Riordan Manufacturing Supply Chain Design
University of Phoenix/OPS 571
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. The plant located in China manufactures fans using a make-to-stock operation that uses a forecasting method to determine future demand. A review of their strategic capacity planning and lean production for their new process design and supply chain process for the electric fans will address bottleneck and supply chain issues. Also outlined are the details of new processes and how the benefit the company.
Forecasting …show more content…
As the cross-functional team operates effectively group technology becomes the leading force to eliminate waste because more precise measures are being performed (Chase, Jacobs, & Aquilano, 2010, p. 473).
Cross-Functional Team A cross-functional team is employees from different functional areas aligning their skills toward a goal. Currently, Riordan’s functional areas operate individually, sometimes performing roles from other areas. In order to improve their production flow, a cross-functional team approach would clearly define each functional area responsibilities and identify areas where bottlenecks occur. Area one is the Order Receiving department. This team is responsible for processing all orders received from customers. Once the orders are received and processed, the customer will get a confirmation notice with the expected shipping date. The shipping date will be determined by the number of orders in the queue for the base fan and custom order fans after all orders have been processed through the cross-functional system. The Orders Receiving department will inform the Purchasing Department how many orders are in the queue. Purchasing is responsible for making sure Riordan has the parts available for manufacturing. They will maintain a working stock par level. Having only what is needed on hand reduces storage cost and eliminates stored parts becoming obsolete before reaching the manufacturing line. Purchasing is also