Riordan Process Design

Running head: PROCESS DESIGN FOR RIORDAN MANUFACTURING

Process Design for Riordan Manufacturing

Nilesh Shah

University of Phoenix, Operations Management

Professor Gabriel Pulido-Cejudo

March 29, 2010

      Abstract

      Riordan Manufacturing Inc. is quality manufacturer of various plastic products, predesigned and custom made electric fans with state-of-the art designing and manufacturing capabilities in U.S.A. and China. Riordan Manufacturing Inc. is a fortune 1000 company with revenue in excess of one billion. Main goal of Riordan is to achieve Six Sigma or total quality management, new proposed package of process design will help Riordan to achieve its goal. Paper starts with material requirement plan (MRP) for the manufacturing of the Riordan electric fans, a new process design for the production   with a new supply chain and any global opportunities available for lowering labor costs. From week three onwards team C was brainstorming and yielded the following process for improvements for fan manufacturing.

      Material Requirement Plan

      China plant is using electric motor, fan blades, fan houses and other miscellaneous parts to manufacture standard as well as customize electric fans. Manufacturing fans is make-to-stock operation that blocking company‚Äôs financial resources by way of inventories because it is not sold immediately. Riordan with the help of   bill of materials, inventory records and   database records a computer application can be develop that will give the number of components required to manufacture the particular quantity of fans. Currently inventory reporting is done after the material is taken out to manufacture that makes system slow with possible errors. Another issue with the current system is it create backlog to update the inventory system and which may result in out of stock situation. With new MRP inventory operations inventory transactions such as work order material issues, work order material receipts,...