Riordan Inventory or Manufacturing Processes Paper
Riordan Inventory or Manufacturing Processes Paper University of Phoenix CIS 319 Computers and Information Processing Introduction The success of any manufacturing company is dependent on its manufacturing system design. The system design concept has been the basic force in manufacturing advancement. Without manufacturing design, all manufacturing would be stuck in the “square wheel” era. The first system design was the invention of the forerunner of the modern factory nearly 200 years ago. New design concepts are continually improving and impacting the worlds manufacturing.
The Information Revolution is said to be a massive change in the way organizations conduct business. In this day and age when time and information means money, information technology is critical to a business’s success. In order for Riordan Manufacturing to become known as a leader of manufacturing and be able to provide added value to customers, it must evaluate the current business processes and discern how technology can correct operations in a cost effective way while at the same time focus on using the technology in the areas that would give immediate results.
By using the service request process, Riordan can evaluate these areas and make educated decisions in the correct areas. In the following paragraphs, Team D will explain Riordan’s business objectives, current business processes, project constraints, the business’s functional requirements, the new business processes, design requirements and cost benefit analysis. Business Objectives What are the business objectives of Riordan Manufacturing? To increase productivity by better tracking methods and of course; increase profits. How does one measure the success of such a project?
By setting up databases with which to track sales, both with and without; the new bar code scanners recommended by Team B. We propose a three month (one fiscal quarter) period of business tracking. We feel that bar code scanners will greatly improve inventory control; both product ordering and product tracking; thereby speeding up the inventory reporting process and accurately collating information to determine cost of sales versus cost of supplies. By speeding up this process, we feel that the company will benefit both in saved time and money and increase the profit margin for Riordan Manufacturing.
Another valid point in this scenario would be, by removing the human element (manual errors) in the old inventory and spreadsheet system, Riordan will have more effective reporting measures with which to track inventory, ordering, employee time management per job; and storage cost. The IT department should establish two databases based on the following factors, with the capability of running side by side analysis and reports. One database should be based on three months of non-bar code scanner data. The second database will be based on the sane three months with bar code scanner information.
By using the a 3 month time frame we are comparing a relatively stable period of manufacturing business, both before and after the holiday season, thus the figures should be accurate for a comparison. Information needed for accurate database comparison: – Number of products ordered. – Cost of each bar code scanner (average price $190. 00 for the handheld scanner). (BarcodeDiscount, 2009). – Time involved in ordering supplies to make product. – Time (days) in which product was stored and time to delivery. – Number of employees required to process orders; times average hourly salary ($13. 5). – Time taken between product being ordered and inventory adjusted accordingly. It is the contention of Team B that by converting Riordan Manufacturing from the manual spreadsheet inventory system to the handheld bar code scanner system, the company should immediately see improved productivity and cost effectiveness in doing business. The cost of purchasing and upgrading the manual systems to the new bar code scanning system should pay for itself within the first three months of usage. Description of Current Business Processes
Riordan Manufacturing Service Request SR-rm-001 Process Evaluation has been requested by COO Hugh McCauley to suggest specific systems changes that would improve the inventory or manufacturing processes. Riordan would like to use computer system utilization to become more efficient. Team B will create a business requirements definition for system upgrades/improvements to be given to the IT department or information systems consultants. Upon review of the Riordan Manufacturing Companies Inventory and manufacturing processes, we determined areas that are in need of improvement.
Discussion follows regarding Riordan’s present processes and how they can be changed to improve the efficiency. (Riordan Manufacturing Inc. ,2006) The current process for receiving raw materials requires that the Riordan receiving area supervisor compare the shipping documents against the scheduled incoming orders. The receiving supervisor receives the scheduled orders report every week and they are organized by date. When product is delivered, the truck driver provides the shipping documents to the shipping are supervisor.
At the end of each day, the receiving supervisor gives the log of all raw materials received and the shipping documents to the receiving clerk. The inventory clerk then enters the information into the inventory system. The information includes the type of materials received, the vendor, and the quantity. Team B believes that by implementing the use of barcodes and scanners into the receiving process, it will enable a more consistent, accurate and timely process. Handheld mobile computers are efficient, have he ability to scan and allow for accurate, real-time data and inventory control and can be used throughout the supply chain process to enable instant inventory adjustments. Bar-coding is essential for just-in-time systems. Using scanners with a handheld PC will decrease the number of errors that occur from manual entry of data for inventory purposes. (ecampus. phoenix. edu, November 2009) Transitioning to using bar code scanners and hand held PC’s will require that bar codes are created with the correct information and applied to all inventory.
