Week 4 Ops 571


Production Plan for Riordan Manufacturing
June 28, 2010

Production Plan for Riordan Manufacturing
Riordan Manufacturing is a global plastics manufacturer specializing in “plastic beverage containers, custom plastic parts, and plastic fan parts. The company’s goal is to maintain the industry leaders in using polymer materials to provide solutions for their customer’s challenges” (University of Phoenix, 2004). The company’s new product development of parts are researched and developed at the company’s corporate headquarters in San Jose.
Riordan has manufacturing plants located in Albany, Pontiac, and Hangzhou, China. The plant in China is used to produce electric fans sold throughout the world. The plastic for each electric fan is produced in the plant, but the electric fan motors are purchased as a complete assembly from a local Chinese company. The plant’s operations include processes for forecasting sales, production, purchasing materials, custom design and development, and shipping. In this paper Team C will discuss the strategic capacity planning and lean production for a new electric fan process design as well as the supply chain process for the electric fans at Riordan Manufacturing.
Strategic Capacity Planning
Process improvement for Riordan’s electric fan manufacturing must include thorough strategic capacity planning to design effectively a process for competitive advantage. Strategic capacity planning is “long-term planning” and involves “selecting providers and distributors, location and capacity planning of manufacturing/servicing units, (….) and considering the qualitative and quantitative aspects” of resource planning (Chauhan, Nagi & Proth, 2004, p. 2197-2198).
Currently, Riordan for manufacture electric fans at the Hangzhou, China location. Limiting the manufacture to this one plant can affect the capacity for the fans should the location suffer any operational...