University of Phoenix
OPS 571
August 01, 2010
Introduction The proposal package for Riordan will handle every step for electric fans from the beginning through to the production. The proposal package will give an outline of designing a new process to remove the bottleneck to optimize the process to meet the demands of the customer with the use of the supply chain concepts. A production forecast and a plan for lean production with use of Gantt charts (see Appendix A) will be discussed. A cover letter will be attached detailing how Team D will coordinate aggregate operations planning and TQM for the Riordan’s electric fan plant in China.
MRP System The China plant at Riordan decided …show more content…
The Riordan Manufacturing plant in China produces electric fans and distributes them worldwide and needs to implement a more agile supply chain process in order to reduce costs and increase profitability. To make the production of electric fans more efficient, Riordan must put in place an EDI and VMI system, change the levels of inventory that are carried and implement mass customization procedures using the Pontiac, Michigan distribution …show more content…
The ideal philosophy of forecasting is to create the best one possible and have a defense in place by maintaining flexibility in the system to account for any forecast errors (Chase, Jacobs, & Aquilano, 2006). Forecasting is an important part of any planning; in the short term forecasting is used to predict materials, products, services, or other resources. This will allow schedule and labor changes for that of the demand. In the long term forecasting is used as a basis for strategic changes such as developing new markets, products, services, or for expanding or creating new facilities. The market for electric fans is affected by the changing economy. Riordan’s major customers will be affected and should be analyzed to determine how the economy will affect the future of Riordan (Apollo Group, 2004). A time series analysis should be used, based on the history of the last three years to predict the future production. Since, the demand is not growing or declining rapidly a moving average can be used by using an average of the previous years’ demand, giving each year equal value (Chase, Jacobs, & Aquilano, 2006).
Implementation