Riordan Manufacturing 42415 Essay Example

is done if there is insufficient stock available to fulfill or supplement the order.

This process includes the following stages:

i?? The Production planner

i?? The Sales Manager.

If the lead time exception provided by both the Production planner and Sales Manager is deemed acceptable and approved, then the product is considered prepared for manufacturing.

Now the order is being completed.

The product is shipped.

The company generates an accounting document known as an invoice for the customer, which contains details such as the date, customer and vendor information, quantities, prices, freight charges, and credit terms for the transaction.

Business Requirements

Requirement Analysis is the initial and crucial phase in any project. Research has indicated that when a project begins with inaccurate or inadequate requirements, it becomes more vulnerable to alterations. In certain instances, the project may even be unable to deliver its intended products. Some organizations have experienced this firsthand, investing substantial resources – both monetary and energetic – only for their end application to fall short in fulfilling necessary tasks.

Recently, companies have been dedicating more time and resources to proper requirement analysis, which is crucial for the success of a project and aligning with the client's goals and project specifications. Requirements Analysis is a careful process of understanding the client's needs and expectations before beginning the design stage, as any changes in requirements may impact the design phase. This step is vital in the Software Development Life Cycle model, and it involves analyzing requirements such as system behavior or properties. The analysis should define what a project or application should do.

Riordan manufacturing has been highly successful since entering the global market. However, over time, the company's business processes became challenging to meet

requirements. As a result, plans were made to enhance the business process at Riordan manufacturing.

The following processes require improvement:

Inventory

The inventory is crucial for a company as it comprises the list of raw materials or goods required for the production of a specific product.

The time is a crucial factor, as delays in the supplier's delivery during certain production stages can occur.

The uncertainty refers to situations where the supplier is unable to meet the company's requirements for supplying raw materials. To ensure a continuous production, a buffer of inventory is necessary.

i??Economies of scalei??: The ideal scenario of having one unit available at the right place and time when a user needs it is a condition that incurs more costs in terms of logistics (Hot essays, June 2008). Therefore, purchasing and storing in bulk becomes crucial to sustain production.i??

Buffer Stock

A buffer stock of raw materials is necessary to maintain production. This can be minimized by implementing a technique called Single Minute Exchange of Die (SMED). SMED is a production method that reduces waste generated during manufacturing, allowing for efficient changeover from one product to another and reducing costs.

Inventory Control

The process of inventory control involves reducing a company's overhead without impacting its profit margin. However, there are several issues associated with inventory control:

i?? There are multiple factors to consider in inventory management such as production cost, buffer cost, and shipping costs. Estimating the cost of each of these factors poses a significant challenge.

i?? Another thing to think about is the accessibility of necessary raw materials or possible delays in obtaining them.

There may be situations where the production cost cannot be covered if the estimated cost of inventory is

significantly lower than sales, finally.

At the highest level of management, a choice has been made to create software for overseeing the entire inventory. This software, called ERP (Enterprise Resource Planning), enables control over the inventory. ERP was derived from Manufacturing Resource Planning and progressed into Enterprise Resource Planning.

Enterprise Resource Planning (ERP)

The act of spending resources equally in order to minimize production cost is the central focus of Enterprise Resource Planning (ERP). Effective sharing of resources necessitates the use of essential software, such as Manufacturing ERP. Although establishing an ERP system can be costly, its implementation can increase productivity and reduce inventory costs. Consequently, proper inventory management is essential for minimizing overall expenses.

i??ERP software enables businesses to expand their responsibilities and improve various aspects of their operations, such as strategic planning, management control, and operational control.i?? (Source: Riordan Manufacturing, 24th March 2008)

The ERP system manages multiple departments such as manufacturing, shipping, inventory, logistics, project allocation, data warehousing, human resources, and customer relationship management in a unified database.

The Products are outsourced.

Outsourcing the production of products has become crucial for improving company strategy. By delegating manufacturing to a third-party company, both production costs and inventory costs can be reduced. Numerous industries, such as the automobile industry, have begun outsourcing specific components for their products. For instance, an automobile manufacturer may outsource the production of certain spare parts. This approach allows companies to optimize their workflow and save time in producing the main product.

The act of outsourcing a product is determined by higher-level executives who choose which specific product to outsource or subcontract. Once these choices are finalized, management must proceed to establish contractual agreements with the supplier and

sub-contractor involved. In most cases, there is a competitive process among sub-contractors in order to win the project from the industry issuing the contract; this practice is commonly referred to as Contract Manufacturing. The selection of sub-contractors is based on their submitted bids.

