Riordan Manufacturing

Running Head: Process Design for Riordan Manufacturing Process Design for Riordan Manufacturing: Inception to Production Planning Writer’s Name Course Name, Semester No, Class Level Supervisor Name September 23, 2009 Introduction The present paper discusses the proposal package for Riordan which handles each step of electric fans from inception to production. It includes the material requirement planning phase of fans being manufactured at the China Plant. There is further analysis of existing process for the production of the Riordan electric fans. It provides the basic outline for designing the new process to remove the bottleneck in the process to optimize it for meeting the demands of customer by supply-chain concepts. Production forecast for the Riordan electric fans is discussed along with implementation plan of Lean Production using Gantt Charts. Finally, cover letter describes the coordination of aggregate operations planning and suggested TQM process to define the strategic objective of the company. The MRP for the Manufacturing of the Riordan Electric Fans The China plant of Riordan Manufacturing is the production unit which applies material requirement planning to meet the time-phased requirement of material for assembled units or fan production operations. Raw materials are collected at receiving departments. These are processed to make it suitable for molding departments. The molded unit acts as input for trimming department which can be selectively used for creating further parts. Sometimes, it can become waste by-products. The trimmed parts are assembled at the assembly department to create higher components. These components are handled at packaging department. The shipping department supplies the packaged units of electric fans for distribution unit. (University of Phoenix, 2009). There are scrap materials from each department which is creating a concern for the firm. There is need of minimizing the waste products from each operational unit to reduce the cost of fan production. The manufacturing unit in Hangzhou, China uses these spare parts to create customized products. There are issues in achieving the periodic orders to supply the number of fans as the production plan is based on yearly demand of electric fans. The lack of definite pattern in order leaves the gap in assessing the exact material requirement on the short notice. The management team of company is concentrating on the optimization strategy to improve the process of MRP based on process variability involved in the supply, demand and production of Riordian electric fans. A New Process Design for the Production of the Riordan Electric Fans The current process of Riordian Manufacturing's China plant operation is based on the quantity of fans to be produced. The local company is supposed to provide the required stock of motors based on the production forecast. But this method of operation is able to deliver only 93% of the stock on time. The company can opt for alternative manufacturers along with existing unit to meet the forecasted production of motors. This will increase the competitiveness among the manufacturing unit and delivery schedule will not have slippages. There are other options of keeping the readymade supplies of motors as inventory unit in Riordian inventory itself. But it will increase the inventory cost. Since plastic polymer used in electric fans has plenty of supplies, the lower stock of plastic polymer can balance the cost to reduce the financial burden due to extra stock of motors. Flow Chart for Existing Production Process of Riordian Electric Fans In above paragraph, few options have been considered for improving the existing production process of Riordian Electric fans. The key processes involved in the material plan requirements and the supply chain process in China manufacturing unit can improve the efficiency of production plan in cost effective manner. Lean production using just-in-time system can be very effective in operation processes along with better strategic planning for meeting the demand of customer. A supply chain for the electric fans The Supply Chain Management process is at the very center of all the core operational processes of a company. It plays the role of a central nervous system regulating the product flow by managing the associated information flow that runs through a company. It has very strong linkages with major core processes like product development management, purchasing management and customer relationship management. For instance, the linkage between the Riordian Electric fan development management process and the Supply Chain Management process is bi-directional: on one side, the product development process feeds the Supply Chain Management process with the electric fans introduction plans and engineering change notices on bill of materials and routings, while in return the Supply Chain Management process provides the product development process with the supply chain constraints that need to be considered when scheduling the development of fans, in order to make sure that these products will hit the market at the right time. It will provide the Riordan Manufacturing an edge in the market over other rival companies. (Chase, 2006). Outsourcing is one of the approach to offshoot the responsibility and decision criteria to other companies which can take care of the several components of the supply-chain. The inventory management process can reduce the cost of operating firm’s own distribution center from remote location which is huge relief in handling the logistics (Polakoff, 2009). Global product sourcing and mass customization is also one of the feasible options which provides the procurement process with the future purchasing requirements that have been derived from the demand and production plans, while the procurement process provides in return visibility on supply constraints – in other words quotas imposed by suppliers – that need to be considered to generate valid supply chain plans. It also reduces the cost of procurement which is available at lower price in other countries. â€Å"Companies must turn a resilient supply chain into a competitive advantage† (Industrial Week, p. 0, 2009). The supply chain process can concentrate on inventory management process in the system to fulfill the order requested (Chase, 2006). Riordan focuses on management of inventory from raw material to completion of finished product. It is necessary for tracking the quality and need of inventory in timely manner to extract optimum performance from supply-ch ain process. The network topology of supply-chain should be well-connected in identifying the adequate supply of materials for production of electric fans as well as forecasting the future production sales (Chase, 2006). The categorization of product helps in ordering the right amount of parts from the concerned supplier. The improvement in measurement process is deciding factor in raising the customer satisfaction index with sufficient cost reduction which is the primary objective of the Riordian business strategy. A production forecast for the Riordan electric fans The plant’s production forecast is based on the theory of moving averages. China’s manufacturing unit takes care of electric motors and plastic polymers required for production of fans. The demands for next year production are calculated on the basis of average sales for the last three years which is projected for the coming year (Riordan, 2006). This plant also takes care of customized version of electric fans for individual customer on small scale. The estimation of cost for planning, scheduling, production and delivery is based on order requirement of yearly production rather than forecasted early to meet the demands in effective manner. (Riordan, 2006). These products are supplied to US customers. Adoption of lean production process is supposed to be the best business strategy to respond to the market needs to introduce the right product at right time in right place with right quantity to follow perfect workflow of execution by reducing waste and flexibility to respond to the changes (Shields, 1999). An Implementation Plan for the Riordan Electric Fans [pic] Plan for Lean Production can be implemented in two phases. First phase will be called Project A which is duration of implementation for pilot project. It has been divided into four tasks. Task A1 will consist of team formation and top management approval with basic outline for project and definition of roles and responsibilities for the implementation of project. Task A2 consists of selection of tool for implementation for pilot project which will be used in Phase 2 also for Project B. Training on tools and requirement gathering for the lean production in China plant will happen between 19th February, 2010 and 18th March, 2010. Task A3 consists of actual implementation of Lean production applying JIT from 26th March, 2010 to 24th April 2010. Total quality management process is under Task A4. It will be the duration of quality control and troubleshooting in production support. Project B will be the actual implementation of Lean Production in the China Manufacturing plant on the holistic basis. It will follow similar process to pilot project A. Task B1 will be the extension of pilot project in real production environment which will require gathering of requirement for workshop between 19th March, 2010 to 14th April, 2010. Task B2 consists of implementation of functionality using JIT system from 16th April, 2010 to 12th June, 2010. Task B3 of TQM and maintenance will happen between 16th May, 2010 and 14th July, 2010. A Cover Letter detailing how you will coordinate aggregate operations planning and TQM for the Riordan electric fans Date:- Sender’s Address:- Recipient’s Address:- Dear CEO, We are pleased to introduce the proposal for implementation of Lean production and TQM for improving the Process Design of Riordan Manufacturing. There are various options to track the current operational process in the firm. The selection of right tools for Lean Production and quality can provide insight regarding the material requirement planning and strategy to meet the demands of periodic order besides the current forecasting based on yearly demand. There will be two phase of implementation. Pilot project will identify all the bottlenecks in the process of forecast demand and production plan to achieve the balance to satisfy the quantity of Riordian electric fans ordered by the customer. The final implementation will extrapolate the results of pilot project to forecast the demand of next year in optimal way. Defect prevention, quality issues, enhancement in production process, cost reduction and other project parameters will be captured by applying the concepts of six sigma using pareto charts and other relevant statistical measurement analysis. Please let me know your feedback on the proposal. If there are any changes required or suggestions for altering the structure, please e-mail me [email  protected] com or call me at XXX-XXX-XXXX. Sincerely, ——————- References Chase, Richard B. , Jacobs, F. R. , & Aquilano, Nichlas J. (2006). Operations management for competitive advantage (11th ed. ). New York: McGraw-Hill. Krajewski, Lee J. , & Ritzman, Larry P. (2005), Operations Management: Processes and Value Chains. Upper Saddle River, New Jersey: Prentice Hall. Shields, T. (1999). Tutorials – lean production / lean manufacturing. Defense Aquisition University. Retrieved September 23, 2009, from http://www. dau. mil/educdept/mm_dept_resources/navbar/lean/01rdg-lean. asp University of Phoenix (2009). Riordan manufacturing virtual organization. Retrieved September 23, 2009, from Apollo Group, Inc. , Week Four, OPS571- Operations Management. ———————– Order for plastic polymer from local