Production Plan for Riordan Manufacturing

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Production Plan for Riordan Manufacturingr
University of Phoenix
OPS/GM 571: International Operations Management

September 14, 2010

Production Plan for Riordan Manufacturing
Riorden Manufacturing Incorporated is a global plastic manufacturing company that employs 550 people with annual earnings of $46 million. Riorden has several plants in different parts of the country and overseas with a corporate headquarters in San Jose California. The company’s major customers are automotive parts manufacturers, aircraft manufacturers, department of defense, beverage makers, and bottlers. Riorden wants to introduce a new process that improves production of electric fans in Hangzhou, China. In this paper we will discuss a clear description of Riorden’s strategic capacity planning, and identify a lean production technique that address’s possible bottlenecks. Then offer solutions for correcting the bottlenecks, and describe the supply chain concepts.

The strategic capacity planning provides an approach for determining the capacity level of capital intensive resources facilities, equipment, and labor force size that best supports the company’s long-range competitive strategy (Chase, Jacobs, & Aquilano p. 431). There are three capacity planning methods that Riorden should follow that will measure what type of work is needed for the manufacturing in China. The types of capacity planning are duration’s of long, intermediate, and short range. The long range duration determines the acquisition of buildings, personnel, and facilities. The intermediate range determines the hiring’s, layoffs and minor equipment purchases. The short range eliminates the variance between planned and output.

The capacity Riorden uses are the quantity of fans produced in the manufacturing system over a period. The capacity planning will be predicted on sales for the products in the production line from a weekly, monthly, and quarterly standpoint. The ability to maintain a balance of capacity, the output of one stage is needed to have the exact input requirements for the next. The measure of labor and machine requirements over the planning horizon can be measured by the balance of capacity. The actual capacity utilization figure can be calculated by the actual capacity used, which is the rate of output actually achieved, and best operating level, which the process was designed for.

Production Plan
Riordan Manufacturing plans to introduce a new process which improves progress in the production of electric fans in Hangzhou, China. There will be several changes throughout the plant that will need to be implemented before this can be done. In this plan, we will discuss Riordan’s strategic capacity planning, identify a lean production technique, identify possible bottlenecks and solutions, and describe supply chain concepts.

Strategic Capacity Planning
The strategic capacity planning provides an approach for determining the capacity level of capital intensive resources facilities, equipment, and labor force size that best supports the company’s long-range competitive strategy (Chase, Jacobs, & Aquilano p. 431). There are three capacity planning methods that Riordan should follow that will measure what type of work is needed for the manufacturing in China. The types of capacity planning are durations of long, intermediate, and short range. The long range duration determines the acquisition of buildings, personnel, and facilities. The intermediate range determines the hiring’s, layoffs and minor equipment purchases. The short range eliminates the variance between planned and output.

The capacity Riordan uses is the quantity of fans produced in the manufacturing system over a period. The capacity planning will be predicted on sales for the products in the production line from a weekly, monthly, and...
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