Riordan Manufacturing Case Study

2246 Words 9 Pages
Register to read the introduction… To meet customer demand, Riordan’s [pic]supply chain process must concentrate on inventory management process in the system to fulfill the orders requested (Chase, Jacobs and Aquilano, 2006,). Riordan currently tracks its inventory manually at many points in the supply chain. With the implementation of an integrated inventory management system Riordan would be able to improve cash flow, inventory visibility, and decision-making as well as manage all the resources utilized to meet customer demand for its …show more content…
It is necessary to track the quality and inventory requirements to optimize the performance of the supply-chain process. These tracking measurements are necessary to assess the exact requirement of material based on revised production forecast sales with key inputs from the conceptual application of supply chain management (Chase, Jacobs and Aquilano, 2006). The plant’s production forecast is based on the theory of moving averages. The manufacturing unit in China orders [pic]electric motors and plastic polymers required for the production of fans. The demands subsequent years of [pic]production are calculated on the basis of average sales for the past three years, which is projected for the coming year (University of Phoenix, 2008). This plant also produces customized versions of electric fans for individual customers on a smaller capacity. The estimation of costs for planning, scheduling, production and delivery are based on order requirements of yearly production.

The production forecast for Riordan is based on the fact that the unit in China is accountable for both the electric motors and plastic polymers, which are essential components of the electric fans. A projection of production demands is determined according to the average amount of sales during the past three years. Additionally, scheduling, planning costs, production, and delivery is based
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Riordan Manufacturing is no exception. All levels of management and staff must be a part of the change. According to Khurram Hashmi (2010), all management must be heavily involved as leaders rather than relying on subordinates. It would benefit Riordan to have a steering committee to oversee this project. One of the main tasks will be to communicate the change to the employees. When implementing this huge task, Riordan leaders must maintain their commitment and keep the process visible, provide support and hold people accountable for results. The team has decided to install the Lawson ERP system software. The goal for Riordan is to install and implement the software into the organization with little to no down time and in the most cost effective way. No matter how good the software is, it would be useless and worthless if employees are not properly trained to use it. Lawson believes training should be geared towards technical and functional users to help them get the project running quickly and

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