PROCESS IMPROVEMENT PRESENTATION Learning Team B has been given the assignment of identifying Riordan Manufacturing’s ISO standards as well as using the Six Sigma tool, DMAIC to develop a new process plan for the production of their electric fan line. The team will also define possible bottlenecks in the new process, identify approximately three TQM tools that may work for future process improvements along with the process’s who, when, what, and how’s, and finish with a project plan reflecting goals, schedules, roles, responsibilities, and deliverables that lead to the addition of an implementation plan consisting of a Gantt chart for the process design of Riordan’s electric fans.

ISO 9000 Certified RIORDAN MANUFACTURING With a Six Sigma background for the purpose of process improvements, Riordan Manufacturing takes pride in the fact that they are not only ISO 9000 certified, but carry the lead in the industry’s Research and Development (R&D) program. ISO 9000 is said to have the most recognized standards in the manufacturing industry. The goal of ISO 9000 is to embed a quality management system within an organization, increasing productivity, reducing unnecessary costs, and ensuring quality of processes and products ("Benefits Of ISO 9000 ", 2014). With this being said, Riordan Manufacturing’s ISO 9000 certification not only holds them accountable but insists they recognize their desperate need for a new process design for their electric fan line. This disparity leads the business to utilizing the standard Six Sigma tool of DMAIC that was developed early on by the General Electric Company for such purposes. The DMAIC methodology basis the decisions for process improvements on customer needs and demands. The first step is to define (D) the needs, demands, or priorities surrounding the customer. Next is to measure (M) the actual product performance (electric fans) while at the same time measuring the critical-to-quality (CTQ) characteristics. The third step is to analyze (A) for defects in the product or process so that the improvement (I) stage is able to be planned without guess work let alone the dreaded rework. Last in the DMAIC process is to control (C) said improvement implementations to the process of the electric fans production.

New Process Design: LEAN manufacturing CAUSE Elimination Of Waste Continuous Improvement Just In Time Production (JIT) Built In Quality EFFECT Expense Reductions Throughout Keeping True To ISO 9000 Standards Less Inventory = More Cash Standards & Practices Keep Quality From Start To Finish After utilizing the DMAIC methodology pertaining to the needs and demands of Riordan’s customer base, Team B agrees that a new process design can be designed by applying Lean Manufacturing Principals to Riordan’s electric fan line. Lean is a means of waste elimination of all the things hindering a business process. The idea of waste elimination is to review all areas in your organization, determine where the non-value added work is and reduce or eliminate it ("Key Lean Manufacturing Principles", 2013). Riordan can reduce expenses by reducing waste for say. By continuously improving the already established process by cross training employees while implementing a pull system to the electric fan production based on orders/JIT production instead of overstocking inventory will also save money and therefore, make money. Most importantly, Riordan should practice a built in quality from start to finish of each fan as well as the parts put into the fan. This quality starts on the arrival of raw parts clear up to and including shipping of finished product. For example, manufacturing raw parts in house to eliminate transportation time loss, possible defects, parts late or lost, and even the fees attached for transportation services can all be eliminated. Yes, this also falls under the elimination of waste. As you see, Lean Manufacturing principals go hand in hand and turn full circle when kept as a standard practice.

