OPS571 Process Design for Riordan Manufacturing

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Running head: PROCESS DESIGN FOR RIORDANMANUFACTURING1Process Design for Riordan ManufacturingTeamOPS571July 6, 2010TeacherIn the context of Riordan Manufacturing's process design for their electric fan production inHangzhou, China, evaluate how the implementation of Lean Six Sigma andJust-In-Time (JIT)strategies can improve operational efficiency and reduce costs. Discuss the potential challengesRiordan may face in integrating these strategies across different facilities. Additionally, assessthe role of the master scheduler in streamlining the production process. Provide a detailedanalysis and suggest how the Gantt chart can be utilized for effective project management.Word Count Requirement:750-1000 words

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PROCESS DESIGN FOR RIORDAN MANUFACTURING2IntroductionRiordan Manufacturing’s owns three plants: Albany, GA where plastic bottles areproduced; Pontiac, MI where it handles the company’s custom plastic fabrication, andHangzhou, China that currently operates a decentralized unit of the organization producingelectric fans.When creating a process design for Riordan’s fan production operation, it isimportant to create a holistic production system that addresses several different aspects ofproduction, including total quality management, material requirements planning (MRP), processdesign, supply chain considerations such as just-in-time manufacturing and Six Sigma, accurateforecasting methods, and a means of implementing change.Total Quality ManagementOne of Riordan’s principal focuses, as outlined in its mission statement, is on lean SixSigma (University, 2002). SixSigma emphasizes fast delivery and minimizing costs, whiledelivering the highest quality products to customers (George, 2004). The needs of thecustomerdrive everything underSix Sigma and the determination of what exactly the customer wants andwhat is relevant to the customer leads to process improvement. Studying production data andprocess workflow improves processand delivery speed, which in turn improves customerrelations and increases profitability (George, 2004). Riordan’s Six Sigma projects should alwaysstart by studying what their consumers want, and analyzing the consumer focus when comparingRiordan to their competitors.All of this is based on production efficiency data, production numbers, and workflowprocesses. Riordan must manage their Chinese operations more effectively by using moreresources to track and mine relevant data specific to their processes and order flow, whichinvolves:(a) receipt of components by truck, (b) molding fan blades with colored pellets, (c)

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PROCESS DESIGN FOR RIORDAN MANUFACTURING3trimming excess plastic from blades, (d) assembling the blades, housings, and motors, (e)packaging and shrink-wrapping, and (f) conveying to loading dock and shipping to the customer.An important tenet of Six Sigma is that queue times and production cycle delays have tobe minimized, and this is done by improving both quality and speed (George, 2004). There mustbe a well-documented template, such as a checklist, for how exactly work is done, and how workmoves between people and workstations. A possible process improvement would be to combinethe processes of molding and trimming into one area, and to merge packaging and conveyinginto one work area. These improvements, combined with improved training, communication, andempowerment of the Chinese staff over their own job functions would create the efficienciesnecessary to realize a reduction in operation expenses.Just-in-time (JIT) manufacturing techniques may be used to manage inventory levels andcontrol work-in-process (WIP) inventory. As with Six Sigma, JIT manufacturing focuses oneliminating waste and continuous production improvement, fabricating the exact rightcomponent at the right time and place, with a specific emphasis on eliminating anything thatdoes not add process value but adds costs to production (Agrawal, 2010). By eliminatingredundant, wasteful steps, one of the goals of JIT is realized: inventory moves towards zerothrough the elimination of waste. Additional means of streamlining processes are (a) to relocatethe workstations so that they are closer together, thereby reducing product transit time, (b) usingany idle time of down time for the maintenance and repair of equipment, and (c) developingcloser supplier relationships. All of these strategies add value to Riordan’s Chinese operationsand support their corporate goals of lean Six Sigma, realizing a reasonable profitability level,strengthening the Riordan brand and giving it a competitive advantage, and attaining a 10 percent reduction in operating expenses (University, 2002).

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