Riordan Manufacturing is an industry leader in plastic injection molding. State-of-the art design capabilities, and creative innovative plastic designs; have earned the Riordan international acclaim (University of Phoenix, 2006). Riordan Manufacturing is planning to implement a new process for its electronic fan manufacturing. This process was created employing capacity planning to ensure the optimization of resources. Riordan will be able to eliminate bottlenecks within the inventory and pass on savings to the customer. The gains from efficiency will ensure Riordan’s competitive advantage. The enclosed proposal package for Riordan Manufacturing will include; a cover letter detailing how Riordan can coordinate Aggregate operations planning and TQM for their electric fans, MRP, New Process Design, Supply Chain, Production Forecast, and an Implementation plan including a Gantt chart.
August 18, 2011
PO Box 1234
Troy, MI 48076
Dear Dr. Riordan,
“The aggregate operations plan is concerned with setting production rates by Product group or other broad categories for the intermediate term (3 to 18 months)” (Chase, 2006). The goal over the next 18 months is to develop a system that will allow for the production of Riordan electric and personalized fans; offered at their China location, to become a more stream line process and adopt more of a just-in-time manufacturing approach. “The aggregate plan precedes the master schedule. The main purpose of the aggregate plan is to specify the optimal combination of production rate, workforce level, and inventory on hand” (Chase, 2006). Production rate refers to the number of units completed per unit of time (such as per hour or per day). Workforce level is the number of workers needed for production (production = production rate × workforce level). A new process plan for implementation and improving the Process Design of Riordan Manufacturing is enclosed. Material Resource Planning (MRP)
Through the years, manufacturing resource planning (MRP) has evolved to become a staple in successful operations management. While initially only designed to forecast materials required for production, the growth of computer programs has allowed the system to expand immensely and includes both materials and resources planning. MRP systems currently encompass the entire manufacturing process from order entry to production scheduling. MRP is a logical approach that addresses the problem of determining the type and quantity of materials needed for Riordan Manufacturing to efficiently produce their standard electric fans. This type of system, however, is not applicable for manufacturing of their custom designed fan. MRP provides the most value to industries that produce a large number of the same products and is suitable for Riordan’s current assemble-to-stock operation (Chase, Jacobs & Aquilano, 2006).
Because Model X is the most commonly produced fan, the following example outlines a sample MRP for manufacturing 100 of the Model X standard fan. Model X fan consists of five parts total. This particular model is made of two of part number one and three of part number two. Part one is made up of one of part number three and two of part numbers four. Part number two is made of two part number three and two of part number five. The quantity of material needed for production of Model X is outlined in Table 1.1. Next, Table 1.2 outlines the Riordan Material Requirements Plan that includes factoring of lead times.
Table 1.1 Quantity of Parts Needed for Production of Model X Part Number | Equation| Calculation| Quantity Needed| Part # One| 2 x number of Model X| 2 x 100| 200| Part # Two| 3 x number of Model X|...