Production Forecast for the Riordan Electric Fans

A production forecast for the Riordan electric fans

Riordan Manufacturing uses the Just-in-Time (JIT) lean production when producing electric fans at the warehouse facility in China. A lean production is an integrated set of activities, whose purpose is to achieve high volume production using minimal inventories of raw materials, work-in-process, and finished goods. (Chase, 2006) An increase in production efficiency and the overall output helps to reduce costs.

There are various stages, starting with raw materials and ending with the shipping department, and all must meet high levels of quality during the process. The electric fan parts arrive at the next workstation just in time. It moves through the assembly process as quickly as possible. This reduces waste and improves the overall productivity and quality of the product. The pull system occurs when there is a demand for an electric fan. An assembly worker pulls another electric fan from an upstream station in the line to replace the unit in demand. This process continues upstream as far back as the raw materials used. The electric fan will be produced as needed. In other words, there must be a demand for production to begin.

JIT ensures Riordan will deliver electric fans to its customers at the right time and the right quantity. When this happens over production is prevented and wait times and costs associated with transporting are reduced. Resources are saved when problems and bottlenecks are discovered while using JIT. Production is ultimately streamlined.

Chase, R. J. (2006). Operations management for competitive advantage. New York: McGraw Hill/Irwin.