Bottlenecks in Production

Total Quality Management (TQM) Tools Define TQM Who will use? When will it be used? Process improvements Three TQM Tools to be Implemented Six Sigma (DMAIC) Shingo System ISO Certifications: Obtain third party certification Total Quality Management (360 degree view) Define - Total quality management is a program that puts quality in the hands of the whole organization. Quality isn’t just about the final product being complete, but its about a joint effort from the whole organization bottom up (Who). It gives employees empowerment to make good decisions regarding quality and to assist in ensuring everyone is involved in reducing waste. TQM is used in every department all the time, it is a continuous improvement process that will be used by all (when). Diagram – Planning process will involve management commitment to help communicate the plans and create the plans. Management will drive the planning process and implementation to create process improvements. Process improvements will be designed by management and followed through by the employees. Empowering the employees will bring total participation to make this program successful. Giving them measuring tools, training, and using their suggestions will help to develop from the original plan to a more elaborate plan for all departments. This process is a continuous one that occurs all day every day to ensure quality throughout all levels and all departments. Lastly, customer focus to see what their needs are and what we can do to better support their business will bring the company external opinions for improvements. (Aniks, 2008) Three Tools – Six Sigma: This tool will be utilized throughout the organization, it will be a way to track and review processes to decrease defects and enhance performance. DMAIC cycle will be used to define, measure, analyze improve and control. New software systems will be put into place in order to review, track and analyze the data to interpret and improve the processes to reduce waste and defects. Shingo System: This system reviews the end process to find defects and works backwards through the production process to find the errors. It identifies when errors and defects may occur in order to prevent in the future. Source inspections allow employees to review their stations to make sure everything is set up appropriately so errors won’t occur. This process empowers the employees to produce quality products and it also helps in holding them accountable by allowing them to complete the inspections. Poka-yokes are procedures that have been identified to ensure quality, these procedures are checklists for employees to review to prevent errors. ISO Certifications: Riordan Mfg. will achieve the ISO900 and ISO14000 certifications to increase quality at the global level. Because this organization is located in multiple countries, this will ensure quality across the seas. It will eliminate disparities from one plant to the next and ensure to customers they will receive the same quality product no matter which plant it comes from through ISO9000. ISO 14000 is an environmental expectation laid out for international standards. This will show customers that Riordan cares about the environment and quality. Certain portions of the world have a bad reputation for not being environmentally friendly dependent upon the country the product is coming from. Having this certification will also show customers (current and potential) that Riordan will meet environmental guidelines and quality guidelines to give its customers a reliable finished product! (Jacobs, 2011)

Project Plan for Riordan electric fans Current State Future State Riordan Manufactures Electric Fans in Hangzhou, China On Time Delivery (OTD) Electric Motor Stock 93% Excessive Polymer Inventory Riordan will relocate Electric Fan Manufacturing from Hangzhou, China to Shanghai, China Increase OTD Electric Motor Stock from 93% to 99% Reduce Safety Stock on Polymer Inventory Based on process improvement that are identified by the executive committee one of the Riordan Initiatives is to develop ERP and MRP process and tools that reduce the cost by 10% and cycle time by 15%. Using the DMAIC process we are able Define the critical area for improvement with the focus on quality by utilizing the ISO 9000 standards in the Chinese manufacturing process. Based on projected savings in inventory cost and shipping cost the decision was made to move the Chinese manufacturing process from Hangzhou to Shanghai (see memo attachment) https://ecampus.phoenix.edu/secure/aapd/CIST/VOP/Business/Riordan/docs/Operations/ChinaMove.pdf. OTD is impacted by on past performance and projected sale with increased supply chain performance with the use of JIT method Riordan will increase OTD number to 99%

Schedule, Roles & Responsibilities Riordan will relocate Electric Fan Manufacturing from Hangzhou, China to Shanghai, China Relocation will take place in the next five years. Charles Williamson, Senior Vice Present Research and Development is responsible for maintaining project timeline Robert Lord, Plant Director is responsible for insuring required production transition to the new Shanghai location. Increase OTD Electric Motor Stock from 93% to 99% Charles Williamson, Senior Vice Present Research and Development Reduce Safety Stock on Polymer Inventory Robert Lord, Plant Director is responsible Riordan is moving its manufacturing operation from Hangzhou to Shanghai to leverage shipping cost of the manufacturing operation to the main distribution port. Over the next six to nine months Riordan will locate additional motor stock suppliers, Riordan initial involvement in the material procurement process was limited at best, however delays in electric motor stock is an contributing factor in the OTD rate of 93%. Incremental monthly increases in Electric motor stock will improve OTD rate to 99%. Expense reduction throughput along with maintaining ISO9000 standards will allow Riordan to reduce safety stock on polymer while maintaining OTD.

Gantt Chart Gantt Chart

Conclusion

REFERENCES Aniks, T. (2008) Total Quality Management. Retrieved from: taniks.blogspot.com. Benefits of ISO 9000 . (2014). Retrieved from http://www.pjr.com/standards/iso-90012008/benefits-of-iso-9000 Key Lean Manufacturing Principles. (2013). Retrieved from: http://www.lean- manufacturing-junction.com/lean-manufacturing-principles.html Jacobs, F. R., & Chase, R. (2011). Operations and Supply Chain Management (13th ed.). Boston, MA: McGraw-Hill Irwin.