Riordan Manufacturing’s Expansion into the China Market: Analysis of Current Production Process and Proposed Improvements

1. Introduction

In order for Riordan Manufacturing to be able to expand its operations into the China market, it is essential that the company understands the potential bottlenecks in its production process and establishes effective control measures to fix these issues. The purpose of this paper is to conduct a thorough analysis of Riordan Manufacturing’s current production process, identify the potential bottlenecks, and propose a new production plan that would help the company avoid these bottlenecks.

2. Current Production Process
2.1 Process Description

The current production process of Riordan Manufacturing can be divided into two parts: the manufacturing process itself and the transportation process. The manufacturing process includes two steps: injection molding and assembly. The company first produces plastic pellets which are then injected into molds to create plastic parts. These parts are then transported to the assembly area where they are put together to create the final product.
2.2 Capacity of the Current Production process
The current production process has a capacity of 110,000 units per year. However, this capacity is not being fully utilized because the company is only producing 95,000 units per year. This leaves a lot of room for improvement in the current production process.

3. Cost Analysis of the Current Production Process

The cost analysis of the current production process shows that it is not very cost-effective. The total cost of materials for one unit is $5.50, and the total labor cost for one unit is $4.00. This means that the total cost of one unit is $9.50. If we assume that the company sells each unit for $10, then the profit margin for each unit is only $0.50. In order to increase its profit margin, Riordan Manufacturing needs to either reduce its costs or increase its selling price.

4. Issues and Concerns with the Current Production process

There are several issues and concerns with Riordan Manufacturing’s current production process:
-The first issue is that there is a language barrier between the Chinese workers and the American managers. This can lead to communication problems and make it difficult for the managers to effectively supervise the workers.
-The second issue is that Shanghai is a long way from Hangzhou, where Riordan Manufacturing’s assembly plant is located. This makes transportation of materials and products very costly and time-consuming.
-The third issue is that there is a risk of natural disasters in China (e.g., earthquakes, floods, etc.). This could disrupt Riordan Manufacturing’s supply chain and cause delays in production.

5. Proposed Production Plan
5.1 Proposed Process Description

The proposed production plan would address all of the issues and concerns with Riordan Manufacturing’s current production process:
-The first issue would be addressed by establishing a clear set of communication protocols between the American managers and Chinese workers. This would ensure that everyone is on the same page and that there are no misunderstandings.
-The second issue would be addressed by locating Riordan Manufacturing’s assembly plant closer to Shanghai (e.g., in Suzhou). This would reduce transportation costs and make it easier for the company to get its products to market.
-The third issue would be addressed by establishing a disaster recovery plan. This would ensure that Riordan Manufacturing can quickly and efficiently resume production in the event of a natural disaster.
5.2 Capacity of the Proposed Production Process
The proposed production process has a capacity of 120,000 units per year. This is higher than the current production process because it eliminates the bottleneck of transportation between Shanghai and Hangzhou.

6. Cost Analysis of the Proposed Production Process

The cost analysis of the proposed production process shows that it is more cost-effective than the current production process. The total cost of materials for one unit is $5.00, and the total labor cost for one unit is $3.50. This means that the total cost of one unit is $8.50. If we assume that the company sells each unit for $10, then the profit margin for each unit is $1.50. This is higher than the current profit margin, which means that Riordan Manufacturing would be able to increase its profits by implementing this new production process.

7. Implementation Plan
7.1 HR Strategy

Riordan Manufacturing will need to hire additional workers in order to implement the new production process. The company will also need to train these workers on the new process and make sure that they are properly supervised.
7.2 Training Plan
Riordan Manufacturing will need to provide training for its new workers on the new production process. This training will cover all aspects of the process, from materials preparation to final product assembly.
7.3 Transition Plan
Riordan Manufacturing will need to transition from its current production process to the new production process in a smooth and efficient manner. The company will need to carefully plan this transition in order to avoid any disruptions in production.8. Conclusion
Riordan Manufacturing needs to expand its operations into the China market in order to remain competitive. However, the company must first understand the potential bottlenecks in its production process and establish effective control measures to fix these issues. This paper has conducted a thorough analysis of Riordan Manufacturing’s current production process, identified the potential bottlenecks, and proposed a new production plan that would help the company avoid these bottlenecks.

Riordan Manufacturing needs to expand its operations into the China market in order to remain competitive. However, the company must first understand the potential bottlenecks in its production process and establish effective control measures to fix these issues. This paper has conducted a thorough analysis of Riordan Manufacturing’s current production process, identified the potential bottlenecks, and proposed a new production plan that would help the company avoid these bottlenecks.

FAQ

Riordan Manufacturing Company's process design and production plan is to produce a product that is of the highest quality, while also being cost effective. This plan benefits the company by ensuring that they are able to produce a product that meets customer demands, while also making a profit.

Some of the challenges that come with implementing such a plan include training employees on new processes, ensuring quality control, and managing inventory.

Riordan overcame these challenges by investing in employee training, setting up quality control procedures, and streamlining their inventory management system.

The results of following this production plan have been positive, with Riordan Manufacturing Company seeing an increase in sales and profitability.

I would recommend other companies follow a similar path as it has proven to be successful for Riordan Manufacturing Company. ["Riordan Manufacturing Company's process design and production plan is to produce a product that is of the highest quality, while also being cost effective.","This plan benefits the company by ensuring that they are able to produce a product that meets customer expectations, while also being profitable.","Some of the challenges that come with implementing such a plan include ensuring that all employees are trained on the new process, and that the necessary equipment is in place.","Riordan overcame these challenges by investing in employee training and by working closely with suppliers to ensure that the necessary equipment was available when needed.","The results of following this production plan have been positive, with increased sales and profitability for the company.","I would recommend other companies follow a similar path, as it is an effective way to increase sales and profits while also providing a high-quality product to customers."]