Riordan Manufacturing’s electric fan production plant is continually analyzing its strategies. Process flows, performance metrics, supplier relationships and supply chain efficiencies, lean production principles, and sales forecasting are essential to the success of Riordan. The company uses reports and plans for material acquisition, production, and scheduling in its manufacturing facilities.
Riordan’s Manufacturing Strategy
Riordan’s manufacturing strategy is a stable workforce for two reasons; first, “it schedules production of fans to meet the forecasted sales” and the forecast is calculated by “taking the average of sales for the last three years and extrapolating it into the next year” (Riordan Mgf. Operations - Supply Chain (Hangzhou, China), 2014). Second, according to the Riordan’s Employee Turnover Report 2009-2012, the actual percentage of involuntary separations has decreased from 3.4% in 2009 to 2.0% in 2012. This marginal decrease in involuntary turnovers indicates Riordan is maintaining a stable workforce. Riordan benefits from this strategy because “this strategy provides workforce continuity and avoids many of the emotional and tangible costs of hiring and firing associated
References: Cash Conversion Cycle (CCC) Definition | Investopedia. (2014, January 9). Retrieved from Investopedia - Educating the world about finance: http://www.investopedia.com/terms/c/cashconversioncycle.asp Chase, R. B., & Jacobs, F. R. (2011). Operations and Supply Chain Management, 13e. Boston: McGraw-Hill Irwin. Fax Sent From Robert Lord To Mark Neitzel. (2014, January 10). Retrieved from Riordan Mfg.: Home: https://ecampus.phoenix.edu/secure/aapd/CIST/VOP/Business/Riordan/docs/Operations/RioChinaFax001a.pdf https://ecampus.phoenix.edu/secure/aapd/CIST/VOP/Business/Riordan/docs/HR/RiordanEmpTurnoverSur2012.pdf. (2014, January 9). Retrieved from Riordan Mfg.: Home: https://ecampus.phoenix.edu/secure/aapd/CIST/VOP/Business/Riordan/docs/HR/RiordanEmpTurnoverSur2012.pdf Riordan Mgf. Operations - Supply Chain (Hangzhou, China). (2014, January 9). Retrieved from Riordan Mfg.: Home: https://ecampus.phoenix.edu/secure/aapd/CIST/VOP/Business/Riordan/Ops/SupplyChain.asp?hangzhou Soares, M & Vieira, G. A new multi-objective optimization method for master production scheduling based on genetic algorithm. (June 2009). International Journal of Advanced Manufacturing Technology, 41(5/6). Retrieved January 4, 2014 from EBSCOhost database.