Riordan Production Plan
Tasia, Conway, Anniebell Hanna, Fernando Hurtado, Vilis Yore
June 25, 2012
Christine Becker

Riordan Manufacturing is a global plastics manufacturer and industry leader in the field of plastic injection molding with locations in Georgia, Michigan, California, and their most current expansion in 2000 to Hangzhou, China (University of Phoenix, 2012). The plant located in China manufactures fans using a make-to-stock operation that uses a forecasting method to determine future demand. An evaluation conducted by Team A of their strategic capacity planning and lean production for their new process design and supply chain process for the electric fans will address supply chain issues.
Strategy Capacity Planning

According with Chase, et al (2005) a capacity planning is an approach for determining the overall all capacity level of capital intensive resources, including facilities, equipment, and overall labor force size that support company’s objective and goals. Capacity planning is usually done in short range, medium range, and long range and it is measure by the utilization rate which determines how close firm is operating relative to its designed capacity.
To determinate the real capacity that Riordan needs, it is important to determinate the forecast of sales for the electric fans. According with the information issue, Riordan is aiming to achieve a target of $50 millions in revenue. These amounts translate in units will determinate the amount of products that have to produce in our China’s plant. Besides using a MRP plan we can determine the needs of raw materials, sub-assemblies, and other that form the level of inventory that support Riordan’s production.
Comparing the current capacity with the forecast units will identify if our plant is in capacity of not to produce the unit. Without a capacity plan the company could not achieve their marketing goals, therefore Riordan will not achieve their main goals of...