Lead Production at Riordan Manufacturing

In: Business and Management

Submitted By arag
Words 307
Pages 2
Lean Production at Riordan Manufacturing
Lean Production at Riordan Manufacturing
OPS 571

Lean Production
According to Chase, Jacobs, & Aquilano (2006), “Lean production is an integrated set of activities designed to achieve high-volume production using minimal inventories of raw materials, work-in-process, and finished goods” (p. 471). According to lean philosophy, parts move quickly through the manufacturing process in a “just in time” method. The logic behind lean is that nothing is produced until it is sold and needed.
Currently Riordan’s entire supply chain methodology is responsive and flexible to their customer’s needs, but they are not practicing lean techniques. Riordan assembles and stores finished fans in a finished goods stockroom awaiting sale. In order to improve quality and productivity and focus more on lean production, Riordan must focus on eliminating waste.
One way to eliminate waste is through mass customization. “The key to mass-customizing effectively is postponing the task of differentiating a product for a specific customer until the latest possible point in the supply network… By adopting such a comprehensive approach, companies can operate at maximum efficiency and quickly meet customers’ orders with a minimum amount of inventory” (Chase, Jacobs, & Aquilano, 2006, p. 419). By designing their fans so the customization is done at the very end of the manufacturing process, Riordan can still achieve a high level of production while reducing safety stocks and finished goods inventory.
If Riordan were to embrace mass customization, they would be able to utilize a more “just in time” inventory system. Riordan purchases their electric motors and plastic polymers locally. By improving their forecasting and working closely to build partnerships with their suppliers, Riordan should be able to order small batches of…...

Similar Documents

Riordan Manufacturing

...treat different customers differently. Riordan Manufacturing had taken this philosophy and incorporated it into their mission as a company. Their mission reads as follows: Our Focus Six Sigma, leading edge R&D and exceeding ISO 9000 standards define the attitude and abilities of Riordan Manufacturing. We are industry leaders in using polymer materials to provide solutions to our customers challenges. Our R&D is, and will remain, the industry leader in identifying industry trends. Our Customer Relationships We will strive to be a solution provider for our customers and not be a part of our customers challenges. Long-term relationships will be sought by maintaining rigorous quality controls, innovative solutions, a responsive business attitude and reasonable pricing. Our Employees We will maintain an innovative and team oriented working environment. By assuring that our employees are well informed and properly supported, we will provide a climate focused on the long term viability of our company. Our Future We must be focused in achieving and maintaining reasonable profitability to assure that the financial and human capital is available for sustained growth (Apollo Group, 2012). As we look into the customer relationship management side of the business, we will solely focus on the “Our Customer Relationship” part of Riordan Manufacturing mission in this section. Cultural intelligence gains Riordan Manufacturing was a well-established business that......

Words: 838 - Pages: 4

Production Plan for Riordan Manufacturing

...Production Plan for Riordan Manufacturing Falon McCoy, Jennifer Smith, and Maria Utting OPS/571 July 31, 2012 Robin Aoks Production Plan for Riordan Manufacturing Riordan Manufacturing is a global company that uses plastics injection moldings for the production of plastic fan parts, and plastic beverage containers. Headquartered in San Jose, California, Riordan factories also exist in Georgia, Michigan, and Hangzhou, China. The fortune 500 company has approximately 550 employees and projected $46 million in earnings. The company strives to be a leader in using polymer materials to satisfy customers’ needs. The company strives to achieve increase profitability and financial capital for future growth. The company’s goal is to implement a new process for the production of manufacturing electric fans outsourced in Hangzhou, China. Strategic Capacity Planning There is extensive research involved in the strategic capacity planning for the electric fans of Riordan Manufacturing. Strategic capacity planning is a function of planning to achieve an optimum level of output. Supply and demand will affect the optimal level of product and service flow. A product’s life cycle can be difficult to predict; therefore, planning is necessary to estimate future forecasting. A SWOT analysis can determine and identify strengths, weaknesses, opportunities, and threats that commands management’s attention (Adonai, 2003). Management must determine the capacity requirements. Other factors to...

