...Team B Week Four: Supply Chain Design OPS/571 March 4, 2014 Team B Week Four: Supply Chain Design Riordian Manufacturing is a manufacturing company specializing in the production of plastic products and fans. The fan manufacturing plant is located in Hanzhou, China. The manufacturing of the fans is a make-to-stock operation. Future demand for the fans is forecasted based on the average sales of the last three years. Inputs for the production of the fans are acquired locally. The China plant uses the services of a local Chinese shipping company for delivery of goods. The plant uses FedEx or another Chinese shipping company for international shipments. Process flows, performance evaluation metrics, supply chains, lean production principles, and forecasting are all components in maintaining the success of Riordian Manufacturing. Supplier Relationships and the Effects on the Supply Chain Riordian Manufacturing’s plant in Hangzhou, China requires two major inputs for the electric fan production process. The first is high-density polyethylene plastic pellets (HDPE). Not much is mentioned on Riordian’s intranet other than the HDPE is purchased locally. The second major input is the electric motors that power the fans. The motors are produced locally by the Yin Motor Company (YMC). The Yin Motor Company became Rioridan’s supplier due to previous business or family relationship between YMC and Riordian’s partners in China. Rioridan receives the electric motors...
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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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...Supply Chain Design Paper OPS 571 February 4, 2014 Riordan Supply Chain Design Report Riordan Manufacturing is a global plastics manufacturer that supplies plastic fan parts, and plastic beverage containers. The products are produced at different plants around the world. Riordan uses level strategy for their employees. This means that the organization manages to keep a steady labor force at a consistent rate. Riordan’s lost sales, backlogs, and fluctuating inventory levels help to eliminate shortages and surpluses. Full time employees are offered health, dental, and life insurance for themselves and their dependents. They are also offered flexible work schedules, 401k savings plans, paid vacation, holiday pay, and educational assistance/tuition reimbursement. Process Flow Diagram Below is a process flow diagram for the electric fan supply chain. The diagram roughly depicts the steps employees take when ordering and producing the fans. Performance Metrics Two metrics used in Riordan Manufacturing are make to stock, which is when a company has a standard product made and ready to deliver quickly. Another metric used by the company is productivity, which is the ratio of output to input. Supplier Relationship The supplier relationship for fans is that motors for the fan arrive preassembled. Riordan has the plastic injection molds to create the housing for motor of the fan. The factory that produces the plastic is in China. The motors...
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...Part E 41 (2005) 531–550 www.elsevier.com/locate/tre Global supply chain design: A literature review and critique Mary J. Meixell a a,* , Vidyaranya B. Gargeya b,1 School of Management, Enterprise Hall, MSN 5F4, George Mason University, Fairfax, VA 22030-4444, United States b Information Systems and Operations Management Department, 479, Bryan Building, The University of North Carolina at Greensboro, Greensboro, NC 27402, United States Abstract In this paper, we review decision support models for the design of global supply chains, and assess the fit between the research literature in this area and the practical issues of global supply chain design. The classification scheme for this review is based on ongoing and emerging issues in global supply chain management and includes review dimensions for (1) decisions addressed in the model, (2) performance metrics, (3) the degree to which the model supports integrated decision processes, and (4) globalization considerations. We conclude that although most models resolve a difficult feature associated with globalization, few models address the practical global supply chain design problem in its entirety. We close the paper with recommendations for future research in global supply chain modeling that is both forward-looking and practically oriented. Ó 2005 Elsevier Ltd. All rights reserved. Keywords: Supply chain design; Globalization; Outsourcing; Supply chain integration; International sourcing 1. Introduction The last...
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...increasingly turbulent commercial world, achieving an efficient and effective supply network is central to business success. Every single item in your view right now from the shirt you’re wearing to the screen of your computer came from somewhere. The world we live in depends on logistics and supply chain managers to make products available to us. These managers are the ultimate back-room power players moving millions of dollars of product every day. Logistics and supply chain managers are the air traffic controllers of the global market and can give a company the advantage it needs to surge ahead of its competition. If any part of the supply chain fails, then a business can find itself with a big problem. That's why good supply chain managers always understand the importance of efficient logistics in supply chain. DIFFERCENCE BETWEEN THE CONCEPTS:- Logistics Management: It is the management of the flow of goods, information and other resources, including energy and people, between the point of origin and the point of consumption in order to meet the requirements of consumers at the lowest cost possible. Supply chain management: It involves coordinating and integrating Logistics Management within and among companies. It is the management of a network of interconnected businesses involved in the provision of product and service packages required by the end customers in a supply chain. Supply chain management plans all movement and storage of raw materials, work-in-process...
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...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 - Supply Chain (Hangzhou...