supplier N END Produce the Riordan Electric Fan Is plastic polymer available? Use the motors for manufacturing Order the no of motors required for meeting the supply Is supply of Motors enough? Manufacturing of Electric Fans at Riordan START Y Y N Riordan Manufacturing They are a company they will strive to keep focus on what is important and to continue to create trainees as they are needed to continue to compete against rivals they have and to show how they can perform. Ordain Manufacturing is a company focused on being the leader in manufacturing polymer materials for companies like automotive and aircraft parts manufacturers and beverage makers and bottlers. Achieving and maintaining a healthy profit helps the company ensure that they have enough financial strength, and the right amount of employees available for sustained growth.Based on what they currently manufacture and market to and their goals the company Is Implementing a differentiation focus strategy. In the differentiation focus strategy, Ordain alms to set themselves apart from any competitors within all of their target market segments. The specialized needs of these segments mean that there are opportunities to provide products that differ from competitors who may be trying to targe t a broader group of customers. Ordain has already made some strides in expanding their operations globally with the acquisition of the China plant in 2000.The company should continue using the differentiation focus strategy to improve the innovation and sustainability of the business. If Ordain stays on track with providing new polymer products to meet the current and future needs of its customers as well as attracting new clients with those Innovations. It will help to ensure the future success of the company. Ordain Manufacturing Is a worldwide plastics manufacturer that employs more than 500 people. Ordain manufactures products such as plastic beverage containers, custom plastic parts in its plants in China.The company's mission incorporates in remaining a leader in the plastic industry and staying focused on identifying industry trends (Ordain Manufacturing, 2012). Ordain promised to produce quality by exercising Six Sigma ideas and surpassing ISO 9000 standards allowing the co rporation to produce the remedy for customers' requests instead of the problem. The achievement of Ordain Manufacturing rests within its knowledgeable employees and braced by an innovative and team openness work environment.The first key factor that provides Ordain a competitive advantage Is Its strategic planning. Strategic planning permits the company to malting a competitive advantage above Its competitors because the organization have the knowledge track trends and produce new and creative reduces. Ordain Corporation offers innovative products to companies in the meal Title Ana Department AT Detente. I Nils Detent TTS ten company Dye performing business as a one-stop company for customers who have several demands.Ordain research and development team produces unique designs and merchandises produced for the future such as a pyramid shaped bottle. The pyramid bottle revolutionized the industry, as Ordain possesses exclusivity (Ordain Manufacturing, 2012). Developing a special prod uct like the pyramid bottle permits the Ordain Company to sustain a competitive advantage. One more initiative for the company comprise of establishing environmentally friendly practices within the corporation.As the pressure to be environmentally friendly rises, Ordain has tackled the challenge and created a plan to aid the environment. Like Wall-Mart, going green is a movement forward with concern to Radian's social obligation and becoming environmentally friendly holds benefits for plastics companies. Areas that Radian's business strategy would be affected in the global market would be creating a PEST analysis to determine different aspects of the area they were considering expanding. A PEST analysis is an analysis of the environment's politics, their economy, and any technological trends in the area.Global marketing plans would be key elements in a global strategy. The plan would decide on the countries and even the means to concentrate their activities. Building up good loyal c ustomer support would be involved in these activities. Ordain would also have to investigate the financial aspect of global expansion. The company would have to determine that the necessary funds would be available for the expansion and also that the necessary employees would be available for training purposes in the new country. Riordan Manufacturing The company was founded by Dr. Riordan, a professor of chemistry he started Riordan plastics, Inc in 1991. Riordan Manufacturing is a global plastics, medical supplies, stents, automotive parts, appliance manufacture's parts, airplane parts, and beverage containers manufacturer. Riordan has 500 employees with a projected annual earnings of $46 million and a fortune of 1000 enterprises with revenues of $1 billion. Riordan Manufacturing has 4 worldwide locations Albany Georgia, Pontiac Michigan, Hangzhou China, and the company headquarters in San Jose.In the following paragraphs we will be describing formal and informal power structures, the effective organization structures, effects on employee behavior, the characteristics of employee behavior, potential sources, and a evaluation of Riordan Manufacturing. Formal and Informal Power Structures.Riordan Manufacturing is formed by a formal and informal power structures. Riordan, formal power structure was established in the corporation to recognized the organizational chart and legitimate power which correspond to the formal authority that controls organizational resources in the corporation. Riordan informal power is divided into individual departments, each department is led and managed by an employee who has more knowledge than others in that department.The power and political structure of Riordan Manufacturing influence their employees behavior by collaborating and involving certain levels of hierarchy requiring employees to influence their power and political structure with others in the organization to accomplish goals or desired effects and behaviors. Effective Organizational StructureAccording to â€Å"Riordan Tracking And Order System† (Copyright 2003, 2004, 2006  © by Apollo Group, Inc.). â€Å"The head office of Riordan Manufacturer's is in  San Jose, California and it has employed more than five hundred people having other companies in Georgia, Michigan, and China.