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Riordan Manufacturing Virtual Organization Essay

1107 words - 5 pages

Riordan’s Manufacturing Strategy
According to "PWC" (2008), “today, business strategy and talent management are linked as an integrated talent management framework combining organization, business process and technology. Riordan’s Manufacturing manages their human capital and talent as strategic assets. They achieved by aligning the workforce with business objectives and by use performance metrics to drive decisions, monitor and improve results. This strategy shows how Riordan Manufacturing can successfully align their talent management strategy with technology to effectively manage their workforce needs in order to be a marketplace leader of the future” (Creating an agile workforce). ...view middle of the document...

It should not be modified to accommodate company policies or shipping promises. It is purely a metric of manufacturing’s ability to meet customer requirements. This metric will help improve their average on-time delivery to better than 93%. Second the quality metric that demonstrates how reliable Riordan’s products are once they leave their plants. Information from customer returns or warranty claims are typically the basis for this metric. It is not a summary of internal quality metrics. It is important to realize that this metrics are only important to the extent that they provide quality information that management can use to minimize cost, improve flow and meet customer quality requirement (Waddell, 2006).
By having suppliers in close proximity will increases Riordan Manufacturing Just-In-Tine (JIT) inventory strategies. The plastic polymers to make plastic parts to assembly the fans, and the hardware used for assembling the fans are supplied by a local Chinese company. However; there seem to be an environmental problem with Yin, the company that supplies the motors for their fan. This could have profound effects on our on-time-delivery and if this wasn’t bad enough, approximately 400 workers went on strike for better wages and reasonable working hours. This will put a major strain on Riordan’s electric fan production and deliveries. Financially, Riordan Manufacturing currently is a stable company. But could have some supply chain risks from employee turmoil from striking and budding legal issues from child labor.  Either of these situations could result a company shut down and leaving Riordan with no alternate means of getting electric fan motors. 
Blanchard  (2009), “successful supplier relationships require two-way information, recommendations, metrics and incentives. Riordan Manufacturing must understand the cost and value of their entire supply chain. Without a detailed understanding of all costs, from raw materials through the end product or service, and the value provided by its supplier in the process, a supplier cannot be evaluated. Therefore, there are several things Riordan Manufacturing can do to improve their relationship with it suppliers. They can incorporate appropriate service levels and metrics into agreement, share critical information as early as possible, plan for major contingencies, expect and reward honesty and finally, make relationship meetings meaningful” (10 Strategies for Managing Suppliers).
“Lean manufacturing systems produce what customers want, in the quantity they want, when they want it, and with minimum resources. Applying lean concepts in manufacturing typically presents the greatest opportunities for cost reduction and quality...

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