Production Plan for Riordan Manufacturing
Riordan manufacturing is a renowned international manufacturer of plastic injection moldings. It has branches in different states, in United States of America such as Georgia, California, Michigan and joint ventures in other countries such as China (newman821, 2010). To remain competitive and successful in the market Riordan has to develop and analyze strategic processes for production of quality products, and increasing productivity from the production process. Riordan has used strategic capacity planning and lean production in the new process of designing new processes and supply chain for electric fans. Strategic capacity planning for Riordan manufacturing is essential in determining the overall capacity level of capital intensive equipments, resources, labor and other factors of production (Lowson, 2009).
The strategic capacity planning should facilitate a long run strategic and competitive advantage for the organization reducing the cost of production. The manufacturing process would reduce the cost of production through the development of new production designs that meet the due date, minimization of the lead time, minimization of the set up time and cost. This would facilitate reduction of the work in progress as well as maximizing utilization of the machines. Inefficiencies in the production process will lead suboptimal performance, which result to failure of the firm its production goals. Riordan focus on strategic efforts of improving various areas, which are essential to their business operations. They focus on developing better working environment for the workers who are essential in the firm operations. This facilitates incremental in efficiency in the operations of the firm. Riordan manufacturing also focus on strengthening the brand by developing quality products and offering premier customer service. The focus on the customer involves efficient logistics management through the development of a well-defined supply chain (Chase & Jacobs, 2004).
The firm aims at developing long term development of a strategic plan, which involves incorporation of several departments in the organization. The responsibilities of these departments are intertwined, which facilitates coordination and cooperation of different departments in achievement of the organization objectives. The production plan involves adjustment of the technologies that affect all aspects of the production process, which facilitate transference of different activities from one department to the other. To ensure optimal capacity utilization, the decision makers at Riordan must determine the capacity utilization rate that measures how close the firm is to operating at its optimal level. This would facilitate the firm in measuring the deviations from optimal performance and various sources of such deviations (newman821, 2010).
Lean production process aims at facilitating the design process using the minimum factor inputs. The factor inputs include the raw materials, labor, work-in-progress and finished goods which facilitate optimization of the output. The process should facilitate reduction of wastage, reduce heavy investment in inventories, reduce or eliminate the lag in the production time, facilitate efficient use of machine, improve communication and eliminate the possibility of losing clients. An efficient process design would facilitate integration of different departments in achieving organization cohesiveness, which is essential in facilitating optimal workflow, hence addressing the highlighted issues. Streamlining and automation of the manufacturing process would facilitate achievement of efficiency in the production process, as well as facilitating efficiency in the workflow. Riordan manufacturing should also standardize and computerize all financial processes throughout the organization. Development of an electronic inventory management system is also essential in the manufacturing process at Riordan (newman821, 2010). This would facilitate the production inefficiencies related to stock out of raw materials for the organization which is essential in the production process. The sales database should also be based on creating and managing the relationship with the clients through the creation and implementation of the overall firm electronic mail system. This would facilitate communication in the internal operations of the firm as well as the external customers. Incorporation of these measures in the production process would enhance continuous, balanced workflow, which would minimize the work in progress, as well as inventories, which reduce the firm cost of production (Chase & Jacobs, 2004).
Strategic capacity planning is essential in the development of an effective supply chain management in the current economic global environment. Supply chain management entails the overall flow of information, raw materials flow from source, warehouses and manufacturing units and the flow of the end product to the end consumers. In the current system, Riordan manufactures fans based on preferences of the consumers. Decision makers in the organization must determine the optimal production, distribution and other capacity elements in the organization. To achieve a competitive advantage in the competitive global business environment, the firm must develop new supply chain management that incorporates strategic capacity planning and utilization. The new supply chain will be essential in facilitating the existing supply chain in China. It will facilitate elimination of the obstacles within the inventory management and supply networks. Developing a well-established supply chain network is essential for the firm in developing a functional demand framework. This is essential in moving the inventories as well as increasing the sales, which increases the firm profitability. A new supply chain will also facilitate reduction of the cost of production since it would ensure proportionality of the firm inventories and demand (Aquilano, Chase, & Jacobs, 2012).
Increasing competitive advantage and profitability is among the top priorities and objective of Riordan manufacturing. Implementation of the strategies outlined in this paper will facilitate achievement of competitive advantage, as well as creating and sustaining reasonable profitability in the firm. This will facilitate continuous and progressive growth of the firm, through incorporation of lean production process with the supply chain. Replacement of the existing system is essential since the existing system is not efficiently working leading to inefficiencies in the firm. Development of a new system will facilitate communication between various organs of the organization, and facilitate timely delivery of products to the end users (newman821, 2010).
In conclusion, establishment of strategic planning is essential in facilitating efficiency, in the process of manufacturing at Riordan. Strategic planning involves adjusting the existing technologies affecting all aspects of the firm, as well as introducing new technologies in inventory management. Incorporation of strategic planning with supply chain management is also essential for the firm in ensuring efficiency in management of the inventories, ensuring they are proportionate with demand. This facilitates achievement of competitive advantage and hence profitability for the organization.