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Process Design For Riordan Essay

1480 words - 6 pages

Running head: Process Design for Riordan Manufacturing

Process Design for Riordan Manufacturing

This paper suggests a new process design for Riordan Manufacturing. This design concentrates on the major phases pertaining to the manufacturing of Riordan electric fans, from start to finish. This design incorporates a supply chain for the electric fans, while taking advantage of global openings in which Riordan Manufacturing can implement. Additional analysis of the present process pertaining to the production of the Riordan electric fans is presented. The new process design attempts to eliminate bottlenecks within the process in order to make the supply-chain as optimal as ...view middle of the document...

As such, it is difficult to properly assess material requirements. In order to make this process more effective and precise, the MRP process needs to factor in variability in regard to overall supply and demand within the electric fans’ production.
A New Process Design
Riordan Manufacturing's China plant’s operations focus is on quantity when it comes to the production of the fans. The necessary amount of inventory is maintained according to a production forecast. Nonetheless, the amount of inventory is inadequately measured since only 93% of deliveries are in a timely manner. As such, Riordan should seek substitute manufacturers in addition to its current unit in order to have an adequate amount of inventory so production will not be delayed; this would help the company schedule and deliver more efficiently. Riordan should additionally keep more inventories in its units; however, this will increase the company’s inventory cost. This cost can be minimized by reducing the amount of plastic polymer in its inventory since it is easily obtainable. Additionally, Riordan will need to update its MRP system so it will have the capacity to assist in numerous stages within the production cycle. It should assist in ensuring that resources are optimally utilized, which in turn, will increase its efficiency, especially when it comes to production time.
Supply Chain
The supply chain process for Riordan is critical for its success. This process essentially entails the transformation of materials into semi-finished and finished products, the flow of material from suppliers, and the distribution of products to customers (Chase, Jacobs, & Aquilano, 2005). In today’s marketplace, companies like Riordan are competitive and seeking new and innovative ways to transform their supply chain and make it into a competitive or strategic advantage. Companies are continuously seeking supply chain services which will enhance its overall efficiency, which in turn, will drive in more revenue while gaining a competitive advantage (Chase et al., 2005). More specifically, when it comes to Riordan, the development of its electric fans is directly associated with the supply chain management process with the electric fans in terms of its scheduling, market entry, competition strategies, and delivery.
One methodology which may be beneficial for Riordan to utilize is outsourcing on a global scale. Outsourcing can potentially save Riordan a great deal of money. It would help Riordan center on additional business activities and not have to focus on the outsourced jobs since it is being provided by external experts; this, in turn, would eliminate several facets of the supply-chain. Outsourcing would be a great way (monetarily) to distribute our work globally, in which we would take advantage of regional markets while reducing operational costs. We would ensure that it does not weaken our organizational performance and productivity. The company could additionally integrate...

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