Running Head: RIORDAN FAN PROPOSAL
Riordan Fan Proposal
Dr. Tug Gokaydin
August 3, 2009
Aggregate operations planning and total quality management are important concepts that must be implemented within the production of the Riordan fan. Aggregate operations planning will be used to control the costs of the manufacturing venture in China. Aggregate operations planning will be used to predict the necessary materials for the production of the fan. The next three months will use aggregate operations planning to use previous sales numbers to supply parts for fan production. Aggregate planning will also be used for production of the new fan design based on predicted sales number, including a 40% increase in sales.
Total quality management will be used to ensure that the production quality in China meets expected quality standards that customers of Riordan have come to expect. A quality plan must be implemented, possibly with incentives for employees, to meet these standards. Instilling in the employee’s the pride of producing quality products will be vital to the total quality approach.
Riordan Manufacturing has had a successful business plan and because of this has been a leader in plastic technology. Recent changes within the company have allowed Riordan to expand their business and acquire a fan production facility in China. The acquisition of this fan company requires Riordan to revisit their process design. Riordan must have an established material requirements plan in place to ensure production of the fan is a smooth process whether the fan is made solely in China, the US or produced in both companies. The supply chain and production forecasts must also be revisited as production in China could allow for new sources for supplies and transportation. Finally, an implementation plan for MRP, supply...