Riordan Manufacturing Proposal Package

Running Header PROPOSAL PACKAGE Proposal software package Stephen J Kiser University of Phoenix March 22, 2010 C everyplace Letter The goal is over the next 18 months to develop a brass that result depart for the employment of both our generic voltaic caramel browns and personalized fans offered at our chinaware berth to become a more stream line address and adopt more of a just-in- cartridge clip manufacturing approach. In order to make this mathematical mental process a reality the IT discussion section ordain sent a postulate to develop an automated rescript system that impart every last(predicate)ow for promptly and accurate tracking of inventory level and ordering of newborn inventory.The IT department entrust also be requested to order new sedanroom coding systems that will allow for all merchandise and raw materials to be bar coded, and will decrease the magazine essential to verify new get offments. The suggestion will also be made to supplement the submit chain by adding an additional supplier of electronic fan motors since the club currently being utilise does non mother a utter(a) track record of depend subject on time deliveries of essential inventory.Supplementing this provider will increase the successfulness of the federations change from a stock-to-market approach to a just-in-time manufacturing approach. Materials Requirement Plan Materials Requirement preparedness is an underlying part of any manufacturing ft business. According to The Free Dictionarys definition of materials requirement planning is that this system provides the user with information around timing (when to order) and quantity (how much to order), generates new rders, and reschedules going orders as essential to meet the changing requirements of customers and manufacturing (2009). This definition of materials requirement planning illustrates the importance of having an resplendent system in place to make certain that ordering conducted materials is d nonpareil in an orderly fashion that allows for the needed materials to be on hand, but will non result in an instance of having extravagant amounts of inventory in stock that will need to be held for dour periods of time, or that may not be utilize at all.For this suit Riordan needs to develop a strategy that will allow for a computerized inventory system to be utilized, which will allow for ordering to be done when materials reach a certain point so that the phoner doesnt experience any down time due to deficient amounts of inventory. One method that can be utilized to increase the susceptibility in the current method of shipping and receiving raw materials would be to have a computerized system that automatically orders materials bases on sales projections entered into the system by the shipping supervisor.When orders are receive the current technique is to have all orders checked first by the shipping supervisor and whence deliver by a team of employee s. However, this could be streamlined as healthy and each incoming package be labeled with a bar code that the unloading team could then scan and after the motortruck had been completely unloaded the computer system would then compare what was tell to what was received and make adjustments accordingly. New Process Design for Production of electric Fans currently Riordan produces the electric fans at the plant located in China.This allows for the company to utilize the cheaper resources and labor that is associated with this area. Currently the process that is utilized is that the plastic polymers used in the turnout of the fans are bought locally, along with the sinless fan engines that will force-out the electric fans. The plant in China then injects the plastics into delimitation machines that realise the various plastic split that will be used in the completed project. formerly the products are completed the plant will then ship these electric fans to anywhere in the World through and through use of FedEx.This process design for the production of the electric fans is sound and seems not to have any negative effects associated with this process. The only changes that could possibly be made to increase efficiency are the method used in determining what amount of products needs to be ordered. Currently the method is extrapolation based on the previous three eld of sales, due to the issue with on time deliveries this method is understandable, but perhaps isnt the most address efficient.If the company was able to develop a more reliable total chain than currently be this would allow for more real time ordering to be done and thus the company could experience a higher degree of dynamic production capacity than currently exist (Riordan, 2009). Supply Chain for Electric Fans Currently the return chains that exist for the Chinese plant that produces the electric fans is the purchasing of plastic polymers, used in the production of the plastic compon ents of the fans, and ordering of the completed electric motors used to power these fans.According to the Riordan Manufacturing website there seems to be no obvious flaws with the shipments being received of the plastic polymers or any of the miscellaneous equipment used in the production of the plastic fans. However, there is only a 93% chance that the shipments of the electric fan motors will be received on time. This may not appear to be an issue to some companies but can be extremely important when attempting to develop a real time ordering system that required on time shipment of all goods and work so as not to stop the production process.For, this reason the easiest itinerary to ensure on time delivery of these items would be to expand the sources for these split outside of the one company that is currently used so that if one location cannot provide on time delivery of needed equipment then the other location can be utilized to maintain an tranquillise shipment of the nee ded equipment to produce these electric fans. Productions Forecast for Electric Fans Currently the production forecast being utilized by the company is a make-to-stock production forecast model in which the company uses the past hree years of ordering data and through forecasting attempt to develop production level goals for the plant. This approach heavily relies on the idea that the past will repeat itself, which isnt the case many times. This approach results in overproduction in times of stinting downturn, while it may result in under production of products in periods of economic growth. This is why the suggestion is to create a more dependable supply chain and turn the process into a just-in-time approach, since this technique would be better suited for the individualized products that the Riordan location in China offers to customers.This would also allow for more real time data to be used when attempting developing forecasting plans and would allow for short-run changes mad e to the production capacity of the plant depending on the current economic situation. Implementation Plan The first task that needs to be completed in order to make the suggested changes listed above would be to complete the database system that would be responsible for tracking inventory at the electric fan plant.Developing this system would require that either an internal or outside(a) IT department be consulted or a plan of action be developed which would allow for the development of the software and purchasing of the hardware needed for this process. As the software is being developed the current amounts of inventory must first be entered into the new system that will be tracking the usage and ordering of the equipment needed in the production of the electric fans.Once this information is entered the system must have minimal information entered which will allow for the system to realize when ordering new materials is needed so that the plant does not exhaust the resources on hand before a new order is received. Once this software has been installed hardware will need to be purchased that will allow for the bar-coding of merchandise and for incoming orders to be scanned and electronically entered into the system.The second element associated with the changes being suggested is the increase in the reliability of the supply chain. First negotiations may need to take place with the initial provider of electric fan motors to ascertain exactly how many of these motors can be purchases and within what time frame and the order be guaranteed to be delivered on time. Once this information is gathered the company can attempt to bound up a secondary provider of these completed motors that will ship the parts that the initial supplier may not be able to guarantee on time delivery of.Once these negotiations have interpreted place this information can be entered into the ordering data base so that the system will automatically order the needed parts from the supplier that will be able to ship the equipment so the orders will be received on the specified need date. References Riordan Manufacturing. (2009) Intranet. Retrieved March 20, 2009 from https//ecampus. phoenix. edu/ catch/aapd/cist/vop/business/riordan/RioMfgHome002. htm The Free Dictionary. (2009). Materials Resource Planning. Retrieved March 20, 2009 from http//encyclopedia2. thefreedictionary. com/Material+Resource+Planning