Opn 571

Introduction

This proposal package for Riordan will analyze the production processes from the supply, manufacturing, production and distribution/sales of electric fans. In addition, it will review and recommend its current material requirement-planning in the production of electric fans at the China Plant. Furthermore, an introduction to the new process design and analyze supply chain initiatives to asses and capture global opportunities. In addition, production forecast is discussed for opportunities along with Lean Production and the use of a Gantt Charts. Finally, an executive summary letter that explains the coordination of aggregate operations planning and any TQM suggested processes to enhance the global strategy of the company.

MRP System

Gupta & Snyder (2009), explains since the 1980’s manufacturing philosophies such as just in time (JIT), theory of constraints (TOC) and manufacturing resource planning (MRP) have transpire to a viable competitive planning and control systems for improving the organization performance. Riordan Manufacturing plant in China, is the unit that applies material requirement planning (MRP) to meet all material requirement to manufacture fans. The goal of implementing an MRP process is to reduce on-hand raw materials and finished goods inventory costs. Therefore, reducing the over supply of raw materials (lower inventory) that will in turn improve inventory turnover and improve the bottom line.

The process starts by the receiving raw material from the suppliers and sent to the molding department that creates parts. Sometimes, creating parts creates a waste by-product and that is a concern in the process. By minimizing wasteful and being more efficient in producing parts in turn can reduce the production cost on fans.

Periodic fan orders are having delivery issues because of material supply synergy with customer demand. There are issues in consistent orders patterns to supply the number of fans. Therefore, it is...