Essay about Riordan Manufacturing

1442 Words Aug 21st, 2015 6 Pages
Riordan Manufacturing’s Supply Chain Design
OPS/571
August 3, 2015

Riordan Manufacturing’s Supply Chain Design
Introduction
A company’s supply chain design is crucial in helping to understand what the key activities and drivers are to the results produced which includes operational results, sales results, and financial results. An efficient supply chain will help a company to both efficiently and effectively produce a quality product to meet and satisfy customer demand. The key aspect involved in the design of a supply chain begins with a manufacturing strategy that will be the method of executing the plan. Next will be the understanding of the process flow by developing charts of how inputs and resources are transformed into
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The custom plastic parts manufacturing facility in Michigan uses a chase strategy where spending on human resources is dependent on production demand. This is beneficial to implement as a cost saving measure because the plant can adjust the number of employee hours spent as demand for the custom parts changes (Jacobs & Chase, 2010).
Process Flow Diagram and Performance Metrics The below flow chart (Table 1) is an example of the process flow for one of Riordan’s key products, the electric fan. This is both a make-to-stock process for the standard orders and make-to-order for the custom orders.
Table 1:
Outputs: Ship fans to customer or inventory

Outputs: Ship fans to customer or inventory

Manufacture Fans

Manufacture Fans

Inputs: Customer Order, Polymers, Fan Motors

Inputs: Customer Order, Polymers, Fan Motors

Assemble
Assemble

Custom or standard?
Custom or standard?
Raw materials
Raw materials

Deliver or inventory
Deliver or inventory
Customer Places Order
Customer Places Order

Finished Goods
Finished Goods
Assemble
Assemble

The VP of International Operations, Charles Williamson, wants to achieve a 99% on time delivery rate of electric fan motors from their Chinese supplier. He would also like to reduce the safety stock needs on the polymer materials (“Riordan Manufacturing”, 2013). Metrics can be

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