Riordan Manufacturing Project

Riordan Manufacturing Project Paper

University of Phoenix

CIS / 319

Executive Summary

The purpose of this team project is to accurately identify, and then propose a System Development Life Cycle (SDLC) for Riordan Manufacturing. Riordan has three operating entities located in Georgia, Michigan and California plus a joint venture in the People's Republic of China. In each supply chain location inventory is received as raw goods, manufactured then shipped to customers throughout the world. Currently, the process used to monitor and forecast inventory has not shared innovation available in the market today. Learning Team B (LTB Incorporated) is providing a process which will deliver innovation and technology used in the following areas:

* inventory tracking

* customer relation management software

* monitoring of both raw and finished goods

* automatic accounting updates

* integrated wireless devices used for material processing

To help increase sales and decrease over allocation of goods, LTB will be implementing an inventory system which will be available to all facets of Riordan Manufacturing. Riordan executives have allocated a budget of $150,000 which is required to include all the necessary software, hardware, training and implementation necessary to bring inventory systems into current market standards. Each SDLC process plays a critical role in the successful outcome of Riordan manufacturing. Through system investigation, analysis, design, implementation and maintenance, LTB will ensure Riordan's inventory system will continue to run efficiently into the future.

Service Request

The service request presented by Hugh McCauley, COO of Riordan Manufacturing, is to suggest several specific systems of changes that will improve the company's inventory tracking capabilities. Currently Riordan Manufacturing does not have technology implemented in their business to perform this task. By incorporating the advancements requested by LTB, enhanced inventory tracking and increased revenue will be obtained. Presently, Riordan Manufacturing uses a combination of paper and electronic channels of communication. LTB's suggested implementation will replace the current conventional paper system. Although the final implementation continues to incorporate electronic channels of communication, the new system will include several new enhancements. These include documentation, order management, inventory control, and data storage. Since Riordan Manufacturing embodies supply chain locations is China, Georgia, Michigan and an R&D facility LTB will incorporate a Customer Relation Management (CRM) technology and enhanced intranet sites which will foster better communication throughout the inventory chain. LTB's engineering plans are based upon Riordan's Customer relationship Mission statement:

* We will strive to be a solution provider for our customers and not be a part of our customer's challenges.

* Long-term relationships will be sought by maintaining rigorous quality controls, innovative solutions, a responsive business attitude and reasonable pricing.

In the past, the receiving supervisor on duty was in charge of checking the packing slips and for ensuring the email notifications were sent out. This is no longer the case. Riordan Manufacturing's raw materials receiving department will implement a new innovative solution allowing employees the ability to use wireless handheld bar code scanners to track each raw material. Once items are scanned, inventory will be updated in real-time. This update will ensure management and other locations are aware when new materials are received. Furthermore, Inventory tracker software will compare raw materials received versus materials ordered. If a discrepancy occurs, the tracking system will send an e-mail to the shipping area supervisor. In addition, to ensure the supplier acknowledges that products have been received, a confirmation of materials received is sent to the supplier via e-mail, which includes each item with its new bar code number. Unlike the current system, LTB will enhance inventory automation by incorporating a system which allows real-time inventory updates, elimination of data entry error and the ability of all facets of the organization to monitor inventory updates.

LTB will also suggest implementation of a new process to manage inventory. The amount of raw material used in manufacturing will be indicated via the Inventory control software. By de-allocating inventory before the manufacturing process, Riordan can monitor inventory and allow real-time updates on new material which will be produced. Since all new merchandise is tracked by the inventory tracking database, system generated e-mails can be programmed to notify management when finished products are available. The program can also be set to notify management whenever new inventory is received. Based on need, email notification can go out immediately after it is processed or at the end of the business day. As the sales department completes orders, the information is input into the customer shipping and billing system (CSBS). After orders are entered, the shipping manager receives two e-mails: one sent to hisher PDA device and another to the person's company email account. The team responsible for shipping out orders knows what is available since the CSBS and the inventory tracker will share information. After orders are fulfilled packages are tracked via RFID, which provides where the item will ship from, along with information regarding ETA. In addition, an order confirmation is sent to the customer via e-mail. Physical inventory is then updated once the goods are shipped to customer.

Investigation

LTB began by conducting interviews with Mr. Hugh McCauley, COO of Riordan Manufacturing. Mr. McCauley initiated the contact, requesting LTB's involvement in the project. A Service Request (SR) was issued to give the team an overview of the company's goals and general requirements. The SR called for systems changes to improve inventory or manufacturing processes using computer system utilization. Several meetings were conducted between LTB and Mr. McCauley to get more details regarding the company's needs