Riordan Manufacturing Team Paper

Riordan Manufacturing

Tiffany Poppe-Myhre, Tierney Kennedy, Tyeisha Humphrey, Yadira Desvergunat

OPS/571

January 31, 2015

Professor Gregory Waters

Riordan Manufacturing

Riordan Manufacturing Strategy

        Riordan Manufacturing utilizes the level strategy based on its inventory management.  This strategy will ensure consistency in operations, manufacturing and delivery of its products.  The plant's business is make-to-stock in which the future demand for fans is forecasted based on taking the average sales for the last three years and estimating the next year.  The assumption in using this forecasting method is that history will repeat itself within manageable limits (Riordan Manufacturing, 2013). Riordan has a strategic goal of reaching $50 million revenue mark within two years.  They plan on utilizing its staff and front line managers in order to reach this goal.  This is where the benefits from the  level strategy will be most important. The level strategy maintains a stable workforce, working at a constant output rate. Shortages and surpluses are absorbed by fluctuating inventory levels, order backlogs, and lost sales (Jacobs & Chase, 2011). Employees in a level strategic manufacturing facility benefit from stable work hours at the costs of potentially decreased customer service levels and increased inventory costs. Additional concerns are the possibility that products held in inventory run the risk of becoming obsolete (Jacobs & Chase, 2011). By having inventory on demand and an aggressive sales approach with a full staff, Riordan will be able to meet its customer’s needs, setting them apart from any competition

Process Flow Diagram

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Evaluate Performance

Supplier Relationship

Lean Production

Lean Production principles are used to maximize the efficiency of the electric fan production with Riordan Manufacturing.  Lean production focuses on customer value by eliminating waste.  Riordan will manage lean production through continuous improvement with purpose, process, and people.  Riordan Manufacturing has production plants in Georgia, Michigan, and China so processes and the lean culture must be consistent in each plant for operational success.  Electric fan parts are produced in Hangzhou, China.  Purpose is why the organization exists.  Riordan has committed to focus on what the customer desires from the electric fan product and what strategies will produce the results.  Process focuses on how the work gets done.  Are the processes at the manufacturing plants efficient?  Are the electric fans free of defects and produced timely?  Riordan monitors processes through visual management, process mapping, and focus groups.  Finally, people make the production happen.  Employees are in charge of the production and maintain the Riordan culture.  These steps are completed through developing operational plans and tactics, leading change, and encouraging communication and development with all employees.