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OPS571 Process Design for Riordan Manufacturing

Study of process design strategies for Riordan Manufacturing.

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    Running head: PROCESS DESIGN FOR RIORDAN MANUFACTURING 1 Process Design for Riordan Manufacturing Team OPS571 July 6, 2010 Teacher In the context of Riordan Manufacturing's process design for their electric fan production in Hangzhou, China, evaluate how the implementation of Lean Six Sigma and Just - In - Time (JIT) strategies can improve operational efficiency and reduce costs. Discuss the potential challenges Riordan may face in integrating these strategies across different facilities. Additionally, assess the role of the master scheduler in streamlining the production process. Provide a detailed analysis 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 MANUFACTURING 2 Introduction Riordan Manufacturing’s owns three plants: Albany, GA where plastic bottles are produced; Pontiac, MI where it handles the company’s custom plastic fabrication, and Hangzhou, China that currently operates a decentralized unit of the organization producing electric fans. When creating a process design for Riordan’s fan production operation, it is important to create a holistic production system that addresses several different aspects of production, including total quality management, material requirements planning (MRP), process design, supply chain considerations such as just - in - time manufacturing and Six Sigma, accurate forecasting methods, and a means of implementing change. Total Quality Management One of Riordan’s principal focuses, as outlined in its mission statement, is on lean Si x Sigma (University, 2002). Six Sigma emphasizes fast delivery and minimizing costs, while delivering the highest quality products to customers (George, 2004). The needs of the customer drive everything under Six Sigma and the determination of what exactly the customer wants and what is relevant to the customer leads to process improvement. Studying production data and process workflow improve s process and delivery speed, which in turn improves customer relations and increases profitability (George, 2004). Riordan’s Six Sigma projects should always start by studying what their consumers want, and analyzing the consumer focus when comparing Riordan to their competitors. All of this is based on production efficiency data, production numbers, and workflow processes. Riordan must manage their Chinese operations more effectively by using more resources to track and mine relevant data specific to their processes and order fl ow, which involves: (a) receipt of components by truck, (b) molding fan blades with colored pellets, (c)

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    PROCESS DESIGN FOR RIORDAN MANUFACTURING 3 trimming 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 to be minimized, and this is done by improving both quality and speed (George, 2004). There must be a well - documented template, such as a checklist, for how exactly work is done, and how work moves between people and workstations. A possible process improvement would be to combine the processes of molding and trimming into one area, and to merge packaging and conveying into one work area. These improvements, combined with improved training, communication, and empowerment of the Chinese staff over their own job functions would create the efficiencies necessary to realize a reduction in operation expenses. Just - in - time (JIT) manufacturing techniques may be used to manage inventory levels and control work - in - process (WIP) inventory. As with Six Sigma, JIT manufacturing focuses on eliminating waste and continuous production improvement, fabricating the exact right component at the right time and place, with a specific emphasis on eliminating anything that does not add process value but adds costs to production (Agrawal, 2010). By eliminating redundant, wasteful steps, one of the goals of JIT is realized: inventory moves towards zero through the elimination of waste. Additional means of streamlining processes are (a) to relocate the workstations so that they are closer together, thereby reducing product transit time, (b) using any idle time of down time for the maintenance and repair of equipment, and (c) developing closer supplier relationships. All of these strategies add value to Riordan’s Chinese operations and 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 per cent reduction in operating expenses (University, 2002).

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