Riordan Manufacturing
Process Design Proposal Package
Description
Riordan Manufacturing is in need of a new process for its manufacturing of electric fans. With potential bottlenecks from the current process, both time management and expenses have been suffering. Many factors have been taken into consideration with the new innovative process. With the utilization of the new process it is not only going to be time saving but also will illustrate overall revenue growth. The proposal will include many implementation ideas that are going to contribute to the future success of Riordan Manufacturing:
• A cover letter detailing aggregate operations planning and TQM for Riordan Manufacturing • A new process design for the
…show more content…
This is the most cost efficient method of producing these fans involving global opportunities and labor options.
Production Forecast
The management at Riordan Manufacturing must make production forecasts for future periods in order to ensure that the company is using its resources effectively and efficiently. Riordan also needs to deliver their electric fans to customers when promised and the production forecast can help with this process as well (Chase, 2006). For this proposal, Riordan Manufacturing is making the production forecast for the 2006 fiscal year. In order to generate this forecast, management will use historical data. Management has taken the historical sales figures in dollars for fiscal years 2002, 2003, 2004, and 2005 in order to make a forecast for 2006. The following table is the actual sales amounts as reported on the Profit & Loss Statements.
|2002 |$39,481,276 |
|2003 |$43,418,370 |
|2004 |$46,044,288 |
|2005 |$50,823,685 |
In
Forecasting activity being carried on by the principals of Fantastic for their business of ceiling fans marketing and assembling that was rapidly growing. Basic purpose behind making the forecasts was the decision on assembling and importing ceiling fans. The idea was to find a low priced, “assemble it yourself fan” from Taiwan and Hong Kong. These ceiling fans were cost effective as they reduced cooling cost during summer and heating cost during winter.
Compatibility and communication are the last two factors to consider. Each branch 's HR department will require a particular method of communication between the other branches. Compatibility with existing intranet protocols are considered necessary. The varying degree of equipment between each branch will be deemed compatible with multiple platforms to be best employed by each HR department branch office.
* Forecasting is an impartial strategic ingredient that will ensure apt base for reputable planning. Our forecast is always the first step in developing plans in running the business along with our future plans of growth strategies. With this tool, we are able to anticipate our sales within reason that then can allow for us to control our costs in conjunction with inventory which will then help us to enhance our customer service. Sales forecasting is a vital strategic tactic in our company’s methodology.
Riordan Manufacturing is a global plastics manufacturer and is a subsidiary of Riordan Industries. Riordan Manufacturing has three main production facilities located in Georgia, Michigan and Hangzhou, China. This paper will focus on the manufacturing business and supply chain activities of the electric fan production in Hangzhou China with information on manufacturing strategy, production performance, supplier relationships, forecasting and inventory.
Riordan Manufacturing 's current process is not very efficient. It calls for multiple suppliers to ship parts to Riordan 's raw material storage area at regular intervals. These intervals have been set up in advance using production history as a guideline. This process causes a huge inventory spike during slow production times thus requiring a large amount of storage space and upfront costs. There is not a standardized method for the individual assembly areas to communicate parts shortages back to the raw material storage area. Also, as indicated during our analysis, the network infrastructure and current systems at the plant are very outdated causing system slowdowns and reducing plant efficiency.
Riordan Manufacturing has grown from a small plastics research and development firm to a multinational plastics manufacturing power in the brief span of 14 years. This growth has seen Riordan expand their operation to multiple manufacturing and distribution points across North America and China. Riordan now services over 32 customers of varying size, including automotive parts manufacturers, aircraft manufacturers, the Department of Defense, appliance manufacturers, and beverage bottlers. This rapid growth, enabled through a series of acquisitions, an excellent product line, and aggressive sales, has enabled Riordan to increase market share while maintaining excellent customer relations and competitive pricing. However, this growth has
Riordan Manufacturing currently has four plants of operations. These plants are in San Jose, California, Albany, Georgia, Pontiac, Michigan and Hungzhou, China. Currently the Operations department runs on independent Microsoft SQL servers running Microsoft Project, and Microsoft Office 2003. The Research and Development department recently received an upgrade to there outdated Computer Aided Drafting Software from aSa Solutions because the system on hand was inadequate to handle the needs of the Pyramid Bottle project.
Riordan Manufacturing is a privately held company with plant operations in Albany, Georgia; Pontiac, Michigan; Hangzhou, China. The Corporate Headquarters are located in San Jose, California. Riordan Manufacturing is a subsidiary of Riordan Industries. The Chief Operating Officer (COO) is Hugh McCauley and the Chief Financial Officer (CFO) is Dale Edgel. The Company employs a work force of 550 people throughout the four locations.
Riordan manufacturing in San Jose, California, is the leading manufacturer in plastic injection molding. The company also has facilities in Albany, Georgia, Michigan, Pontiac and Hangzhou, China. This paper is to present a production process design proposal for the electric fans until it arrives at to the final consumer.
In this case study, production planning of MacPherson Refrigeration Limited (MRL) for the next year is conducted. In order to
M&L Manufacturing Company is an example of a company that could benefit from forecasting. In the past the company has made an educated guess to determine necessary production for
But even this is not possible in case of a new product or innovation. A forecast of sales, demand, cash, requirements and several such business valuables are extremely essential for a business in order to be able to appropriately plan and conduct its operations in an effective and efficient manner. Yet, forecasts cannot be made accurately as there are several factors and changes in the current environment that leads to variations in forecasts and impacts or causes a manager to make changes in the forecasts.
The first electric fan was invented by wheeler in 1886, consisting of two blades, without the protective cage, run by an electric motor (Carmack, 2009). Over the years, with the advancement in technology, fans have become much lighter, safer, and more efficient. However, even though there are many styles and sizes to choose from, the product’s architecture has not changed significantly (figure 1 and 2 ).
Riordan Manufacturing is a fortune 1000 company that manufactures plastic fan parts, and other products in relations to plastics. The company had an expansion in 2000, when operations were opened in China. At that time, the entire fan manufacturing operation was in China. The following paper will discuss Riordan’s supply chain design applicable to manufacturing its electric fans
Where there are many ISO's which apply to the technical aspects of the fans, one standard which has become increasing popular and has the potential to improve the internal operations at Riordan, increase value and support the position