Production_Plan_for_Riordan_Manufacturing

Production Plan for Riordan Manufacturing University of Phoenix Production Plan for Riordan Manufacturing Dr. Riordan started Riordan Manufacturing, a global plastics manufacturer, in 1991 as Riordan Plastics. In 1992 Dr. Riordan received business enterprise capital that he used to purchase a fan manufacturing plant in Pontiac, MI, when the company's name changed to Riordan Manufacturing, Incorporated. Production of fans at Riordan Manufacturing needs a plan. The plan includes strategic capacity planning to eliminate bottlenecks and use the Just in Time system. The lean production for a new process will establish a workflow process. The current supply chain process for the electric fans will analyze and allow revision of the plan, which will allow successful supply and demand to increase sales. Strategic Capacity Planning A strategic capacity plan developed for Riordan Manufacturing’s new Hangzhou Bay location to be profitable will offer a clear and well directed approach to determine total capacity for facilities, capital-intensive resources, equipment, and the total labor force needed for supporting the organization’s long-term competitive strategy (Chase, Jacobs & Aquilano, 2006). The impact of the capacity level is critical for the success of the Hangzhou Bay location because if it is inadequate and provides slow service, Riordan may lose customers. If capacity becomes excessive, Riordan may reduce prices for stimulating demand, underuse the workforce, have excessive inventory, and obtain less profitable products to stay in business (Chase, et al., 2006). Before Riordan Manufacturing develops their strategic capacity plan, existing bottlenecks that include inventory and suppliers is eliminated. By using the Just-in-Time (J.I.T) method, Riordan will be able to reduce costs and deliver materials in an efficient manner. Strategic capacity planning is the total output a system will produce over a period with a long-term competitive strategy of providing a productive method for establishing the labor force (Chase, et al., 2006). Before implementing strategic capacity planning, Riordan needs to analyze the inputs and outputs of their electric fans because capacity determines total production. The goal of this planning is for establishing a productive labor force that will support the organization’s long-term competitive strategy. Lean Production for New Process Current production methods for Riordan manufacturing at the Hangzhou plant are make-to-stock production and make–to-order. The make–to-stock system allows stockpiling of excess plastic fan parts based on projected sales, creating easily accessible inventory. This process also accommodated the lag time of 6% for delayed motor units received from the local Chinese plant. Completing units on the assembly line once the motors arrive will deplete the inventory of plastic fan parts and create a finished product inventory. To assist with conversion to a Just-in-Time method of production, distribution of inventory acquired in the make-to-stock interim and personnel allocated for maintaining inventory is reassigned to a manufacturing line or order processing role. Production processes of make-to-order stock follow the JIT method of immediately shipping the finished product. Visual triggers used in a JIT system would be the order. Because the Hangzhou plant currently sells to customers out of their operations base and takes orders, delivery time will be dependent on manufacturing output. Production is completed simultaneously on parallel operations of specialty fans and basic fans on the same assembly lines. Briefing on the dual fans being made that day is given to each assembly line worker to ensure the correct parts are assembled. This process will allow for increased production output with a decreased cost and maintain the Just-in-Time manufacturing philosophy. Supply Chain Process Supply chain management encompasses the entire systems flow of information between all the parties involved in the process. Real-time information always improves the flow of information because it reduces lag-time, redundant processes, and each area can better adjust and prepare for all events. Riordan Manufacturing needs to eliminate paper forms and they need to replace them with scanning systems, which will allow supplier and internal departments to view deliveries instantaneously. Providing documents to a clerk, so the already gathered information can be re-entered in the computer systems is redundant and not very efficient. The receiving and manufacturing supervisors should be able to enter automatically all the data into the computer system, so strategy planner can instantaneously adjust the plants schedule to meet all the customer requirements. Manual data entry is one of the biggest bottlenecks because of entry in the computer systems at the end of the day and no other area can start scheduling their activities until all the data is captured in the computer system. Suppliers directly connected to the supply chain allow insight into material requirements instantaneously, which helps them better respond to customers’ needs. Conclusion Riordan Manufacturing, Incorporated is an industry leader in the field of plastic injection molding. With superior design capabilities, Riordan creates pioneering plastic designs that have earned global commendation, which are the best in polymer materials and provide solutions for their customer’s challenges. Riordan Manufacturing accomplished such high standards through the implementation of Strategic Capacity, Lean Production Technique, and continual evaluation for improvement. Riordan is striving to be the best by continually evaluating and solving possible bottlenecks through implementation of the Just in Time method (JIT) and consistently evaluating for possible errors, which keeps the supply chain on track and allows the company to achieve its desired vision. References Chase, R. B., Jacobs, F. R., & Aquilano, N. J. (2006) Operations management for competitive advantage (11th ed). New York: McGraw Hill/Irwin. University of Phoenix. (2010). Week two simulation supplement. Retrieved May 25, 2010 from University of Phoenix, Week Two. OPS/571—Operations Management Course Web site.