Riordan Manufacturing is a Six Sigma & leading edge R&D organization, exceeding the ISO 9000 standards that they are certified in
(D) Define:
(M) Measure:
The majority of Riordan Manufacturing’s customers are in China and can either pick up or have their
fans delivered . They also have a small exclusive clientele that order customized fans for clients world
wide. Riordan’s quality and availability of their fans make them unique.
Riordan does a good job at maintaining its inventory for on-time delivery, however, they do have a
make to stock feature for future demand but it’s forecasting is based only on the last 3 years of sales.
In addition, their customized line of fans which have no defined forecast for the year only by what the
customer tells them.
(A)Analyze:
Riordan does more than build fans, they also produce the fan parts themselves with melted polymers
bought locally. However, this can be costly since the equipment to do this work is very expensive.
After all parts are made the fans are assembled and moved to the stock room for future sale.
(I) Improve:
Riordan allows some clients the luxury of placing an order and holding the inventory for them till they
need it, however, this is challenging when it comes to estimate the materials needed throughout the
year. In addition, Riordan does not make their own motors and has to count on the manufacturer to
have them in stock when needed.
(C) Control:
Riordan is good at what they do, but lack over site in some areas of their manufacturing that if tightened
it up could make them more productive, efficient and profitable. Though they already use a supply
management plan other areas of their company could do need more to correct underlying issues.
Riordan’s Areas of continuous improvement
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Riordan Manufacturing wants to have a continuous long term relationship with their customers by
maintaining rigorous quality controls, innovative solutions, along with a responsive business attitude and
reasonable pricing.
Employees of Riordan look to maintain team oriented work ethic along with an innovative work
environment. Riordan keeps their employees informed and supported; by creating this they provide a
climate of comradely focused on the long term viability of their company.
Riordan needs to continue to evaluate their work flow and processes to improve upon their inventory
levels to keep in line with their customers demands.
Continue to improve on initiating enough inventory with their outside vendors for better control.
Developing better methods of interpreting “follow-on” orders that are not forecasted but are estimates
for their upcoming needs will be.
Maintain changes and improvements once initiated. Continue to follow up and assess if any changes are
necessary.
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Other Areas that Riordan Manufacturing can develop in it’s Global Market Place
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Lower labor costs – by moving their plant from Michigan to China Riordan lowered their cost of
overhead, since it is much less expensive to run a factory like Riordan’s fan manufacturing.
Green initiative (Sustainability) – Customers want businesses who have a stake in the environment and
do the right thing to maintain sustainability.
International Trade Investment – Opens up other opportunities to work with and invest in other global
partners.
Increase foreign Sales – Allows for organizational expansion