† Riordan Manufacturin g goal is to instrument a development that will be used by all employees, the organizational structure is right for the operation of bureaucratic structure. This configuration will acknowledge the organization to regulate process across all levels of hierarchy. The advantage of bureaucratic structure includes a minimum duplication of personnel, equipment, and employees who have the chance to talk the same language. Effects on Employee BehaviorThe bureaucratic structure prepares simplicity and consistency in hierarchy. This forms the organizational command and sets prospects to all employees allowing them to remove any insufficiency of knowledge. A fear that most employees face is to be irritated with several levels of hierarchy especially if employees believe that they are not heard or appreciated. The characteristics that influences the corporate culture for the employee behavior in Riordan Manufacturing are integrity, ethics, and compliance. Moreover, the atmosphere that is not co ncrete to employees but with a concept that includes values or beliefs that a company cultivates over time.Corporate culture develop the company’s tasks and strategies, with long-term expectations of progresses in a company’s profit. However corporate culture also comes from a company’s top administration, older companies can develop a culture that may be different from the typically defined business concept. If the company have a strong culture may be possible to get all employees on the same page and make the company grow stronger than before the culture existed. Riordan Manufacturing, will change but also will develop strategies to manages resistance to change, the steps or areas that will be used to develop the change management right involve Capturing and leveraging the desire and optimistic emotion surrounding a change that may prevent resistance from happen.The next one is expect it, the company will Project employees and change management that way resist ance may be less expected. The company needs to address formally will be ready to prepare, manage, and Reinforce the change. Also will be important to identify the root causes, and engage the â€Å"right† resistance managers.Communication PlanIn Riordan Manufacturing, communication is a fundamental to raise the level of understanding implementation of a change. Delivering information is concerning the change successfully as a essential to use several proposals or media resources to transmit the same message and decide who will publicize Riordan Manufacturing need for change. CEO and President, Dr. Michael Riordan is the most efficient communicator.Employees need to hear about the upcoming changes from their direct supervisor. The largest problem is to develop written messages that will describe organizational values and principles, setting expectations for employees to complete strategies, meet expectations, and accomplish organizational goals. The implication should clarify the upcoming change, the process of the change, the responsibility of all employees, and the operations of this modification. Appropriate ChannelsThe following step will clarify communication channels. Riordan Manufacturing directs in United States and China, and as a result arranging face-to-face communication is moderately difficult. In addition to the development of advance technology Riordan Manufacturing can use the internet, e-mail, online meetings, and meetings to communicate the approaching modification.Potential BarriersThe preliminary communication requires a mechanism to discover potential paths of resistance to benefit employees with their surveys or assessments allowing leadership to establish how each employee obtain the message including the issues of the employee throughout the development stage. An example, the struggle to change may be provoked by the conflicting message.Employees will question the development process or challenge. That is why it's important for ma nagement team to be consistent with the way they communicate towards their employees. Alongside, it is an opportunity to control the barriers that block individuals to communicate effectively. A different barrier that is effective to communication is overload information. Once a received message has too much data or is printed in a language hard for the receiver to comprehend the barrier will be ignored. To  prevent the problem the message should be brief and to the point.Riordan Manufacturing change from face to face communication to uses the advance communication like internet, email, and online meetings. this areas may be affect because the communication face to face is more specifically and better expresses with gestures and tone, and the message can be well deliberated, instead with this recently change the communication can be misunderstood. With an email it may create confusion by the way is read. Riordan find the need from the change because is really hard to travel to chi na frequently to discusses different themes and issues that require quickly respond, also because is more easy to send an email with an answer about a minimum problem and discusses the new ideas over an online chat or meeting, Managers will compromise to take visits to china to once an while to discuss important data that requires specific attention.