Words: 678 - Pages: 3

Riordan Manufacturing

...Riordan Manufacturing Scott Wissel OPS/571 February 24, 2013 Kristina Limon Riordan, a chemistry professor, found some ways to increase the tensile strength on polymers and patented the ideas.  Eventually he was able to get some capital and started to manufacture his product.  Riordan Manufacturing is a company that has 550 people. They are also looking to have $46 million of projected annual earnings. Riordan Industries owns the company that is a fortune 1000 enterprise that has over $1 billion in revenue. The company produces containers, custom parts, and fan parts all in plastic. This can be seen in any of their Albany, Georgia; Pontiac, Michigan; and Hangzhou, China manufacturing plants.  Their Chinese plant was set up as a joint venture between Riordan and small consortium of Chinese nationals.   Capacity planning is a strategy that can be used to identify what is needed to produce what is being asked of the business in the way of demand for the goods and services. A capacity plan depends on accurate input and constructive feedback from the planners that supports the company’s long range strategy ("What Is Capacity Planning?", 2013). The market for fans and custom plastic parts will be affected by the economic conditions people are facing. Riordan has to take in account the economic impact from their customers and this is crucial in determining the future direction of the company. Riordan must avoid a decrease in the manufacturing of electric......

Words: 1153 - Pages: 5

Riordan Manufacturing

...Riordan Manufacturing Riordan is one of the manufacturing companies that produce plastics that has been used in sports and medical industries. Sales and marketing systems of Riordan depends on today’s standards of integrated information management. Riordan is computerizing its sales and marketing systems to handle their customers efficiently. It is also working on attempting to consolidate customer information to provide good value to the customers. They use microfiche and paper files to keep their database and records. Sales and Marketing reviews “Riordan focus is to consolidate their customer information therefore sales department has started to transfer their old data to CRM system. Its historical data can be tracked electronically, which includes dates including order, delivery, and payment dates by order” (Riordan, 2006). Riordan produce Unit and dollar volume of each product including plastic bottles, fans, heart valves, medical stents and custom plastic parts. It has 15-20 main customers and 12 minor customers. Each department uses their own tools and systems to handle their sales and customer information. Some sales team use pen and pencil while other use software like ACT. To understand customer needs, the firm is focusing on new integrated customer management system. Riordan do not have any specific system to track the past marketing plans which they can use to build upon past knowledge. They need to keep track of the production information as well as profit...

Words: 507 - Pages: 3

Riordan Manufacturing

...Riordan Manufacturing Wayne D. Lewis, Kylie Guillotte, Michael Schuldaski, Robert Phelps University of Phoenix Riordan Manufacturing Riordan Manufacturing owned by Riordan Industries is a Fortune 1000 company and a world leader in using polymer materials to provide solutions to major businesses in the automotive parts manufacturing industry, aircraft manufacturing and the Department of Defense. Riordan Manufacturing is dedicated to being a leader in research and development (R&D) while setting the trends within the industry by the hiring and training of qualified personnel focused on creating a strong long term relationships with customers by providing solutions that meet their needs. This focus must be maintained to ensure the success, profitability and continued growth of Riordan Manufacturing as an industry leader. Riordan Manufacturing corporate headquarters is in San Jose, California with plants in Albany, Georgia, Pontiac, Michigan and Hangzhou, China. The company acquired several of its assets through planned expansions and acquisitions. This growth has left Riordan Manufacturing with three separate operating organizations in Georgia, Michigan and California. There is also a joint project with the People’s Republic of China managed of the Hangzhou facility with its own operational and financial concerns. Each organization operates on different finance and accounting. This is one of the challenges Riordan Manufacturing faces with the financial and accounting......

