Riordan Manufacturing Production Plan

Riordan Manufacturing Production Plan

Riordan Manufacturing is a successful global plastics company with annual profits of $46 million. Riordan is a recognized leader in the field of plastic injection molding, and manufactures such products as heart valves, bottles, medical stents, electric fans, and custom plastic parts. Riordan has locations in Georgia, Michigan, California, and joint ventures in China. It also employs approximately 550 individuals across its United States and China operations. In order for Riordan Manufacturing to remain successful and competitive, it must continue to analyze strategically its processes for quality and productivity improvements. In this assignment, our team will discuss how strategic capacity planning and lean production relate to the new process design and supply chain process for electric fans at Riordan.

How strategic capacity planning relates to process design:

"The objective of strategic capacity planning is to provide an approach for determining the overall capacity level of capital-intensive resources—facilities, equipment, and overall labor force size—that best supports the company's long-range competitive strategy" (Chase, Jacobs, & Aquilano, 2006). The goal of manufacturing process designs are to meet due dates, minimize lead times, minimize setup time and cost, minimize work-in-process inventory, and maximize machine utilization (McGraw-Hill Companies, 2006).

When capacity is improperly managed, the business will inevitably face difficulties achieving maximum performance which results in unmet target goals. For Riordan, strategic efforts are focused on making improvements in several key areas of the business operations. The efforts are centered on building a better work environment, increasing efficiencies, strengthening the brand with a competitive advantage by providing premier customer service, and supply chain excellence.

The Riordan strategic plan is long-term and intertwines several departments of the company simultaneously. The plan involves adjusting technologies that affect all aspects of the operation and transferring some activities from one department to the responsibility of another to determine data that would have otherwise been calculated manually. To be successful with capacity planning, the decision makers must consider the capacity utilization rate which reveals how close the company is to its best operating level.

How lean production relates to process design:

The objective of lean production is to enhance the design process using the smallest amount of "work-in-process, raw materials, and finished goods" (Chase, Jacobs, & Aquilano, 2006) to yield the highest volume of production. The risk and byproduct of Riordan improperly using these resources is creating waste: lagging production times, inventory sitting on the shelves, inefficient machine use, miscommunication within the company and ultimately the possible loss of clients. An ideal process design would address the issues while integrating each department and arm of the company into a cohesive whole allowing for optimal workflow.

Riordan would benefit in gained time, efficiency and workflow by automating and streamlining the manufacturing process, standardizing computerized financial processes throughout the company, implementing an electronic inventory management system, creating a client relationship management (CRM) sales database, and implementation of a company-wide electronic mail system (e-mail) to facilitate communication within the company as well as with external customers. These measures will work "to ensure a balanced, continuous work flow with a minimum work-in-process inventory" (Chase, Jacobs, & Aquilano, 2006).

How strategic capacity planning relates to supply chain process:

Supply chain management is critical to effective strategic planning in the economic environment of the global market. Supply chain is described as, "a total systems approach to managing the entire flow of information, materials, and services from raw materials suppliers through factories and warehouses to the end customer" (Chase, Jacobs, & Aquilano, 2006). The current process involves taking plastic polymers and molding the polymers for custom fan parts. Fan orders are manufactured based on customer preference. Capacity management must fit the profile of organization as well as determine if the amount of production, distribution, and other capacity components are correct.

A new supply chain procedure and process design that includes strategic capacity planning will assist with the current supply chain at the China location. This new design will eliminate current bottlenecks within the inventory and supplier networks. The framework for demand should be functional. According to Chase,