Riordan Manufacturing: Production Plan Essay

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Production Plan for Riordan Manufacturing Riordan Manufacturing strives to be the leader in using polymer materials to provide solutions to customer’s challenges. The main focus is to achieve and maintain reasonable profitability to assure that the financial and human capital is available for sustained growth. In order to obtain these goals Riordan Manufacturing will need to have a strong production plan. Strategic Capacity Planning Riordan Manufacturing has Chinese business partners with facilities in China. These facilities are in close proximity to the Qiantang River. The river access leads to Hangzhou Bay, which is sufficient to handle our shipping needs. Therefore, Riordan Manufacturing made a decision to take the electric…show more content…
In accomplishing this, the JIT lean production process will minimize use of facility space, materials and supplies, stocks, labor, capital and time. This, in turn, will reduce costs by increasing production efficiency and overall output. This lean production technique involves using a range of “practices designed to reduce waste and improve productivity and quality” (Chase, Jacobs, & Aquilano, 2006). The JIT principles use tools, and techniques that allow Riordan Manufacturing “to produce and deliver products in small quantities, with short lead times, to meet specific customer need” (Chase, Jacobs, & Aquilano, 2006). Simply put, JIT delivers the electric fan products at the right time in the right amounts for each customer. The power of JIT is that it allows Riordan to be sensitive to any shifts in customer demand. The main benefit of JIT is that it can ‘improve production efficiency and therefore competitiveness’ (Chase, Jacobs, & Aquilano, 2006). It does this by: preventing over-production, minimizing waiting times and transport costs, saving resources by streamlining the production systems, reducing the capital Riordan may have tied up in stock, and decreasing product defects. It also reduces the need for storage and allows Riordan to have increased space for production at their facility in China. Possible Bottlenecks and Offered Solutions Possible bottlenecks to the Riordan manufacturing process in their Chinese facility include:

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