Riordan Manufacturing Production Plan
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
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In order to be able to meet their needs, Riordan may look to another business to provide the additional motors needed for their forecasted fan orders. Based on their past experiences, Riordan may need to consider looking for another company to purchase their motors from in order to foster a make-to-stock operation. This allows for a forecasting of potential sales based on an average of the past three year’s sales and projecting that for the future year sales. This may help in creating a more competitive market for manufacturing and delivery of their product. Another consideration would be for the plant to carry additional stock on hand in order to satisfy any unexpected peaks in orders. At present, they do not stock fan expects for a small amount which would cover any warranty issues, however they depend on their supplier to have them readily available. Since they currently stock the plastic polymer which is used in the electric fans, they may choose to reduce that particular stock item and replace it with the most common type of motor. This could result in a cost savings and would indeed help them ensure that they are better prepared to provide their customers with the best possible service and product delivery. Conclusion Riordan Manufacturing needs to meet the demands of their clients. They will need to work on the safety stock to have inventory on hand and ready to ship for their
Riordan Manufacturing is an international plastics manufacturer that currently employs 550 people with projected annual earnings totaling approximately $46 million. The company is completely owned by Riordan Industries which is a Fortune 1000 enterprise with revenues of up to $1 billion. The company’s merchandises consists of plastic beverage containers that are produced at its plant in Albany, Georgia; custom plastic parts are manufactured at its plant in Pontiac, Michigan; and plastic fan parts are created at its facilities in Hangzhou, China ("Riordan Manufacturing", 2013).
Riordan Manufacturing is a global plastics manufacturer with facilities located in: Albany Georgia, Pontiac Michigan, Hangzhou China, with a research and development department located in San Jose California. This establishment has produced an annual earning of forty-six million dollars. Riordan Industries, which is the sole owner of Riordan Manufacturing, is a Fortune 1000 enterprise with revenues in excess of one-billion dollars.
The best way to limit the liability to Riordan Industries is to have a panel of managers between the two companies evaluate the risks of Riordan Manufacturing committing criminal acts. The panel should evaluate each step of the manufacturing process to verify compliance to laws, regulations, and criminal acts. An example of criminal activity would be illegal dumping of hazardous waste.
Riordan Manufacturing 's current process is not very efficient. It calls for multiple suppliers to ship parts to Riordan 's raw material storage area at regular intervals. These intervals have been set up in advance using production history as a guideline. This process causes a huge inventory spike during slow production times thus requiring a large amount of storage space and upfront costs. There is not a standardized method for the individual assembly areas to communicate parts shortages back to the raw material storage area. Also, as indicated during our analysis, the network infrastructure and current systems at the plant are very outdated causing system slowdowns and reducing plant efficiency.
Riordan manufacturing has requested an upgrade to their current human resources system. They currently have several disparate tools that are patched together in order to complete HR functions. Many Excel spreadsheets are used by different parts of HR, and combining all resources into one system can provide many time saving advantages and a more reliable system over all. By reviewing who the stakeholders are and what the best information-gathering techniques are we can ensure that we collect the information for the requirements and stay within the scope of the project.
Riordan Manufacturing is a global plastics manufacturer employing 550 people with projected annual earnings of $46 million. There is a plant in Albany, GA that produces plastic beverage containers, a plant in Pontiac, MI that produces custom plastic parts, and a plastic fan parts facility in Hangzhou, China. The corporate office is in San Jose, CA along with the corporations Research and Development Department. Riordan Manufacturing is a subsidiary of the parent company Riordan Industries, Inc. a Fortune 1000 enterprise with revenues in excess of $1 billion (Apollo Group, 2013).
The completed product is stored in a storage room waiting for customer sales. From the storeroom, the customers can pick up their fans from the manufacture. Riordan’s transportation department uses a less expensive Chinese shipping company to ship locally. Logistic shipping internationally is similar to the method within the United Sates. In the event of forecasting shortage issues, Riordan integrated inventory methods that show opportunities to reduce costs and enhance services. The company maintains extra stock of polymer’s but not the electric motors. Nevertheless, the motor supplier maintains extra stock at their facility reducing the overhead for Riordan.
With having plastic manufacturer facilities in areas such as China, Michigan, and Georgia; Riordan Manufacturing has produced annual earnings over forty six million. Riordan also has a research and development department over in San Jose California. Riordan Industries are the sole owner of Riordan Manufacturing and they are one of the Fortune 1000 enterprises with their worth being more than one billion. With having facilities in areas all over the US and even China, Riordan proves that they are a successful business.
Any off-spec raw materials - Returning off-spec raw materials to the vendors would save costs on disposal. TBCI suggests that Riordan work with their vendors on quality to ensure raw materials are of the quality needed for their products. If the vendor does not respond, other vendors should be procured.
Riordan Manufacturing has a large problem when it comes to inventory and customer orders. Because Riordan has offices both in the United States and in China, it faces a number of obstacles both in the logistics of inventory control and the need for accurate customer order management.
The main problem for the company is to facing the high scrap rate and quality of the product. Another reason is the machine breakdowns, every time the machines stopped and restarted will make scraps out from the machines. Last reason is to produce new product will cause high
Bodie Industrial Supply, Inc is a full service distributor of top line, brand name, new and used certified machine tools, maintenance parts and related equipments for the construction, utility and farming markets. The demand for equipment is relatively cyclical, with Bodies having a slight increase in sales to farming markets in the summer. Bodie’s has seen a huge sales growth increase in 2003-2004 of 72% and 29% in 2004-2005. This is mostly due to an increase in net sales and keeping a constant level of costs of goods sold.
Riordan Manufacturing manufactures many different plastic items ranging the gambit from medical devices, to bottles to electric fans. In the last year the Hangzhou plant has averaged 93% in its on-time deliveries (Apollo Group Inc., 2012). This proposal package will detail a plan for obtaining Riordan’s goal of 99% on-time delivery of the electric fans and reduce the on-hand stock of inventory to reduce costs (Apollo Group Inc., 2012). The proposal will detail a Materials Requirement Plan (MRP), a new process
The problem is that DMC 's largest consumer of oil well pumping motors has ranked them the #3 supplier, and not only could this impact purchasing from this customer (Hamilton), other smaller companies follow this large company for their purchasing decisions, so that they get the benefit of copying their R&D decisions.