Process Design For Riordan Manufacturing Essay

712 WordsNov 27, 20093 Pages
Process Design for Riordan Manufacturing The China plant of Riordan Manufacturing is an ideal location to implement a material requirement planning system. The main purpose of a material requirement planning system is to control a company’s inventory (Chase, 2005). The motors for the electric fans are produced by a local Chinese company and the other raw materials are also purchased from a local company. Riordan has to place orders to both of these companies in advance in order to have enough to meet demand. A majority of the business for the China plant uses an assemble-to-stock method when creating the electric fans. This type of method would definitely benefit from using a material requirement planning system. Using a computerized material requirement planning system structure, we will be more efficient at forecasting material needs, we can improve upon our supply chain, do a better job of tracking inventory, and utilize our aggregate planning mentioned in the previous letter. Riordan’s plan here in China needs to create a more efficient process design for the manufacturing of the electric fans. Our China location has plenty of opportunities to improve upon current processes and I believe we can begin the project by creating a process flow chart of the current process in order to make improvements. The process will also improve by changing the process design to a batch shop. Riordan creates the same type of product at our China location, but we do create different prototypes depending upon the customers’ needs and we will start the process of manufacturing upon receiving an order from a customer. Not beginning production until an order is placed by a customer will help the China location in reaching our goal of lean production. A table has been developed to help show what will be used to develop a Gantt chart. The following

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