The manufacturing plant in China has a direct focus on being able to supply the needs for all electric fans being sold by Riordan Manufacturing. This desire to meet the standards and keep up the pace for orders coming in has allowed the on time delivery rate to hover near 93%. This means that near 10% of orders are not delivered on time. This is a profit killer for Riordan. By increasing the process design Riordan will make up for lost profits and increase customer satisfaction. What must happen is Riordan should look for substitute manufacturing plants to fill the gaps where the plant in China has been found lacking. Not only will this all but guarantee the ability for all orders to be delivered on time it will also allow for Riordan to have more inventory on hand so that larger orders will not be delayed due to a slow manufacturing process.
In addition to looking for different locations to assist in the actual manufacturing process Riordan must look for ways to save money. One way to navigate towards financial savings is by revamping the planning of acquiring required materials. Having enough of the materials on hand which are paramount to the production of the electric fans is key.
As having enough materials on hand is important in the process, Riordan must eliminate wasteful storage. Having raw materials that are in abundance and readily available for purchase should not be kept on hand. If there is no shortage of these materials Riordan must allocate the space and financial resources for the materials that are less available as to not impede the production process.