Running head: PRODUCTION PLAN FOR RIORDAN MANUFACTURING � PAGE * Arabic �1�
Production Plan for Riordan Manufacturing
OPS /571: Operations Management
August 30, 2010
Production Plan for Riordan Manufacturing
In this paper, Team B discusses strategic capacity planning and lean production for new process design and supply chain processes for the electric fans at Riordan Manufacturing. This discussion is an outpouring of research and brainstorming between team members and begins with a newly designed supply chain to increase value, followed by an evaluation of factors that guide strategic capacity planning and an analysis of current applications of lean production. A concluding section summarizes Team B's analysis of findings.
NEWLY DESIGNED SUPPLY CHAIN
Riordan Manufacturing is a global plastic manufacturer with a plant in Hangzhou, China, produces plastic fan blades and fan housings. The operation is a joint venture between Riordon Manufacturing and a consortium of Chinese nationals. The electric fans are assembled with an electric motor and sold as a finished product. Riordan will be moving the electric fan production plant to the city of Shanghai, China, to take advantage new markets. The process design for the electric fans will include Material Requirement Planning for the entire process.
NEW PROCESS DESIGN
The new process design for electric parts will be raw material received by the receiving department. The molding department will create the fan's plastic parts and the trimming department will shave off extra plastic parts before going to the assembly department. The new design will require that the molding department create a precise fan part that requires less trimming. This will shorten trimming time and the assembly of plastic fan parts to the motor will be much faster. This will decrease the amounts of outputs generated by the molding process and trimming process. Destroying waste material cost will decrease as the company becomes more efficient with the new process design; see Gantt chart in exhibit A.
MATERIALS REQUIREMENT PLANNING
Materials requirement planning is the process of a fully integrated computer program that captures the flow of production planning. The system ensures that materials and products are available for production and delivery to customers. The company must maintain the lowest levels of inventory to reduce wasted resources. Coordination between manufacturing activities, delivery schedules, and purchasing activities and the production process is important. For Riordan Manufacturing the materials requirement process starts with the master production schedule, then the materials requirement planning and capacity requirements plan. Maintaining inventory levels and making purchase orders are done after the determination of the capacity. At the same time work orders are taken and passed to the shop floor, manufacturing begins. Exhibit B below has a detailed flowchart of the process.
Riordan Manufacturing will take advantage of the global marketplace and use lower labor costs found in Shanghai, China. The city is in an ideal location for both receiving raw materials and shipping the finished product. Local markets for the electric motor will still be used from the same supplier and continue to be an outsourced item. New opportunities exist for finding suppliers closer to the plant. The city is closer to the main shipping port, the company can take advantage of lower shipping costs and distribute to new markets in Hong Kong and Shanghai.
Supply chain management is the process of managing the sourcing and procurement process plus other logistical issues regarding the movement of materials and supplies (Dossenbach, 2007). Working with suppliers of raw materials and handling inventory efficiently to lower manufacturing costs. Using just-in-time manufacturing involves possessing good relationships with suppliers, material received just...
References: Chase, R. B., Jacobs, F. R., & Aquilano, N. J. (2005). _Operations management for competitive advantage, 11e_. New York: The McGraw-Hill Companies.
Dossenbach, T. (2007). SUPPLY CHAIN MANAGEMENT 101: A SHORTCUT TO INCREASED PROFITS! Wood & Wood Products, 112(7), 35-36. Retrieved from Business Source Complete database
University of Phoenix (2010)
Please join StudyMode to read the full document