RUNNING HEAD: Service Request SR-rm-012 Riordan Manufacturing Service Request SR-rm-012 Learning Team D BSA 310 Business Systems February 28, 2010 Dr. Ford University of Phoenix EXECUTIVE SUMMARY Riordan Industries, Inc. is a successful Fortune 1000 enterprise with revenues in excess of $1 billion. Our corporate headquarters is in San Jose, California; the manufacturing plants are in Albany, Georgia, Pontiac, Michigan, and Hangzhou, China, which is a joint venture.
According to the Apollo Group website (2006), The Riordan’s Manufacturing of products include plastic beverage containers produced at its plant in Albany, Georgia, custom plastic parts produced at its plant in Pontiac, Michigan, and plastic fan parts produced at its facilities in Hangzhou, China. The company’s research and development is done at the corporate headquarters in San Jose. The company’s main customers consist of Department of Defense, bottle and beverage makers, and manufacturers of appliance, aircraft, and automotive parts.
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Riordan’s manufacturing locations to gain overview about existing software applications in Finance & Accounting, Sales & Marketing, Human Resources, Operations, Legal and Information Technology. Currently, Riordan Industries areas within are using various business systems of which each of them represents challenges. This document explains the existing business systems and provides solutions to create current business systems that can create a strong professional organization. FINANCE AND ACCOUNTING
Existing Business System – The three operating systems at Riordan’s Manufacturing in California, Michigan, and Georgia, plus a joint venture in China, all have their own Finance & Accounting Systems (F & A). The headquarters in San Jose consolidates the data. Currently there is no compatibility between the systems. Some of the data that provided to Corporate is via data files, hardcopy reports that have to be re-entered, and some via data files that need converting. This process is time consuming and financially taxing to the organization.
Needed Business System – For the use of helping the Finance & Accounting existing software is to have the assistance of a Management Information System (MIS). MIS is a computer system that receives important business data from all departments in a large company. Then, based on a carefully defined set of rules, the Management Information System generates the information and reports people need to manage the business. In conjunction with the MIS, the subsystem is Accounting Information Systems (AIS) which should also be used within the company.
Accounting Information Systems (AISs) combine the study and practice of accounting with the design, implementation, and monitoring of information systems. Such systems use modern information technology resources together with traditional accounting controls and methods to provide users the financial information necessary to manage their organizations. HUMAN RESOURCES AND LEGAL Existing Business System – The Human Resources (HR) department system, installed in 1992, maintains information for employees which coincides with the financial system package.
HR is responsible for maintaining personal information, pay, tax information, hire date, seniority date, vacation time, and required training. If changes occur, the manager needs to submit specialized forms in writing to the payroll clerk to be manually entered into the system. The employee’s training, development, and the current status of applicants is maintained and updated on a Microsoft Excel spreadsheet by various HR specialists. In addition, the compensation manager tracks job analysis, surveys, and decisions by the spreadsheet.
A third-party provider has its own records of employee’s worker compensation. HR Managers keep employees individual files; also responsible for tracking absences and requests. Employee relations specialists’ locks files onsite about grievances and complaints made by individuals of the company. Lowell Bradford is the Chief Legal Counsel for Riordan Manufacturing. Lowell answers legal questions from his personal knowledge or experience, or after consulting with attorneys Litteral and Finkel. The legal team is working on the directive to move the Hangzhou plant to Shanghai in five years.
They need to procure a manufacturing plant, secure a shipping contract with a trucking company, and keep the current barge shipping company. Riordan needs to procure Legal permits from the government, offer relocation to the employees, and obtain a possible office for Litteral and Finkel for short term. Needed Business System – The Human Resources and Legal applications are in need of an upgrade of its systems. The Human Resource Information System (HRIS) is a software or online solution for the data entry, data tracking, and data information needs of the Human Resources, payroll, management, and accounting functions within a business.
One HRIS software application that can be used is iVantage created by Spectrum Human Resources System Corporation. According to the Spectrum (2010) website, iVantage is a better HR system that track, manage and analyze your employee data from applicant to retiree. With automated workflow, it improves your efficiency. With powerful reporting, it gives you a complete picture of your workforce for better strategic planning. In addition, creating Computer Based Training (CBT) that will allow Riordan to cut costs on travel when cross-training or sending people to sessions.
