Process Design for Riordan Manufacturing

Since the decision was made to move the Hangzhou plant to Shanghai, it has given Riordan the opportunity to ship higher volumes of finished product at lower costs to markets in Asia and Europe and allowing for greater profitability potential. The current China location applies material requirement planning to meet the time-phased requirement of material for the production of fan assembly and operations. This is the primary overseas locations where raw materials are collected and processed for molding. The units that are molded are used as input for trimming departments and are selectively used to create other parts. These particular parts are assembled to create higher components and are sent to the packaging department and distributed through the shipping department   (University of Phoenix, 2010).
  Scrap material and problems achieving the orders based on an inconsistent production plan are high concerns   for Riordan Executives.   The desire and the need to minimize waste has forced the plant to utilize these spare parts to create customized fans for special orders.   The utilization of these spare parts has reduce the cost of fan production. However, the lack of a defined pattern in orders leaves a gap in assessing the exact material requirement on short notice of these customized products. An optimization strategy to improve the process of MRP as well as the production, supply and demand of Riordan electric fans is the only way to successfully improve these issues.
A New Process Design for the Production of Riordan Fans
Currently, the electric motors used in the fans are completely assembled and purchased by buyers in the purchasing department from a local Chinese company. The on-time deliveries of this company over the past year has averaged only 93% (University of Phoenix, 2010). The company should consider an alternative manufacturers to meet the forecasted production of motors. Choosing an alternative manufacturer will increase competitiveness among the...