Process_Design

Process Design for Riordan Manufacturing Process Design for Riordan Manufacturing Manufacturing Requirements Manufacturing requirement plans (MRP) are software systems used to support companies in scheduling the production of inventory and assist in scheduling the delivery of parts needed to complete production in a timely manner. Riordan Manufacturing’s China Plan works as a unit of Riordan Manufacturing. It makes its own prediction of electric fan sales throughout the world; its goals are to meet the forecasted sales (Apollo Group Inc., 2011). An MRP system is ideal for Riordan Manufacturing because it will record all the inputs, such as production schedule, inventory records, bills for materials, purchasing, order entry, shop floor control, capacity planning, costing and accounting. This type of information can be put in to the plan to schedule the needs for materials and products. It will also create a schedule for the production and for how much should be produced (Turek, 1999-2012).The goal for the plant is to be able to deliver the fans in accordance to the company’s goals of 99% on time delivery, instead of the averaged 93% on time deliveries the past couple of years (Apollo Group Inc., 2011). Process Design According to Chase, Jacobs, and Aquilano, “A process is any part of an organization that takes inputs and transforms them into outputs that, it is hoped, are of greater value to the organization then the original”(p.154). Currently the Hangzhou, China plant produces fan blades and fan housings. The fan motors are bought from an outside vendor and built with the plastic parts and sold as the completed product. The current operation is a joint venture between Riordan Manufacturing and a small group of Chinese nationals. Riordan Manufacturing provides the operation’s capital, molding machines and knowledge. The Chinese partners provide the employment, interacting with the local vendors, government agencies and also some capital (Apollo Group Inc., 2011). “Understanding how processes work is essential to ensuring the competiveness of a company” (Chase, Jacobs, and Aquilano,2006). Riordan Manufacturing in Hangzhou, China’s process is currently as follows: First, a truck ships the raw materials and the receiving department accepts this delivery. Once the product is received, the wanted products are comprised of inputs sent to the molding department. Second, the products that are considered inputs are made of molded plastic parts for the trimming department. Any of the products that are considered the output are then handled by the Chinese workers who have been trained in cleaning and maintaining all the machines. Third, the part goes to the trimming department, where they trim off all extra plastic from the parts. Fourth, the part is sent to the Assembly department, which attaches the plastic blades to the fan motors. Fifth, the fan is sent to the packaging department and the correct size cardboard box is assembled and sealed at the bottom and the finished fans are wrapped and put in the box with extra straw to provide a cushion for the fan. The top of the box is sealed and a bar code is put on the box for identification. Sixth, the boxes are sent to the shipping department; this is where the bar code is scanned and the information is put onto the box. Once this is complete, the shipping label is put on and the box is sent to the correct loading dock. Seventh, when the box arrives at the loading dock, a third party vendor loads the box and delivers the package (Apollo Group Inc., 2011). To remove third parties and combine the packaging and shipping, they will need to speed up the process in sending out the fans to the customers. If the same individuals that package the fans also send out the fan, it will allow for no wait time between departments. Shipping out the product and not having to wait for a third party’s schedule will also speed up the process. The MRP system and a Gantt chart, which is a chart that is used to display a project schedule, will illustrate the start and finish dates of a project. The chart can also display a breakdown of the work schedule and the relationships between the jobs for each project ("Gantt Chart", 2012). Current Process New Process Supply Chain The supply chain for Riordan Manufacturing is operated out of China. The schedules and sales are ding in China to include the United States. The supplies to make the fans are purchased locally from Chinese plants. Supply chains should involve the total systems approach to the entire flow of the business (Chase, Jacobs, & Aquilano, 2006). Supply chain comes from a term of how the company is viewed through a picture and linked with other companies. The supply chain is the link between suppliers who provide input, service support, distribution, and local service providers. The current supply chain process used by Riordan Management is the responsive supply chain process. This process has the ability to quickly adapt products to the requirements of the individual customer. The company does not use any type of outsourcing which is a loss for them operationally. The production process that is being used now for the Riordan plant in China is inefficient in several departments due to manual processes, redundant processes in several departments, and inventory inconsistencies. The supply chains consist of local suppliers. It would be in the best interest of the company if they expand on the number of suppliers for the material needed to make the fans. The expansion of the suppliers would allow Riordan to add distribution centers to their supply chain management. The agile supply chain process would be beneficial to Riordan. The agile supply process plan uses strategies that comply with responsiveness and flexibility to customers needs. This would require pooling inventory and using other resources. This will work for Riordan because of the ability to be responsive to change, predict demands for customers, and the risk of supply disruption (Chase, Jacobs, & Aquilano, 2006). [pic]This chart will improve the supply chain for Riordan Manufacturing by adding more suppliers globally. The additional manufacturing plants will keep the processing on target. The distribution center will increase the clientele within the retail industry as well as the original customer base. Global Opportunities Outsourcing can be used to take care of the inventory management process of the supply chain. This will reduce the cost of operations at the local distribution center by using a remote location it would give a break to those that handle the logistics. Outsourcing is when the company moves some of the internal business to outside providers. This transaction is done with contracts between the company and the outside providers. This would allow Riordan time to focus on activities that represent the core competencies. The reasons Riordan should use outsourcing as a global opportunity is organizational, financial, revenue, cost, and improvement. The global opportunities will organizationally enhance the effectiveness by doing what they do best. It will impact the business financially by reducing investments in assets which will free up resources for other purposes. It will expand sales and production capacity during periods of expansion that can’t be financed. It will improve operating performance in quality and productivity areas. If Riordan use these outsourcing strategies it will lower labor cost. Production Forecast