Pedro A Rios Jr., Nelson Christensen, Teresa Swander, Chrystal Marcum and Kapricia Crosby
University of Phoenix
Operations Management
OPS 571
Ashley Carr
January 10, 2011
Riordan Production Plan Riordan Manufacturing is a global plastics manufacturer employing 550 people with projected annual earnings of $46 million. Riordan’s main customers range from automotive parts manufacturers to the Department of Defense. One of Riordan’s main productions is plastic beverage containers. Riordan’s most recent expansion took place in 2000 when the company relocated operations from Pontiac Michigan to China. The Pontiac Michigan facility was retooled for the manufacture of custom plastic parts (University of Phoenix, 2009). This paper covers strategic capacity planning and lean production for the new process design and supply chain process for the electric fans at Riordan Manufacturing. Supply Chain The supply chain for Riordan Manufacturing does consist of many different factors. From the ordering of the supplies and the shipping of different products, the resources can be stretched thin. In order to fix this the entire process, Riordan Manufacturing will need look at and review their current process to see if there are any areas that can be changed. In many cases, the products are being shipped internationally so in these instances there is little room for change due to the laws and regulations. With the other areas of shipping, especially in the China plant, the mode of shipping can be addressed. The Riordan uses two different companies for their shipments. To create a more streamlined process, Riordan can use FedEx solely. With this process, FedEx can make an agreement with Riordan for all of their shipping needs throughout the world. In some cases, FedEx would be able to offer discounts on the costs, lowering the costs to Riordan. Another area that can be addressed would be the motor ordering. There
References: Chase, R. B., Jacobs, F. R., & Aquilano, N. J. (2006). Operations Management for Competitive Advantage (11th ed.). Retrieved from https://portal.phoenix.edu/classroom/coursematerials/ops_571/20101130/ University of Phoenix. (2008). Riordan Manufacturing Virtual Organization. Retrieved from https://ecampus.phoenix.edu/secure/aapd/cist/vop/business/riordan/Ops/RioOps002.htm