...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 OPS/571 Operations Management Supply Chain Design Paper Supply Chain Strategy, Riordan Industries Supply chains are adapting and upgrading to new technologies around the world. Supply chain management and strategies will be discussed to new hires in Hangzhou, China. Riordan Manufacturing can use the supply chain management theory to help each function in the supply chain connect and become more efficient. Riordan Manufacturing plans to use a competitive strategy and “go green.” Riordan’s customer fulfillment mission is to “strive to be a solution provider for our customers and not be a part of our customer’s challenges” (University of Phoenix, 2013, p. 1). Riordan Manufacturing wants new hires to use process thinking to achieve improvement in business practices and enhance the way tasks are done. Process Flow Diagram Electric fan manufacturing is one of the key sectors of Riordan Manufacturing with its plant located in China. In essence, the company conducts the fan assembly process from within and outsources non-core operations. The motors and plastic polymers are completely assembled and purchased from local Chinese company, whereas the logistics are outsourced to a local shipping company or FedEx. The operations done inside the company only include the creation of individual plastic parts of the fan, the assembly of the parts, packing of the fans, and temporary storage until the fans are shipped to the consumers. The summary of the supply...
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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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... Process Design for Riordan Manufacturing Process Design for Riordan Manufacturing Abstract This paper suggests a new process design for Riordan Manufacturing. This design concentrates on the major phases pertaining to the manufacturing of Riordan electric fans, from start to finish. This design incorporates a supply chain for the electric fans, while taking advantage of global openings in which Riordan Manufacturing can implement. Additional analysis of the present process pertaining to the production of the Riordan electric fans is presented. The new process design attempts to eliminate bottlenecks within the process in order to make the supply-chain as optimal as possible. A production forecast for the Riordan electric fans is included and a Gantt chart is included as well. Lastly, a cover letter is included which details the coordination of the aggregate operations planning and TQM for the Riordan electric fans. Process Design for Riordan Manufacturing MRP for Manufacturing The present process at Riordan Manufacturing is centered on the China plant, which applies material requirement planning to adhere to the material requirements, which then go through a collection process at receiving units in order to make its way to the molding unit. The assembly unit then receives the products, which are forwarded to the appropriate packing unit for appropriate handling. Lastly, the shipping unit handles the electric fans’ distribution. Riordan Manufacturing is concerned...
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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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...Team Alpha Supply Chain Paper Angelo Meleandez, OPS/571 March 4, 2014 Team Alpha Supply Chain Paper Riordan Manufacturing is a global plastics manufacturer employing over 550 people with projected annual earnings of $46 million. The company is owned by Riordan Industries, a Fortune 1000 corporation with revenues in excess of $1 billion per year. Its products include plastic beverage containers produced at its plant in Albany, Georgia, custom plastic parts produced at its plant in Pontiac, Michigan, and plastic fan parts produced at its facilities in Hangzhou, China (Riordan Manufacturing, 2013). Manufacturing Strategy Team Alpha will be discussing the Hangzhou facility in China and the many aspects of the supply chain design. The Hangzhou fan manufacturing plant uses a Level Strategy of production. The plant's business is a make-to-stock operation in which the future demand for fans is forecasted based on taking the average of sales for the last three years and extrapolating it into the next year. The assumption in using this forecasting method is that history will repeat itself within manageable limits (Riordan Manufacturing, 2013). A level strategy maintains a stable workforce, working at a constant output rate. Shortages and surpluses are absorbed by fluctuating inventory levels, order backlogs, and lost sales (Jacobs & Chase, 2011 pg.534). Employees in a level strategic manufacturing facility benefit from stable work hours at the costs of potentially decreased customer...
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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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...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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...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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...Supply Chain Design Amanda Champion, Andrew Day, Heather Wiggins, Katrina Caver, Yvonne Tagle Jauregui OPS/571 April 25, 2016 W. Pearl 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...
