Riordan Manufacturing: Supply Chain Design Paper Riordan Manufacturing, a leading global manufacturer of plastic containers, parts, and fan parts, is wholly owned by Riordan Industries, Inc. Riordan’s fan manufacturing plant was purchased in 1992 when it was located in Michigan. In 2000, the company moved its fan manufacturing operation to China where it now resides. Riordan schedules manufacturing of fan parts based on forecasted production needs using an averaged three year sales history. Riordan’s make-to-stock system benefits customers who need products quickly with orders filled from inventory when received. Riordan employs a robust shipping department including a variety of reliable shipping solutions from the …show more content…
Second, an article that accompanying the fax indicated 400 laborers at the Yin Motor Company are on strike. This strike could possibly affect the financial stability of the Yin Motor Company. Third, “while this company attempts to maintain adequate quantities of electric motors in stock to meet all its order requirements, its on-time deliveries over the past year have averaged only 93%” (Riordan Mgf. Operations - Supply Chain (Hangzhou, China), 2014).
To address these concerns, Riordan should negotiate with its Chinese partners to obtain rights to directly work with suppliers. It can do this by insuring its Chinese partners they will maintain the relationship between the Chinese plant and the Yin Motor Company. Riordan then can work directly with the Yin Motor Company to improve their labor situation and increase their on-time deliveries. This strategy will increase Riordan’s supply chain strength.
Lean Production Principles
To maximize the efficiency and effectiveness at Riordan, a make-to-stock process is used. Filling customer orders as received from finished goods inventory and maintaining a small inventory on hand reduces gaps in seasonal fluctuations at Riordan. Forging a strong alliance with Chinese supply chain partners will increase quality and volume of the
Riordan Manufacturing is a global plastics manufacturer and is a subsidiary of Riordan Industries. Riordan Manufacturing has three main production facilities located in Georgia, Michigan and Hangzhou, China. This paper will focus on the manufacturing business and supply chain activities of the electric fan production in Hangzhou China with information on manufacturing strategy, production performance, supplier relationships, forecasting and inventory.
The completed product is stored in a storage room waiting for customer sales. From the storeroom, the customers can pick up their fans from the manufacture. Riordan’s transportation department uses a less expensive Chinese shipping company to ship locally. Logistic shipping internationally is similar to the method within the United Sates. In the event of forecasting shortage issues, Riordan integrated inventory methods that show opportunities to reduce costs and enhance services. The company maintains extra stock of polymer’s but not the electric motors. Nevertheless, the motor supplier maintains extra stock at their facility reducing the overhead for Riordan.
One of the biggest improvements to be made that would assist the manufacturing, delivery and shipping systems are changes to the inventory management system. The inventory management system needs to be upgraded to a less manual, more automated system utilizing barcode technology. Barcodes would be placed on every product built and/or raw materials received by Riordan. Inventory would be scanned when picked from the shelves, would be scanned when placed on transit, and would be scanned upon arrival and departure at any Riordan facility. This would be put into place for both raw materials arriving as well as products that are post-production and ready for distribution. With accurate inventory counts, the company could better forecast low inventory levels and drive manufacturing based on the available inventory and projected orders from our customers. The system will have reorder quantities established and will auto-reorder when inventory levels get
Riordan Manufacturing, Inc. has been able to make way into the global business arena with a strong footing. Riordan has established operating plants in San Jose, CA, Albany, GA, Pontiac, MI, and Hangzhou, China. In addition, the quantity of plastic fan parts manufactured in the Hangzhou plant has increased, adding significant shipping costs. This plant is currently incurring transportation and loading costs which include trucking to a harbor on the Qiantang River, loading the goods into shipping containers which are stacked onto barges bound for the Shanghai seaport.
Riordan Manufacturing Incorporated is a global plastic injection molding company headquartered in San Jose, California. With state-of-the-art facilities and innovative designs, the organization has grown to include multiple locations, each specializing in diverse products. The organization has become an industry leader with customers in the fields of automotive, aircraft, appliance, and beverage makers and bottlers in addition to supplying products to the Department of Defense.
An issue arises when periodic an order for fans against the contracted yearly total is received randomly and at varying quantities throughout the year. This makes it difficult for the plant to stock materials required in the short term. Another problem is the company supplying the motors for the fans. Their on time delivery rate is only 93%. This leads to a bottleneck in manufacturing. A solution for these problems is to implement an effective ordering system or process. In order to improve the 7% lag time a second motor supplier could be used to fill the gap. There should be a maximum amount of units per month, and a specified date the units are needed. For custom orders, a specific date or deadline should be a requirement and included in the contract. Setting these specific guidelines in the plants’ ordering system will improve the 7% lag time in deliveries.
