...Project Management Recommendation OPS/571 September 21, 2014 Project Management Recommendation Dear Mr. Gritsch, In continuation of your email dated September 15, 2014, the team has completed an analysis of the three projects: Juniper, Palomino and Stargazer. The risk levels in Juniper, Palomino, and Stargazer are low, medium, and high respectively. It is in the best interest of Piper Industries Corporation to move forward with the Stargazer project. As noted by you the selected project should generate revenue within 12 months of next week’s PMO Review, and that we should also consider the degree of risk involved with on-time completion, the critical path requirement and cost and, the effective life cycle and forecasted ROI. Stargazer is selected due to its feasibility and risk level. From market feasibility study, some strategic customers have already indicated interest in the product. Therefore, I would recommend that the board invest in the project, Stargazer; particularly because the company has already invested $450,000 and the ROI is very high. My feasibility study focused on five areas which includes the anticipated Return on Investment (ROI), length of project, break-even analysis, risk level and overall benefit to Piper Industries. Please see below for the results and excel worksheet attached. Juniper Cost of the project: $325,000 Critical path: 6 months Return on investment (ROI): 77% or $250,000 for a period of 2 to 3 years (Break-even): A little under...
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...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 while reducing safety stocks and finished goods...
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...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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...Process Design for Riordan Manufacturing Joshua Kas-Osoka OPS571 July 6, 2010 Introduction Riordan Manufacturing’s owns three plants: Albany, GA where plastic bottles are produced; Pontiac, MI where it handles the company’s custom plastic fabrication, and Hangzhou, China that currently operates a decentralized unit of the organization producing electric fans. When creating a process design for Riordan’s fan production operation, it is important to create a holistic production system that addresses several different aspects of production, including total quality management, material requirements planning (MRP), process design, supply chain considerations such as just-in-time manufacturing and Six Sigma, accurate forecasting methods, and a means of implementing change. Total Quality Management One of Riordan’s principal focuses, as outlined in its mission statement, is on lean Six Sigma (University, 2002). Six Sigma emphasizes fast delivery and minimizing costs, while delivering the highest quality products to customers (George, 2004). The needs of the customer drive everything under Six Sigma and the determination of what exactly the customer wants and what is relevant to the customer leads to process improvement. Studying production data and process workflow improves process and delivery speed, which in turn improves customer relations and increases profitability (George, 2004). Riordan’s Six Sigma projects should always start by studying what their consumer’s want...
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...Bottlenecks in a Process Angela Mackey OPS 571 January 7, 2013 Dr. Harry Caldwell Bottlenecks in a Process Many components exist, which are key factors to the success or failure of a process. Many factors also exist, which affect the outcome of any process. One factor is bottleneck, which is any resource whose capacity is less than the demand placed upon it (Chase, Jacobs, & Aquilano, 2006, p. 725). A bottleneck is a constraint within the system that limits throughput. The subject in this paper is the process of driving the children to school. In this paper the subject will write the paper based on data collected on the process. The subject will also identify and discuss the main bottleneck in this process while applying Goldratt’s theory of constraints to identify and overcome process bottlenecks. The Process The process of driving the children to school is very tedious. Many factors make the process very hard to complete daily. Some factors are the traffic, weather, accidents, and timing. Many of these factors can cause a hindrance to the process. The weather is a factor could be rainy or snow, which would cause the worst problem. The weather can lead to many things such as accidents, timing, driving speed, and traffic. In this case the weather and speed is the most important factors that would affect the others such as accidents, traffic, and timing. Goldratt’s Theory of Constraints One of the main process bottlenecks in driving the children to school...
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...Riordan Manufacturing Bottlenecks Summary Team Operation Overload Sherry Davis Gualandi, Telechia Miller, Tejas Shah, Kara McRae OPS571-Organziational Management James Ziegler July 25, 2011 Riordan Manufacturing Bottlenecks Summary Through the learning team discussion, potential bottlenecks are identified and organized by department. This will provide insight for operations to focus efforts where the largest constraints can be minimized for the greatest return. Bottlenecks or constraints Bottleneck issues with excessive lead time from Chinese motor distributor 1. Build safety stock of fan motors 2. Possible cost breaks for larger orders Riordan initiative to lessen polymer safety stock 1. Determine manufacturing requirements 2. Less stock on-hand since provider is local Potential closing of Michigan location, or re-purposing plant for other plastics manufacturing 1. Michigan manufactures custom plastic parts for fans 2. China also manufactures custom plastic parts for fans on a global basis 3. Quality issues in the Michigan plant on medical supplies IT Department 1. New technology being used, learning curve 2. Potential for human error as a bottleneck Legal Department 1. Logistics of getting materials to Hangzhou location 2. Infrastructure from Hangzhou Bay to Shanghai Operations Department 1. Manual order forms, inventory process 2. Human error, employee reliability Personnel Adding line managers will give a steady presence at...
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...Supply Chains Design Paper OPS/571 Supply Chains Design Paper Riordan Manufacturing is a company owned by Fortune 1000 Riordan Industries, Inc. The company is a leader is manufacturing plastic with customers which “include automotive parts manufacturers, aircraft manufacturers, the Department of Defense, beverage makers and bottlers, and appliance manufacturers”(Riordan, 2005.) A review of Riordan Manufacturing will include the company’s manufacturing strategy, process flow chart for the electric fan supply, metrics to evaluate the electric supply chain, and how the supplier relationship and the effects on the supply chain. Additionally, the review will also explain the lean production schedule, forecasting techniques, aggregate production plan, master schedule, and materials requirement schedule. Riordan Manufacturing Strategy The manufacturing strategy which best fits Riordan’s manufacturing strategy is a stable workforce. Stable workforce is the best manufacturing strategy because “it schedules production of fans to meet the forecasted sales and the forecast is calculated by taking the average of sales for the last three years and extrapolating it into the next year” (Riordan, 2005). Another indication can be found in the employee turnover report for 2009-2012. The percentage of involuntary separations decreased from 3.4% in 2009 to 2.0% in 2012. The decrease in involuntary turnovers indicates maintenance of a stable workforce. The stability of the workforce benefits...
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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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...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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