...Riordan Manufacturing Strategy The three types of manufacturing strategy are the chase, level, and combination. Riordan concerning their production of electric fan manufacturing falls under the category of level manufacturing because they set production at a fixed rate, and usually to meet average demand and use inventory to absorb variations in demand. When there is a low demand production have to store more inventories, but that can be exhausted during a point of high demand. Riordan plans manufacturing of fan parts based on predicted construction needs using an averaged three-year sales history. Riordan’s new program is call make-to-stock definitely benefits the customers who need products quickly with orders filled from inventory when received. With their shipping department being so enormous, this brings variety and reliable distribution solutions from the plant in China to the customers worldwide. “Theirs R&D are, and will remain, the industry leader in identifying industry trends. Theirs Customer Relationships Long-term relationships will be required by maintaining rigorous quality controls, innovative solution, reasonable pricing and a responsive business attitude. Riordan Manufacturing will strive to be a solution provider for theirs customers and not be a part of theirs customer’s challenges.” (riordan-manufacturing.com) Riordan Lean Production Principles Riordan has tried to keep a reasonable amount of excess stock in an attempt to combat the periodic individual...
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...Riordan Manufacturing Scott Wissel OPS/571 February 24, 2013 Kristina Limon Riordan, a chemistry professor, found some ways to increase the tensile strength on polymers and patented the ideas. Eventually he was able to get some capital and started to manufacture his product. Riordan Manufacturing is a company that has 550 people. They are also looking to have $46 million of projected annual earnings. Riordan Industries owns the company that is a fortune 1000 enterprise that has over $1 billion in revenue. The company produces containers, custom parts, and fan parts all in plastic. This can be seen in any of their Albany, Georgia; Pontiac, Michigan; and Hangzhou, China manufacturing plants. Their Chinese plant was set up as a joint venture between Riordan and small consortium of Chinese nationals. Capacity planning is a strategy that can be used to identify what is needed to produce what is being asked of the business in the way of demand for the goods and services. A capacity plan depends on accurate input and constructive feedback from the planners that supports the company’s long range strategy ("What Is Capacity Planning?", 2013). The market for fans and custom plastic parts will be affected by the economic conditions people are facing. Riordan has to take in account the economic impact from their customers and this is crucial in determining the future direction of the company. Riordan must avoid a decrease in the manufacturing of electric fans...
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...Lean Production at Riordan Manufacturing Lean Production at Riordan Manufacturing OPS 571 Lean Production According to Chase, Jacobs, & Aquilano (2006), “Lean production is an integrated set of activities designed to achieve high-volume production using minimal inventories of raw materials, work-in-process, and finished goods” (p. 471). According to lean philosophy, parts move quickly through the manufacturing process in a “just in time” method. The logic behind lean is that nothing is produced until it is sold and needed. Currently Riordan’s entire supply chain methodology is responsive and flexible to their customer’s needs, but they are not practicing lean techniques. Riordan assembles and stores finished fans in a finished goods stockroom awaiting sale. In order to improve quality and productivity and focus more on lean production, Riordan must focus on eliminating waste. One way to eliminate waste is through mass customization. “The key to mass-customizing effectively is postponing the task of differentiating a product for a specific customer until the latest possible point in the supply network… By adopting such a comprehensive approach, companies can operate at maximum efficiency and quickly meet customers’ orders with a minimum amount of inventory” (Chase, Jacobs, & Aquilano, 2006, p. 419). By designing their fans so the customization is done at the very end of the manufacturing process, Riordan can still achieve a high level of production...