Riordan must determine which of their supplier’s already use a bar code system and which do not. Riordan must then work with the supplier’s that do not use a bar code system. Riordan must also communicate the change to their employees and provide training on the use and application of the new technology. (makebarcode. com, November 2009) Project Constraints The requirements that will be needed to incorporate this system in Riordin will be a database which contains the entire customer information, a barcode scanning system, an online ordering program, and a printer that will print the shipping documents.
Also, before the new system goes live, Team B suggests doing a full inventory to be sure that the inventory is accurate. Since the inventory will be automatically controlled in the system, the integrity of the inventory is necessary. The proposed projected lead time for implementation is scheduled to be approximately 45 days. Projected Time Line – 45 Days ItemStart TimeEnd Time Sign Up01/04/1001/04/10 Data requirements01/05/1001/08/10 Set up system01/11/1001/29/10 Evaluate system02/01/1002/12/10 Convert data02/15/0802/19/10 Training02/22/1002/26/10 Go Live03/01/1003/01/10 Monitor/Correct03/01/1003/05/10
The first step would be to sign up with POSGuys. com and speak with a business analyst and customer support team to determine the data requirements. Next, a team must be established involving key employees to implement POSGuys. com. This would involve setting up the system, evaluating the data and converting the data. Once completed, there will be training for the employees and POSGuys. com will be ready to go live. The estimated costs associated with implementing a bar code scanner system are as follows. Note that POSGuys. com will perform all training and installation at no cost. ITEMCOST • Barcode Scanners 2 for Receiving, 10 for production lines, 2 for Finished Goods)$2,842 • Printronix T4M Barcode Printers (1 for Receiving, 10 for production lines)$15,147 • Redbeam Inventory Tracking Mobile Edition Software$1,795 • Computers/Monitors (existing)No Cost TOTAL COST$19,784 Per the memo dated September 10, 2003 to Maria Trinh from Hugh McCauley, $150,000 has been allocated to fund a project that will include, but not be limited to: • Document current inventory. • Forecast of business technology needs for the next 5 years. • Recommendations on systems integration, acquisitions and consolidations. POSGuys. com, November 2009) Business Functional Requirements Riordan Manufacturing is a plastics injection molding company whose goal is to continue progressing our innovative plastics designs. Due to continued growth and success, Riordin would like to expand their inventory system at all locations in order to increase accuracy and diminish costs associated with incorrect data entry and inventory levels. The business requirement will be to provide instant data regarding receipt of components, inventory levels (including part numbers, quantities, product location within the plants, etc. , and shipments for access to every Riordin facility. Riordin’s requirement is to improve the accuracy and speed of the inventory and manufacturing processes. The company already has a current system implemented for the receipt of raw components, product movement, and finished good shipping. Implementation of the new bar code system will enable a decrease in entry errors, an increase in inventory levels, a decrease in resource time management, and an increase in profit due to these changes. Description of New Business Process
The proposed process for receiving raw materials will be using a hand-held bar-code scanner throughout each process. As product is received, the bar code labels on the containers will be scanned, This will automatically input the part number and quantity into the Receiving Department. After the product has been inspected by Receiving Quality, the product is again scanned to a location in the warehouse and is physically moved to the location. As the product is needed for production, the product is scanned and moved out of stores into WIP (work-in-process).
As product is produced and a full container of finished good product is manufactured, a finished good tote label will be printed and affixed to the containers. When the finished good product is moved to finished good stores, the finished good labels will be scanned and all components associated with the finished product will be back flushed out of inventory for accurate inventory adjustment of the raw components. Implementation of barcode scanners will enable a more consistent, accurate and timely process and will decrease the number of errors that occur from manual entry of data.
Design Requirements Clarity across all areas of business is important to maintain a competitive edge in today’s challenging business environment. Being able to act quickly with increased efficiency and flexibility with minimal cost and optimal performance will provide a leading edge in project development. Development and training of personnel in the most cost efficient manner will not only accelerate the development of employees’ skills, knowledge and behaviors but also impact the successful execution of the Company’s business strategy.
To sustain this competitive edge, closing the gap between business strategy and execution is crucial. To help achieve this goal, Riordan Manufacturing will need to improve its information system to allow easy and secure access to its employees and user representatives. The first step in doing so will be a financial analysis. After which an assessment of the current system and its components should be done to identify any upgrades needed. Working with the IT department, the manufacturing and inventory processes can be improved with a developed system that automates as many processes as possible.
