Service Request Solution Riordan

Executive Summery

The current inventory processes we have in place are not as efficient as they could be. The main problem is there is no communication between departments, factories, and suppliers. This causing an abundance of wasted man hours, and inventory produced. Our goal is to provide more communication between departments, factories, and suppliers to create more efficiency and produce less waste.

We would need a complete system overhaul in our inventory system. Based on our analysis we would need a new inventory management system, and we would also need to create an extranet system to communicate between departments and suppliers. This system would have department specific login, and department specific information given based on that login. This would improve communication in all areas. An example is that the suppliers could log in and see our specific needs based on sales. The sales department could see the amount we have merchandise is available to customers based on the amount stored in the warehouse and so on.

In the development of the new software program we request that one person from each department and from each factory would come to help us create this new software tool. This is to make sure it is applicable to their department. This feedback would make in user-friendly and specific to that field.

The system would be set up at our corporate headquarters, and would need an IT department dedicated to system maintenance. We would need to help our suppliers with connectivity, and connect all factories using this system. There would also have to be regional training in that one person from each department would need to go through to train others.

The estimated cost of this improvement would be approximately 7.5 million dollars. This would be recuperated 3.75 years by the reduction in overproduction and man hours. However, with this improvement we would have a competitive edge in our field and could potentially increase our market share.

Service Request Solution

Setting up the network basis is necessary to the success of this project. A Client/Server network is needed to implement through a TCP/IP protocol. Each plant will function as Local Area Network linked together as a Wide Area Network. All the users with the access will have the ability to exchange information instantly. This configuration will generate the best and secured settings to create and direct the information to the users.

Current inventory and manufacturing process can be improved by using a supply chain system. A supply chain is a network of facilities and distribution channels that give a company the ability to receive raw materials and supplies, manufacture goods, and distribute goods to the customers. Supply chain management (SCM) is the control of the supply chain as a process from supplier to manufacturer to wholesaler to retailer to consumer. Supply chain management spans all movement and storage of raw materials, work-in-process inventory, and finished goods from point-of-origin to point-of-consumption.

Each department will have a designated person who will process their information. This information system will be accessible via remote access to allow mobility and flexibility for managers to strategically position their resources and staff. In order to complement, an Intranet is needed to put in place so as to allow information to external business contacts and customers via Extranet. The Intranet solution will also be the process that will allow E-Commerce activity. While an intranet resides behind a firewall and is accessible only to the team members of the Riordan Mfg., an extranet provides various levels of accessibility to outsiders. Suppliers can access to the extranet site to update the data with a valid username and password, and the username determines which part of the extranet can be viewed.

Since Riordan Mfg. has the plants in different time zones, it is very important to update all the data in real time. Extranet allow employees, contractors, suppliers, customers and investors instant access to the company information. Routing and sharing documents, e-mail, online conference centers, collaborative computing and e-commerce are the benefits for the company. In addition, secured extranet site can change the way to do business, saving company's time, money and valuable resources.

When the supervisor of the receiving area comes in the morning, he should be able to know what materials are scheduled to come in by looking at the link from the suppliers. He would know approximately what time the trucks are coming in by checking the tracking available through the link from suppliers so he can utilize his receiving crew and more productive. After the supervisor checked the raw materials, he will scan the invoice which will be updated to the database immediately instead of waiting until at the end of the day.

Management team from the manufacturing and assembly will be able to see how much raw materials in stock and they will able to make the modifications. The amount of raw materials used during each manufacturing run and the number of sub-assemblies final products completed are updated immediately to the database so every team member with the access will be able to see the whole picture.

Document ID - INV001

DATE: April 2007

RIORDAN PROCEDURE

SUBJECT: Riordan Inventory