Savita Boutot, Ken Eakin, David Hill, Nicole Hugley, Julie Hunt, Candice McDonald
January 10, 2011
Ziad Simon Kassis
Riordan Manufacturing Production Plan
Riordan Manufacturing is a company that uses plastic injection molding to manufacture plastic bottles, fans of all sizes, heart valves, medical stents, and custom plastic parts. It has state-of-the art design capabilities to produce plastic product that have earned the company international status and made Riordan an industry leader. The company founded in 1991 by Dr Riordan, a professor in chemistry, and currently employs 550 people with projected annual earnings of $46 million. Riordan has a plant in Albany Georgia that produces plastic beverage containers, one in Pontiac Michigan that manufacturers custom plastic parts, and a plant in Hangzhou China that produces plastic fan parts. Riordan is planning on moving the China location from Hangzhou to Shanghai that will result in significant cost savings resulting from shipping expense. In Shanghai the product can be loaded directly to shipping containers and bypassing the current shipping expense from Hangzhou to Shanghai thereby improving the supply chain process for electric fans. One Riordan’s major areas of focus are six sigma and emphasizing lean production. The company is planning on a new process design and supply chain process to improve on strategic capacity planning for the electric fans.
Strategic Capacity Planning
“The objective of strategic capacity planning is to provide an approach for determining the overall capacity level of capital-intensive resources—facilities, equipment, and overall labor force size—that best supports the company’s long-range competitive strategy.” (Chase, Jacobs, & Aquilano, 2006, p. 431) In business terms, capacity equals the maximum level of output, or in the case of Riordan, the highest number of fans that can be produced in a...