Introduction
A process is a set of interrelated and interdependent activities at every stage that converts inputs into finished products. Process design is defined as the activities involved in the assessment and correct implementation of a process for the achievement of business goals.
The Riordan manufacturing company is the plastic manufacturing company.The Company has a focused research and development process. The varying factors of the process design are the materials requirement planning (MRP) process, supply chain system etc. which is needed for the smooth functioning of business.
MRP Systems for the manufacturing of Riordan fans
A proper material requirement plan followed by the firm helps in timely delivery of fans. “An information system that determines what assemblies must be built and what materials must be procured in order to build a unit of equipment by a certain date” (Material requirement planning, 2010, para.4). The plastic parts of the fans are being produced in Hangzhou, China. The plant at china has the technical know-how to create electric fans. The manufacturing of the plastic products are done in the china plant and the plant operates in a particular time limit The raw materials required for the production of electric fans are motors, transformers, polishers etc. they are brought together under one roof for the production of the finished unit. After the raw materials are brought together under one roof the components are properly assessed and combined together and then trimming is done to properly fix the components for the end product (fans). During the process many raw materials gets converted into scrap. These scrap becomes a loss for the firm so proper utilization of scrap should be done. The MRP for the manufacturing of electric fans is determined by the forecasted demand, supply and also the availability of raw materials, tracking of inventory level and the distribution process through shipping in international markets. The supervising officer should implement a proper system to track and manage the raw materials and to use them effectively and efficiently. The management team should focus on the optimum use of the resources.
A New Process design for the Riordan electric fans
The objective of the Riordan Company is to produce best quality electric fans. At present The Chinese plant of Riordan projects its own future demand of fans single-handedly so the plant takes orders from individual customers. It also procures raw materials within the Chinese markets which are at the present very inappropriate in the timely delivery of materials so the firm can look out for other alternative suppliers of raw materials for timely delivery. The firm should also try to reduce the cost of raw materials procured within the country by giving them bulk orders. The lead time in the process of production should be reduced to minimize delays in production. The bill of materials and the product specifications should be checked while adopting a new process design. The raw materials can be procured at a single shipping invoice. Some changes in the MRP can help in obtaining orders in a pattern. The company has the privilege of stocking the inventory themselves where the inventory cost is high. The company can use an efficient production system like the lean production system, which requires less time, labor, finance and the inventory and the just in time (JIT) in the business for the manufacturing operations. The intention in using the JIT is to improvise the quality of the production, least inventory cost, increased revenue and good return on investments. This helps in better strategic planning and the ability to meet the future demands at an ease.
Supply Chain Management for electric Fans
Supply Chain Management is associated with product development, production process, business development and the customer relations management. The product outsourcing and the customizing is a better option to purchase for dealing with future demand. The present supply chain of the Riordan is not considered to be much effective as there are lack of communication that are involved in the system among the suppliers, departments and the factories. Procurement of raw materials from outside agents though increases transportation cost but if they ensure quality and timely delivery then such supply chain can be adopted. Labor hired from the Chinese market itself involves less payment of costs so in turn reduces production costs. “The lower labor costs in LCCs, especially China, offer an attractive alternative to the higher cost suppliers from more developed economies” (Kusumal, Dawn & Evelyn, 2007, para.1). A proper supply chain by using modern technology like internet facility will help in finding efficient suppliers and will lead to incorporation of correct shipment process.
Production Forecast of the Riordan manufacturing
The production forecast of the company is made by the moving averages or rolling averages. The expected demand for the product in the forth coming year can be identified from the sales calculation of the previous 3 years put together. The market needs to be analyzed for the identification of both individual and bulk purchasers. Design and development of the product is strictly based on customer contracts. Thus final price of the product can be determined only after the product is completely manufactured. So different types of forecast tools such as setting up, scheduling, manufacturing and delivery are analyzed on the basis of yearly necessities rather than calculating early in the year as advance. The employing of the JIT and the six sigma of the business strategy contributes to the delivery of the right product to the right place in the right time irrespective of the obstacles.
Gantt chart of design process
A Gantt chart is a representative graph which shows the time taken to complete a task. It is a useful tool in process design for the proper setting up and forecast of tasks. The implementation of the lean production can be divided into two tasks; they are Task 1 & Task 2. Task 1 involves 4 steps. The first one is team construction and taking approval from management. Step 2 is the selection of a proper tool for executing the project. Step 3 is the actual execution of the project and the final step in task 1 is recognition of the problem. Task 2 of the project consists of 3 steps which are execution of lean production, practicing JIT and execution of TQM.
Conclusion
A new process design for manufacturing of Riordan electric fan needs the full information of the equipments, elements etc. used in the process. Standard process design if not applied properly will lead to an increase in the operating and capital costs to the company. For the implementation of a proper process design, inspection and surveys are conducted and analyzed to cater to the increased demand for electric fans
Reference
Kusumal, R., Dawn, R., & Evelyn, T. (2007). U.S. sourcing from low cost countries: A comparative analysis of supplier performance. Journal of Supply Chain Management. Encyclopedia.Com.
Material requirement planning. (2010). Answer.Com. Web.