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...Introduction Riordan Manufacturing is a global plastics manufacturer of beverage containers, parts, and fan parts. The organization provides products for automotive parts manufacturers, aircraft manufacturers, the Department of Defense, and appliance manufacturers. The company was initially founded as Riordan Plastics, Inc. in 1991. Riordan’s focus was on research and development and licensing of its existing patents. The organization purchased a fan manufacturing plant in 1992. Currently, the company operates a plastic beverage containers’ plant in Georgia, and the plastic fan parts are produced in China. Riordan maintains revenue of $1 billion. The team will focus on all manufacturing aspects of the electric fans in China. The team will also discuss Riordan’s strategies, process flow, supply chain efficiency, lean production, etc. Manufacturing Strategy Riordan uses the level manufacturing strategy for production planning. This strategy is evidence that Riordan continuously manufactures its goods equal to the average demand for the goods. The scheduling is set for the same quantity as the production based on the total demand for the goods. The benefits of using the level strategy are “to maintain a stable workforce working at a constant output rate. Shortages and surpluses are absorbed by fluctuating inventory levels, order backlogs, and lost sales. Employees benefit from stable work hours” (Jacob & Chase, 2011). The organization also uses the strategy because production is based...
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...Running Head: Process Design for Riordan Manufacturing Process Design for Riordan Manufacturing: Inception to Production Planning Writer’s Name Course Name, Semester No, Class Level Supervisor Name September 23, 2009 Introduction The present paper discusses the proposal package for Riordan which handles each step of electric fans from inception to production. It includes the material requirement planning phase of fans being manufactured at the China Plant. There is further analysis of existing process for the production of the Riordan electric fans. It provides the basic outline for designing the new process to remove the bottleneck in the process to optimize it for meeting the demands of customer by supply-chain concepts. Production forecast for the Riordan electric fans is discussed along with implementation plan of Lean Production using Gantt Charts. Finally, cover letter describes the coordination of aggregate operations planning and suggested TQM process to define the strategic objective of the company. The MRP for the Manufacturing of the Riordan Electric Fans The China plant of Riordan Manufacturing is the production unit which applies material requirement planning to meet the time-phased requirement of material for assembled units or fan production operations. Raw materials are collected at receiving departments. These are processed to make it suitable for molding departments. The molded unit acts as input for trimming department...
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...Process Design for Riordan Manufacturing Riordan Manufacturing is a “wholly owned subsidiary of Riordan Industries, a Fortune 1000 company” with a projected income of $46 million and around 550 employees (University of Phoenix, 2013). Riordan Manufacturing is a global manufacturer in the plastics industry, including fans, medical devices, and bottles. Riordan Manufacturing strives to meet the increasing customer demands for plastics. The company recently identified some issues with its current production plan, such as the need for technology and the need of timely and shared information among departments, plants, and customers. Riordan Manufacturing has plans to achieve higher capacity ratio, cost-effective transportation, reduced levels of inventory, decreased wastage, and the implementation of an Enterprise Resource Planning. In this study, there will be a review of Riordan Manufacturing’s operational strategy and an addition of the topic of process design to it. “The process design includes the selection of appropriate technology, sizing the process over time, the role of inventory in the process, and locating the process” with quality management as its main focus (Chase, Jacobs, & Aquilano 2006, p. 24). A proposal for a Process Design for Riordan Manufacturing in regard to the electric fans system will be given. It will include Material Requirements Planning for the manufacturing of the electric fans, process design for production, and new supply chain taking advantage...
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...Riordan’s Manufacturing Strategy According to "PWC" (2008), “today, business strategy and talent management are linked as an integrated talent management framework combining organization, business process and technology. Riordan’s Manufacturing manages their human capital and talent as strategic assets. They achieved by aligning the workforce with business objectives and by use performance metrics to drive decisions, monitor and improve results. This strategy shows how Riordan Manufacturing can successfully align their talent management strategy with technology to effectively manage their workforce needs in order to be a marketplace leader of the future” (Creating an agile workforce). Riordan’s Manufacturing has adapted the mixed manufacturing strategy which combines the Stable Workforce—variable work hours and the Level strategy that is most widely applied in many industries. The mix strategy is a planning strategy that uses two or more controllable variables to set a feasible production plan. With two strategies combined Riordan Manufacturing can take advantage of a well-trained workforce because the production rates never changes, lower turnover, lower absenteeism and more experienced workers (Jacobs & Chase, 2011). The Michael (n.d.) website manufacturing performance efficiency is the level to which quality of a product is exercised. This performance efficiency should be exercised in all manufacturing processes in order for a Riordan Manufacturing to avoid wasting of...
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...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...
