Supply Chain Design- Riordan Manufacturing
OPS/571
March 31, 2014
Supply Chain Design-Riordan Manufacturing
Every organization has their own manufacturing strategy, depending on the type of organization will depend on the strategy to have the best end result. Understanding the strategies and how they are used can help the manufacturing process. Riordan manufacturing is a Fortune 1000 organization which produces multiple products, throughout this paper Team C will explain Riordan’s manufacturing strategy and the details that go into a manufacturing strategy.
Riordan’s Manufacturing Strategy There are three different types of manufacturing strategies that an organization can utilize, which include the Chase Strategy, the
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Having strong production projections is what allows Riordan to utilize the Combination Strategy.
Performance Metrics Performance metrics are tools that businesses can use to determine the efficiency of production. There are various types of performance metrics that a company can use; however in evaluating the performance of Riordan’s electric fan supply chains the two most relevant metrics would be the productivity metric and the efficiency metric. “Productivity is the ratio of output to input” (Jacobs & Chase, 2011 pg. 117). This metric is useful to Riordan because the company can determine the ratio of the dollar value of the output and dividing it by the cost of the inputs. This ratio helps the company to determine if the they are spending more in labor and parts then they are generating in sales. For an organization in which generating sales is the primary goal, this is an important ratio to know. The productivity ratio determines whether or not the company is generating as much of a profit as it should or if too much money is being spent in order to make money. The second metric that is beneficial to Riordan is the Efficiency Metric. This metric “is a ratio of the actual output of a process relative to some standard” (Jacobs & Chase, 2011 pg. 117). This metric is beneficial in determining if
Efficiency refers to a business’ ability maximise output (customer service) by minimising cost of operations and time required to complete required tasks. This ratio measures total expenses as a proportion of total revenue. It decreased slightly from %99 to %98 this year but is substantially strong like other airline (singapore airline %99). One of the main startegies qantas has undertaken to be effefctive with increaseing there efficiecny would be there use of RSF (revenue seat factor) which is used as a key indicator of efficiency. It measures the percentage of total passenger capacity actually utilised by paying passengers. Other startegies include:
The Marketplace simulation helped me realize how complicated and difficult decision making can be when trying to build a company. Among the most important simulation results were utilizing the budgets and pro forma statements. Budgets are beneficial as a financial plan by listing all planned expenses and income. The purpose is to be able to forecast revenues and expenses and create a business model that operates effectively to make sure overhead can be paid.
Supply chain management is a practice that involves the planning, supervision, and implementation of strategies and controls to direct the movement of goods and services provided to customers. The intent of this essay is to incorporate a synopsis of existing literature and to provide the reader with a general understanding of how supply chain management correlates with the organizational design and structure of modern firms. The essay comprehensively reviews the components of supply chain management and their integration with functional areas within an organization. The information presented in this essay
Throughout the entirety of the book, The Goal: A Process of Ongoing Improvement, author Eliyahu M. Goldratt focuses on demonstrating the importance of the Theory of Constraints and what corporations should do in order to increase profits. A major term used throughout the novel is “throughput,” which according to the text, is “the rate at which the system generates money through sales” (Goldratt 60). Once a bottleneck machine in a production process is identified, there are multiple ways to increase throughput without expanding the physical capacity of the machine.
In this third approach, it was proposed a simple operational measure to orientate the decision-making process within the company: Throughput. It was calculated as sales less material cost (“contribution
Through the years, brick and mortar buildings seemed to have been the most effective way of having a successful business. Today, with the creation of the internet many businesses now have the opportunity to reach millions of customers and other businesses worldwide. The internet has caused an enormous surge in the world 's economy through business to customer (B2C) and business to business (B2B) transactions. According to Nariane (2003), in 2003 B2B sales worldwide accounted for $1.41 trillion. B2C sales accounted for
Riordan Manufacturing has a reputation for precision and innovation. As a Fortune 1000 enterprise, Riordan cannot afford to have the issues of bottlenecking affecting their production. As a result, a detailed analysis of the bottlenecks, the effects, and appropriate strategic planning were examined. Lean production planning was examined as was new processes. The details of the new processes also outlined the benefits to the company.
In order to compare the different aggregate plans, there should be some performance measures in accordance with the objectives of decision maker. These measures would be used in order to define a plan as “better” than any other plan and they are grouped according to their relevancies in parts.
Troubleshooting the supply chain proactively By Chris Eckert, President of Sologic, and Brian Hughes, Vice President of Sologic. A version of this article appeared in the February 2010 issue of Industrial Engineer magazine.
An effective supply chain is the key to creating business value, and with expansion on the horizon. Good planning and willingness to adapt to changes are key to maximizing our results. In order to do this we have come up with a plan that will make Lady Americana mattresses a household name in our target expansion markets. In the state of Oklahoma, Lady Americana has already become a brand that has a bed in almost every home. The current systems in place are effective for todays operations, below are some challenges and recommendations to improve upon this to create an effective supply chain, that will grow with you as your business does.
In recent years, the importance management of supply chain has been a popular topic for a discussion and debates especially among the researchers, academician and practitioners. Still, the literature on supply chain management (SCM) especially in exploring the supply chain performance measurement is very limited. This limitation is due to the affected (in return) by many aspects of the firm’s environment and operations. The lack of investigation on understanding the supply chain measurement will affect the objectives and motivations of several supply chain concept even though there is a lot of literature on number of conceptual frameworks, discussion on characteristics, hierarchy and structure of performance measurement framework.
The area of business that we have decided to research is the world of automobile dealerships. When discussing the supply chain of car dealerships, it is important to discuss both their "brick and mortar" facilities and their organizational web sites. Both the "brick and mortar" facilities and the web sites play a vital role in the success of modern day car dealerships, so it is important to discuss both. First, we will the "brick and mortar" environment.
For any management team or executive, the pursuit to merge a good amount of these two qualities together requires some amount of sacrifice. To become highly effective, efficiency has to be first sacrificed after which it can be slowly increased without a considerable drop in effectiveness. This is the most accepted method used by managers because results matter to clients and customers instead of the cost of acquiring it.
4. In a service supply chain, the (explicit) cost of information is higher than in a product
including distributors and suppliers. From the person who gets original wood from a tree to the