Words: 4363 - Pages: 18

Riordan Manufacturing

...Introduction A worldwide plastics manufacturer founded in 1991, Riordan Manufacturing is a Fortune 1000 global leader with projected yearly early earnings of over of $40 million and revenues in excess of $1 billion. Wholly-owned by Riordan Industries and an employer of over 500 people, Riordan Manufacturing possesses state-of-the art design capabilities. Although a leader in the industry, Riordan struggles to maintain a good report with its employees. In this paper, Learning Team A will propose a workplace environment that would be supportive of successful organizational change and development, explain how the differences between leadership and management currently affect networking within Riordan, recommend at least two strategies to create alliances between Riordan and its networked internal and external stakeholders, and propose an environment at Riordan going forward that would be supportive of team functioning and learning and allows for sustainable innovation and creativity. Riordan Requires Organizational Change The sales staff at Riordan Manufacturing is experiencing a high turnover ratio and complications retaining top performers due to its current compensation and rewards system, leading to a downward spiral in morale and work ethic. According to a report issued by the company's Chief Executive Officer, in a 12 month period, the company's turnover rate increased by one-third (Bai, 2009). The company's top executives are concerned that some of......

Words: 1572 - Pages: 7

Riordan Manufacturing

...Riordan Manufacturing, a leading global manufacturer of plastic containers, parts, and fan parts, is wholly owned by Riordan Industries, Inc. Riordan’s fan manufacturing plant was purchased in 1992 when it was located in Michigan. In 2000, the company moved its fan manufacturing operation to China where it now resides. Riordan schedules manufacturing of fan parts based on forecasted production needs using an averaged three year sales history. Riordan’s make-to-stock system benefits customers who need products quickly with orders filled from inventory when received. Riordan employs a robust shipping department including a variety of reliable shipping solutions from the plant in China to worldwide customers. Riordan Manufacturing’s electric fan production plant is continually analyzing its strategies. Process flows, performance metrics, supplier relationships and supply chain efficiencies, lean production principles, and sales forecasting are essential to the success of Riordan. The company uses reports and plans for material acquisition, production, and scheduling in its manufacturing facilities. Riordan’s Manufacturing Strategy Riordan’s manufacturing strategy is a stable workforce for two reasons; first, “it schedules production of fans to meet the forecasted sales” and the forecast is calculated by “taking the average of sales for the last three years and extrapolating it into the next year” (Riordan Mgf. Operations - Supply Chain (Hangzhou, China), 2014). Second,......

Words: 1740 - Pages: 7

Ops 571 Week 4 Production Plan for Riordan Manufacturing

...OPS 571 Week 4 Production Plan for Riordan Manufacturing IF You Want To Purchase A+ Work Then Click The Link Below , Instant Download http://acehomework.com/OPS-571-Week-4-Production-Plan-for-Riordan-Manufacturing-12312321.htm If You Face Any Problem E- Mail Us At JohnMate1122@gmail.com Riordan Production Plan Companies must manage operations very closely if they want to remain competitive and profitable. Management must evaluate the entire supply chain to make sure there are no gaps in acquiring materials and using resources. The amount of output or capacity a company can produce must be monitored to function at a high level. Companies must look for ways to improve their processes. Lean production is a way to evaluate and improve performance. Capacity Planning The capacity planning process provides an approach for determining the entire level of capacity concerning capital-intensive resources (Chase, et al., 2006). Capacity is essential in a company’s role concerning competitive strategy. Every resource, including equipment, facilities, and personnel force, influence strategic capacity planning. Possessing these variables, strategic capacity planning is interchangeable in helping companies adapt to their specific needs. Supply Chain Supply chain management is an important aspect in the success of a company. Riordan’s current supply chain process supports the development of standard and custom products. Fan motors and plastic......

