Process Design for Riordan Manufacturing

Topics: Supply chain management, Management, Manufacturing Pages: 9 (1890 words) Published: June 28, 2010

Process Design for Riordan Manufacturing


University of Phoenix Online



Process Design for Riordan Manufacturing
The Riordan Manufacturing plant in Hangzhou, China operates its manufacturing unit to prepare the electric fan to provide the worldwide supply based on the production forecast sales extrapolated using the theory of moving averages for last three years. This paper includes an analysis of the material requirement planning, existing process design, application of supply-chain concepts including any available global opportunities. Additionally, this paper will include a production forecast and as well as an implementation plan for lean production and a just-in-time system to optimize the profit at Riordan and improve customer satisfaction with timely delivery of orders with appropriate inventory management system. Material Requirement Planning

The material requirement planning of Riordan manufacturing is designed to supply the required material for creating the parts of electric fan in order to produce the components at each phase of assembly line production. The receiving department collects the raw material, which is processed in the molding department to make it suitable for generating parts of the fan after being polished and trimmed in the trimming department. These parts are further processed in the assembly department to make larger components such as fan blades or fan housings. The packaging departments puts each parts of the fan in right package with adequate labeling so that it can be delivered to distribution center through shipping department (University of Phoenix, 2004). There are waste by-products from above mentioned departments, which increase the cost of the finished product in the form of the electric fan. The leftover materials are used for creating customized products but it is not sufficient to minimize the inventory loss. Another drawback in the present system is the gap between the actual orders of fans and production forecasted sales based on the yearly demand of the electric fans. The gap between supply and demand challenges the management of the China Production plant to keep the adequate material for uninterrupted production of fans to achieve the proper fulfillment of orders. New Process Design

Appendix A is a flow chart for the existing system at Riordan’s China plant shows that the current production process is dependent on the local supplier for stock of motors and plastic polymers in order to manufacture the electric fans. This process is able to achieve only 93% of delivery on time. The addition of an extra supplier to the manufacturer can help in getting the right stock of motors as it will increase the competitiveness between suppliers and firms which assists in getting the stock of motors. There is another option of keeping the extra stock of motors but it will affect the cost of inventory management. Since plastic polymer is available worldwide, it can be purchased locally to reduce the margin of cost of inventory. In addition to the before mentioned material requirements plan, supply chain process and technology involving lean production along with a just-in-time system can improve the operation process significantly with an improved business strategy to meet the order requirements of customers on time. Supply Chain

Supply chain processes play a crucial role in the entire lifecycle of production development, sales department and customer relationship management. It handles the bill of materials and routings to produce the electric fans in timely manner and in scheduling the delivery of the products to the customer without any slippage. The optimal processes of supply chain can provide Riordan Manufacturing a certain advantage over the competitors in the market of fans (Chase, Jacobs and Aquilano, 2006). Outsourcing...

References: Chase, Richard B., Jacobs, F. R., & Aquilano, Nichlas J. (2006). Operations management
for competitive advantage (11th ed.)
Roach-Partridge, A. (2008). 3PL Elements: Outsourcing = A Formula for
Change. Inboundlogistics. Retrieved from
Shields, T. (1999). Tutorials - lean production / lean manufacturing. Defense Acquisition
University of Phoenix. (2004). Riordan Manufacturing Virtual Organization. Retrieved
from University of Phoenix, OPS571 website.
Cover Letter to Riordan Manufacturing
May 24, 2010
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