Riordan Manufacturing Supply Chain

Riordan Manufacturing Supply Chain

Riordan Manufacturing is a worldwide manufacturer of plastics. The organization employs 550 people and has projected annual earnings of $46 million. The company’s products include plastic fans and fan parts produced at its facilities in Hangzhou, China and custom plastic parts produced at its plant in Pontiac, Michigan. The company's major customers for its standard and customized fans are automotive parts manufacturers, aircraft manufacturers, the Department of Defense, and appliance manufacturers.

Recently, the company has experienced some issues with its. On-time deliveries in the China plant have averaged only 93% over the past year, which is inadequate for a Six Sigma company focused on exceeding ISO 9000 manufacturing standards. The senior management team must examine all steps in the material requirements planning, supply chain management, and production and inventory processes to look for potential areas to eliminate waste and redundancies, gain efficiencies through automation or other process changes, and improve the process design and supply chain for the manufacturing of its electric fans.

Production and Inventory Processes Change Recommendations

After reviewing the production process of the plant in Hangzhou, China, the team noted inefficiencies in several departments due to the manual procedures being utilized and redundancies in certain departments, including the inventory system. The importance of a good inventory control system cannot be overstated as it is tied directly to the financial performance of an organization (Chase, 2006). The China plant does not have an integrated inventory system with its receiving and shipping systems. The flows of data between these systems are entered into the systems by an inventory clerk. The Molding Department and Trimming Department appear to duplicate certain aspects of its processes. As a result, several of its manufacturing processes are time consuming and cost...