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...Maxwell Supply Chain Design Riordan Manufacturing is considered one of the leading manufacturing companies. They produce plastic containers and parts for fans. The company was owned from a prior company called Riordan and it was purchased when it relocated to Michigan in 1992. About 8 years later it moved to China in which is now where the headquarters are today. In order for Riordan to run smoothly the company forecast the production using the average from the past three years and using the make-to-stock system. This system benefits the customer because they are able to fill the needs of the customers based off the inventory in stock. In this paper Learning Team A will go into more detail on the strategy the company uses, the supplier relationship and the effects on the supply chain, how lean production principles may be used to maximize the efficiency and effectiveness of the electric fan supply chain process, Aggregate Production Plan, Master Schedule, and Materials Requirement Plans for electric fans based off the sales forecast, two metrics to evaluate performance of the electric fan supply chain as well as create a process flow chart. Manufacturing Strategy There are three basic manufacturing strategies: chase, level or combination. For Riordan the manufacturing strategy that works and has the most benefit for the company would be level. With the level strategy it “seeks to produce an aggregate plan that maintains a steady production rate and/or a steady employment...
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...Process Design for Riordan Manufacturing Barbara Back Tasheia Pelham Ellison Jennifer Perrone Cheri Reed Andreas Tsircou OPS/571 February 13, 2012 William E. Mahoney February 13, 2012 Dear Riordan Manufacturing Management Team, Learning Team C has completed the analysis of Riordan Manufacturing’s electric fan design process and has developed a proposal outlining the changes that need to be implemented. The team is proposing to focus on total quality management (TQM); this will allow Riordan to remain focused and efficient in areas of opportunity, and to excel in all aspects of the electric fans that are important to customers. The team’s recommendation is to use quality at the source that will address the following scenarios: proper training for employees, holding employees accountable, and incentives to help motivate employees. TQM will also be implemented within the supply chain including suppliers and transportation; this will decrease costs and improve on-time delivery to customers, which will increase sales. With the new process transitioning to the just-in-time (JIT) method, the technology portion of the organization will need to be upgraded to a system that monitors from the point of order to the point of delivery. The company will transition from a basic material requirements plan (MRP) to an MRPII system that will allow Riordan to excel in efficiency, lean production, and cost effectiveness. Applying lean production principles will aid in removing...
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...Supply Chain Design Paper Riordan Manufacturing Riordan Manufacturing Inc., was formed in 1991 and is a global plastics manufacturer. The manufacturer’s locations are in Albany, GA, Pontiac, MI, Hangzhou China and the company’s headquarters is in San Jose, GA. The manufacturer has over 550 employees and it is owned by Riordan industries. Major customers are automotive part manufacturer, aircraft manufacturer, the Department of Defense, beverage makers and appliance manufacturers. Riordan’s Manufacturing Strategy Riordan Manufacturing uses a level strategy in production planning and scheduling. They use this kind of strategy because there are a lot of benefits. Employees have stable work hours, therefore scheduling become easier to compute. The stable workforce strategy varies the output by changing the number of hours worked through flexible work schedules or overtime (Jacob and Chase, 2011). Employees learn their specific work in standardized processes therefore the production is easy to forecast at any given time. Riordan Manufacturing makes products based on an average continued sales forecast of three years. (Riordan Mgf. Operations - Supply Chain (Hangzhou, China), 2014). This keeps a small inventory for the demand fluctuation. Other components of a level strategy are consistent scheduling which arranges a predicted amount of goods for production based on the total demand for products and maintaining stable workforce surpluses that can accumulate where there is a low...
