Supply Chain Design Paper OPS571

1345 WordsJan 19, 20156 Pages
Supply Chain Design- Riordan Manufacturing OPS/571 March 31, 2014 Supply Chain Design-Riordan Manufacturing Every organization has their own manufacturing strategy, depending on the type of organization will depend on the strategy to have the best end result. Understanding the strategies and how they are used can help the manufacturing process. Riordan manufacturing is a Fortune 1000 organization which produces multiple products, throughout this paper Team C will explain Riordan’s manufacturing strategy and the details that go into a manufacturing strategy. Riordan’s Manufacturing Strategy There are three different types of manufacturing strategies that an organization can utilize, which include the Chase Strategy, the…show more content…
Having strong production projections is what allows Riordan to utilize the Combination Strategy. Performance Metrics Performance metrics are tools that businesses can use to determine the efficiency of production. There are various types of performance metrics that a company can use; however in evaluating the performance of Riordan’s electric fan supply chains the two most relevant metrics would be the productivity metric and the efficiency metric. “Productivity is the ratio of output to input” (Jacobs & Chase, 2011 pg. 117). This metric is useful to Riordan because the company can determine the ratio of the dollar value of the output and dividing it by the cost of the inputs. This ratio helps the company to determine if the they are spending more in labor and parts then they are generating in sales. For an organization in which generating sales is the primary goal, this is an important ratio to know. The productivity ratio determines whether or not the company is generating as much of a profit as it should or if too much money is being spent in order to make money. The second metric that is beneficial to Riordan is the Efficiency Metric. This metric “is a ratio of the actual output of a process relative to some standard” (Jacobs & Chase, 2011 pg. 117). This metric is beneficial in determining if

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