IT System Upgrade Recommendation Riordan Manufacturing IT System Upgrade Recommendation Team Names here CIS319 - Computers & Information Processing Hello and welcome to Learning Team C’s presentation of our IT System Upgrade Recommendation in conjunction with our completed Service Request Form designed to improve Riordan Manufacturing’s business processes. We hope you find this presentation informative, entertaining and insightful and we appreciate your time reviewing this with us today.

Table of Contents Background Scope Requirements Existing processes Recommendations Conclusion References As one can see from the slide, we will be reviewing first the overall background information on the project, list the items that are in scope, establish a basic understanding of the business requirements, show present-day circumstances, make recommendations, and conclude the presentation. Any references will also be listed toward the end of the presentation.

Background Riordan Manufacturing Projected Annual Earnings $46 million Fortune 1000 Enterprise 550 Employees Revenues in excess of $1 billion Riordan Manufacturing is a global plastics manufacturer of plastic beverage contains with production plants in: Albany, Georgia – Plastic beverage containers Pontiac, Michigan – Custom plastic parts Hangzhou, China – Plastic fan parts San Jose, New Mexico – Headquarters, Research & Development Clients include: Auto parts manufacturers Aircraft manufacturers U.S. Department of Defense Beverage makers & bottlers Appliance manufacturers

Scope Prepare business requirements for system upgrade for IT and/or Consultant use Identify current processes and potential areas of improvement Resolve departmental conflict by increasing the reliability and increase the capabilities of IT systems Our Team has been asked to create business requirements for system upgrades and improvements for either IT or IS consultants use. During review of the Riordan Manufacturing Companies Inventory and manufacturing processes, we have found areas that are in need of improvement. We will discuss the present processes and how these can be changed to improve the efficiency. Riordan wants to evolve its business focus by offering tailor-made service packages to clients. The company has changed the way they manufacture and market its products, which is causing uneasiness among its staff. Riordan is moving away from a single salesperson to a sales team system that is not making many employees happy because of compensation issues. Some employees have left the company because of this. The leadership team is in conflict over how to implement changes, if any, to the compensation and reward systems.

This diagram shows the flow of the information Systems database This diagram shows the flow of the information Systems database. There are many different areas, internal and external, that are affected by the use of the database and how the information within the organization flows. There are many areas were the operations systems and processes that need improvement. A few examples are: inventory control, cycle times, quality of products, communications, and operations workflow.

Existing Processes Current operational processes have unique variables for each Riordan location. The processes are documented but create a labor intensive, manual and inefficient way to process business functions. Raw Materials Receiving   Raw materials are received at the receiving area for each plant. At the time of delivery, the truck driver will pass the shipping documents to the Riordan shipping area supervisor who will compare the shipping documents to a scheduled orders receiving report. This report is provided to the receiving area on a weekly basis and is organized by date. Following validation of the materials to be received, the receiving area team unloads the truck and move the raw materials into the raw materials area in the factory. Orders Received At the end of each day, the Receiving Area Supervisor, gives the log of all raw materials received during the day and the associated shipping documents to the receiving clerk. Inventory Office PC The inventory clerk enters the information related to the raw materials receipts into the inventory system. The data entered includes the type of materials received the vendor, and the quantity. Inventory Management and Control at Riordan Manufacturing Manufacturing with Inventory The raw materials inventory is drawn upon during manufacturing operations. The amount of raw materials used during each manufacturing run is indicated on a raw materials usage form that is given to the inventory clerk. The inventory clerk enters the raw materials usage into the inventory system as the forms are received. At the end of each day, the manufacturing team submits a form to the inventory clerk indicating the number of sub-assemblies and final products completed that day. The following flow diagram describes the usage of raw materials and sub-assemblies processing at all plants. Final Product Shipping As the sales department completes orders, the sales orders are entered into the customer shipping and billing system. The order shipping team draws finished products out of inventory based on the shipping documents generated out of the customer shipping and billing system. After orders are fulfilled and loaded for shipment, the truck number, date and time of shipment are updated into the customer shipping and billing system for tracking purposes. At the end of each day, a copy of all orders shipped is given to the inventory clerk so the inventory system can be updated. At the end of December each year, a physical inventory is conducted in order to reconcile the quantities of raw materials, sub-assemblies and finished products on hand with the inventory system. Orders from customers come into Riordan via phone or fax. There is also a sales staff that can place orders for customers. The sales orders are entered into the customer shipping and billing system. Order Shipping Documents Shipping document are given to the driver. Based on the shipping document generated each day, the shipping department will load the trucks with the products specified by each order. Satisfied Customer. The inventory clerk updates the inventory system based on the shipping documents.