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...Process Designs and Supply Chains OPS/571 September Process Design and Supply Chains ORS Nasco an Essendant Company is “a wholesale company with an extensive nationwide platform that meets the ever-changing needs of a very diverse set of resellers across multiple channels and markets.” (“Our Business”, 2015). The company offers thousands of products to business customers that may not have the revenue or storage to maintain inventory onsite, also referred to as holding or carrying cost. The service process of placing an order for a customer that may or may not be in stock is the internal process that was analyzed. The company’s model is to have product in stock that is most commonly ordered by customers in regular intervals. This part of the company’s supply chain falls under the, fixed–order quantity model. “This is used when we want to maintain an item “in- stock,” and when we resupply the item, a certain number of units must be ordered each time. Inventory for the item is monitored until it gets down to a level where the risk of stocking out is great enough that we are compelled to order” (Jacobs & Chase, 2011, p. 558).Top of Form Bottom of Form ------------------------------------------------- Top of Form Bottom of Form Additional products that may be ordered from the company’s catalog maintains a limited stock, and are considered a “special order” or “catalog” item. The order is then delayed due to the product not being readily available. The limited...
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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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...Topic: Decision Support Systems for Supply Chain Management and Design A. Summary: Supply chain management (SCM) has evolved to become an integral part of the operations management. SCM can have tremendous impact on organizational performance in terms of cost, quality, flexibility an responsiveness in the global market. Companies are investing in data driven decision support application frameworks to help then response to the changing market condition and customer needs. A more defined organizational structure, performance metrics and decision support systems (DSS) in SCM is required to create competitive advantages for an organization. Since Information Technology/Information System (IT/IS) is an integral component of SCM, DSS is inevitable in making available the right information at the right time so that managers can make timely and more accurate decisions. However, there is no best known DSS type that is required to effectively manage a supply chain. A properly designed DSS will help decision makers to extract useful information from raw data, documents, personal knowledge and/or business models with the objective of identifying and solving problems, and making decisions. Decision Support Systems (DSS) are a specific class of computerized information system that supports business and organizational decision-making activities. The DSS in supply chain management can be a model, communication, data, document and knowledge driven. Three fundamental components of DSS...
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...Process Designs and Supply Chains Jennifer M. Conlin OPS/571 September 17, 2015 Arun Iyengar Process Designs and Supply Chains Businesses large and small utilize different process designs and supply chains to keep their company competitive, reduce cost and increase profits. The focus of this paper will be to identify Empire Today’s supply chain and analyze one of their internal processes. The author will also identify an appropriate design approach to internal process and create a flow chart. Finally, the author will identify a metric that the company uses to measure its process and incorporate Gap Analysis as a way for Empire to collect data in each step of the process. Company Background The company Empire Today, also known as Empire Carpets, is a nationally recognized for installing floors and windows treatments, began as a small family-owned business based out of Chicago in 1959. As a service-based business, Empire Today relies on their strong relationships with their suppliers to deliver and install high-quality goods to their customers. The company is currently experiencing issues with meeting contractual deadlines. Delays in the ordering and shipment of goods from their suppliers are causing installation delays with some of their customers. When the company receives the wrong product, they have to send it back which causes them to lose time, money and customer loyalty. Supply Chain An established supply chain outlines the critical steps that need to be...
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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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...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 - Supply Chain (Hangzhou...
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...Part E 41 (2005) 531–550 www.elsevier.com/locate/tre Global supply chain design: A literature review and critique Mary J. Meixell a a,* , Vidyaranya B. Gargeya b,1 School of Management, Enterprise Hall, MSN 5F4, George Mason University, Fairfax, VA 22030-4444, United States b Information Systems and Operations Management Department, 479, Bryan Building, The University of North Carolina at Greensboro, Greensboro, NC 27402, United States Abstract In this paper, we review decision support models for the design of global supply chains, and assess the fit between the research literature in this area and the practical issues of global supply chain design. The classification scheme for this review is based on ongoing and emerging issues in global supply chain management and includes review dimensions for (1) decisions addressed in the model, (2) performance metrics, (3) the degree to which the model supports integrated decision processes, and (4) globalization considerations. We conclude that although most models resolve a difficult feature associated with globalization, few models address the practical global supply chain design problem in its entirety. We close the paper with recommendations for future research in global supply chain modeling that is both forward-looking and practically oriented. Ó 2005 Elsevier Ltd. All rights reserved. Keywords: Supply chain design; Globalization; Outsourcing; Supply chain integration; International sourcing 1. Introduction The last...
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...Determining the right supply chain design involves a lot of quantitative data as well as some nonquantitative considerations. I would like to discuss this concept, as well as how to use mathematical optimization to sort through this quantitative data. A firm’s supply chain allows it to move product from the source to the final point of consumption. Leading firms around the world, from large retailers to high-tech electronics manufacturers, have learned to use their supply chain as a strategic weapon. A supply chain is defined by the suppliers, plants, warehouses, and flows of products from each product’s origin to the final customer. The number and locations of these facilities is a critical factor in the success of any supply chain. In fact, some experts suggest that 80% of the costs of the supply chain are locked in with the location of the facilities and the determination of optimal flows of product between them. (This is similar to the notion from manufacturing that you lock in 80% of the cost to make a product with its design.) The most successful companies recognize this and place significant emphasis on strategic planning by determining the best facility locations and product flows. The discipline used to determine the optimal location and size of facilities and the flow through the facilities is called supply chain network design. Sometimes it is referred to as network modeling because you need to build a mathematical model of the supply chain. This model is then solved...
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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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