Suppy Chain Design
Supply Chain Design Paper
OPS 571
February 4, 2014
Riordan Supply Chain Design Report
Riordan Manufacturing is a global plastics manufacturer that supplies plastic fan parts, and plastic beverage containers. The products are produced at different plants around the world. Riordan uses level strategy for their employees. This means that the organization manages to keep a steady labor force at a consistent rate. Riordan’s lost sales, backlogs, and fluctuating inventory levels help to eliminate shortages and surpluses. Full time employees are offered health, dental, and life insurance for themselves and their dependents. They are also offered flexible work schedules, 401k savings plans, paid vacation, holiday pay, and educational assistance/tuition reimbursement.
Process Flow Diagram
Below is a process flow diagram for the electric fan supply chain. The diagram roughly depicts the steps employees take when ordering and producing the fans.
Performance Metrics
Two metrics used in Riordan Manufacturing are make to stock, which is when a company has a standard product made and ready to deliver quickly. Another metric used by the company is productivity, which is the ratio of output to input.
Supplier Relationship
The supplier relationship for fans is that motors for the fan arrive preassembled. Riordan has the plastic injection molds to create the housing for motor of the fan. The factory that produces the plastic is in China. The motors are also produced and assembled by another company in China that delivers to the factory. The factory in China has 249 employees. 238 of which are production employees. On-time delivery is a metric used to ensure that orders are delivered in a timely manner. One goal for supplier improvement strategies is to leverage enterprise wide supply chain processes and systems. Another method that can be used is to simplify the organizational process within the company to help save time and money
OPS 571
February 4, 2014
Riordan Supply Chain Design Report
Riordan Manufacturing is a global plastics manufacturer that supplies plastic fan parts, and plastic beverage containers. The products are produced at different plants around the world. Riordan uses level strategy for their employees. This means that the organization manages to keep a steady labor force at a consistent rate. Riordan’s lost sales, backlogs, and fluctuating inventory levels help to eliminate shortages and surpluses. Full time employees are offered health, dental, and life insurance for themselves and their dependents. They are also offered flexible work schedules, 401k savings plans, paid vacation, holiday pay, and educational assistance/tuition reimbursement.
Process Flow Diagram
Below is a process flow diagram for the electric fan supply chain. The diagram roughly depicts the steps employees take when ordering and producing the fans.
Performance Metrics
Two metrics used in Riordan Manufacturing are make to stock, which is when a company has a standard product made and ready to deliver quickly. Another metric used by the company is productivity, which is the ratio of output to input.
Supplier Relationship
The supplier relationship for fans is that motors for the fan arrive preassembled. Riordan has the plastic injection molds to create the housing for motor of the fan. The factory that produces the plastic is in China. The motors are also produced and assembled by another company in China that delivers to the factory. The factory in China has 249 employees. 238 of which are production employees. On-time delivery is a metric used to ensure that orders are delivered in a timely manner. One goal for supplier improvement strategies is to leverage enterprise wide supply chain processes and systems. Another method that can be used is to simplify the organizational process within the company to help save time and money
References: Apollo Group, I. (2013). Riordan Manufacturing. Retrieved Febuary 1, 2014, from https://ecampus.phoenix.edu/secure/aapd/cist/vop/Business/Riordan/index.asp. Chase, Richard B., Jacobs, F. R., & Aquilano, Nichlas J. (2006). Operations management for competitive advantage (11th ed.). New York: McGraw-Hill. Jacobs, F. R. (2011). Operations and Supply Chain Management (13th ed.). Boston, MA: McGraw-Hill Irwin. Krajewski, Lee J., & Ritzman, Larry P. (2005), Operations Management: Processes and Value Chains. Upper Saddle River, New Jersey: Prentice Hall. Shields, T. (1999). Tutorials - lean production / lean manufacturing. Defense Aquisition University. Retrieved September 23, 2009, from http://www.dau.mil/educdept/mm_dept_resources/navbar/lean/01rdg-lean.asp