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...Riordan Manufacturing: Supply Chain Design Paper Riordan Manufacturing, a leading global manufacturer of plastic containers, parts, and fan parts, is wholly owned by Riordan Industries, Inc. Riordan’s fan manufacturing plant was purchased in 1992 when it was located in Michigan. In 2000, the company moved its fan manufacturing operation to China where it now resides. Riordan schedules manufacturing of fan parts based on forecasted production needs using an averaged three year sales history. Riordan’s make-to-stock system benefits customers who need products quickly with orders filled from inventory when received. Riordan employs a robust shipping department including a variety of reliable shipping solutions from the plant in China to worldwide customers. Riordan Manufacturing’s electric fan production plant is continually analyzing its strategies. Process flows, performance metrics, supplier relationships and supply chain efficiencies, lean production principles, and sales forecasting are essential to the success of Riordan. The company uses reports and plans for material acquisition, production, and scheduling in its manufacturing facilities. Riordan’s Manufacturing Strategy Riordan’s manufacturing strategy is a stable workforce for two reasons; first, “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 Mgf. Operations...
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...Supply Chain Design Paper Operations of Management/OPS-571 Andres Carrillo September 14, 2015 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...
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...Global Supply Chain Advantages Paper Lisa Agnew, Heidi Lankford, Renae Pace, Courtney Ray Strategic Supply Chain Management ISCOM 370 Adrian Crystal Martin January 31, 2010 University of Phoenix Online Riordan Manufacturing Supply Chain Riordan Manufacturing is a worldwide manufacturer of plastics. The organization employs 550 people and has projected annual earnings of $46 million. The company’s products include plastic fans and fan parts produced at its facilities in Hangzhou, China and custom plastic parts produced at its plant in Pontiac, Michigan. The company's major customers for its standard and customized fans are automotive parts manufacturers, aircraft manufacturers, the Department of Defense, and appliance manufacturers. Recently, the company has experienced some issues with its. On-time deliveries in the China plant have averaged only 93% over the past year, which is inadequate for a Six Sigma company focused on exceeding ISO 9000 manufacturing standards. The senior management team must examine all steps in the material requirements planning, supply chain management, and production and inventory processes to look for potential areas to eliminate waste and redundancies, gain efficiencies through automation or other process changes, and improve the process design and supply chain for the manufacturing of its electric fans. Production and Inventory Processes Change Recommendations After reviewing the production process of the plant in Hangzhou, China...
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...Supply Chain Design Paper Review: The Riordan Manufacturing Virtual Organization Harlan Gary OPS/571 18 August 2014 Patricia Ford Create a sales forecast for electric fans using selected techniques Riordan Manufacturing sales forecast for the demand of fans is based on 2006 and 2007 average sales for the last 24 months and projections increasing the amount in the third year. The purpose of this sales plan is to help the sales organization prioritizes activities and resources for 2006 in an effort to meet or exceed the stated sales objective (University of Phoenix 2013, Riordan Manufacturing, retrieved from University of Phoenix OPS/571 website). Riordan’s strategic plan involves marketing, and product development, pricing strategy, and sales team productions. In forecasting, a customer demand is a primary factor that requires techniques for final approval on capacity for individual products and expected sales. The $50 million goal has two important factors: Increased sales to existing customers by increasing sales force promotions, price discounts, and customer group services, and expanded sales to new customers by implementing public relations activities trade shows, brand development and sales force promotions (University of Phoenix. 2013, Riordan Manufacturing. Retrieved from University of Phoenix, OPS/571). Table 1. 2006 Sales Forecast for Electric Fans 2005 | | Average Units Sold Based on Actual Data | Deseasonalized Linear Regression Average...
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... Part 2 BSA 375 November 15, 2010 Mary Burton Currently Riordan uses a very conventional, antiquated process for inventory management. Most inventory checks are done through a printed form and then handed off to an Inventory Clerk for data entry. This process consumes time and allows room for human error. To enhance the inventory management at Riordan Manufacturing, implementation of a barcode scanning system and Vendor Managed Inventory (VMI) system is recommended. This system will provide full automation of inventory tracking from the receipt of raw materials to the shipment of finished products. This will reduce human error, accelerate the movement of inventory, and reduce stock-out. In addition, it will solve Riordan’s supply chain problem by implementing a shorter and more efficient supply chain process. Riordan Manufacturing’s objective in implementing a new inventory management process is to increase revenue and financial stability. Automation of the inventory management system will lessen human discrepancies/errors thus minimizing lost revenue/cost. The system will also minimize the time the current staff would need to enter manually inventory data allowing the company to effectively use those resources in other areas of the organization. This proposal outlines the need for Riordan Manufacturing to implement a new system(s) that will enhance their current inventory and manufacturing processes. Suggested implementation consists of barcode scanning...
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