Words: 495 - Pages: 2

Ops 571 Week 4 Production Plan for Riordan Manufacturing

...OPS 571 Week 4 Production Plan for Riordan Manufacturing IF You Want To Purchase A+ Work Then Click The Link Below , Instant Download http://acehomework.com/OPS-571-Week-4-Production-Plan-for-Riordan-Manufacturing-12312321.htm If You Face Any Problem E- Mail Us At JohnMate1122@gmail.com Riordan Production Plan Companies must manage operations very closely if they want to remain competitive and profitable. Management must evaluate the entire supply chain to make sure there are no gaps in acquiring materials and using resources. The amount of output or capacity a company can produce must be monitored to function at a high level. Companies must look for ways to improve their processes. Lean production is a way to evaluate and improve performance. Capacity Planning The capacity planning process provides an approach for determining the entire level of capacity concerning capital-intensive resources (Chase, et al., 2006). Capacity is essential in a company’s role concerning competitive strategy. Every resource, including equipment, facilities, and personnel force, influence strategic capacity planning. Possessing these variables, strategic capacity planning is interchangeable in helping companies adapt to their specific needs. Supply Chain Supply chain management is an important aspect in the success of a company. Riordan’s current supply chain process supports the development of standard and custom products. Fan motors and plastic......

Words: 495 - Pages: 2

Ops 571 Week 4 Production Plan for Riordan Manufacturing

...OPS 571 Week 4 Production Plan for Riordan Manufacturing IF You Want To Purchase A+ Work Then Click The Link Below , Instant Download http://www.hwspeed.com/OPS-571-Week-4-Production-Plan-for-Riordan-Manufacturing-12312321.htm?categoryId=-1 If You Face Any Problem E- Mail Us At JOHNMATE1122@Gmail.Com Riordan Production Plan Companies must manage operations very closely if they want to remain competitive and profitable. Management must evaluate the entire supply chain to make sure there are no gaps in acquiring materials and using resources. The amount of output or capacity a company can produce must be monitored to function at a high level. Companies must look for ways to improve their processes. Lean production is a way to evaluate and improve performance. Capacity Planning The capacity planning process provides an approach for determining the entire level of capacity concerning capital-intensive resources (Chase, et al., 2006). Capacity is essential in a company’s role concerning competitive strategy. Every resource, including equipment, facilities, and personnel force, influence strategic capacity planning. Possessing these variables, strategic capacity planning is interchangeable in helping companies adapt to their specific needs. Supply Chain Supply chain management is an important aspect in the success of a company. Riordan’s current supply chain process supports the development of standard and custom products. Fan motors and plastic......

Words: 498 - Pages: 2

Ops 571 Week 4 Production Plan for Riordan Manufacturing

...OPS 571 Week 4 Production Plan for Riordan Manufacturing IF You Want To Purchase A+ Work Then Click The Link Below , Instant Download http://www.hwspeed.com/OPS-571-Week-4-Production-Plan-for-Riordan-Manufacturing-12312321.htm?categoryId=-1 If You Face Any Problem E- Mail Us At JOHNMATE1122@Gmail.Com Riordan Production Plan Companies must manage operations very closely if they want to remain competitive and profitable. Management must evaluate the entire supply chain to make sure there are no gaps in acquiring materials and using resources. The amount of output or capacity a company can produce must be monitored to function at a high level. Companies must look for ways to improve their processes. Lean production is a way to evaluate and improve performance. Capacity Planning The capacity planning process provides an approach for determining the entire level of capacity concerning capital-intensive resources (Chase, et al., 2006). Capacity is essential in a company’s role concerning competitive strategy. Every resource, including equipment, facilities, and personnel force, influence strategic capacity planning. Possessing these variables, strategic capacity planning is interchangeable in helping companies adapt to their specific needs. Supply Chain Supply chain management is an important aspect in the success of a company. Riordan’s current supply chain process supports the development of standard and custom products. Fan motors and plastic......

Words: 498 - Pages: 2

Riordan Manufacturing

...Riordan Manufacturing’s Supply Chain Design OPS/571 August 3, 2015 Riordan Manufacturing’s Supply Chain Design Introduction A company’s supply chain design is crucial in helping to understand what the key activities and drivers are to the results produced which includes operational results, sales results, and financial results. An efficient supply chain will help a company to both efficiently and effectively produce a quality product to meet and satisfy customer demand. The key aspect involved in the design of a supply chain begins with a manufacturing strategy that will be the method of executing the plan. Next will be the understanding of the process flow by developing charts of how inputs and resources are transformed into outputs. A crucial component in evaluating a process flow is the use of key indicators and metrics to benchmark performance. Lean principles will provide a framework for process performance. Next a company must evaluate their relationships with their suppliers and understand how they affect the supply chain as this is the first step required with any successful supply chain. Then lastly sales forecasts and aggregate planning will be used to help define the requirements to meet demand. An evaluation will be conducted on a specific company to show how each of these components are implemented into the design. The company that will be evaluated is Riordan Manufacturing. Manufacturing Strategy Riordan Manufacturing produces plastic beverage...

