Production Plan for Riordan Manufacturingr
University of Phoenix
OPS/GM 571: International Operations Management September 14, 2010
Production Plan for Riordan Manufacturing Riorden Manufacturing Incorporated is a global plastic manufacturing company that employs 550 people with annual earnings of $46 million. Riorden has several plants in different parts of the country and overseas with a corporate headquarters in San Jose California. The company’s major customers are automotive parts manufacturers, aircraft manufacturers, department of defense, beverage makers, and bottlers. Riorden wants to introduce a new process that improves production of electric fans in Hangzhou, China. In
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The measure of labor and machine requirements over the planning horizon can be measured by the balance of capacity. The actual capacity utilization figure can be calculated by the actual capacity used, which is the rate of output actually achieved, and best operating level, which the process was designed for. Process Analysis A new lean production technique that will be implemented will be improving the product design. Currently customized fans and normal production fans are built separately. We propose that all fans have core designs that allow for mass production of the customized fans along with the normal production fans. In addition, this could reduce part inventory such as screws, washers, and housings. Possible bottlenecks within the new design are going to be receiving the engine from the supplier which is a current problem already. To rectify this issue, building the engine in-house or seeking another supplier that can handle the order supply Riordan requires would be the logical step. Another possible bottleneck is creating the different fan blades which take a special machine to produce. In the future, Riordan may need to redesign the process to where the fan production is automated and part of the assembly line. This would be difficult with different blade designs, but not impossible.
Supply Chain The essential concepts of supply management are “customer driven,