It will enable the company to better overlook employee training history and status. One Computer Training and Support application is NovaTech Solutions to use for Computer Based Training (CBT) for Riordan. According to the NovaTech Solutions (2008) website, NovaTech partners with a number of CBT production companies to offer a wide range of multimedia and computer based training solutions to our clients. This training will allow students to train at times that are convenient to their schedule and that can be performed at their own pace.
Riordan can upgrade the Legal issues system by using software created by Amicus. The software is called Amicus Attorney the world’s leading practice management software that integrates employees’ information into a single, automated system so you can improve the efficiency and profitability of the organization by using file, conflict and contact management, communications, notes, timesheets, document management, and much more (2009). The company can use this software will create and educate employee’s on the proper use of company property and reinforce company policies.
SALES AND MARKETING Existing Business System – Sales & Marketing (S & M) data collection comes in many different formats; some paper and pencil, some electronically, and sales team members are using three different methods of recording data. Historic data is kept in a file cabinet and requires hiring employees to scan these documents into the system electronically. The S & M department isn’t integrated with the F & A systems, which doesn’t provide for tracking trends. The current form of sales within Riordan is archaic.
Looking at current business trends, companies that do not provide an online medium for product ordering will not strive in the new technology age. The current ability to fax in an order is a step up over phone ordering but still does not allow the customer to complete the order based on their own schedule. In an effort to improve customer relations an online ordering system will be integrated. Needed Business System – The online ordering system will provide several different advantages for the company. The first advantage will be a wider customer market.
Customers will find Riordan when looking through search engines for different parts. If a potential customer searches for plastic bottles in any search engine the new online ordering page will be an available result to the customer bringing in customers who may not have known Riordan by name. The second advantage of the online ordering system would be product information. Over the phone Riordan has to pay an employee to explain details about a specific product. All of that same information that the operator could give the customer can be placed online along with the items description.
This will allow the customer to get an in-depth breakdown of each item being sold. Additional information on top of the breakdown can also be stored. An example of additional information could be a product brochure uploaded to the website in a PDF format and linked to the product. A customer can get the detailed breakdown of the product, additional documentation regarding the product, pricing, and availability all from the web page. Another advantage of the online ordering system is the nature of the system.
Since it is an online automated system that requires no day to day involvement of staff to place the orders the operators who used to be assigned to handling phone calls can now be assigned other duties or let go. The only staff that would need to be involved would be maintenance staff to ensure the web page was functioning properly and updating available product quantities. A secondary position would also be opened for web page development to further increase online sales by staying trendy in the market to keep customers coming back to the web page.
With the additional customers and hopefully larger sales the old operators could be retrained and help with packing and shipping of products to the customers. All orders that get processed through the web page would be sent directly to the packing and shipping department removing any delay for the customer’s order. OPERATIONS Existing Business System – Riordan Manufacturing has six core operations production, inventory, supply chain, project process, strategic planning and sustainability study. The production and supply chain for Riordan Manufacturing is currently a manual process done mainly by paper.
From the initial process of receiving raw materials to the final product that is deliverable to the customer, the current process is manually done. These manual processes can have negative effects caused by human error. Long term, this will lead to inventory loss, revenue loss, and ultimately increased production cost. The inventory is kept on one system that is updated by the inventory clerk when shipments arrive and adjusted as material is removed to produce sub-assemblies and final products. After the products are finished they are entered back into the inventory system by the inventory clerk.
With manual entry the inventory is always susceptible to human error. Project process is handled by the research and development department which is located in San Jose, California. This department is responsible for designing and testing new products, designs and to test different polymers and dyes that could be used in the manufacturing of Riordan products. Strategic planning develops the missions and goals of Riordan Manufacturing with explanation in full detail. By using strategies and programs created to help strengthen Riordan Manufacturing’s products to give them the competitive edge.
With the use of process overviews of the different branches of the Riordan Manufacturing they have a study of the sustainability of the company. Process overviews explain in full detail the materials used and discarded in the creation of Riordan products. It also explains the wastes of the manufacturing process to help make plans to better the environment. By adding a barcode scanner to scan inventory into and out of inventory it will greatly reduce the amount of human error. If the inventory clerk has a bar code scanner to scan inventory it will increase the accuracy of on-hand items and items being sent to development.
