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Supply Chain Design

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Lean production using the concepts of Just-In-Time is right concept to optimize the material requirement planning, inventory management, production and scheduling of the products in the market at right location in right amount at the right time to increase the revenue of the company. Project planning and preparation is the first step for starting the basic outline for implementation of Lean production in the China Plant. Further steps of SDLC in the requirement gathering and analysis will define the needs and improvement of existing process to create the design for implementation of the project.
Total quality management concepts can be applied in the last phase of implementation to control the quality issues with introduction of defect prevention, quality standards, budget control etc.
The plant’s production forecast is based on the theory of moving averages. China’s manufacturing unit takes care of electric motors and plastic polymers required for production of fans. The demands for next year production are calculated on the basis of average sales for the last three years which is projected for the coming year (Riordan, 2006). This plant also takes care of customized version of electric fans for individual customer on small scale. The estimation of cost for planning, scheduling, production and delivery is based on order requirement of yearly production but it should be forecasted early to meet the demands in effective manner for local as well as US customers (Riordan, 2006).

References:
University of Phoenix (2009). Riordan manufacturing virtual organization. Retrieved October 3, 2015, Week Four, OPS571- Operations

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