Riordan Manufacturing Process Design

Riordan Manufacturing Process Design

Riordan Manufacturing Inc. is a manufacturer that produces many products including: Plastic Bottles, Electric Fans, Heart Valves, Medical Stents, and Custom Plastic Parts. "Riordan Manufacturing Inc. is an industry leader in the field of plastic injection molding" (Apollo Group, Inc., 2004, p. 1). The company opened up its operations in Hangzhou, China and is now seeking to streamline its manufacturing process for the electric fans. The following proposal package will address the material requirements planning (MRP) for the production of the electric fans, a new process design for the production of the fans, and the supply chain for the electric fans. In addition, the proposal will address the production forecasting for the electric fans as well as the implementation of Lean Production. Finally, the proposal will present a cover letter detailing how Riordan Manufacturing Inc. will coordinate the aggregate operations planning and total quality management (TQM) for the electric fans.

Material Requirements Planning

Material Requirement Planning (MRP) is "the logic for determining the number of parts, components, and materials needed to produce a product. MRP also provides the schedule specifying when each of these materials, parts, and components should be ordered or produced" (Chase, Jacobs, & Aquilano, 2006, p. 633). Three objectives to the MRP systems are: guarantee product and material availability to the customers, maintain a low-level of inventory, and plan for on time delivery schedules and purchasing activities. The function of an MRP system will include control, bill of material processing and easy scheduling. Riordan Manufacturing Inc. will invest in an MRP software system called Finesse. "Finesse Material Requirements Planning (MRP) provides powerful tools for managing your production requirements by comparing your material needs with your available inventory and work in process" (Enhanced Systems and Services, 2009, p. 1). Investing in an MRP system will allow Riordan Manufacturing Inc. maximize production, minimize inventory, improve customer service and schedule multiple jobs at one time. Finesse will work t with a master production schedule. "The master production schedule (MPS) is the time-phased plan specifying how many and when the firm plans to build each end item" (Chase, Jacobs & Aquilano, 2006, p. 634). Both systems together will calculate the time needed to receive the materials used to produce the fans, the time needed to manufacture them, the required date the fans are needed, and will ensure that this deadline is met without problems or delays.

New Process Design

Currently the process utilized at Riordan Manufacturing Inc is the plastic used in the production of the fans are bought locally, along with the completed fan engines that will power the electric fans. The plant in China then injects the plastics into molding machines that create the various plastic parts that will be used in the completed project. Once the products are completed, the plant will then ship these electric fans to customers' worldwide. To avoid overstock of inventory and to develop fans that are not needed. Riordan Manufacturing Inc. will to change the process design from a make-to-stock to a make-to-order process in the Hangzhou plant. This will allow Riordan Manufacturing Inc. to produce the electric fans based on the orders of the customers'. The make-to-order process is determined by the orders placed by the customers or the contracts received. The MRP system Finesse with the implementation of a Just In Time inventory system will avoid overstock and lack of materials because the electric fans are produced as they are ordered. (ADD MORE)

Supply Chain

"In order to maintain dynamics in supply chain management, companies must ensure that all trade terms, payment terms, product terms, and conditions are outlined to guarantee that all products can flow downstream to meet full delivery requirements" (Snieška & Drakšaitė, 2008, p. 693). The supply chain process for Riordan is critical for its success. 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 that will enhance its overall efficiency, which in turn, will drive in more revenue while gaining a competitive advantage (Chase, Jacobs, & Aquilano, 2006).

Riordan's recent move of the fan manufacturing processes to China provides Riordan the opportunity to employ labor at a much lower rate than in the United States. "Distance not only the amount of inventory in the supply chain