Assignment: Production Plan for Riordan Manufacturing
OPS 571 – Chandler Campus
University of Phoenix
Facilitator: Niraj Kohli
Week Four – April 27, 2011
The assignment for week four includes a review of the Riordan Manufacturing simulation and identification of bottlenecks within the process. Team A will discuss a new design and supply chain process utilizing strategic capacity planning and lean production methods.
Dr. Riordan is a Chemical Professor and started Riordan Plastics in 1991. Through plastic research and development, Dr. Riordan obtained several patents with the intent to license products to manufacturers. Instead ...view middle of the document...
Currently, Riordan does not know what its manufacturing capacity in production or resources available. Strategic planning will allow Riordan to increase capacity with fewer resources and grow the business with smaller customers and smaller orders to fill gaps in the production schedule and maximize plant profits. With increased production, Riordan will also benefit from the economies of scale. The long-term effect of this change would lower average production costs of the fans, potentially able to lower consumer pricing, and increasing market share.
Another crucial improvement that needs to be addressed is in the current CAD processing. In Riordan’s last report on Lessons Learned, these CAD issues were disrupting the manufacturing process. To prevent this disruption, Riordan needs to have a backup plan to their current CAD tool to ensure production levels can be met on time. Any subsequent change needs to be implemented while the production of fans is ongoing and without interruption. Riordan also learned that reacting to relevant data during the process and making proactive decisions about their remedies was better than waiting for the production run to end and then making changes. Implementing this type of change will involve changing the perceptions and importance of employee involvement with future changes.
Lean production is dependent on making the manufacturing process more effective with less waste of resources. Currently, Riordan maintains a safety stock of polymer material even though they obtain it locally with no delivery problems. Riordan does not stock the electric motors they use for the fans and control of stock is by their supplier. Implementing JIT production will assist Riordan identify fundamental problems and other potential bottlenecks. According to Chase, Jacobs, and Aquilano (2006), a bottleneck is “any resource whose capacity is less than the demand placed upon it. A bottleneck is a constraint within the system that limits throughput” (p. 725). JIT will also provide Riordan with the capability of providing customers what they want, when they want it, and at the cost they are willing to pay for it.
Supply Chain Process and Improvements
The supply chain is a network of manufacturers, suppliers, and the consumer. According to Chase, Jacobs, and Aquilano (2006) “the idea is to apply a total systems approach to managing the entire flow of information, materials, and services from raw materials suppliers through factories and warehouses to the end customer” (p. 406). Riordan Manufacturing must configure and manage their supply chain operations to maximize their competitive advantage and increase...