Collection of data is important. Top priority should be to develop a system to collect, process, store, and distribute data accurately. The automated method of data input would be the first choice because of its reduction in time and manpower needed compared to manual data input. In order to process and store this data a system is needed with adequate processing power, volatile memory, and storage. When developing this system, future business growth should be taken into account to make sure there will be enough room for enhancement without having to do a major overhaul of the system.
Last but not least, accuracy of the data collection is essential. Inaccurate collection of data can prove more harmful than having no collection process at all. In order for the users to interact easily with the system, the interface must be user friendly enough as to where lower level employees can input data and generate reports. It would be in the best interest of Riordan Manufacturing to use one standard interface to avoid any network conflicts or security vulnerabilities. In place should also be a learning management system to train employees on new technology and processes.
This learning management system should include web based training, self-study courses, training centers (preferably located at cooperate headquarters) and training and learning counseling. Included in the training should be: system use, manufacturing technology, safety and regulation, and inventory control. Upgrading to a more secure interconnected intranet network interface will allow integration of cooperate, finance and accounting, manufacturing, and R&D personnel to attain efficient asset management, inventory control, and project development.
Using controlled network access via Virtual Private Network (VPN) user representative will be able to stay up to date on the progress of projects and can provide real-time input and feedback. VPN access to the intranet is secure and will help avoid the chance of information being shared with competitors. Cost Benefit Analysis Using the right business information system will allow to “Reduce the cost of doing business by helping your people concentrate more on productive tasks and less on repetitive busywork. ” Microsoft. om(2009) Doing this will allow for less man hours, less non productive time, and more efficient work with less duplication of processes. The initial installation of the system may be time consuming and take extensive man power, but once installed the automation of routine and repeating functions will prove to be a financially smart investment. “Keeping inventory costs down is crucial to competitive advantage. ” (Netsuite. com, 1998-2009) Using automated data input such as bar code scanners will ensure that data is entered accurately.
This will minimize operator error and the amount of time it takes to collect and input data and generate reports. Better inventory control will also help provide better control on hand products. This automated data input will not only benefit the inventory aspect of the company, but will also have positive implications on other departments such as manufacturing and finance and accounting departments. Once the new system is installed and all systems are functioning, incorporating and by limiting the need for many of the travel related expenses to training at the company’s training centers, virtual environments, and self-study courses.
This will minimize the need for employees located in our China based plant to travel to our U. S based plants to obtain the latest advancements in our company’s technology and business processes and vice versa. Conclusion The assimilation of the proposed solutions presented in our paper provided the foundation for the comprehensive and synergistic management of the Finance and Accounting, Internet Site, Sales and Marketing, Human Resources and Legal, and Operations divisions of Riordan Manufacturing. Streamlining the discussed processes will enable Riordan Manufacturing to achieve its goals.
The proposed system will reduce cost by having one central HR department instead of multiple departments conducing HR responsibilities. The Return on Investment will outweigh the cost of implementing this system as the time it takes compile data from multiple systems. As stated by Expert Insights, “However, an integrated system provides greater overall benefit to the organization than a conglomeration of separate systems or manual processes. An integrated system will result in less redundant data entry A single interface for administrators results n less overall job training costs, improved data integrity, improved job efficiency, and ensures that data will not be “lost” due to job changes, absences, turnover, etc. Providing ad-hoc information, or reporting, will be easier if data is contained in single source If processes are non-existent, it is usually easier to create and implement a process when a system already exists to support the new process (chicken versus egg dilemma) The cost of integrating disparate systems, even systems that are “best of breed,” can be significant”.
The system will provide greater throughput, shorter response time, and timely information. The tangible benefits of an integrated HR system will be measured by cost reduction and avoidance; error reduction; and increased flexibility. References Microsoft. com (2009), Benefits of Microsoft Dynamics, Retrieved November 28, 2009 from http://www. microsoft. com/dynamics/en/us/fuels-business-productivity. aspx Netsuite. com (1998-2009), Inventory Management Software, Retrieved November 25, 2009 from http://www. etsuite. com/portal/products/netsuite/inventorymanagement. shtml http://www. makebarcode. com/info/benefit. html, retrieved November 10, 2009. Riordan Manufacturing Inc. (2006) retrieved November 4, 2009 University of Phoenix rEsource web site. https://ecampus. phoenix. edu/secure/aapd/CIST/VOP/Business/Riordan/Ops/Riordan%20Inventory%20Management. pdf http://www. posguys. com/, retrieved November 10, 2009. BarcodeDiscount. (2009). Symbol LS2208 Scanners. Retrieved on November 22, 2009 from
