Problem Solution: Riordan Manufacturing

Essay by webbweenieUniversity, Master'sA, December 2008

download word file, 18 pages 0.0

Riordan Manufacturing is a wholly owned subsidiary of Riordan Industries, a Fortune 1000 enterprise with revenues in excess of $1 billion. Riordan Manufacturing is a plastics producer with facilities in Georgia, Michigan and China. The 550 employees of the firm produce products with projected annual earnings of $46 million. These include plastic beverage containers made in Albany, Georgia; custom plastic parts made in Pontiac, Michigan; and plastic automotive fan parts in Hangzhou, China. The corporate headquarters is located in San Jose, California. Recent declining sales and profits are possible symptoms of growing employee morale and retention problems. This paper will describe the situation facing Riordan, identify the issues and opportunities facing the company, define a clear problem statement and describe the end state vision. I will then propose and select alternative solutions and perform risk analysis on these solutions. Based on this risk analysis I will prioritize the solutions and propose an optimal solution with implementation plan and metrics to demonstrate the effectiveness of the solution.

Key issues and opportunities for the company will now be described.

Situation AnalysisIssue and Opportunity IdentificationSeveral key issues are driving the negative changes being experienced by the firm. Declining sales and profits have grown more concerning over the last two years. These financial consequences seem related to an overall lack of motivation and increased dissatisfaction among the employees. This supposition is supported by the following data. According to University of Phoenix Annual Employee Satisfaction Survey Results (2005), Riordan employee satisfaction between 2001/02 and 2003/04 has dropped in almost every category. Overall, employee satisfaction dropped over 20% from the previous year as shown in Figure 1 derived from the same source.

Riordan Employee Satisfaction Overall Scores2003/042002/032001/02Job Satisfaction3.13.94.2Working Conditions3.03.54.2Personal Opportunity3.03.54.0Cooperation4.04.04.2Comp. and Benefits2.53.03.4Communication3.63.83.9Supv. In dept. in company3.84.14.0Overall Average: % Change:-21.1%-5.0%-Figure 1This type of employee dissatisfaction is...