Existing Processes Receiving, Manufacturing, and Shipping, are the three existing processes. Raw materials are received first. Receiving supervisors make sure that the correct material is received. Then the receivers unload the materials and move it to its correct storage location. After this, all receiving documentation is turned in to the inventory clerk. Next is the manufacturing process. During this process, raw material inventory is assembled by production team and then the production team provides the inventory clerk with production reporting information. Before a product ships, there has to be an order from a customer. An order form is submitted for available finished product. Order shipping documentation is given to the inventory clerk, so the finished goods inventory can be adjusted. Documentation is also given to the warehouse so the customer order can be loaded for shipment.

Enterprise Resource Planning Recommendations Enterprise Resource Planning Riordan’s goal is to implement an Enterprise Resource Planning system. The purpose or benefit of this system is to integrate several systems and processes into one unified system. By having one unified system, all data would be integated. The inventory information would be centralized, raw material and finished goods inventory shortages would be minimized, forecasting can be improved, shipments can be shipped on time and tracked.

Recommendations - Hardware Bar Code Label Printers (Portable) Barcode Scanner & Reader Mobile Computers PDA’s a. Bar Code Label Printers (Portable) – Qty 5 per site Lightweight mobile printers housed in the receiving area so that workers can enter receiving information into system, generate a label for the shipment, and move material to storage area. Data entered onto label will be simultaneously recorded (electronically) onto Inventory Management System (IMS). No manual data entry required and material is logged in real-time. b. Barcode Scanner & Reader – Qty 5 per site To be used for inventory tracking, and logging of raw materials selected by manufacturing department for use in production. Inventory levels and reporting will be affected immediately once an item is selected and removed from raw materials inventory. c. Mobile Computers – Qty 3 (Supervisor / Management use only) per site To be used for inventory tracking on a quarterly basis or schedule ideal for business. d. PDA’s – Qty 10 (Sales staff) To be used by Sales staff that are on the road. Sales force will need ability to check inventory levels, production turnaround information, customer detail, etc. PDA’s will also enable sales force to place orders directly into customer billing & shipping system. Works Cited: Datex. (2008). Supply Chain Management Software Solutions at Datex International. Retrieved Jun 7, 2009, from http://www.datexcorp.com/content/hardware-solutions.htm Barcode Label Printer Barcode Label Scanner Mobile Computer PDA

Recommendations - Software Inventory Management System (IMS) Asset Tracking Software Order Management Software (OMS) Enterprise Resource Planning (ERP) a. Inventory Management System (IMS) Provides inventory controls by receiving data direct from receiving and manufacturing departments. Software provides quality control capability, tracks movement of materials, provides packing/picking confirmation capabilities, productions scheduling, reporting capabilities and more. b. Asset Tracking Software Tracks assets as they are received, pulled for manufacturing and shipped to customer. Also provides warranty and lease tracking on all assets, which is beneficial for quarterly or annual audits. Order Management Software (OMS) Software enables business to consolidates order processing and tracking. Also, allows remote order processing for sales force, customer view via internet so customer can track order, order confirmation alerts, automated product return feature, product recall feature and reporting. d. Enterprise Resource Planning (ERP) Software provides financial processing; Customer Relationship Management (CRM) module, Project Accounting, HR and Payroll, e-business and more. Works Cited: Datex. (2008). Supply Chain Management Software Solutions at Datex International. Retrieved Jun 7, 2009, from http://www.datexcorp.com/content/software-solutions.htm

Clients Relationships Employees Riodan’s Focus and Future Conclusion Clients Relationships Employees Riodan’s Focus and Future Riordan’s will always focus its clients and making sure that the clients are satisfied with products and services. Satisfying the customer can be done by understanding the expectations of the customer and their requirements. Riordan will also make sure that the cost are either lower or equal to the customer is expecting. Riordan Manufacturing will continue to provide a team oriented environment. Within our environment we will encourage the importance of satisfying our customers, being creative and providing input, the importance of always continually improving all processes, and that all employees recognize the organization’s roles in society. Riordan’s aim is to improve overall performance in accordance with the organization’s policies. Performance can be improved through a continuous improvement process. Riordan knows that continuous improvement within the organization has to be a permanent objective and a way of life for the organization.

References Hardware / Software Recommendations: Datex. (2008). Supply Chain Management Software Solutions at Datex International. Retrieved Jun 7, 2010, from http://www.datexcorp.com/content/hardware-solutions.htm Datex. (2008). Supply Chain Management Software Solutions at Datex International. Retrieved Jun 7, 2010, from http://www.datexcorp.com/content/software-solutions.htm