Process Design Proposal Package
Riordan Manufacturing is in need of a new process for its manufacturing of electric fans. With potential bottlenecks from the current process, both time management and expenses have been suffering. Many factors have been taken into consideration with the new innovative process. With the utilization of the new process it is not only going to be time saving but also will illustrate overall revenue growth. The proposal will include many implementation ideas that are going to contribute to the future success of Riordan Manufacturing:
• A cover letter detailing aggregate operations planning and TQM for Riordan Manufacturing • A new process design for the production of Riordan electric fans • A supply chain for the electric fans, taking advantage of any global opportunities available to Riordan Manufacturing such as lower labor costs • A production forecast for the Riordan electric fans
• An implementation plan, including a Gantt chart
• The MRP for the Manufacturing of the Riordan electric fans
New Process Design
Riordan's new process design will consist of three process improvements. The first will improve the efficiency between Riordan and their parts vendor in China. The second improvement will be to implement a just-in-time manufacturing system. The final improvement will be to pursue opportunities to recycle and minimize waste to adhere to industry corporate social responsibility standards. Riordan's local vendor's on time rate is currently 93% which is below industry standards. To improve the vendor's on time rate Riordan will require that the vendor invest equally in an ordering system upgrade that will benefit both organizations by increasing the order and delivery systems efficiency. The new ordering system will link both organizations in order to communicate demand for plastic polymers instantaneously when an order is inputted into the system.
This ordering system upgrade is the first of many process improvements that will be identified during the implementation of the just-in-time inventory system. Riordan will analyze industry best practices to determine the best approach and process improvements necessary to successfully transition to a just-in-time inventory system. The just-in-time inventory system will improve Riordan's production rate, reduce inventory and storage space needs
Finally, Riordan will create a task force that will pursue recycling opportunities. The task force will research recycling methods that are consistent with industry standards. They will look at opportunities to market the organization as a green facility, pursue government tax benefits and reach out to the community as a socially responsible partner. Supply Chain/Global Opportunities
Hangzhou, China is the location of the production plan for the electric fans that Riordan Manufacturing produces. Due to the low cost of production that it requires by having the plant in China versus locally in the United States, Riordan is already on the right track for operating at maximum profit by minimizing all costs possible. By outsourcing the polymer production and fan engine production, Riordan is able to reduce costs and raise profit of their Hangzhou plant. Their next step after receiving the polymers and engines from local companies through their just in time order programs on the computer, they use their production capabilities to produce the fans and then when completed, they ship out using FedEx or the Chinese international shipping company, whichever is able to offer the lowest price and fastest service for the order. This all depends on the polymer and engine producer being involved in the network of receiving an order demand to Riordan and instantly getting the request for the correct amount of product. This would change from their current out of the loop setup. Riordan would...