Running head: PROCESS DESIGN FOR RIORDAN MANUFACTURING 1
Process Design for Riordan Manufacturing
Team
OPS571
July 6, 2010
Teacher
In the context of Riordan Manufacturing's process design for their electric fan production in
Hangzhou, China, evaluate how the implementation of Lean Six Sigma and Just-In-Time (JIT)
strategies can improve operational efficiency and reduce costs. Discuss the potential challenges
Riordan may face in integrating these strategies across different facilities. Additionally, assess
the role of the master scheduler in streamlining the production process. Provide a detailed
analysis and suggest how the Gantt chart can be utilized for effective project management.
Word Count Requirement: 750-1000 words

PROCESS DESIGN FOR RIORDAN MANUFACTURING 2
Introduction
Riordan Manufacturing’s owns three plants: Albany, GA where plastic bottles are
produced; Pontiac, MI where it handles the company’s custom plastic fabrication, and
Hangzhou, China that currently operates a decentralized unit of the organization producing
electric fans. When creating a process design for Riordan’s fan production operation, it is
important to create a holistic production system that addresses several different aspects of
production, including total quality management, material requirements planning (MRP), process
design, supply chain considerations such as just-in-time manufacturing and Six Sigma, accurate
forecasting methods, and a means of implementing change.
Total Quality Management
One of Riordan’s principal focuses, as outlined in its mission statement, is on lean Six
Sigma (University, 2002). Six Sigma emphasizes fast delivery and minimizing costs, while
delivering the highest quality products to customers (George, 2004). The needs of the customer
drive everything under Six Sigma and the determination of what exactly the customer wants and
what is relevant to the customer leads to process improvement. Studying production data and
process workflow improves process and delivery speed, which in turn improves customer
relations and increases profitability (George, 2004). Riordan’s Six Sigma projects should always
start by studying what their consumers want, and analyzing the consumer focus when comparing
Riordan to their competitors.
All of this is based on production efficiency data, production numbers, and workflow
processes. Riordan must manage their Chinese operations more effectively by using more
resources to track and mine relevant data specific to their processes and order flow, which
involves: (a) receipt of components by truck, (b) molding fan blades with colored pellets, (c)

PROCESS DESIGN FOR RIORDAN MANUFACTURING 3
trimming excess plastic from blades, (d) assembling the blades, housings, and motors, (e)
packaging and shrink-wrapping, and (f) conveying to loading dock and shipping to the customer.
An important tenet of Six Sigma is that queue times and production cycle delays have to
be minimized, and this is done by improving both quality and speed (George, 2004). There must
be a well-documented template, such as a checklist, for how exactly work is done, and how work
moves between people and workstations. A possible process improvement would be to combine
the processes of molding and trimming into one area, and to merge packaging and conveying
into one work area. These improvements, combined with improved training, communication, and
empowerment of the Chinese staff over their own job functions would create the efficiencies
necessary to realize a reduction in operation expenses.
Just-in-time (JIT) manufacturing techniques may be used to manage inventory levels and
control work-in-process (WIP) inventory. As with Six Sigma, JIT manufacturing focuses on
eliminating waste and continuous production improvement, fabricating the exact right
component at the right time and place, with a specific emphasis on eliminating anything that
does not add process value but adds costs to production (Agrawal, 2010). By eliminating
redundant, wasteful steps, one of the goals of JIT is realized: inventory moves towards zero
through the elimination of waste. Additional means of streamlining processes are (a) to relocate
the workstations so that they are closer together, thereby reducing product transit time, (b) using
any idle time of down time for the maintenance and repair of equipment, and (c) developing
closer supplier relationships. All of these strategies add value to Riordan’s Chinese operations
and support their corporate goals of lean Six Sigma, realizing a reasonable profitability level,
strengthening the Riordan brand and giving it a competitive advantage, and attaining a 10 per
cent reduction in operating expenses (University, 2002).

OPS571 Process Design for Riordan Manufacturing

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