Learning Team C has completed the analysis of Riordan Manufacturing’s electric fan design process and has developed a proposal outlining the changes that need to be implemented. The team is proposing to focus on total quality management (TQM); this will allow Riordan to remain focused and efficient in areas of opportunity, and to excel in all aspects of the electric fans that are important to customers. The team’s recommendation is to use quality at the source that will address the following scenarios: proper training for employees, holding employees accountable, and incentives to help motivate employees. TQM will also be implemented within the supply chain including suppliers and transportation; this will decrease costs and improve on-time delivery to customers, which will increase sales. With the new process transitioning to the just-in-time (JIT) method, the technology portion of the organization will need to be upgraded to a system that monitors from the point of order to the point of delivery.
The company will transition from a basic material requirements plan (MRP) to an MRPII system that will allow Riordan to excel in efficiency, lean production, and cost effectiveness. Applying lean production principles will aid in removing waste, reducing inventory, maximizing process flow, and meeting customer expectations. Communication is key for the organization; this will allow management to empower the employees with a company-wide initiative of continuous improvement. The recommendation is to use make-to-order for standard and custom orders to excel in the customer service arena that will not only retain current customers but also attain new customers.
The supply chain recommendations will allow Riordan to realize a 25% increase in on-time delivery, which will increase the bottom line. Taking advantage of global opportunities and outsourcing internal organization functions to outside providers can reduce operating costs. It is also recommended that Riordan find a clean/green supplier that provides a 99% on-time guarantee for parts. This will be made possible by using an incentive for on-time deliveries and a penalty for late deliveries. We have included a variety of charts that reinforce Learning Team C’s recommendations: flow chart of the new process (pg. 1), forecast example (pg. 4), master production schedule (MPS) example (pg. 7), sample inventory chart (pg. 8), and Gantt chart (pg. 9). Please find enclosed our complete proposal detailing recommended changes to Riordan’s process design for electric fan production. This aggregate operations plan coordinates all aspects of production to improve process quality and efficiency.
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