Riordan Manufacturing Virtual Organization

Riordan Manufacturing Virtual Organization

James Cardinal, Maya Hajjar, Celyn Pappas, Jennifer Peach, Monica Telles

OPS/571 Operations Management

October 26, 2015

Gary Olsen

Introduction

Riordan Manufacturing is a fortune 500 company using the technology of plastics injection molding to create useful, cutting edge devices amongst all industries. Some of the devices developed by Riordan Manufacturing include heart valves, heart stents, computer fans, and many other custom devices. Riordan Manufacturing headquarters is located in California, however, they have factories in Georgia, Michigan and China. This paper will focus on the electric fan supply chain and develop the supply chain method needed for production of these electric fans.

Manufacturing Strategy

        Riordan Manufacturing utilizes the level manufacturing strategy to produce electric fans.  It allows Riordan to use a production planning method that maintains a stable production rate that vary inventory levels to meet their demand.  It also allows Riordan to satisfy the demand of their product through its inventory or its existing production schedule in time to ensure their customers receive the quantity of product they ordered by the delivery date they expect.

Process Flow Diagram

[pic 1]

Metrics

The two metrics that we will evaluate are the inspection process and the survey results of the customer.  The inspection process should be detailed to ensure the fan meets all factors of product requirements. Technological tests will be performed by qualified inspectors with a help of special factory equipment. Ensure the product is workable and safe for use.    Test out emergency and safety mechanisms built into the product.   Conduct packaging inspections, check the quality of product packaging before shipping it to customers to make sure it fits all requirements. Ensure all user manuals, handbooks and warranty documents are provided.

Providing the customer with a satisfaction survey is a great practice to provide feedback for performance improvement.  Data provided by the customer will help the organization make changes and update conditions to ensure they provide the best product possible.  Surveys should focus on:

• How often a product is used
• Product satisfaction
• Overall opinion of product
• Value of product
• Will the product be continued to be used
• Would you recommend this this product to others

Supplier Relationships and Supply Chain Effects

The success of Riordan is very dependent on their relationships with both their electric motor and plastic polymers suppliers and their clients. They must maintain constant and effective communication to ensure that the appropriate amounts of parts are being ordered and delivered to Riordan to produce a sufficient amount of fans to the consumer in accordance with the number they have forecasted for in addition to the excess that is stocked for unforeseen purchase orders. Clearly, one of the larger challenges the company faces are the logistical issues associated with international trade. Riordan is a large-scale manufacturer and producer of the electric fans, they have been historically financially stable due to their repeat customers and ability to produce custom fans to new customers. Riordan faces some challenges with on time delivery rate due to the uniqueness of custom designing and shipping products, specifically internationally.