrieved from https://www.engineering.cornell.edu/academics/undergraduate/curriculum/Majors/ore.cfm OPERATION MANAGEMENT AT EASTERN GEAR, INC Reuven R.Levary (1994) Engineering application and operation research 72 (1), 32-42 Retrieved from http://www.sciencedirect.com/science/article/pii/0377221794903271 Schroeder, R G., Goldstein, S M., & Rungtusanatham, M J (2013) Operations management in the supply chain: Decisions and cases (6th ed.) New York, NY: McGraw-Hill/Irwin ... (1994) Engineering application and operation research 72 (1), 32-42 Retrieved from http://www.sciencedirect.com/science/article/pii/0 377 22 179 4903 271 Schroeder, R G., Goldstein, S M., & Rungtusanatham,