Running Header: PROPOSAL PACKAGE
Stephen J Kiser
University of Phoenix
March 22, 2010
The goal is over the next 18 months to develop a system that will allow for the production of both our generic electric fans and personalized fans offered at our China location to become a more stream line process and adopt more of a just-in-time manufacturing approach. In order to make this process a reality the IT department will sent a request to develop an automated ordering system that will allow for quick and accurate tracking of inventory level and ordering of new inventory. The IT department will also be requested to order new bar coding systems that will allow for all merchandise and raw materials to be bar coded, and will decrease the time needed to verify new shipments. The suggestion will also be made to supplement the supply chain by adding an additional provider of electronic fan motors since the company currently being used does not have a perfect track record of dependable on time deliveries of needed inventory. Supplementing this provider will increase the successfulness of the company’s change from a stock-to-market approach to a just-in-time manufacturing approach.
Materials Requirement Plan
Materials Requirement Planning is an integral part of any manufacturing based business. According to The Free Dictionary’s definition of materials requirement planning is that this system “provides the user with information about timing (when to order) and quantity (how much to order), generates new orders, and reschedules existing orders as necessary to meet the changing requirements of customers and manufacturing” (2009). This definition of materials requirement planning illustrates the importance of having an excellent system in place to make certain that ordering needed materials is done in an orderly fashion that allows for the needed materials to be on hand, but will not result in an instance of having excessive amounts of inventory in stock that will need to be held for long periods of time, or that may not be used at all. For this reason Riordan needs to develop a strategy that will allow for a computerized inventory system to be utilized, which will allow for ordering to be done when materials reach a certain point so that the company doesn’t experience any down time due to insufficient amounts of inventory. One method that can be utilized to increase the efficiency in the current method of shipping and receiving raw materials would be to have a computerized system that automatically orders materials bases on sales projections entered into the system by the shipping supervisor. When orders are received the current technique is to have all orders checked first by the shipping supervisor and then unloaded by a team of employees. However, this could be streamlined as well and each incoming package be labeled with a bar code that the unloading team could then scan and after the truck had been completely unloaded the computer system would then compare what was ordered to what was received and make adjustments accordingly.
New Process Design for Production of Electric Fans
Currently Riordan produces the electric fans at the plant located in China. This allows for the company to utilize the cheaper resources and labor that is associated with this area. Currently the process that is utilized is that the plastic polymers used in the production of the fans are bought locally, along with the completed fan engines that will power the electric fans. The plant in China then injects the plastics into molding machines that create the various plastic parts that will be used in the completed project. Once the products are completed the plant will then ship these electric fans to anywhere in the World through use of FedEx. This process design for the production of the electric fans is sound and seems not to have any negative effects associated with this process. The...
References: Riordan Manufacturing. (2009) Intranet. Retrieved March 20, 2009 from https://ecampus.phoenix.edu/secure/aapd/cist/vop/business/riordan/RioMfgHome002.htm
The Free Dictionary. (2009). Materials Resource Planning. Retrieved March 20, 2009 from http://encyclopedia2.thefreedictionary.com/Material+Resource+Planning
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