OPS/571
January 24, 2011
Stephanie Coleman
Process Design
Riordan Manufacturing produces electric fans out of its plant in China. This proposal package will discuss the process design, which will concentrate on all of the cycles of manufacturing the electrical fans. This proposal will also cover how to use supply chain concepts to eliminate bottlenecks to effectively meet demands of customers. Also this proposal will discuss production forecasting and the implementation plan of lean production using Gantt Charts. Finally we have added a cover letter which covers aggregate operations planning and Total Quality Management (TQM).
Material Requirement Planning Material Requirement Planning …show more content…
This will help to reduce transportation costs and help ensure appropriate materials are delivered when needed. The move to Shanghai will also reduce their shipping costs as they will be eliminating additional time and money they spent on getting the products to Shanghai to be shipped to their final destinations. However, the move will also cause Riordan’s labor costs to increase. They can reduce this cost slightly by using their domestic plants to produce parts for their fans. Lastly, shipping is an area of concern for Riordan. They are currently using two shipping companies, which is causing confusion and higher expenses. Riordan should contract with one shipping company and hire a shipping consultant to manage the shipping process and also be trained in maritime law and Chinese …show more content…
One Riordan Plaza
San Jose, CA. 95112
(408) 555-0157
Dear Riordan General Manager:
This is to inform you that the aggregate operations plan for Riordan’s electric fans will include “targeted sales forecasts, production levels, inventory levels, and customer backlogs” (enotes, 2011). The plan that is produced will be done to satisfy the demand forecast at offer better customer service. Riordan’s plan will include factors such as handling schedules, increasing or decreasing staff, and the implementation of training classes. Riordan Manufacturing and its aggregate operations plan will concentrate on determining how well Riordan can perform in their target industry. Schedules will be left up to management, and will depend on the amount of sales per quarter. Riordan will begin to see trends to identify their staffing needs. During the busy season for the company they will be able to hire temporary staff to keep up with demand.
Sincerely,
Team B
References
Apollo Group Inc. (2004). Riordan Manufacturing Virtual Organization [Computer Software]. Retrieved from University of Phoenix, Simulation, OPS 571