The focus forecasting is the method that Riordan uses for the plant business. In using this method Riordan assumes that history will repeat itself within manageable limits. This forecasting is used in finished goods and inventory management. This type of forecasting tries to logically and easily understand the past product information and use it to their advantage for future production. The focus forecasting consists of a few simple rules. The first rule is what ever was sold in the previous months will sell in the current months. The sales will increase by 10% from the last 3 months of sales. If 50% of the product is sold in the last three months this year compared to the same three months last year the sales will be the same (Chase, Jacobs, & Aquilano, 2006). These simple rules are all factored in to the production forecasting. If one of the rules doesn’t apply then it is deleted. If a new rule applies it is then added to the equation. Implementation Plan [pic] Gannt Chart for Riordan Fans Plant in China System Overview Purpose: The purpose for the implementation plan for Riordan’s plant in China is to simplify the process and move materials and finished good through the plant quickly and efficiently. System Overview and Description: The effort is to organize orders and workforce, order materials, and execute the product without delays. Identify Constraints and Bottlenecks: The largest constraint is location. The advantage to the plant in China is the savings on labor, and the cultural pride the employees have in their work. The disadvantage is that many communications and materials need to be shipped long distances to support the plant operations. Riordan has other plants, but none are nearby. Training requires executive travel, and travel takes time. Raw materials need to be delivered on time. System Organization: As shown in the Gannt chart above is a continuous flow / assembly line process set up. Materials come in and are processed and a finished product leaves to the consumer. Management Overview Description of Process: Management needs to focus on preparation and training for the process design to run smoothly. The benefit of the assembly line and continuous flow process allow for speed in manufacturing through repetition. Training is important. Goldratts theory demonstrates if the work is planned properly and the correct training is in place bottlenecks will be reduced and speed will increase. Points of Contact: The points of contact include the Business Sponsor, Program Manager, Project Manager, Quality Assurance Manager, Configuration Management Manager, Security Officer, Database Administrator, or other managers and representatives with responsibilities relating to the system implementation. Major Tasks: This includes the planning and execution of the implementation. The planning includes the training of staff and supervisors, examination of the worksite, setting up technical assistance for the manufacturing process, and other variables that have to do with execution of the plan. Implementation Schedule: The program needs to be in place in time to begin manufacturing when raw materials arrive and culminate in shipping to meet the work order date of shipping. The Gannt chart shows the scheduled period of time to be approximately two weeks. Implementation Support Facility, machinery, and manufacturing centers: The plan needs to be ready to perform the duties required to execute the work order. The areas to mold, trim, and assemble the fans as needed and the ship to the ordered destination need to be ready for operation when needed. Employee needs must be examined and met. Machinery must be in good working order, and maintained to continue performance. Materials: The proper materials need to be ordered and on hand for manufacturing needs. This includes raw plastic and the prefabricated motors. Personnel: Arrangements with the Chinese nationals that supply help need to be contracted in time to have them report to work and be trained to perform the job by the scheduled dates. Issues and Monitoring Issues: Any bottlenecks need to be addressed in advance to avoid delays or impact on the schedule of manufacturing. Monitoring: One the implementation plan is in place it must be constantly monitored to ensure that all aspects have the support needed. The monitoring must identify and report constraints immediately with suggestions for action to correct these problems. Acceptance Criteria: The implementation plan is deemed working if materials flow through the plant and goods are manufactured with an acceptable margin for error in defects, while staying within the production schedule and meeting terms of shipment. Facility, management, and staff all need to be properly trained, supplied, and supported through the process. Documentation of the workings of then plan and reporting of results needs to take place at each stage of execution. Team C University of Phoenix 3157 East Elwood Street Phoenix, AZ 85034 August 5, 2012 Mark Neitzel Vice President of Operations Riordan Manufacturing Inc. One Riordan Plaza San Jose, CA 95112 Dear Mr Neitzel: I am writing to inform you of Team C and our aggregate planning strategy to ensure total quality management at the fan factory in Hangzhou, China. Our team has examined many aspects of the operation. After doing so we have made recommendations in regard to the material resource planning for Riordan electric fans, a new process design plan, examination of the supply chain to optimize global advantages, a production forecast, and a new implementation plan. To enact this strategy we are planning training at every level of the company. Constant communication will be kept with your offices, those of management here at Riordan corporate, and our management at the Hangzhou plant, our customers, and suppliers. It is our hope that through the operation of these suggestions that performance and output will improve and continue improving striving for 100% customer satisfaction. Through strategic planning and a commitment with our leadership team, we will engage our clients, employees, and suppliers to invest emotionally and commit to the responsibility of making each aspect of our business the very best it can be. Though constant examination, attention to detail, communication at all levels, keeping a focus on success, and monitoring of our progress we feel as a team we can attain an environment of total quality management. We invite you to our training at headquarters and look forward to any input you might have on our suggestions. Sincerely, Team C MickieMiszewski, Constanza Pierre, Christopher Thompson Enclosure Reference Chase, R. B., Jacobs, F. R., & Aquilano, N. J. (2006). Operations Management for Competitive Advantage (11th ed.). New York, NY: McGraw Hill/Irwin. Turek, B. (1999-2012). What Are MRP Systems'. Retrieved from http://www.ehow.com/info_8401259_mrp-systems.html Gantt Chart. (2012). Retrieved from http://en.wikipedia.org/wiki/Gantt_chart ----------------------- Wanted product Receiving department receives Raw materials Shipped Sent to Molding Department Sent to Assembly Department Sent to Trimming Department Third Party Vendor Picks up and delivers Sent to Shipping Department Sent to Package department Sent to Customer Wanted product Receiving Department Receives Raw materials Shipped Sent to Assembly Department Sent to trimming department Sent to molding department Packages and shipped through Riordan manufacturing Customer Receives