Riordan Electric Fan Proposal Essay

2675 Words Jun 16th, 2012 11 Pages
Riordan Electric Fan Proposal

Riordan Electric Fan Proposal
Olla S. Bartlett, Darjae Johnson, Thomas Williams
University of Phoenix
OPS/571
22 March 2012
Mahesh Singh

Riordan Electric Fan Proposal
Riordan Manufacturing manufactures many different plastic items ranging the gambit from medical devices, to bottles to electric fans. In the last year the Hangzhou plant has averaged 93% in its on-time deliveries (Apollo Group Inc., 2012). This proposal package will detail a plan for obtaining Riordan’s goal of 99% on-time delivery of the electric fans and reduce the on-hand stock of inventory to reduce costs (Apollo Group Inc., 2012). The proposal will detail a Materials Requirement Plan (MRP), a new process
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The Hangzhou plant currently receives shipments or raw goods every two weeks, so the manager at the plant needs to be concerned with how much of each item to order and the quantity to order. Determining these two values is the main goal of the MRP system (Beasley, n.d.).
Initially supplies for 800 Fans On-Hand
Orders for supplies Placed/Received every 2 Weeks
Week 1 2 3 4
Demand 500 100 200 300
On-hand at end of week 300 200 300 300
Order 0 300 0 0 ReOrder supplies to produce 300 fans after week 2

An MRP system for a plant that produces a variety of items such and the Hangzhou plant can create a lot of paperwork and can be quite confusing. There are many software solutions in able to assist managers and executives to manage their MRP systems. We would suggest Riordan explore the different commercially available MRP systems. The main weakness of many of these systems is the ability to accurately produce accurate forecasts based on poor historical data. It may be in the best interest of Riordan in the future to change from an MRP system of production to that of a Just-in-Time (JIT) system.
Process Design Lean production, a manufacturing process designed by the Japanese in the 1980’s is a method for not only improving the speed of delivery, but to increase the quality of products produced (The Economist, 2009). Riordan is currently proposing a

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