Riordan Manufacturing manufactures and sells electric fans in the United States. Recently, they are planning to re-engineer their Riordan Manufacturing’s China plant so as to increase their sales. For them to reach this goal they plan to apply Manufacturing Resource Planning and employ Computer Integrated Manufacturing. In this paper we make three contributions: (1) Manufacturing Resource Plan (2) Production Planning Design (3) Supply Chain Management Plan (4) Production Forecast and (5) Implementation Plan. Through this action the will company efficiently manage their business in China and profitably operate using the direct-selling mode and deal with the wide-ranging financial and commercial conditions in various cross-cultural markets, which includes societal, financial and governmental procedures.
new production process design
With regards to the production and design of the electric fans may it be customized of not the company is advised to implement the following procedures: (1) requirement assessment which will be worked on by electricians, mechanics, and industrial designers and project managers that would discuss with clients to discern customer demands. And through this assessment the initial conception of the project would begin. The assessment would also include competitive analysis, feasibility study, costs and schedule estimate and risk analysis; (2) requirement agreement wherein the project managers would present the customized electric fan designs. This would comprise the final product specifications agreed to, the preliminary bill of materials, costs and schedule, the manufacturing plan, required testing, QA and production plans and lastly, the resource allocation; (3) design and prototyping would ensue upon clients’ approval of the design, features and cost. Here, the engineers would construct a detailed design of the fan and then they would make a series of prototypes that would test and verify the functionality of the fan. Thus, it would include the approved final design, the technical product documentation, prototype test results, record of the production launch costs and schedule and tooling and production testing specifications; (4) design validation, here the product qualification testing would be performed.
The said testing would be employed for the certification of the design and a check-and-balance if the specification of the client were achieved as well as the Q&A requirements. In this process they would be able to predict the MTBF, proceed with the vibration, drop and shock test, temperature and humidity test, accelerated life, voltage margin test, thermal analysis and testing, performance test, compatibility test and customer requested test; and lastly (5) the production validation which is the major milestone of the production process thus it would be vital for the project management team to evaluate, fine-tune procedures and processes for a cost effective, high-quality mass production. At this point, the team should implement an assembly and test process capabilities study, document the final process and support/tests, record an approved supplier list as well as the approved materials list, and produce the first production units.
(Please refer to figure below to view a strategic chart of the new production process):
Planning the supply chain should be implemented and be a corporate business planning activity for the next two to five years. The evaluations would include potential sales to identify the minimum to the maximum levels. Moreover, the development of an effective supply chain model would be vital so as to provide a seamless amalgamation of the electric fan production. In this phase, the integration of the planning, scheduling, control is essential (Yusafa et al, 2004). Thus the feasibility, consistency, and optimality of the models should be applicable for longer time scales for instance the years, months, days to the seconds.
See Figure below to view the proposed supply chain for Riordan Manufacturing which shows that (1) it has a typical manufacturing supply chain work flow that detail various business departments involved, (2). Riordans’ sales department would identify a need for a product and tell the marketing department concerning their proposal and provide required supporting information / data, (3) then the marketing department would employ market business analysis that would buttress and evaluate the project proposal and to complete the research, (4) the drawn data and supporting evidence will be passed back to the marketing department for construction of a product plan, (5) then a fully detailed project plan will be forwarded to the Business Unit Manager / Directors which will decide regarding the project, (6) upon approval the project plan will be assigned to the project manager and his team to prepare the manufacturing process, (7) then the details of the raw materials and fan components would be forwarded to purchasing department, (8) then the purchasing will work with the logistics department as well as the transport department in order to plan the purchase in addition to the delivery of the materials to the manufacturing plant, (9) the suppliers would receive orders for the product and then dispatch it though on agreed transport mode and on agreed dates, (10) the shipping company or the carriers will be approved by the business transport and the raw materials and components will be delivered to the manufacturing facility, (11) the purchased products will be received into the warehouse and then moved to manufacturing facility, (12) the finished products (customized electric fans) will be moved from the manufacturing facility to the finished goods warehouse, (13) the fans would be recorded in the inventory through SAP, (14) the clients would finalize and pay for the orders through customer service or sales department, (15) the customer services or sales team would document the order in the SAP, (16) a record of list is made available to the warehouse and the export department, (17) the export department will manage the final dispatch of the fans and produces any export documents, (18) the documents will be sent to the warehouse to meet up with the finished order, (19) the order will be dispatched by the warehouse team, (20) then the shipping company and carrier would collect the consignment and deliver it to the customer based upon the US terms of carriage. And as the stock has now been used, SAP will generate any further request if need be then the re-order process will generate a request to the purchasing department to place new orders with their preferred suppliers.
For Riordan Manufacturing, they must implement a master schedule key programme. The said programmed should embrace sales and operating review board (SORB) as it plans the electric fan sale and production capacity according to the two to five years forecast. The SORB forecasting programme would aid make decisions that would effect any changes that would help attain the required capacity from manpower, machine, technology and the facility. This process should be an ‘Evaluation and Commitment Acceptance Program’. The SORB team would meet every three months and make every production plans. The board would document the baseline data about every agenda in every meeting that would also identify innovation. It is necessary to do so due to the fact that it would affect the amount of work in the factory. Afterwards, a copy of the constructed plan would be taken from and uploaded in the Project System module within the SAP. From here, the new project would be stored in the SAP module Demand Management. The said module would be used in testing the simulation of the new models of the customized electric fans even before the mass production.
There are various teams crucial in the various phases of manufacturing customized electric fans. As seen in the figure below, there are six teams involved: (1) research and development team that is responsible for field analysis (2) manufacturing technology team which is responsible for development of basic technology and dedicated equipments (3) fan motor design team which is responsible for product design (4) manufacturing technology team which is responsible for the basic technology development as well as mass production implementation (5) facility development team which is accountable for in-house manufacturing of dedicated equipment and dies or molds needed and (6) sales team which is accountable for new product proposal and market trending.
Note that as the team develop innovative technologies and electric fan designs, it is vital to implement technical innovations that would integrate the design with the actual manufacturing. Suffice it to say concurrent engineering would result in various manufacturing innovations. Efforts will be made to reduce any loss in very process and this would also include the development of the work conveyance system. Hence, every team would be innovated to make sure that the product manufactured would have high-precision efficiency.
Yusufa, Yahaya, Gunasekaranb, A. and Abthorpec, Mark S. (2004). Enterprise information systems project implementation: A case study of ERP in Rolls-Royce. Int. J. Production Economics Volume 87 pp.251–266