Production Plan for Riordan Manufacturing:
In this paper there will be a discussion of alternative ways for Riordan Manufacturing Company to implement a new production plan, to generate an increase in its production for the new process design, and supply chain process for the electric fans at Riordan. The discussion will briefly observe and identify various strategic ability plans as well as lean production. The supply chain process for the manufacturing of electrical fans will determine a qualifying processing system. However, for Riordan manufacturing to reach its goals, they will need to implement control techniques and regulate various concepts this will help the company to become more creative.
Supply Chain Strategy:
Riordan manufacturing can achieve a significant competitive advantage through the way the supply chain operations is configured and managed. “Outsourcing is an act of moving some of a firm’s internal activities and decision responsibility to outside providers” (Chase, Jacobs, & Aquilano, 2006, p. 413). In the electronic industry, manufacturing can be performed by contract manufacturers, which manage the full supply chain, distribution, and, maintenance of the product. Riordan can outsource the manufacturing of the electric fans to a Chinese supplier. Once the duties of manufacturing are outsourced, Riordan can focus on other areas of the business without the worry of managing manufacturing. The labor and resources are much cheaper in China and will allow Riordan to make a bigger profit on the electric fans. Outsourcing allows Riordan to cut cost on manufacturing and gives an opportunity for an advantage over the organization’s competitors (Chase, Jacobs, & Aquilano, 2006, Pp.413-416).