Material requirements planning (MRP) would help in different stages of Riordan production cycle to ensure optimum use of available resources to promote efficiency. Just-In Time concept of Lean production would be helpful to MRP, production, and scheduling, inventory management of products with the right amount at the right time. This is because a poorly managed inventory can tie up cash and lead to huge losses until purchase of product. Sophisticated technology would enhance the inventory system, curb waste, save time, and money.
The first step for Lean production would be ability to project, plan, and prepare because production starts when there is demand for the product, this requires a solid relationship with vendors. Forecasting would be an important part of organizational planning that would give Riordan the flexibility to predict demand effectively. Although the company currently relies on past sales trend and data, realistically the demand for fans are affected by economic conditions and market changes, and this must be analyzed.
Riordan Manufacturing would have to ensure operation is reliable and meets quality standards. Merging the plant in China and Michigan would be an advantage, reducing shipping costs and tapping from China’s accessibility to raw materials. Management could implement an improvement of the inventory process by streamlining the inventory flow within the system with procedures for handling raw materials, finished products, and tracking of products during production. The production staff and receiving supervisor could be allowed to enter data into the system therefore avoiding duplicates from the inventory clerk; accessibility to real-time inventory information would also help.