INFORMATION TECHNOLOGY Existing Systems – Riordan Manufacturing’s corporate headquarters in San Jose, California, is the main hub for the WAN network between the three different plant locations. The three plants that are connected to the corporate headquarters network are in Albany, GA, Pontiac, MI, and Hangzhou, China. Altogether the Riordan Company has 550 employees that work in each of the plant locations. Currently, the San Jose plant network is build upon a 1 GB backbone with an external T1 connection. The internal network contains a single 100 base T router with two 24 port switches and a single 24 port hub made by Linksys.
Also connected to the 100 base T router, is a gateway/switch that supports multiple printers, such as three phaser color printers and one Hewlett-Packard plotter. External communication is setup using 35 IP phones through a VOIP/Data router and a Microsoft Windows email exchange server. Each 24 port switch contains multiple desktop workstations with twelve set for corporate use, eight set for Marketing, eight set for Finance, and seven set for Human Resources. Each desktop workstation setup is a Dell Optiflex model, which contains a 2. 6 GHz processor, 512 MB of memory, a 60 GB hard drive, Microsoft Windows 2000, and Microsoft Office 2000.
A separate gateway/switch is connected to the 100 base T routers that contain satellite base station to communicate with the Hangzhou, China plant. The Pontiac, MI plant network is connected to corporate headquarters through a fractional T1 line using a Blackbox CSU/DSU V35 MT100A-35 R2 patched to a Cisco router 2500. This particular router is connected to three Nortel Baystack 107 10BT hubs with 24 ports. Each hub has fifteen Compaq desktops connected to it through a 24 port patch panel. The first set of fifteen contain 486 MHz processor with 32 MB of memory in each desktop.
The second set of fifteen contain Intel’s Pentium I 233 MHz with 64 MB of memory in each desktop. The third set of fifteen contain Intel’s Pentium II 450 MHz processor with 128 MB of memory in each desktop. All forty-five client desktops are installed with Microsoft Windows 98 and an unknown version of Microsoft Office. An HP LaserJet printer is also connected to each patch panel. The first Nortel Baystack 107 10BT hub has four other PCs connected to it. The two client desktops are Compaq Proliant with Intel’s Pentium III 450 MHz processor with 256 MB of memory installed with Microsoft’s Windows NT.
One desktop is setup to be the file and print server, on the other hand the second desktop is setup to be the exchange server. The third PC is a Hewlett-Packard UX server with an UNIX-ERP operating system installed with its purpose being unknown. The fourth PC is an RS6000 IBM-AIX installed the UNIX-MRP II operating system that is networked with a Nortel Baystack 107 10BT hub with access to the manufacturing floor. The Albany, GA plant network is very similar to that of the Pontiac, MI plant network. It is connected to corporate headquarters through a fractional T1 line using a Kentrox Datasmart 658 CSU/DSU patched to a Cisco router 1760.
This particular router is connected to two Nortel Baystack 450-24T Enet Switches. Both switches are connected to a 48 port patch panel with twenty Compaq Presario desktop computers and two Hewlett-Packard LaserJet printers. Eight of the Compaq Presario desktop computers contain Intel’s Pentium I 233 MHz processor and 64 MB of memory. Seven of the Compaq Presario desktop computers contain Intel’s Pentium II 450 MHz processor and 128 MB of memory. Five of the Compaq Presario desktops contain Intel’s Pentium III 600 MHz processor and 256 MB of memory.
All twenty desktops have Microsoft Windows 98 and an unknown version of Microsoft Office. The first Nortel Baystack 450-24T Enet Switch has four other PCs connected to it. Two of them are Compaq Proliant with Intel’s Pentium III 800 MHz processor and 512 MB of memory. These two specific PCs are installed with Microsoft Windows NT operating system. One is setup to be the file and print server, while the second one is setup to be the exchange server. The last two PCs are Hewlett-Packard UX server. One is setup with the UNIX-ERP operating system installed and its purpose being unknown.
The second Hewlett-Packard UX server has UNIX-MRP II operating system installed. This particular PC is networked with a Nortel Baystack 450-24T Enet Switch with access to the manufacturing floor. The Hangzhou, China plant network is has a satellite base station connection corporate headquarters in San Jose, CA. The satellite is connected to a gateway/switch that is networked with a 100 base T router. Two Cisco 5950 switches with 24 ports are connected to the 100 base T router. Each switch contains twenty Dell Optiflex desktop workstations containing 2. 6 Hz processor, 512 MB of memory, and 60 GB hard drive.
