Production Plan for Riordan Manufacturing

1315 WordsJul 24, 20106 Pages
A Production Plan For Riordan Manufacturing OPS/571 Operations Management A Production Plan For Riordan Riordan Manufacturing has a reputation for precision and innovation. As a Fortune 1000 enterprise, Riordan cannot afford to have the issues of bottlenecking affecting their production. As a result, a detailed analysis of the bottlenecks, the effects, and appropriate strategic planning were examined. Lean production planning was examined as was new processes. The details of the new processes also outlined the benefits to the company. Bottleneck Issues: The Effects A bottleneck in a process is a specific part which falls short of meeting the demand. The capacity, which is necessary for that portion of the process does…show more content…
For Riordan to implement this type of plan, an entire new strategy will need to be developed for handling inventory. Currently, each Riordan plant handles inventory independently. Now Riordan must centralize inventory and ordering systems. The two systems need to be centralized because lean production is based on the theory that goods are produced when needed, thus eliminating waste (Chase, Jacobs, & Aquiliano, 2006). Current Situation Another change to implement is in the receiving of raw materials and the shipping of their finished goods. In China, the suppliers’ on-time delivery rate is only 93%. This rate will not work in a lean production planning environment. To increase this percentage, the plant will need to have deliveries more frequent so materials are always on hand. This would eliminate a potential bottleneck due to a lack of inventory having a negative effect on production times. Either way, it creates waste and will not maximize the efficiency of lean production. Process Improvement Part of the just in time theory of lean production is it reaches the customer “in time”. This can be accomplished by proceeding with the Shanghai move. This would reduce the steps needed to distribute products to customers. In addition to a decreased throughput time for finished goods to reach the customer, Riordan could save money, thus eliminating wasteful spending.

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