Production Plan for Riordan Manufacturing Essay

Production Plan for Riordan Manufacturing - Essay Example A production function is a unit which represents the relationship between output variables with respect to input constraints. In mathematical terms, an effective production function is a demonstration of input-output relationship. Just as the equation shows Y= f (c1, c2, c3, c4†¦) the production output Y depends on production quantities c1, c2, c3, and c4 respectively (Khanna, 1980). To settle this relationship Riordan manufacturing will have to design an integrated production plan. Process modeling is the very first stage of an effective production plan which is done by dividing production phase in three major phases, planning phase, action phase and control phase. In the planning phase, Riordan manufacturing should include product design and order writing activities. Similarly, in the action phase the firm should include process routing, material handling, tool control, loading and scheduling as the action operations (Patil, 2008). In the last, the firm should include expediti ng and re-planning as control activities. On establishing the three production phases, an integrated relationship will be settled in the Riordan production system. Once it is settled, the relationship of production output and input will be assured. But before designing the process stage it is necessary that Riordan manufacturing set initial production objectives. Just as lowering production, inventory and shipment costs to maximize profits or improving employee skill to maximize productivity.... In the planning phase, Riordan manufacturing should include product design and order writing activities. Similarly, in the action phase the firm should include process routing, material handling, tool control, loading and scheduling as action operations (Patil, 2008). In the last, the firm should include expediting and re-planning as control activities. On establishing the three production phases, an integrated relationship will be settled in the Riordan production system. Once it is settled, the relationship of production output and input will be assured. But before designing the process stage it is necessary that Riordan manufacturing set initial production objectives. Just as lowering production, inventory and shipment costs to maximize profits or improving employee skill to maximize productivity can be set as production goals. In this forecast is also very important like forecasting sales or turnover will determine how much efficiently the new production plan is working (Patil, 2 008, pp. 242). Strategic Capacity Planning for the New Process Design For international business firms especially those which believe in supply chain principles, capacity planning is vibrantly important for such firms. Riordan, which is specializing in integrated production management must adopt the approach of integrated capacity management (Jacobs, 2006). Planning the capacities of production facilities, workmen, machinery, equipment, distribution or inventory will bring proficient results for Riordan. Once the capacity management approach is there in all sections of the firm (procurement, production, inventory, and transportation) it will have stability to control supply and demand