The Improvement of the Manufacturing Process Riordan Company - Essay Example

Riordan is an established company involved in the manufacture and distribution of plastic designs that are manufactured through the use of plastic injection molding. In addition to having offices and factory installations in the United States, the company owns an additional manufacturing facility in Hangzhou, China, with which the company can meet the demands of the markets in Asia and Europe. The decrease in profits is due to poor inventory control and a lack of effectiveness in the manufacturing process. Besides, Riordan has a goal of reaching a $50 million revenue mark in the next two years it will take the best and most up-to-date software available to ensure the inventory is properly kept and improve the manufacturing process.

Improving the manufacturing process can enhance product quality, reduce manufacturing costs, and increase efficiency. The best way to improve the manufacturing process is to automate the inventory system. Currently, the system in place is as follows. Firstly, the raw materials are removed from the inventory. The manufacturing staff then completes an inventory worksheet that indicates the type of materials removed from the inventory and informs the inventory clerk, who enters the information into the inventory system.

Next, the manufacturing process begins. The manufacturing team completes the form throughout the manufacturing process. Lastly, when the finished goods have been completed, the inventory clerk is given the inventory for the final product and enters it into the system. (Riordan Manufacturing, Virtual Organization, 2004) A more accurate and efficient way to input inventory is to install a computer at each station. As the raw materials are taken out to the manufacturing staff, they are checked out of inventory at that time.

Barcodes should also be used in place of manual data entry. Considerations have to be given to the relocation to Shanghai and security issues. The benefits would be the accuracy of data input, proper electronic tracking of and easier access to inventory systems, and cost savings in terms of less manpower. 

The areas affected by the new system will be the inventory clerk and the manufacturing team. Specifically, the automated inventory system includes computers at every station and barcodes. The installation of computers at every station allows inventory information to be entered into the system as soon as the raw materials leave the inventory. This tightens the control of inventory. Barcodes prevent data entry errors and reduce manpower, improving efficiency, revenue, and profits.