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Production Plan for Riordan Manufacturing

Production Plan for Riordan Manufacturing. Team D Ala Alliftawi Barbara Ward Christopher Lyons Yvette Winstead OPS 571 Dr Tug Gokaydin July 27, 2009. outline. Introduction Strategic Capacity Planning Lean Production Supply Chain Management Conclusion References. Introduction.

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Production Plan for Riordan Manufacturing

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  1. Production Plan for Riordan Manufacturing Team D Ala Alliftawi Barbara Ward Christopher Lyons Yvette Winstead OPS 571 Dr Tug Gokaydin July 27, 2009

  2. outline • Introduction • Strategic Capacity Planning • Lean Production • Supply Chain Management • Conclusion • References

  3. Introduction • Riordan’s production plan is outdated. • Strategic capacity planning is needed to weather up and down demand. • Lean production is necessary in the production of the fan in China. • Supply chain management must be researched to see if it can be streamlined.

  4. Strategic Capacity Planning • Define Strategic Capacity Planning • Identify factors that can affect capacity • Supply Chain • Effects on Riordan’s China Plant • Effects of exceeding capacity utilization • Supplier Capacity • Inventory • Polymers being melted

  5. Strategic Capacity Planning • Riordan deficient capacity • Backlog in production capacity • Distribution Capacity • How supply and production capacity affect distribution capacity. • Global demand for plastic • Why Riordan’s distribution capacity needs to rise • Delivery process

  6. Strategic Capacity Planning • Transportation • Explain how supply chain, production and distribution help sustain Riordan’s multibillion dollar fortune • Explain the importance of strategic capacity planning

  7. Lean production for a new process design • Work to attain a 10% reduction in operating expenses • Reducing extraneous work • Improve quality • Implement a pull system • Find alternative shipping processes

  8. Lean production for a new process design • Reducing extraneous work • Stop producing the part at the Pontiac, Michigan plant, and designate this product line to Hangzhou, China. • Improve quality • Create a Quality Management (QM) • Quality Management (TQM) • Six-Sigma • Visual Stream Mapping (VSM)

  9. Lean production for a new process design • Implement a pull system • Kan-ban system • Just in Time (JIT) • Find alternative shipping processes • The current shipping process at the Hangzhou, China plant is where product is trucked to a port on the Qiantan river, loaded into shipping containers and then onto barges that make their way to the Shanghai port. • Alternatively, Riordan Manufacturing could transport the products by truck directly to the Shanghai port, load them onto containers and ship directly to their destination.

  10. Supply chain operations PROCESS • Plastic polymers melted and made into fan blades • Electric motors purchased and stored • Plants injection molding machine

  11. Supply chain operations Production • Use Design & Development Department as part of supply chain • Customized fan produced similar to standard fan • Product in process as needed

  12. Supply chain operations Transportation • Local: Chinese Company • International: FedEx • Reduce overall shipping cost

  13. Conclusion • The need to streamline the supply chain is more prevalent now that some production is being handled outside of the United States. • Implementing a pull system for controlling finished product will also allow Riordan to lower their capital tied up in inventory. • Finally, strategic capacity planning will allow the fan division to plan for current production levels while also being able to easily increase or decrease production as demand rises and falls.

  14. References Mentzer, John T., DeWitt, William, Keebler, James S., Min, Soonhong, Nix, Nancy W., Smith, Carlo D., Zacharia, Zach G. (2001). Defining Supply Chain Management. Journal Of Business Logistics, Vol.22, No. 2. Quick MBA (n.d.) Operations: Supply Chain Management. Retrieve July 17, 2009 from Web Site: http://www.quickmba.com/ops/scm/ University of Phoenix (2009) Riordan Manufacturing. Retrieve July 18, 2009 from Riordan Manufacturing Intranet Web Site: https://ecampus.phoenix.edu/secure/aapd/cist/vop/business/riordan/OPs/RioOps002.htm

  15. References Chase, R.B., Jacobs, F.R., & Aquilano, N.J. (2006). Operations Management for Competitive Advantage. (11th ed.). New York: McGraw-Hill/Irwin Citrin, S. (2009). Capacity Planning: A Tactical Decision with Strategic Impact. Retrieved July 18, 2009 from Insight Web Site: http://www.insight-mss.com/_whitepapers/?file=CapacityArticle020703.htm Encyclopedia of Management. (2009). Capacity Planning. Retrieve July 18, 2009 from Web Site: http://www.enotes.com/management-encyclopedia/capacity-planning

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