Process Design for Riordan Manufacturing 1

Running head: Process Design for Riordan Manufacturing

Process Design for Riordan Manufacturing

Abstract

This paper suggests a new process design for Riordan Manufacturing. This design concentrates on the major phases pertaining to the manufacturing of Riordan electric fans, from start to finish. This design incorporates a supply chain for the electric fans, while taking advantage of global openings in which Riordan Manufacturing can implement. Additional analysis of the present process pertaining to the production of the Riordan electric fans is presented. The new process design attempts to eliminate bottlenecks within the process in order to make the supply-chain as optimal as possible. A production forecast for the Riordan electric fans is included and a Gantt chart is included as well. Lastly, a cover letter is included which details the coordination of the aggregate operations planning and TQM for the Riordan electric fans.

Process Design for Riordan Manufacturing

MRP for Manufacturing

The present process at Riordan Manufacturing is centered on the China plant, which applies material requirement planning to adhere to the material requirements, which then go through a collection process at receiving units in order to make its way to the molding unit. The assembly unit then receives the products, which are forwarded to the appropriate packing unit for appropriate handling. Lastly, the shipping unit handles the electric fans’ distribution.

Riordan Manufacturing is concerned about scrap materials from the respective units. As such, there should be a reduction in the level of wasteful products from every unit; this, in turn, would lower the price of producing each fan. One initiative already commenced is the Hangzhou plant’s utilization of extra parts within its products that are customized. There are, however, additional concerns pertaining to periodic orders in regard to the supply of fans. As such, it is difficult to properly assess material requirements. In order to make this process more effective and precise, the MRP process needs to factor in variability in regard to overall supply and demand within the electric fans’ production.

A New Process Design

Riordan Manufacturing's China plant’s operations focus is on quantity when it comes to the production of the fans. The necessary amount of inventory is maintained according to a production forecast. Nonetheless, the amount of inventory is inadequately measured since only 93% of deliveries are in a timely manner. As such, Riordan should seek substitute manufacturers in addition to its current unit in order to have an adequate amount of inventory so production will not be delayed; this would help the company schedule and deliver more efficiently. Riordan should additionally keep more inventories in its units; however, this will increase the company’s inventory cost. This cost can be minimized by reducing the amount of plastic polymer in its inventory since it is easily obtainable. Additionally, Riordan will need to update its MRP system so it will have the capacity to assist in numerous stages within the production cycle.It should assist in ensuring that resources are optimally utilized, which in turn, will increase its efficiency, especially when it comes to production time.

Supply Chain

The supply chain process for Riordan is critical for its success. This process essentially entails the transformation of materials into semi-finished and finished products, the flow of material from suppliers, and the distribution of products to customers (Chase, Jacobs, & Aquilano, 2005). In today’s marketplace, companies like Riordan are competitive and seeking new and innovative ways to transform their supply chain and make it into a competitive or strategic advantage. Companies are continuously seeking supply chain services which will enhance its overall efficiency, which in turn, will drive in more revenue while gaining a competitive advantage (Chase et al., 2005). More specifically, when it comes to Riordan, the development of its electric fans is directly associated with the supply chain management process with the electric fans in terms of its scheduling, market entry, competition strategies, and delivery.

One methodology which may be beneficial for Riordan to utilize is outsourcing on a global scale. Outsourcing can potentially save Riordan a great deal of money. It would help Riordan center on additional business activities and not have to focus on the outsourced jobs since it is being provided by external experts; this, in turn, would eliminate several facets of the supply-chain. Outsourcing would be a great way (monetarily) to distribute our work globally, in which we would take advantage of regional markets while reducing operational costs.We would ensure that it does not weaken our organizational performance and productivity. The company could additionally integrate an inventory management system which would be able to work off-site. Also, Riordan should consider integrating a process of procurement which would help in this capacity. It would focus on both quality and quantity, and make sure that processes are being implemented at the proper time, location, and from the right source (Chase et al., 2005). Constraints on supply would be highlighted so that additional sources of spending can be located, and at the same time, erroneous spending will become minimized. This supply chain process will help ensure that orders may be able to be filled and that they ultimately are. It will be necessary, however, to continually track the inventory as far as requirements and quality are concerned.

Production Forecast

The production forecast for Riordan is based on the fact that the unit in China is accountable for both the electric motors and plastic polymers, which are essential components of the electric fans. A projection of production demands has been determined according to the average amount of sales during the past three years. Additionally, scheduling, planning costs, production, and delivery is based on annual production requirements and not being effectively forecasted. Riordan must make sure to analyze the appropriate economic markets to determine how the economy’s flow will affect the company. The company should additionally integrate a lean production process so that the product is launched in the proper market, at an adequate price, and that adequate quantities are available so that waste is reduced and both expected and unexpected changes may be properly addressed in a timely manner.

Implementation Plan

Production-planning is executed out in order for resources and activities to be in line over time so as to reach the objectives with a minimal amount of resource consumption (Chase et al., 2005). Adequate planning needs to be implemented in order for the plan’s progress to be evaluated at regular intervals and also in order for there to be operational control. The implementation of the production plan for Riordan will involve numerous primary activities. One of the primary activities involves actually forming the appropriate team for the project, which will involve management’s input. This will also entail establishing appropriate job duties. Another activity will involve choosing which methodologies, implementation tools, and MRP software should ultimately be utilized. Actually implementing the production plan will be the third activity. This will include the identification of the bottlenecks within our forecasting process and production plan in order to meet all of our clients’ needs in the most advantageous way. This will ultimately enhance quality, production, and the identification of defects, and at the same time, reduce costs. The fourth activity will involve maintaining the production environment through quality control and quality assurance and making any required modifications. These activities will all occur in 30-day increments, but may be adjusted accordingly.

Current date

Hello [name of CEO/President],

With great pride, I am sending you this final proposal pertaining to the implementation of the initiative you set forth. This initiative will take our operations planning, TQM, and process design to the next level. Although there are ways in which our present operational processes can be tracked, this implementation will utilize the latest and greatest technologies and methodologies in order to make the company more lean, and at the same time, enhance quality. This will offer Riordan with further information about strategies and planning pertaining to required materials in order to meet the needs of our clients. This will certainly be a better alternative to our current forecasting practices.

As you will see, the primary phases within the implementation include the identification of the bottlenecks within our forecasting process and production plan to meet our clients’ needs in the most advantageous way. Additional primary phases will enhance quality, production, and the identification of defects, and at the same time, reduce costs. We will also have checks and balances along the way by maintaining the production environment through quality control and quality assurance and making any required modifications.

I am extremely interested to know what your thoughts are. I welcome any feedback you may have, and would make sure to make any required changes as soon as possible.

Sincerely,

Your Name

Gantt Chart for Process Design

References

Chase, R., Jacobs, R., Aquilano, N. (2005). Operations Management for Competitive Advantage. 11th Ed. McGraw-Hill/Irwin.