Process Design

Process Design for Riordan Manufacturing
Kenneth Ross
Operations Management
Dr Tug Gokaydin
August 18, 2010

This paper proposes a new process design for Riordan Manufacturing electric fan operation.   The focus is on improving the materials requirement planning (MRP) and supply chain management for global customers; with emphasis on reducing labor and production costs. There is an analysis of the current process and production plan for electric fans. The new process focus is effective use of MRP and supply chain to produce a quality product for the customer. I included a production forecast, implementation plan, and a Gantt chart of the new process. Also provided a cover letter addressing aggregate operations plan, and continuous improvement methodology for Riordan electric fans.
Process Design for Riordan Manufacturing
Materials Requirement Planning for Manufacturing Operations
The Riordan manufacturing facility located in Hangzhou, China is a decentralized plant that produces electric fans for numerous appliance manufacturers worldwide.   There production requirements are based on sales forecast from the previous year. If there was an anomaly or economic crisis in the previous years that could skew the computation and accuracy of the projected data, and cause the company to overstock or under stock the inventory.
The electrics motors and plastic polymers for the fans are procured locally and they produce and stock an adequate amount of plastic fan parts for assembly in this make-to-stock operation of electric fans. They store the finished product in the warehouse for future orders.   The on-time delivery of the electric motors to the plant is only 93 percent; and this impacts the productivity of the operation. There is definitely an opportunity to improve this process and increase the on-time delivery from the local manufacturers to 99 percent.
The plant also makes custom fans; however they do not forecast for these items...