: Production Plan for Riordan Manufacturing
Production Plan for Riordan Manufacturing The intended principle of this study is to submit suggestions for a new process design and the supply chain at Riordan Manufacturing, Inc. The reformation will utilize the theory of Lean Production in the application of the electric fans manufacturing. The research uses Riordan Manufacturing, Inc. intranet information. This paper will present a complete production plan for two of the Riordan Manufacturing Inc. locations: Hangzhou, China and Pontiac, MI. Riordan’s plant in Hangzhou, China specializes in the plastic fan blades and fan housings, and the Pontiac, Michigan location provides the customized look and design of the fans. The research of Riordan’s China plant exposed obstacles to the effectiveness of process design and supply chain. By making cuts in their inventory costs, improving outsourcing and their supply chain should benefit Riordan. The purpose of the modified process design and supply chain will help reduce the design and delivery time by subcontracting its limited activities to a third party. The relocation of Hangzhou’s plant operations to Shanghai will minimize shipping costs and reduce stocking of the inventory. The application of the Theory of Constraints will modify the process into a strategic plan. The proper implementation of the Lean Production
Current Production Process The Hangzhou, China plant uses a make-to-order fabrication process selection strategy when manufacturing the electric fans. Currently the plant makes fans utilizing a batch production process to allow the fans to be made specifically to the consumer’s needs. Useful reports about the industry propose that Riordan Manufacturing should move to a more aggressive process design system to meet the anticipated increased demand and to gain more market share. Safety stock will support a just-in-time (JIT) delivery process to reduce delays that are external to the business such as concerns with work stoppages and working
Current Production Process The Hangzhou, China plant uses a make-to-order fabrication process selection strategy when manufacturing the electric fans. Currently the plant makes fans utilizing a batch production process to allow the fans to be made specifically to the consumer’s needs. Useful reports about the industry propose that Riordan Manufacturing should move to a more aggressive process design system to meet the anticipated increased demand and to gain more market share. Safety stock will support a just-in-time (JIT) delivery process to reduce delays that are external to the business such as concerns with work stoppages and working
References: Chase, R.B., Jacobs, F.R., & Aquilano, N.J. (2006). Operations Management for Competitive Advantage (11th ed). New York, McGraw Hill/Irwin.