Question

Create a cause and effect diagram for the following case:

Case Study Eastern Gear,Inc.: Job Shop Eastern Gear, Inc., in Philadelphia, Pennsylvania, 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. Over the past year, 40 different types of steel and brass alloys have been used as raw materials. See Exhibit 1 for details. be necessary to stop production and wait for new raw materials or for the design to be clarified. The custom- er's prints submitted with the order do not always con- tain the tolerances or finishes required during machining. As a result, the customer is contacted directly when the information is needed. After the order is received, one copy is sent to the Eastern Gear sells its products primarily to engineer production supervisor, Joe Irvine, and the second copy ing research and development laboratories or very small s se to Sam Smith, the controller. Upon receipt of the manufacturers. As a result, the number of gears in most customer's order, Smith places a purchase order for the orders is small; rarely is exactly the same gear ordered raw materials required. These materials often take from more than once. The distribution of order sizes for one to two weeks to arrive, depending on the supplier March 2016 is shown in Exhibit 2. and the type of material ordered. Recently, the president of Eastern Gear decided to accept a few larger orders for 100 gears or more. reviews the order and places it on file until the raw mate- Although lower prices were accepted on these orders, rial arrives. The customer order is then routed through they helped pay the overhead. It was found that the th shop along with the materials. In the past, the pro- large orders caused many of the small orders to wait for duction process for most gears has taken about two a long time before being processed. As a result, some weeks after receipt of raw materials. Recently this pro- deliveries of small orders were late. After receiving the customer order, the supervisor duction time has increased to four weeks. Irvine expressed concern about the bottlenecks that appear in the production process. One week the bottle- neck may be in one machine center, and the next week it is in another. These bottlenecks make it difficult to get the orders out on time. ORDER ENTRY When a customer wishes to order a gear, the order is taken by James Lord, sales manager and marketing vice president. The customer specifies the type of gear desired by submitting a blueprint or sketch. The quantity of gears required and the type of material are also spec- ified by the customer. On occasion, the customer's engi- neer will call up after the order has been placed and request a change in the design. In these cases, it may EXHIBIT 2 Sales, March 2016. Total $ Value Order Size Number of Orders 80 53 69 32 82 47 of Orders $ 3,200 4,250 8,163 4,800 16,392 15,987 26,871 13,172 31,555 23,682 21,600 32,000 18,693 12,500 14,068 9,652 35,600 20,000 $312,185 EXHIBIT1 Raw materials. 2015 Usage $(000) 36 Type of Material 10 10 20 25 30 40 50 100 42 27 43 110 10 75 30 53 $522 400 700 1,000 All Others Total 578 This case was prepared as a basis for class discussion, not to illustrate either effective or ineffective handling of an administrative

Answer 1

For Student's understanding: In Cause & Effect diagram we make it like a fishbone structure. First of all, we write The Effect i.e. consequence in last box, other boxes represent "cause" (reason) for the consequence occurred. Besides line joining cause to effect are details specified that are responsible for a particular Cause.

Cause & Effect Diagram