Riordan Electric Fan Proposal

2681 WordsJul 2, 201211 Pages
Riordan Electric Fan Proposal Riordan Electric Fan Proposal Olla S. Bartlett, Darjae Johnson, Thomas Williams University of Phoenix OPS/571 22 March 2012 Mahesh Singh Riordan Electric Fan Proposal Riordan Manufacturing manufactures many different plastic items ranging the gambit from medical devices, to bottles to electric fans. In the last year the Hangzhou plant has averaged 93% in its on-time deliveries (Apollo Group Inc., 2012). This proposal package will detail a plan for obtaining Riordan’s goal of 99% on-time delivery of the electric fans and reduce the on-hand stock of inventory to reduce costs (Apollo Group Inc., 2012). The proposal will detail a Materials Requirement Plan (MRP), a new process…show more content…
The purpose of the lean production model is to eliminate the waste created during the manufacturing process and to increase the quality of the products (Continental Design and Engineering, 2008). This is done by streamlining the process and eventually reduces costs and production times. There are seven different types of waste identified by lean production: over production, inventory, conveyance, correction, motion, processing and waiting (Continental Design and Engineering, 2008). Over production is not currently an issue that Riordan faces with the Hangzhou plant but always needs to be kept in consideration. Extra inventory that is produced and is not sold may need to be sold-off at reduced prices at a loss to the company or may go bad or become outdated and need to be dumped also at a loss. Careful monitoring of sales, historical and forecasted, and over-ordering of raw materials and parts to assemble the fans can be very expensive in the long run. By instituting a computerized MRP plan with a new flexible supply chain will help Riordan in reducing the chances of over production. Related to the over production issue is inventory. Excess inventory ties up funds not only in the stored inventory but the costs associated with storing the inventory. This waste issue is best controlled with methods similar to those of the over production issue. The moving of the plant from the

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