Words: 1436 - Pages: 6

Riordan Manufacturing

...Riordan Manufacturing Strategy The three types of manufacturing strategy are the chase, level, and combination. Riordan concerning their production of electric fan manufacturing falls under the category of level manufacturing because they set production at a fixed rate, and usually to meet average demand and use inventory to absorb variations in demand. When there is a low demand production have to store more inventories, but that can be exhausted during a point of high demand. Riordan plans manufacturing of fan parts based on predicted construction needs using an averaged three-year sales history. Riordan’s new program is call make-to-stock definitely benefits the customers who need products quickly with orders filled from inventory when received. With their shipping department being so enormous, this brings variety and reliable distribution solutions from the plant in China to the customers worldwide. “Theirs R&D are, and will remain, the industry leader in identifying industry trends. Theirs Customer Relationships Long-term relationships will be required by maintaining rigorous quality controls, innovative solution, reasonable pricing and a responsive business attitude. Riordan Manufacturing will strive to be a solution provider for theirs customers and not be a part of theirs customer’s challenges.” (riordan-manufacturing.com) Riordan Lean Production Principles Riordan has tried to keep a reasonable amount of excess stock in an attempt to combat the periodic......

Words: 406 - Pages: 2

Lean Production at Riordan Manufacturing

...Lean Production at Riordan Manufacturing OPS 571 Lean Production According to Chase, Jacobs, & Aquilano (2006), “Lean production is an integrated set of activities designed to achieve high-volume production using minimal inventories of raw materials, work-in-process, and finished goods” (p. 471). According to lean philosophy, parts move quickly through the manufacturing process in a “just in time” method. The logic behind lean is that nothing is produced until it is sold and needed. Currently Riordan’s entire supply chain methodology is responsive and flexible to their customer’s needs, but they are not practicing lean techniques. Riordan assembles and stores finished fans in a finished goods stockroom awaiting sale. In order to improve quality and productivity and focus more on lean production, Riordan must focus on eliminating waste. One way to eliminate waste is through mass customization. “The key to mass-customizing effectively is postponing the task of differentiating a product for a specific customer until the latest possible point in the supply network… By adopting such a comprehensive approach, companies can operate at maximum efficiency and quickly meet customers’ orders with a minimum amount of inventory” (Chase, Jacobs, & Aquilano, 2006, p. 419). By designing their fans so the customization is done at the very end of the manufacturing process, Riordan can still achieve a high level of production while reducing safety stocks and finished......

Words: 332 - Pages: 2

Riordan Manufacturing

...Technology Offshore Outsourcing Plan for Riordan Harry Alston, Jason Breedlove, Habeeb Rahman CIS/568 July 29, 2012 James Linn Riordan manufacturing has placed a service request for all manufacturing locations to gain an overview about all existing software applications in finance and accounting, sales and marketing, human resources, operations, legal and information technology. All the subjects within the organization are using various business systems of which each of them represents change in process. The organization is in a rush to identify what is needed to make effective improvements in those subjects. This plan is going to serve as a turning point to improve systems in the various departments. Sales and Marketing The finance/accounting and sales/ marketing team at Riordan Manufacturing has both hard copy and electronic copies of paperwork from various ages. They also have many databases as well. The plan is to consolidate everything into a better streamlined electronic storage system. The systems that the company plans to consolidate and track are past sales files of marketing research, marketing plans, design awards, database production records, gain and loss statements by item, group marketing, budget marketing and budget anticipated results. Riordan also has a two year plan setup to reach the $50 million in revenue mark. This is......

Words: 2036 - Pages: 9