Production Plan for Riordan Manufacturing
Running head: PRODUCTION PLAN FOR RIORDAN MANUFACTURING
Production Plan for Riordan Manufacturing
University of Phoenix Online
OPS 571: Operations Management
December 21, 2009
Production Plan for Riordan Manufacturing
Introduction
Riordan Manufacturing, Inc. is a global leader in the field of plastic injection molding with state of the art design capabilities that has made the company competitive in the global market. Riordan has three operating entities in Georgia, Michigan and California plus a joint venture in the People 's Republic of China. Riordan expanded production and design of electric fans to an overseas operation plant in Hangzhou, China. The China plant is a decentralized unit that schedules production of electric fans to meet the forecasted sales. The current supply chain process in place is not efficient. Riordan Manufacturing will need a strategic capacity plan, which will provide an approach for determining the capacity level of capital-intensive resources—facilities, equipment, and overall labor force size—that best supports the company’s long-range competitive strategy (Chase, Jacobs, & Aquilano, 2006). The goal is to provide an efficient and effective new process design and supply chain process for the electric fans at Riordan.
Strategic Capacity Planning It is essential that Riordan Manufacturing develop a well-designed strategic capacity plan in order to ensure that the business is profitable and produces the electric fans in a cost-effective manner. The success of a supply chain lies in good strategic and tactical planning and monitoring at the operational level. “Strategic planning is long-term planning and usually involves selecting providers and distributors, location and capacity planning of manufacturing/servicing units, among others. In the context of supply chain design we usually consider two aspects in the selection of partners: the qualitative aspect and the quantitative aspect. The qualitative
Production Plan for Riordan Manufacturing
University of Phoenix Online
OPS 571: Operations Management
December 21, 2009
Production Plan for Riordan Manufacturing
Introduction
Riordan Manufacturing, Inc. is a global leader in the field of plastic injection molding with state of the art design capabilities that has made the company competitive in the global market. Riordan has three operating entities in Georgia, Michigan and California plus a joint venture in the People 's Republic of China. Riordan expanded production and design of electric fans to an overseas operation plant in Hangzhou, China. The China plant is a decentralized unit that schedules production of electric fans to meet the forecasted sales. The current supply chain process in place is not efficient. Riordan Manufacturing will need a strategic capacity plan, which will provide an approach for determining the capacity level of capital-intensive resources—facilities, equipment, and overall labor force size—that best supports the company’s long-range competitive strategy (Chase, Jacobs, & Aquilano, 2006). The goal is to provide an efficient and effective new process design and supply chain process for the electric fans at Riordan.
Strategic Capacity Planning It is essential that Riordan Manufacturing develop a well-designed strategic capacity plan in order to ensure that the business is profitable and produces the electric fans in a cost-effective manner. The success of a supply chain lies in good strategic and tactical planning and monitoring at the operational level. “Strategic planning is long-term planning and usually involves selecting providers and distributors, location and capacity planning of manufacturing/servicing units, among others. In the context of supply chain design we usually consider two aspects in the selection of partners: the qualitative aspect and the quantitative aspect. The qualitative
References: Chase, R. B., Jacobs, F. R., & Aquilano, N. J. (2005). Operations Management for Competitive Advantage (11th ed.). New York: McGraw-Hill/Irwin. Retrieved November 24, 2009, from University of Phoenix, rEsource, OPS571-Operations Management Course Web site. University of Phoenix. (2004). Riordan manufacturing virtual organization [Computer Software]. Retrieved November 24, 2009, from University of Phoenix, rEsource, Simulation, OPS571 -Operations Management Course Web site. Chauhan, S. S., Nagiz, R., & Proth, J.M. (2004). Strategic capacity planning in supply chain design for a new market opportunity (Vol. 42, No. 11, 2197–2206). International Journal of Production Research ISSN 0020–7543 print/ISSN 1366–588X online, Taylor & Francis Ltd. http://www.tandf.co.uk/journals. DOI: 10.1080/0020754042000197711