OPS/571 Operations Management
A Production Plan For Riordan
Riordan Manufacturing has a reputation for precision and innovation. As a Fortune 1000 enterprise, Riordan cannot afford to have the issues of bottlenecking affecting their production. As a result, a detailed analysis of the bottlenecks, the effects, and appropriate strategic planning were examined. Lean production planning was examined as was new processes. The details of the new processes also outlined the benefits to the company.
Bottleneck Issues: The Effects
A bottleneck in a process is a specific part which falls short of meeting the demand. The capacity, which is necessary for that portion of the process does not have the capability of meeting that demand, has the most lag, or uses the most time or resources. Bottlenecks lessen the output of a process because the flow of the process is halted or slowed (Chase, Jacobs, & Aquilano, 2006).
Strategic Capacity Planning
Strategic capacity planning involves keeping the system balanced so the output of one level is the required input of another level. A bottleneck anywhere in this process would limit the thoroughput time within this system. This is evident in the example of the Riordan manufacturing of the electric fans. The manufacturing process requires specialized piece parts and a specialized labor supply with proper knowledge to create the product.
Supply Chain and Lean Production
Supply chain efficiency is measured by how quickly inventory turns over and weeks of supply. If a bottleneck exists in the supply chain, such as the packaging and shipping of the inventory, the company could not handle the demand of inventory coming in. Thus, the capacity of shipping resources would be less than the demand of inventory and a bottleneck is created (Chase, Jacobs, & Aquilano, 2006). This is true for Riordan. The plant in Hanghzou, China experienced problems with shipping
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