Riordan Manufacturing Production Plan

Riordan Manufacturing Production Plan - RIORDAN...

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RIORDAN MANUFACTURING PRODUCTION PLAN Riordan Manufacturing Production Plan Miriam Waguespack, Gayle Franklin, Roberta Myrick, Adrienne Olivier, Dighi Nwina OPS/571 J. Jessie Conques October 11, 2010 1
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RIORDAN MANUFACTURING PRODUCTION PLAN Riordan Manufacturing Production Plan Riordan Manufacturing is a global plastics manufacturer headquartered in San Jose, California. The company produces plastic beverage containers, custom plastic parts, and plastic fan parts. Each operation takes place at a different location. For example, the production of plastic fan parts currently takes place in Hangzhou, China. The factory in Pontiac, “Michigan” manufacturers all the custom plactic parts and the factory in Albany, Georgia, manufacturers the plastic containers for Riordan (University of Phoenix, 2010). Riordan is experiencing problems forecasting and managing the supply chain at its China facilities. In this paper team C will examine Riordan’s supply chain and offers suggestions to improve its process management, production master plan, increase quality and lower costs while following lean manufacturing principles. Riordan Manufacturing’s Supply Chain Riordan manufactures electric fans in its Hangzhou, China plant. This plant is a joint venture with a group of Chinese nationals that supply labor, and handle communications with local vendors and government agencies. The electrical motors used in the fans are bought from a third-party Chinese supplier. During the past year, its on-time deliveries have just averaged 93%. Plastic polymers are also purchased locally; these polymers are used to create the plastic parts needed for each fan. The production levels for this plant use a make-to-stock model, which helps to forecast the future demand by using the average sales of the past three years (University of Phoenix, 2010). This plant also designs and develops custom fans under individual customer contracts. 2
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RIORDAN MANUFACTURING PRODUCTION PLAN Riordan needs a new process design and supply chain system that can help the company reduce forecasting uncertainty, simplify inventory-stocking policies, improve delivery status updates, and manage its supply chain operations in Georgia, Michigan, and China. Strategic Capacity Planning Strategic capacity planning is essential for optimal use of resources with minimal waste of raw materials to achieve the customer demand in a timely manner and to create the products at the lowest cost. Riordan Manufacturing has Chinese business partners with facilities in China. The factory in Hangzhou, China produces all the plastic fan blades, and fan housings. A third-party supplies the electric fan motors, which is already assembled with the plastic parts, and then sold as a finished product. The Chinese partners are supplying the labor, interfacing with local vendors, governments, and regulatory agencies, and providing some capital. The Qiantang River gives the facilities
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Riordan Manufacturing Production Plan - RIORDAN...

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