Three Division Plants

Three Division Plants

  • Submitted By: Sarmat
  • Date Submitted: 12/01/2008 4:08 PM
  • Category: Business
  • Words: 1593
  • Page: 7
  • Views: 1

Gap Analysis: Riordan Manufacturing Eduard Pazdnik University of Phoenix Gap Analysis: Riordan Manufacturing Riordan Manufacturing is a global plastics producer employing 550 people with revenues in excess of $1 billion. Production is divided among three plants: plastic beverage containers in Albany, Georgia; custom plastic parts in Pontiac, Michigan; and plastic fan parts in Hangzhou, China. Research and Development is conducted at corporate headquarters in San Jose, California. Riordan's major customers are automotive parts manufacturers, aircraft manufacturers, the Department of Defense, beverage makers, bottlers, and appliance manufacturers. Declining sales and uneven profits over the past two years not only forced the company to change its sales processes, but prompted them to adopt a customer-relationship management (CRM) system. Customers are now serviced primarily by sales teams rather than single salespeople, with each team focusing on a particular customer segment. From a manufacturing perspective, Riordan has implemented a Six Sigma quality approach. Some work has been redirected to a new manufacturing facility in China, and plants have been restructured into self-directed work teams. Unfortunately, as changes have been implemented, employee retention numbers have declined. The company recently conducted an annual employee survey, which showed a decrease in overall job satisfaction, particularly in the areas of compensation and benefits. Situation Analysis Issue_ and Opportunity Identification_ The employees play a very important role in the company. Their morale can influence the company’s success. “These reduced levels of employee motivation and cohesiveness would, in turn, have a negative impact on product quality” (Dreher & Dougherty, 2001, p. 11). Riordan Manufacturing changed its sales processes to increase its revenue. Unfortunately, such changes decreased employee retention. The company’s recent annual employee survey showed a...

Similar Essays