Riordan Manufacturing
The objective of this paper is to demonstrate a systematic approach using the 9-step Problem-Solving Model to provide Riordan Manufacturing with real solutions to their challenges. The paper identifies opportunities and issues, defines the problem, and develops a set of alternative solutions. Finally, the paper suggests the best alternative to implement in order for Riordan Manufacturing to be the global industry leader in plastics production.
Situation Analysis
Wholly owned by Riordan Industries, Riordan Manufacturing is the industry leader in plastics production with projected annual earning of $46 million. The company’s major customers include the Department of Defense, automotive parts manufacturers and beverage makers and bottlers. Recently, the company has changed its manufacturing and marketing processes resulting in declining sales and uneven profits over the past two years.
In response to declining profits, Riordan Manufacturing changed the company’s strategic direction. First, the company changed its sales process to a customer-relationship management system. The change from a single salesperson to a sales team was a move to provide the customer with a team to address various customer segments in hopes of improving the company’s declining sales. Second, Riordan Manufacturing implemented a Six Sigma quality approach and certified ISO9000 after redirecting work to its new manufacturing facility in China. Unfortunately, the result was declining employee retention and overall job satisfaction, specifically in compensation and benefits. Riordan Manufacturing desires to address these issues with HR approaches to overhaul the compensation and reward system and develop a performance appraisal process.
Issue and Opportunity Identification
There are several challenges Riordan Manufacturing must overcome in order to accomplish the company’s organizational goals. One challenge is overcoming employee job dissatisfaction,...
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