Production Plan for Riordan Manufacturing - Essay Example

Production Plan for Riordan Manufacturing Introduction & Background For a manufacturing firm allocating international manufacturing output (production or sales) requires an integrated production unit. The unit is to meet the demands of the international customer, which is requiring stabilized production output, effective supply chain deliverance and integrated customer response all at the same time. This study is going to suggest a deliberate production plan for Riordan Manufacturing, which is an international plastic manufacturing firm. The study is going to integrate strategic production models including lean manufacturing, supply chain, capacity planning or process modeling to give Riodran manufacturing an effective production solution. The aim is to apply theoretical production models to their best practical application. Company Profile Riordan manufacturing is a group of Riordan Industries. The company owns a place in international plastic manufacturing. It employees 550 workers at one time of operation and is a revenue generator of $46 million on the annual basis (Khanna, 1980). The Riordan production line produces plastic beverage containers, plastic fan parts, custom plastics etc. The company holds a mission to bring hundred percent defect free production, which is possible by implementing six sigma and lean principles. Apart from all, the company wants to improve its employee skill, internal production facility and customer relationship which is to bring deliberate sales in the next coming future (Khanna, 1980). Production Plan for Riordan Manufacturing New Process Design A production function is a unit which represents the relationship between output variables with respect to input constraints. In mathematical terms, an effective production function is a demonstration of input-output relationship. Just as the equation shows Y= f (c1, c2, c3, c4…) production output Y depends on production quantities c1, c2, c3, and c4 respectively (Khanna, 1980). To settle this relationship Riordan manufacturing will have to design an integrated production plan. Process modeling is the very first stage of an effective production plan which is done by dividing production phase in three major phases, planning phase, action phase and control phase. In the planning phase, Riordan manufacturing should include product design and order writing activities. Similarly, in the action phase the firm should include process routing, material handling, tool control, loading and scheduling as action operations (Patil, 2008). In the last, the firm should include expediting and re-planning as control activities. On establishing the three production phases, an integrated relationship will be settled in the Riordan production system. Once it is settled, the relationship of production output and input will be assured. But before designing the process stage it is necessary that Riordan manufacturing set initial production objectives. Just as lowering production, inventory and shipment costs to maximize profits or improving employee skill to maximize productivity can be set as production goals. In this forecast is also very important like forecasting sales or turnover will determine how much efficiently the new production plan is working (Patil, 2008, pp. 242). Strategic Capacity Planning for the New Process Design For international business firms especially those which believe in supply chain principles, capacity planning is vibrantly important for such firms. Riordan, which is specializing in integrated production management must adopt the approach of integrated capacity management (Jacobs, 2006). Planning the capacities of production facilities, workmen, machinery, equipment, distribution or inventory will bring proficient results for Riordan. Once the capacity management approach is there in all sections of the firm (procurement, production, inventory, and transportation) it will have stability to control supply and demand fluctuations. Maintaining the demand and supply is what capacity planning is all about. Hence, by adding Capacity planning approach to Riordan’s new process design will bring the brightest chances of growth and acceleration. Once Capacity planning is there in Riordan systems, risk and uncertainties will be minimized and profits and revenues will become maximized (Jacobs, 2006). Lean Production for the New Process Design Riordan’s electric fan production is a segmental operation. The procurement department first purchases plastic polymers which are then brought to firm’s injection molding facility after getting melted in precise temperatures. The injection molding machines shape the polymer into fan housing and parts, which are decisively located in the Riordan’s China production center. This involves a lot of waste discharge if the production system is not well timed or adequately managed. The lags in the production system are there if the production system is not efficiently organized. This requires the approach of Lean manufacturing, which is a decisive modern engineering technique. Lean manufacturing is a combination of reducing seven types of waste inclusively over production, transportation, motion, waiting, processing, inventory and defects. 99.99% defect free production “six sigma” is the target of lean manufacturing and hence if adopted at Riordan new process design can boost the production system to the highest efficiency with high quality and streamlined productivity. Supply Chain of the Electric Fans Production The supply chain of Riordan Electric Fans starts with the procurement operation. The procurement department sends purchase orders for electric motors and polymers. These are then brought to manufacturing plant China for assembling and finishing purposes (Wisner, 2011). The electric motors are purchased via local supplier and stocked to meet the future demands and requirements. Once the fans are manufactured, the next stage is of distribution and shipment. Few customers ship themselves while for the rest the company acquires local transportation facility, which is comparable to FedEx logistics and is less expensive. Meanwhile, the production and distribution activities get late and this is because of the back orders presence, material waste, shortage of the surplus, and shortage of materials or resources. Information flow is another big challenge for the firm, because the information flow of material-resources is entirely manual or employee based (Wisner, 2011). To reduce the workload, human error and miscalculation lags, the new supply chain process is required for Riordan electric fan production (Wisner, 2011). The new system will allocate automated ERP systems endorsing quick data transference, data calculation and estimation in the supply chain system. Accuracy in the calculation of total stocks and inventory will also be there by having such organized and modified ERP systems. Once there are computerized data management systems, Riordan supply chain become effective, deliberate and integrated. Integration the functions of the firm will integrate the objectives and hence giving the right results in the coming prospects of the firm. Just as Hau Lee’s state “a stable process has mature technologies and established supply base process” (Wisner, 2011). Conclusion For international business firm - Riordan Manufacturing it is necessary that it works out in three major areas, capacity planning, lean and supply chain integration. On establishing such modern engineering and management norms, the firm will have a diversified approach to deal its international business customers. If the firm allocates such modern accepted management norms in all the sections, production, distribution and transportation, it will have the highest opportunity to excel and thrive. List of References Jacobs, C., 2006. Operations Management for Competitive Advantage. New York: Tata McGraw-Hill Education. Khanna, O., 1980. Industrial Engineering and Management. New Delhi: Dhanpat Rai & Sons. Patil, S., 2008. Industrial Engineering And Management. New Delhi: Technical Publications. Wisner, J., 2011. Principles of Supply Chain Management: A Balanced Approach. Mason: Cengage Learning. Read More