Week_4_Ops_571

Running head: PRODUCTION PLAN FOR RIORDAN MANUFACTURING Production Plan for Riordan Manufacturing OPS/571 June 28, 2010 Production Plan for Riordan Manufacturing Riordan Manufacturing is a global plastics manufacturer specializing in “plastic beverage containers, custom plastic parts, and plastic fan parts. The company’s goal is to maintain the industry leaders in using polymer materials to provide solutions for their customer’s challenges” (University of Phoenix, 2004). The company’s new product development of parts are researched and developed at the company’s corporate headquarters in San Jose. Riordan has manufacturing plants located in Albany, Pontiac, and Hangzhou, China. The plant in China is used to produce electric fans sold throughout the world. The plastic for each electric fan is produced in the plant, but the electric fan motors are purchased as a complete assembly from a local Chinese company. The plant’s operations include processes for forecasting sales, production, purchasing materials, custom design and development, and shipping. In this paper Team C will discuss the strategic capacity planning and lean production for a new electric fan process design as well as the supply chain process for the electric fans at Riordan Manufacturing. Strategic Capacity Planning Process improvement for Riordan’s electric fan manufacturing must include thorough strategic capacity planning to design effectively a process for competitive advantage. Strategic capacity planning is “long-term planning” and involves “selecting providers and distributors, location and capacity planning of manufacturing/servicing units, (….) and considering the qualitative and quantitative aspects” of resource planning (Chauhan, Nagi & Proth, 2004, p. 2197-2198). Currently, Riordan for manufacture electric fans at the Hangzhou, China location. Limiting the manufacture to this one plant can affect the capacity for the fans should the location suffer any operational setbacks that may include local instabilities or natural disasters. Additional issues affecting the strategic plan is transportation network efficiencies to and from the location, staffing levels, materials availability, distributor’s quality and financial situation, and market conditions. Riordan also takes in orders for custom products, and those orders are unpredictable, so capacity is affected by the ability to handle those orders through effective resource use while producing other products simultaneously (University of Phoenix, 2004). Tools for Riordan to consider in strategic capacity planning include metrics such as the “capacity utilization rate, which reveals how close a firm is to its best operating point” plus the experience curve and economies of scale (Chase, Jacobs & Aquilano, 2005, p. 432). Forecasting resource needs is an urgent requirement for the organization to best plan for capacity. Competitive advantage relies on Riordan’s ability to meet customer demand through capacity levels. If the firm miscalculates capacity need, it may carry excess inventory, tying up the organization’s capital. If the organization underestimates demand the organization will not meet customer demand and risks losing “customers through slow service or by allowing competitors to enter the market” (Chase, Jacobs & Aquilano, 2005, p. 431). Lean Production Supply Chain Process Conclusion References Chase, R.B., Jacobs, F.R., & Aquilano, N.J. (2005). Operations management for competitive advantage (11th ed). New York: McGraw Hill/Irwin. Retrieved June 1, 2010, from University of Phoenix, OPS/571 Operations Management website. Chauhan, S.S., Nagi, R. & Proth, J.M. (2004). Strategic capacity planning in supply chain design for a new market opportunity. International Journal of Production Research, 42(11), 2197-2206. Retrieved June 24, 2010, from EBSCOhost Business Source Complete database. University of Phoenix. (2004). Riordan Manufacturing Virtual Organization. Retrieved June 23, 2010, from University of Phoenix, OPS 571 - Operations Management website. Content and Development 8 Points Points Earned x/8 Additional Comments: All key elements of the assignment are covered in a substantive way. The paper includes the following: • A discussion on strategic capacity planning and lean production for the new process design • A discussion on the supply chain process for the electric fans at Riordan The paper is no more than 1,050 words in length. The content is comprehensive, accurate, and persuasive. The paper develops a central theme or idea directed toward the appropriate audience. The paper links theory to relevant examples and uses the vocabulary of the theory correctly. Major points are stated clearly, are organized logically, and are supported by specific details, examples, or analysis. The introduction provides sufficient background on the topic and previews major points. The conclusion is logical, flows from the body of the paper, and reviews the major points. Readability and Style 2 Points Points Earned X/2 Additional Comments: Paragraph transitions are present, logical, and maintain the flow throughout the paper. The tone is appropriate to the content and assignment. Sentences are complete, clear, and concise. Sentences are well constructed, strong, and varied. Sentence transitions are present and maintain the flow of thought. Mechanics 2 Points Points Earned x/2 Additional Comments: The paper—including the title page, reference page, tables, and appendixes—follows APA formatting guidelines. Citations of original works within the body of the paper follow APA guidelines. The paper is laid out with effective use of headings, font styles, and white space. Rules of grammar, usage, and punctuation are followed. Spelling is correct. Total 12 Points Points Earned XX/12 Overall Comments: