Riordan Electric Fan Proposal

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Riordan Electric Fan Proposal

Riordan Electric Fan Proposal
Olla S. Bartlett, Darjae Johnson, Thomas Williams
University of Phoenix
OPS/571
22 March 2012
Mahesh Singh



Riordan Electric Fan Proposal
Riordan Manufacturing manufactures many different plastic items ranging the gambit from medical devices, to bottles to electric fans. In the last year the Hangzhou plant has averaged 93% in its on-time deliveries (Apollo Group Inc., 2012). This proposal package will detail a plan for obtaining Riordan’s goal of 99% on-time delivery of the electric fans and reduce the on-hand stock of inventory to reduce costs (Apollo Group Inc., 2012). The proposal will detail a Materials Requirement Plan (MRP), a new process design for the fans, an estimated production forecast determined by past sales, and an implementation plan detailing the timeline for implementing the changes. Materials Requirement Plan

The MRP is designed to manage resources in a manufacturing environment (Chase, Jacobs & Aquilano, 2006). MRP systems assist companies in scheduling production of inventory and assist in scheduling delivery of parts needed to complete the production in a timely manner. As previously stated Riordan’s Hangzhou plant is having difficulty in delivering fans in accordance with the company’s goal of 99% on-time delivery. An efficient MRP is the first step in reaching this goal. The Hangzhou plant produces electric fans for Riordan. The plant manufactures the plastic fan blades and housings. Materials to produce the plastic components and the electric motors for the fans are acquired from local suppliers. Requirements

A MRP system takes inputs such as a master production schedule, inventory records and the bill of materials and correlates this information into a cohesive plan to schedule the requirement needs for raw materials and products and schedules production to facilitate producing the required amounts of the manufactured product. To do this we first determine the products produced and how many are required and when they are required. Riordan produces approximately 7200 of each fan type for sales each year. The demand for the fans is higher in the summer months of the northern hemisphere. A master production schedule was produced to project the amounts of fans Riordan needs produced during each month. FANSJanFebMarAprMayJunJulAugSeptOctNovDec

Cooling
120mm3003003003001200120012001200300300300300
250mm3003003003001200120012001200300300300300
80mm3003003003001200120012001200300300300300
140mm3003003003001200120012001200300300300300
92mm3003003003001200120012001200300300300300
360mm3003003003001200120012001200300300300300
Desk
100mm3003003003001200120012001200300300300300
180mm3003003003001200120012001200300300300300
300mm3003003003001200120012001200300300300300
400mm3003003003001200120012001200300300300300
Personal
25mm3003003003001200120012001200300300300300
Window
3003003003001200120012001200300300300300

Riordan not only produces this large variety of fans but they also produce the fans in a variety of colors. Percentage amounts are determined based on historic sales. Fan Colors and estimated amounts:

Red – 30%
Blue – 30%
Green – 15%
Purple – 5%
Yellow – 15%
Orange – 5%
The next step for the MRP system is to determine the bill of materials (BOM) needed to produce a given item. All fans are built using the same basic parts just in varying sizes. The BOM shown below is the example for a 120mm Cooling fan. There is a BOM created for each item produced and it details all the raw materials and products needed to produce a fan.

According to past performance the average time to produce any given fan model is...
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