Riordan manufacturing is the industry leader in the field of plastic injection molding, with facilities in California, Georgia, Michigan and China. Riordan manufacturing must determine new ways to increase their production of electric fans. This paper will discuss the proposal pan for Riordan which handles each step of electric fans from setting up to production. Although, Riordan has positioned itself for success in the plastics market, the company is still looking for opportunities to improve products while increase their profits.
Riordan Manufacturing facility in China is in close proximity to the Qiantang River, this site handles the shipping needs. Therefore, Riordan Manufacturing made a decision to have the electric fan process design supply chain in China. For the Hangzhau location to be profitable, Riordan manufacturing will need to provide an approach for determining the overall capacity level of capital intensive resources, facilities, equipment, and overall labor force size, that best supports the company’s long-range competitive strategy (Chase, Jacob, &Aquilano, 2005) The capacity level has a critical impact on the Hangzhou location. If capacity is inadequate, Riordan may lose clients through slow service or by allowing competitors to enter the market (Chase, Jacob, & Aquilano, 2005) If capacity is excessive, they may have to reduce prices to stimulate demand; underutilize its workforce; carry excess inventory; or seek additional, less profitable products to stay in business (Chase, Jacobs, & Aquilano, 2005) Riordan’s strength exist within its Chinese Partners who are able to manufacture and assemble electric fans. Therefore, Riordan must continue to maximize their international relationship.
Riordan manufacturing’s aim is to use the Just-in-Time (JIT) lean production technique for the electric fan facility in China is to help reduce the amount of resources used throughout the production process. In accomplishing this, the JIT lean production...