August 30, 2011
Dr. Larry Rhodes
Date: August 30, 2011
Sender’s Address- 1200 Phoenix Ave.
Columbia, SC 29223
Recipient’s Address- 3532 San Juan Rd.
San Jose, CA 90210
Dear Chief Executive Officer,
We are pleased to announce our proposal for implementation for improving the Riordan Manufacturing process design of the electric fans!
With our expertise in materials requirements planning, supply-chain, and forecasting, we are able to provide a professional experience on total quality management. There are different areas of implementation that can be used as a template on future products if expansion is an option. All areas listed in this package will provide a synopsis of our total quality management applying different concepts which will allow optimal production.
Please let us know of your feedback of this proposal. If there are additional questions or comments please feel free to contact is by email at email@example.com or 803-555-0987.
Cornelius Bowman, Jennifer Buie, Fred Harris, Willie Hill, Wesley Scott
Proposal Package for Riordan Manufacturing
The proposal discusses the process design of Riordan Manufacturing’s electric fans. This package will explain the material requirements planning on when to place the order, the amount of inventory needed, what vendors to order from, and when the items need to be available. The package will also show a new process design that feeds off of historical data. The supply chain for the electric fans or the core of the process will provide an optimal solution to bottlenecks on supply-chain concepts. Forecasting for the production of the fans will give insight as to what would be the necessary steps to take for future production. The implementation plan will provide an overall functionality of the package along with a cover letter explaining how to coordinate aggregate operations planning and TQM for the electric fans. The MRP for the manufacturing of the Riordan electric fans
Riordan Manufacturing is a leading worldwide manufacturer of plastics with revenues in surplus of $1 billion. Riordan’s current goals are to increase stated sales objective by increasing sales to existing customers and expand sales to new customers. Riordan’s operation functions include ordering raw material, storing, and shipping the completed product to customers. At the China location, Riordan manufactures fans based on customers demand. Using a T1 line, Riordan has 40 computers accessible to the Internet and a separate satellite line for connection with main headquarters. With the vast improvements in logistics, the China location should be operating at 100 %, instead of depending on a supplier that has a 93% on time delivery rate. To aid in calculating the amount of inventory needed at any given time, inventory planning systems such as material requirement planning (MRP) is better suited for the China operation. The main purposes of a basic MRP system are to control inventory levels, assign operating priorities for items, and plan capacity to load the production system. The theme of MRP is “getting the right materials to the right place at the right time.” The receiving depart for the China location accepts delivery of material for many different areas. The molding, trimming, packaging, and shipping departments receive their raw materials and products from the receiving department. With the facility located in Hangzhou, the final assembled product is packaged and shipped by commercial carrier from the Shanghai Port. In a memo from Hugh McCauley, there are plans in the making to relocate their operations to Shanghai which would greatly reduce the additional logistical steps in the process. The material requirements planning is a computerized system use to managing dependent demand inventory, replenishment orders, and making sure the demand for end items are met according to...