The manufacturing process.

The traditional and time-consuming manual manufacturing process involves pouring melted plastic onto a mold, allowing it to cool, and obtaining plastic products with the desired shape. However, in order to find a more efficient approach, manufacturing companies have been searching for alternatives. Fortunately, technological advancements have presented opportunities to simplify and streamline the production process.

Computer Aided Manufacturing (CAM) has greatly affected the manufacturing sector, specifically in the designing industry. This introduction of new software enables the rapid production of plastic products.

Computer Aided Manufacturing

Previously, plastic manufacturing was a manual process until computer aided manufacturing emerged. The manufacturing industry extensively utilizes computer aided manufacturing, which has led to the development of new software for producing plastic products. This process relies on computer aided design software. Although implementing this system is costly, it can ultimately reduce production costs. Some software options include Unigraphics, DelCam powershape, and Mold Advisor 7.2. These programs enable the production of complex designs and molds. Mold Advisor 7.2 software specifically allows operators to simulate various processes.

i?? By using the and keeping their contents intact, the text could beand unified as follows:

The temperature and pressure of different regions in a specific part being produced can be adjusted. Temperature changes are indicated by colors, with red representing high temperatures.

Lean Manufacturing

The Lean Manufacturing philosophy, according to Riordan Manufacturing (15th February 2008), is a production method that aims to minimize waste

and maximize the use of raw materials in manufacturing. This approach identifies seven key areas of waste: Over-production, Transportation, Waiting time, Processing, Motion, Inventory, and Scrap. Maintaining a balance between supply and demand is crucial for preventing losses in the manufacturing industry. Effective inventory control plays a critical role in achieving superior product quality and boosting industry profits.

Cost Saving

Proper inventory management can decrease production costs. Utilizing ERP software is an effective way to utilize resources from buffer stock, reducing costs even further. Sub-contracting work to external parties can significantly reduce both production costs and time. Incorporating cutting-edge technologies in production processes can enhance manufacturing profitability and decrease product production time.

Studies have shown that strategies are being implemented to address the growing budget of Riordan plastics and the resulting increased IT spending for Riordan Manufacturing. Recent strategies involve redefining the IT cost center consolidated operating budget, which includes a 4% increase in spending on selected hardware, software, and services, including access charges. This increase in spending results in a net gain of $5,764.16. To address the unbalanced budget, re-negotiating software licensing and maintenance and re-evaluating employee-related expenses are recommended.

The Riordan Manufacturing report from February 15, 2008 states that Riordan must explore cost-cutting options in licensing by considering software-as-a-Service (SaaS) as an alternative integration and application platform.

With a 4% increase in IT expenditure and a 2% decrease in the overall budget, the annual IT budget has been adjusted from $1,901,300 to $1,863,274. The 4% growth in IT spending has been divided among hardware, software licenses, contract services, and leased lines. These components are essential for effectively managing Electronic Data Interchange (EDI) connections with other manufacturers and buyers.

The

text references are enclosed in

tags.

Riordan Manufacturing History - Retrieved on 11th June 2008 from Riordan (March 24, 2008)

http://riordan-manufacturing.blogspot.com/2008/03/riordan-manufacturing-history.html

Riordan Manufacturing (February 15, 2008) - "Optimizing Your Manufacturing Process Using Lean Manufacturing" - Retrieved June 11, 2008 from

The website URL is http://riordan-manufacturing.blogspot.com/2008/02/optimizing-your-manufacturing-process.html

i??Riordan Budget Reductioni?? (2007) - Retrieved June 11, 2008 from

Here is the link to the website: http://www.academon.com/lib/essay/riordan-budget-reduction.html

i??Riordan Manufacturingi?? - Retrieved June 11, 2008 from

http://www.oppapers.com/essays/Riordan-Manufacturing/87499

The information about Riordan Manufacturing was retrieved on June 11, 2008.

Here is the link to a website where you can view an essay: http://www.cheathouse.com/essay/essay_view.php?p_essay_id=53466

Essays on "Riordan Manufacturing" can be found at the following source: Retrieved June 11, 2008.

The link provided is for the website "http://www.hotessays.com/topics/Riordan-Manufacturing/0".

i??Riordan Manufacturing Mission Statementi?? - Retrieved June 11, 2008 from

Here is the link to the website's mission page: http://home.new.rr.com/dailydose/html/mission.html