Each desktop workstation has Microsoft Windows 2000 and Microsoft Office 2000 installed. An 8-port hub is connected to the 100 base T router with eight Hewlett-Packard LaserJet printers. Two IBM H520 Blade servers are connected with two Xeon 2. 8 GHz processors and 1 GB of memory. The first server is a standard network server, while the second is an exchange server. A third server is setup as a NAS Iomega P800M, which appears to be for data back up. A fourth server is setup as a UNIX ERP/MRP with its purpose unknown. This particular server is an IBM pSeries 6E4 multiprocessor with 1 GB of memory and an 80 GB hard drive.
A Linksys EF2H24 hub with 24 ports is connected to the 100 base T with access to the factory floor. External communication is setup using 40 IP phones and a T1 connection for external networking. Proposed Business Systems – Personal Support Riordan Company needs personal desktop computers throughout all of the plant locations for individuals to have access within the network. For example, Riordan should supply Microsoft® Windows XP desktop computers installed with Microsoft® Office 2007 and Adobe software applications to help with any word processing, etc. hat employees have to do for their job. All e-mail communication is through Microsoft® Outlook 2007 that serves throughout the Riordan plant locations. Proposed Business Systems – Workgroup Support Riordan needs powerful and sophisticated Operating Systems needed to run the servers to meet the business needs for workgroups. For example, Riordan should use Sun Microsystems that uses the Linux operating system which is efficient at serving up web pages and can manage a cluster of up to eight servers.
Sun Blade 2500 Workstations are run by UNIX that makes it easier to move programs and data among computers to share resources. In addition, Hewlett-Packard Servers supports the Microsoft® Windows 2003 Server operating system that does a host of vital tasks for and prevents disclosure of information. Proposed Business Systems – Enterprise Support Mainframe computers to provide the computing and storage capacity to meet massive data-processing requirements and provide a large number of users with high performance and excellent system availability, strong security, and scalability for enterprise computing.
HP-UX operating system can use HP e3000 servers to support the Internet, database, and a variety of business, accounting, and computing applications. Dell PowerEdge Servers supports the Linux operating system, which provides excellent balance of internal storage, redundancy and value by acting as a backup for the mainframe computers. When dealing with a widespread company like Riordan its best to use powerful and dependable operating systems and applications to support your network through personal, workgroup, and enterprise support. IT Solutions for the Proposed Business Systems
Given that the operating locations integrate with an old Windows-based Enterprise Resource Planning (ERP) manufacturing, distribution, and financial management software applications we should upgrade to a newer version of ERP with the assistance of a Virtual Private Network (VPN). Virtual Private Network (VPN) is a computer network that implements an overlay on top of an existing network. It has the purpose of creating a private scope of computer communications or providing a secure extension of a private network into an insecure network like the Internet.
Based on Davis’ (2006) article, a VPN is far less expensive to setup and operate than its alternative-leased data lines, which would cost, depending on the distance and transmission speed, from a couple of hundred dollars a month to a couple of thousand. For a VPN, assuming that Riordan already owns the necessary components (server, router, and firewall) for the connection, it is less expensive. The type of VPN connection that would work for Riordan’s manufacturing would be an intranet connection that would be able to link all the locations and provide stored and shared access to databases.
Based on the Apollo Group (2006), Riordan’s Manufacturing has been working on developing a Customer Relationship Management (CRM) system for their Sales & Marketing locations within the operating systems. According to the Wikipedia (n. d. ), Customer Relationship Management (CRM) are methods that companies use to interact with customers involving technology to organize, automate, and synchronize business processes for marketing practices, customer service, and technical support within an organization.
The CRM will be helpful to the operation of Riordan’s inventory management process, F & A, S & M, Information Systems and also the “customer. ” Conclusion The incorporation of the proposed solutions presented within this summary will provide the foundation for the complete and synergistic management of the Finance and Accounting’s business systems, Human Resources and Legal’s business systems, Sales and Marketing’s business system, Operation’s business system, Internet Site, and Information Technology department of Riordan Manufacturing.
Streamlining the discussed processes will enable Riordan Manufacturing to achieve the company’s goals. REFERENCES Apollo Group. (2006). Riordan Manufacturing Home. Retrieved from https://ecampus. phoenix. edu/secure/aapd/cist/vop/Business/Riordan/RioMfgHome002. htm MIS – http://www. maran. com/dictionary/m/mis/index. html AIS – http://www. spectrumhr. com/ Legal Tracking System – http://www. capterra. com/legal-case-management-software/spotlight/5508/Amicus%20Attorney/Amicus? id=30453214