Eastern Gear is a company that traditionally produced custom gears in small lots, and has recently been given the opportunity to begin producing larger volumes of gears per order. This is a typical small job shop which is owner operated. In addition, Eastern Gear has experienced a large increase in sales which is causing major problems in operations. Because of the wide range of problems presented, the case permits an overview of a job shop type of operation and practice at looking at the entire scope of operations including objectives, capacity, production and inventory control, organization, and quality.

The purpose of this case is to allow students to examine a complex manufacturing problem and the associated decisions in some detail. The case illustrates how problems are interrelated and how objectives might be clarified before decisions can be made. It also provides a fundamental understanding of what a job shop is like and the typical problems faced in job shop management.

What are the major problems being faced by Eastern Gear?