Guillermo Furniture Store Analysis

Production Plan for Riordan Manufacturing, Inc

Tamara La’ Bordeaux, Mabel Ileogben, Terry Powell, Tyrone Sheffield

Operations Management 571

February 10, 2010
Dr. Robert Amason

      Production Plan for Riordan Manufacturing, Inc Riordan Manufacturing wholly owned by Riordan Industries with revenues in excess of $1 billion, Riordan Manufacturing is a global plastics producer with projected annual earnings of $46 million.   Riordan production is divided among three plants in Albany, Georgia; Pontiac, Michigan; and Hangzhou, Chain with research and development, and corporate headquarters located in San Jose, California.
      Riordan’s production divisions include plastic beverage containers, custom plastic parts, and plastic fan parts with major customers in the automotive parts, aircraft, and appliance manufacturing industries, and beverage makers and bottlers, and the department of defense one of the company major customers (Apollo Group, Inc, 2006).   This document analyzes Riordan’s electric fan production process currently in use at the Chain plant, and proposes a new supply Chain procedure and process design to include strategic capacity planning and lean production.   Riordan current process as a decentralized unit manufactures electronic fans for sale to purchasers around the globe.
Lean Production
According to Chase, Jacobs, and Aquilano, lean production is an integrated set of activities designed to achieve high volume production using minimal inventories of raw materials, work in process, and finished goods (Chase, Jacobs, & Aquilano, 2008).   In addition, lean production is based on the logic that nothing will be produced until it is needed.   Production need is created by actual demand for the product.
Just in time (JIT) is the backbone of the lean production system.   JIT purchasing aims in making sure all the required raw materials are in house when they are required.   Manufacturing the goods when they are needed is the aim...