This large “make to order” manufacturer, offers numerous custom solutions that required myriad parts. With an outdated operations solution and no existing Bill of Materials (BOM) to efficiently plan for parts, many of which were exclusive to each manufacturing
After 3 months of extensive research and analyzing Riordan’s business operations and practices, Apollo Enterprises is in a position to present a value-added business solution and recommendations, in an effort to render an efficient infrastructural environment and cost savings; presented respectfully to you, the Sr. Executive Committee of Riordan’s Manufacturing Systems.
Riordan Manufacturing can continue to expand by reducing the inventory cost of raw materials and finished goods. Riordan currently has a legacy MRP Information System (IS) in place, and this project provides an excellent opportunity to upgrade the infrastructure to allow for a more cost-efficient way to track inventory.
Riodran Manufacturing, Incorporated produces plastics and has a few diverse areas all around the United States including: Michigan, which has practical experience in custom plastic parts, Georgia makes plastic refreshment compartments and California which is the head of innovative work, and in addition a joint venture of China which fabricates plastic fan parts. Every area has obtained their budgetary and bookkeeping systems and all information into their own particular systems is sent to the corporate station in San Jose, California. They give the data to corporate to be joined together into corporates data systems. This data is given to the San Jose area either by hardcopy reports that must be re-entered or information records that must be changed over to become compatible with San Jose's data systems.
Riordan Manufacturing is a global plastics producer employing 550 people with projected annual earnings of $46 million. The company is wholly owned by Riordan Industries, a Fortune 1000 enterprise with revenues in excess of $1 billion. Production is divided among three plants: plastic beverage containers in Albany, Georgia; custom plastic parts in Pontiac, Michigan; and plastic fan parts in Hangzhou, China. Research and Development is conducted at corporate headquarters in San Jose, California. Riordan's major customers are automotive parts manufacturers, aircraft manufacturers, the Department of Defense, beverage makers and bottlers, and appliance manufacturers.
Our manufacturing strategy is "make to stock", from on-stock materials, and "deliver to order" (to the final customer).
Riordan Manufacturing is a global plastics manufacturer employing over 550 people with projected annual earnings of $46 million. The company is owned by Riordan Industries, a Fortune 1000 corporation with revenues in excess of $1 billion per year. Its products include plastic beverage containers produced at its plant in Albany, Georgia, custom plastic parts produced at its plant in Pontiac, Michigan, and plastic fan parts produced at its facilities in Hangzhou, China (Riordan Manufacturing, 2013).
The second initiative is to optimize the complex network. Cisco starts by sourcing parts from all over the world, which are stored in distribution centers until the finished product is ready to be assembled. Cisco optimizes its network by putting together supply chain segments that are customized to the customers’ needs. They then determine the appropriate inventory levels and lead times associated with that network. Additionally, they design the right infrastructure to facilitate the information and material flow across the supply chain. As a part of best practices, Cisco develops customized solutions for sourcing, purchasing, manufacturing, logistics, and customer service. They are able to develop these customized solutions by fine tuning lead times, minimum order quantities, safety stock levels, forecasts, and reorder points. By monitoring the supply chain segment end-to-end, Cisco can ensure they are being efficient and cost effective. In addition, determining the flow of information like purchase orders, advanced shipping notices, and EDI signals help Cisco achieve increased profitability.
Riordan Manufacturing is a global plastics manufacturer. The company is owned by Riordan Industries, which is a Fortune 1000 enterprise with revenues in excess of $1 billion. The products that they produce is plastic beverage containers. The containers are produced in Albany, Georgia, the custom plastic parts produced at its plant in Pontiac, Michigan, and plastic fan parts produced at its facilities in Hangzhou, China. They employ 550 persons with projected yearly earnings of $46 million. Riordan Manufacturing’s mission is to focus its industry leaders in using polymer materials to provide solutions to our customer’s challenges. Riordan is a privately held company. The Chief Operating Officer (COO) is Hugh McCauley and the Chief Financial Officer (CFO) is Dale Edgel. Individuals in a business usually do not work alone all the time, but instead in teams, committees, departments, and other types of workgroups. Riordan Manufacturing is one of them.