: Production Plan for Riordan Manufacturing

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Production Plan for Riordan Manufacturing The intended principle of this study is to submit suggestions for a new process design and the supply chain at Riordan Manufacturing, Inc. The reformation will utilize the theory of Lean Production in the application of the electric fans manufacturing. The research uses Riordan Manufacturing, Inc. intranet information. This paper will present a complete production plan for two of the Riordan Manufacturing Inc. locations: Hangzhou, China and Pontiac, MI. Riordan’s plant in Hangzhou, China specializes in the plastic fan blades and fan housings, and the Pontiac, Michigan location provides the customized look and design of the fans. The research of Riordan’s China plant exposed obstacles to…show more content…
This move from Hangzhou to MI allows customization without disrupting the flow of material and allowing customers in North America to customize their products. The custom designs will incorporate standard fastening details, which are common to Riordan fans. Standardized parts would save the company money through volume discounts and would eliminate waste from excess inventory of different fasteners. Once the customer decides to purchase a significant quantity of fans, Hangzhou will start the production process in China where polymer is more abundant and labor is less expensive.
New Logistics Process Although Riordan has used a few different companies for its shipping needs, the company will benefit by taking a different approach, which will increase operational efficiency and competitive advantage. Certainly one area of concern is the less than optimal on-time delivery performance average of 93%, which affects negatively on the Riordan brand and customer satisfaction. Riordan will outsource its logistical requirements to the most qualified marketing partners. “Outsourcing is the act of moving some of a firm’s internal activities and decision responsibilities to outside providers.” Riordan will maintain its core competencies in-house, including the intellectual property of manufacturing high performance fans and outsource other logistical “non-proprietary” standardized processes.

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