Proposal for Riordan Manufacturing
OPS/571 August 21, 2012
Fan Mold for blades and housing
HDPE Pellets (Polymers)
Other Miscellaneous items
Forecast Order Order Motors and Put in Storage No
Motors in Storage Area?
Polymers in Storage area? Custom
Order Polymers and Put in Storage
Standard or Custom? Melt polymers and inject into molds
Research & Development
Is Project feasible? No
Customer Orders Product Make Shipping Arrangements Customer Receives Order
Customer Pickup or Ship
Customer Receives Order
moving operations to Outsourcing labor could reduce this Shanghai within 5 years number. • Products are trucked to port • Avoid multiple steps in the shipping and loaded on containers. Moved by ship to Shanghai process. Moving products multiple port, containers are unloaded times lead to increased opportunities and reloaded to ship that for damages and waste time. Both cost goes to final destination. the company $$$$. • Finance and Accounting • Use Corporate licensed & fully systems company wide run integrated Windows based ERP independently of each other. manufacturing, distribution and Closing months out take 2x financial management software as long and data is not digital allowing comparison or application for all Accounting accessibility. and Finance systems and reports.
Focus Toward Six Sigma
Description Cooling Fan Desk Fan Inventory on Hand 43,200 28,800
Projected Product Requirement
Value of Inventory on Hand Average Cost per Item
$417,600 $363,600 $9.67 $12.63
Cost of Access Inventory
Riordan is not practicing Six Sigma carrying $918,508 worth of access inventory.
• Supply Chain management focuses on Build to Order but this demonstrates the Carry Inventory model.
• Riordan Manufacturing has a reliable reputation. • Riordan continues for preciseness and conception. • Riordan understands what is necessary in order to develop a forecasting process that streamlines production and minimizes unsold inventory. • Forecasts are vital and can be risky. Every business organization and for every significant...