November 1, 2012
Riordan Manufacturing Production Plan
Riordan Manufacturing, Inc. is a fortune 1000 company with revenues in excess of $1 billion (University of Phoenix, 2012). This wholly owned company is a global plastics manufacturer that employs 550 people with annual earnings of $46 million. Riordan has a reputation for being an industry leader in the industry of polymer materials and has various clout heavy clients such as the Department of Defense and major automotive companies. The company recently went global by relocating its Michigan operation of fan manufacturing to China. This paper will explain lean production and capacity planning for the new process design and supply chain process for Riordan. Strategic Capacity Planning
The goal of strategic capacity planning for Riordan Manufacturing's is to maximize the level of output and return of investment. Riordan Manufacturing's should create a small sister plant to China in Michigan. If we are able to create a scaled down version of the plastic molding machines from the China plant, the plastic polymers safety storage from this facility can become the regular shipment to the Michigan facility. By creating the Michigan mini-facility Riordan Manufacturing could shift the smaller customized fan orders manufacturing and excess polymer inventory from the Hangzhou facility. By reinvesting in the Michigan facility and the United States economy, Riordan Manufacturing will be better equipped to meet the clients demanding more from Riordan’s Pontiac, Michigan location. It is clear that the China plant sustains an efficient delivery rate and maintains ample safety stock of polymer material. The Hangzhou China plant has a sufficient supply of plastic polymer because the raw material can be purchased locally. “Customers normally negotiate their yearly requirements for fans in order to obtain the lowest price. They then...