Riordan Production Plan
Understanding the various components of a production plan is essential to a balanced operations strategy. Unexpected variations in the plan can result in bottlenecks and costly inventory excesses (Aquilano, Chase & Jacobs, 2006). This essay will discuss two production plan components, strategic capacity planning and lean production, for the new process design and supply chain process for the electric fans at Riordan Manufacturing. Production Plan Overview
Part of the master production schedule (MPS), the production plan is a collection of (hopefully) synergetic process plans designed to ensure the efficient procurement, processing, and production of goods (Aquilano, et. al., 2006, p. 560-564). Essentially, the production plan is the tangible counterpart to the more philosophical, or strategic, business plan. The production plan is the definition of the "nuts and bolts" of the organizations and will ensure that the objectives and strategies of the business plan are met. In the case of Riordan Manufacturing, a producer of multiple goods, the production plan is critical to the success of the organization. Recent changes to the production plan, specifically the process design and supply chain strategy, for the production of electric fans were intended to increase profits in this area (University of Phoenix, 2006). In keeping with known successful business operations behaviors, the changes made need to be analyzed to ensure the changes are having the intended effect.
Aquilano, N.J., Chase, R.B., & Jacobs, F.R. (2006). Operations management for competitive advantage (11th ed.). Retrieved from The University of Phoenix eBook Collection database. University of Phoenix. (2006). Riordan Manufacturing simulation [Multimedia]. Retrieved from University of Phoenix, OPS571-Operations Management website.