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...Production Plan for Riordan Manufacturing Falon McCoy, Jennifer Smith, and Maria Utting OPS/571 July 31, 2012 Robin Aoks Production Plan for Riordan Manufacturing Riordan Manufacturing is a global company that uses plastics injection moldings for the production of plastic fan parts, and plastic beverage containers. Headquartered in San Jose, California, Riordan factories also exist in Georgia, Michigan, and Hangzhou, China. The fortune 500 company has approximately 550 employees and projected $46 million in earnings. The company strives to be a leader in using polymer materials to satisfy customers’ needs. The company strives to achieve increase profitability and financial capital for future growth. The company’s goal is to implement a new process for the production of manufacturing electric fans outsourced in Hangzhou, China. Strategic Capacity Planning There is extensive research involved in the strategic capacity planning for the electric fans of Riordan Manufacturing. Strategic capacity planning is a function of planning to achieve an optimum level of output. Supply and demand will affect the optimal level of product and service flow. A product’s life cycle can be difficult to predict; therefore, planning is necessary to estimate future forecasting. A SWOT analysis can determine and identify strengths, weaknesses, opportunities, and threats that commands management’s attention (Adonai, 2003). Management must determine the capacity requirements. Other factors to...
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...or quantitative) for the electric fans and describe the forecasting process to be used at Riordan. Create a sales forecast for electric fans using selected techniques. Lean Production A business’s operation is only as fast as its slowest process. In order for Riordan Manufacturing to be successful, it needs to seek out and remove bottlenecks. By Riordan identifying these bottlenecks in the operation, they can improve the output of the entire process, which would make it definitely worth the effort. Lean production aims to combine the flexibility and quality of craftsmanship with the low costs of mass production (Economist, 2009). In a lean production setting Riordan will organize its workers into cross functional teams that are expected o accomplish a variety of tasks. This differs from mass-production assembly lines where worker repeat monotonous tasks. Product components are delivered to the various teams just-in-time, and each worker is expected to stop production if an error is discovered. Mass production lines rarely shut down to correct errors. It is expected that an established lean-production line is more efficient than a conventional mass-production assembly line because problems are confronted and solutions are implemented in order to avoid repeating mistakes. Communication is open and transparent in a lean production environment. It is common for production, design, and supply to have constant contact with one another in order to improve and overcome...
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...Supply Chain Design Paper – Learning Team D OPS/571 Riordan Manufacturing is one of the largest plastics manufacturers in the world. Riordan’s mission statement states that it’s focus is to “Six Sigma, leading edge R&D and exceeding ISO standards” (Riordan Mfg. Internet, home page, 2014). Riordan’s fan manufacturing operation is located in Hangzhou, China. Team D will evaluate the Riordan’s fan manufacturing supply chain design and perform a comprehensive evaluation of the operational effectiveness of the supply chain. Manufacturing Strategy Riordan’s Intranet states, that the Hangzhou plant bases its forecasts by “taking the average of sales for the last three years and extrapolating it into the next year” (Riordan, Operations, Hangzhou, China, 2014, p. 1 para 4). Riordan’s use of this approach has lead to a 93 percent on-time delivery rate. Team D believes that the information regarding Riordan’s manufacturing strategy, taken from the firm’s intranet website is an indication that it employs a “Stable Workforce-Variable Work Hours” production planning strategy. This strategy varies the number of hours worked through flexible work schedules or overtime to match the production quantities to orders” (Jacobs & Chase, 2011, pg. 534). It helps assure that the workforce has continuity which helps with employee morale. It is extremely important for employees to feel secure in their work environment. Many workers face everyday pressure on their jobs and in their personal...
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...Riordan Manufacturing’s Supply Chain Design OPS/571 August 3, 2015 Riordan Manufacturing’s Supply Chain Design Introduction A company’s supply chain design is crucial in helping to understand what the key activities and drivers are to the results produced which includes operational results, sales results, and financial results. An efficient supply chain will help a company to both efficiently and effectively produce a quality product to meet and satisfy customer demand. The key aspect involved in the design of a supply chain begins with a manufacturing strategy that will be the method of executing the plan. Next will be the understanding of the process flow by developing charts of how inputs and resources are transformed into outputs. A crucial component in evaluating a process flow is the use of key indicators and metrics to benchmark performance. Lean principles will provide a framework for process performance. Next a company must evaluate their relationships with their suppliers and understand how they affect the supply chain as this is the first step required with any successful supply chain. Then lastly sales forecasts and aggregate planning will be used to help define the requirements to meet demand. An evaluation will be conducted on a specific company to show how each of these components are implemented into the design. The company that will be evaluated is Riordan Manufacturing. Manufacturing Strategy Riordan Manufacturing produces plastic beverage...
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