Assignment:
Riordan is trying to become the leader in their industry of plastic injection molding, control and evaluation will enable them to achieve their goal. The strategies of monitoring and evaluation will ensure the company is achieving their desired goals. This process allows the company to follow the needed steps take their performance and results data and allows the company to compare the analytics and arrive at the determination if a corrective action is warranted. (Wheelen, Hunger, Huffmon, & Bamford, 2014) Riordan measures their performance data permanent bases by ruining the performance reports and monitoring the activity reports.
Once they had completed the initial step of identifying the matrix that needs to be measured. Riordan came to the conclusion that they needed to exam the performance data across the whole organization. In every location of Riordan Manufacturing. By analyzing each cross-functional department, they would have data to see who is making the grade or not in the performance results. Use Riordan's Accounting and Finance Department as an example, they do not build a product for the company, but they can be evaluated on the balance completed and income statements competed. The can also grade on budgeting and monies spent compared to budget or how the company is tracking towards the budget numbers. It would be accountings responsibility to notify management if the funds were not tracking favorably. Along with following the money spent accounting would also be responsible for tracking the money being received and making sure the funds were posted to correct accounts.
Secondly, Riordan would want to evaluate their standards of performance and determined if their implemented strategies were working. ISO Standard and Six Sigma standards would be the starting point of this evaluation. These standards drive performance, and an enable the company to use them a core focus for years to come. This specification helps to set guidelines and tolerances in the manufacturing industry as well as the same for their suppliers in the supply chains of the company.
The third step in the process would be to measure actual performance levels of the enterprise. The foundation of Riordan's business based upon the high degree of customer satisfaction and excellent relationships the company has built with its suppliers. Riordan has proven to be a leader in the marketplace by having reliable sales data and making a positive impact on the company's worthiness to its shareholders. It maintained a solid performance by increase profits 15% in 2011. These type of success shows Riordan's competition that they are in business to succeed.
Despite a satisfactory growth rate since 2005 Riordan still, has some challenges to overcome by comparing the company to the economic forecast of the plastics business. With the changing in the economic conditions, companies like Riordan have to take a proactive stance in their organizations. With the value of a dollar on a steady decrease the company will economic conditions it cannot control and have to take precautions to ensure they remain valuable.
Comparing the established standards against the actual performance, Riordan has shown to lack performance in many areas of the business. Riordan sees increased cost of raw materials, and rising cost of shipping and these two issues alone are limiting profits on a daily basis. Riordan also needs to evaluate the lack performance due to MRP and ERP systems put into place.
The completion of any evaluation is the implementation of corrective actions to correct the issues discovered in the company. Riordan needs to look into outsourcing enabling the company to expand its operations in order aid in sustainability. The implementation of Vertical integration will assist in decreasing the cost of production and improve the company's EBIT.
Riordan needs to embrace Manufacturing Readiness Assessment Tool (MRAT) and deploy other audit assessment tools to allow the company to set it direction. By setting up benchmarking and keeping performance scorecard to share with the employees. Allowing them the access and the peace of mind to know how the company is tracking compared to the competition, completing this assessment Riordan now knows how to focus on making the company stronger and allow them to adjust their Strategic Plans to increase profits and reduce cost.
Reference
Wheelen, T. L., Hunger, D. J., Huffmon, A. N., & Bamford, C. (2014). Concepts in Strategic Management and Business (14th ed.). Upper Saddle River, NJ: Prentice Hall.