Global Supply Chain Advantages Paper
Lisa Agnew, Heidi Lankford, Renae Pace, Courtney Ray
Strategic Supply Chain Management ISCOM 370
Adrian Crystal Martin
January 31, 2010
University of Phoenix Online
Riordan Manufacturing Supply Chain
Riordan Manufacturing is a worldwide manufacturer of plastics. The organization employs 550 people and has projected annual earnings of $46 million. The company’s products include plastic fans and fan parts produced at its facilities in Hangzhou, China and custom plastic parts produced at its plant in Pontiac, Michigan. The company's major customers for its standard and customized fans are automotive parts manufacturers, aircraft manufacturers, ...view middle of the document...
The flows of data between these systems are entered into the systems by an inventory clerk. The Molding Department and Trimming Department appear to duplicate certain aspects of its processes. As a result, several of its manufacturing processes are time consuming and cost ineffective (UOP, 2009).
Under the current process, raw materials are received at the receiving area. The receiving area supervisor reviews the shipping document with scheduled incoming orders and prepares the orders received log at the end of the day to give to the inventory clerk who enters the related information into the inventory system. This process could be streamlined by eliminating the receiving log process and integrating the receiving system with the inventory system. For example, the receiving area supervisor would just check off the items received on the scheduled incoming orders and provide this same documentation to a clerk to enter or scan into the receiving system which would then update the inventory system automatically (UOP, 2009).
When fulfilling a customer’s order, a similar process to the one above can also be applied to the shipping and the billing system. When a shipping document is processed, it should also update the inventory system automatically to reflect the reduction of inventory and cost of sales on the billing the system if all three systems are integrated. With the three systems integrated, there is no need for the inventory clerk to update the inventory system manually.
Another area that the Chinese plant can improve is by consolidating the Molding Department and Trimming Department. It would be possible to combine them because they require almost the same inputs and produce almost the same wastes as well. With these two departments consolidated, the time in setting up the inputs would be less as well as the handling of the wastes due to less numbers of inputs setups and the elimination of redundancy in handling of the wastes.
Material Requirement Planning and Supply Chain Recommendations
The purpose of MRP (material requirements planning) system is for the company to get the all of the necessary components and materials at the right time. The MRP system receives its materials input from the company’s orders received from customer, forecasts of demand, inventory requirement and changes in the product design (Chase, 2006)..
For the current process in China plan, there is a potential problem that the company cannot keep up with its order requirements due to inadequate an MRP system. The plant needs all its materials ready to start its production once the orders come in. It appears that the plant is currently facing problems with materials which are not being ordered or delivered on time. During the three year period that the company did not maintain adequate quantities of electric motors in stock, records showed that the company’s on-time deliveries averaged only 93%. This number is assumed to include both the standard fans and the...