Ops 571 Week 4 Team
Riordan Manufacturing Production Plan OPS/571 November 1, 2012 Zachary Burk Riordan Manufacturing Production Plan Riordan Manufacturing, Inc. is a fortune 1000 company with revenues in excess of $1 billion (University of Phoenix, 2012). This wholly owned company is a global plastics manufacturer that employs 550 people with annual earnings of $46 million. Riordan has a reputation for being an industry leader in the industry of polymer materials and has various clout heavy clients such as the Department of Defense and major automotive companies.
The company recently went global by relocating its Michigan operation of fan manufacturing to China. This paper will explain lean production and capacity planning for the new process design and supply chain process for Riordan. Strategic Capacity Planning The goal of strategic capacity planning for Riordan Manufacturing’s is to maximize the level of output and return of investment. Riordan Manufacturing’s should create a small sister plant to China in Michigan.
If we are able to create a scaled down version of the plastic molding machines from the China plant, the plastic polymers safety storage from this facility can become the regular shipment to the Michigan facility. By creating the Michigan mini-facility Riordan Manufacturing could shift the smaller customized fan orders manufacturing and excess polymer inventory from the Hangzhou facility. By reinvesting in the Michigan facility and the United States economy, Riordan Manufacturing will be better equipped to meet the clients demanding more from Riordan’s Pontiac, Michigan location.
It is clear that the China plant sustains an efficient delivery rate and maintains ample safety stock of polymer material. The Hangzhou China plant has a sufficient supply of plastic polymer because the raw material can be purchased locally. “Customers normally negotiate their yearly requirements for fans in order to obtain the lowest price. They then provide periodic release orders for smaller quantities against the yearly total throughout the year” (University of Phoenix, 2012). As a manufacturer, Riordan machine hours per shift prove profitable when the number of units per shift performs at optimal levels.
The China plant has processes that can be utilized within the company in different ways to encourage increased utilization and productivity at the Michigan plant in the United States. In addition, the China facility has a reliable shipping process that makes shipping the assembled or any raw material to the United States facility seamless. Lean Production Riordan Manufacturing operates a plastics plant in Hangzhou, China that acts as a decentralized unit of Riordan Manufacturing and produces electric fans (University of Phoenix, 2012).
Lean Production for Riordan Manufacturing new process design will be done by making sure that they are providing quality products and services. Riordan Manufacturing is a leading name in the field of plastic injection molding. A new process design is needed for manufacturing facilities in China. All of their products are shipped to customers, which are expected to be restricted within a timeframe that could lead to a bottleneck. The lean production process will be provided in the new process design improvements that will take the company to a better stage of production and coordination.
Riordan should evaluate their review process to make sure that the changes that are needed are in accordance to the data collected from the post project review. Important questions are helpful in improving lean production and improving efficiencies. Lean production requires Riordan manufacturing to implement production strategies that are often an issue for this company. The issues with the current process will be improved through suggestions. Supply Chain Processes Local procurement of materials provides an ease in production at the plant in Hangzhou.
Costs are one area that attention is paid so that they can be kept within reason ensuring an affordable product. Throughout the process careful negotiations must be done to ensure there are adequate materials as well as manpower to fulfill the orders that have been placed by customers. The plant has the ability to produce a large amount of stock fans as well as special order merchandise. With specialty orders the process for procurement shift slightly because of the unique nature of the order and the variety of materials that may be used as well.
With the procurement of the polymer done locally this also expedites the production process simply because logistics will not be an issue. The necessary machinery for manufacturing is onsite for quick manufacturing times that can quickly move into the production lines for assembly. Assembly leads way into storage for sales. Orders can be filled at the plant as well as shipped directly to the buyer both within China and internationally. Depending on the final destination of the merchandise there are multiple companies that are used to ensure the fastest shipping time to the buyer.
Potential trouble could arise if there was difficulty in procuring polymer. If this were to occur Riordan would have to locate the materials that can be transported to the plant to ensure there is no slow in the process. Also if this does become an issue there must be ample stock kept on hand to ensure the plant does not run out of the main item used in the manufacturing process. Conclusion Riordan will face challenges with taking its electric fan operation global. The organization will be to implement carefully planned strategic processes to ensure the success of this transition.
Being mindful of their output levels and creating a mini facility in the United States will increase Riordan’s efficiency. By creating lean production processes and utilizing the organization’s local resources for its polymer materials will assist the company in sustaining performance and maintaining the competitive advantage. References University of Phoenix: Riordan Manufacturing, Inc. (2012). Retrieved October 28, 2012 from University of Phoenix website: https://ecampus. phoenix. edu/secure/aapd/cist/vop/index. html