CIS 319 FINAL Riordan Manufacturing Service Request
CIS 319 FINAL Riordan Manufacturing Service Request
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Riordan Service Request 1 Riordan Manufacturing Service Request University of Phoenix Riordan Service Request 2 Riordan Manufacturing Service Request Executive Summary The Riordan Manufacturing Company started as a little plastics business that specialized in research and development. The company has since grown into an international manufacturing giant. The kind of growth that Riordan has experienced in the short time they have been in business has created a need for operational expansion to various North American and Chinese sites. Riordan’s considerable customer base varies in size and includes automotive and aircraft parts producers, household appliance makers, drink bottlers, and even the Department of Defense. Growth of this speed through site acquisitions, highyield sales plans, and a quality product, allowed Riordan the ability to increase their market share and keep their customers happy by maintaining a good price point. The growth has also opened the business up to a wide array of challenges concerning information systems, which will have to be dealt with as the company moves forward. The following proposal will set forth the recommendations necessary to develop Riordan's information system processes, requested on Service Request SRrm001, to increase the efficiency and effectiveness of the current inventory management and control process. Primary project goals: Review current inventory management and control information systems and their efficiencies. Decided which systems in inventory management and control need to be updated to allow for operations that are more streamlined. Riordan Service Request 3 Make recommendations in inventory management and control for new or updated information systems. To support these goals, we first recognized the specific Riordan business processes that would benefit from improved information systems: There is a weak center for both communication and information transfer between Riordan’s different departments and their customers. There is no alternative to inperson sales for a client to place an order with the company. This limits sales to customers within the local area and to standard business hours. There is no efficient inventory tracking system in place to monitor product completion, resources, and current stock. None centralized and conflicting systems through the IT department with several server locations creates extra work and time delays for the company. A financial allotment of $150,000 has been added into the 2009 fiscal year budget for the completion of this plan. The development and implementation of this plan will follow the expectations set forth in Riordan Manufacturing’s mission statement. The Riordan Manufacturing Corporation has a very strong company mission statement. The mission includes focus, customer relationships, the employees, and future goals. Without these mission statements, the company would not have a solid ground to build upon for strong company business. Riordan Service Request 4 Detailed Project Plan There are a number of key operational areas at Riordan Manufacturing that need to be improved if the company wishes to keep pace with the doubledigit sales forecasts for FY05. The recommendations for improvement fall into four distinct categories; Streamline the inventory process. Provide an automated, customeraccessible ordering system (which allows customer to track products ordered in transit), Create a centralized sales database to eliminate duplicated effort and streamline communication Consolidate Riordan's distributed network infrastructure One of the biggest improvements that would assist the manufacturing, delivery and shipping systems are changes to the inventory management system. The inventory management system needs to be upgraded to a less manual, more automated system utilizing barcode technology. Barcodes would be placed on every product built and/or raw materials received by Riordan. Inventory would be scanned when picked from the shelves, would be scanned when placed on transit, and would be scanned upon arrival and departure at any Riordan facility. This would be put into place for both raw materials arriving as well as products that are postproduction and ready for distribution. With accurate inventory counts, the company could better forecast low inventory levels and drive manufacturing based on the available inventory and projected orders Riordan Service Request 5 from our customers. The system will have reorder quantities established and will autoreorder when inventory levels get too low. This will help automate the ordering of the raw materials critical to the manufacture of Riordan products. The company and our customers would have realtime access to order fulfillment, delivery, and inventory levels. Customers would use their password to log into the system and see if the item is currently back ordered, in the manufacturing process, in stock and/or in transit. The customer would be able to place orders directly through this system also. Riordan will provide a passwordprotected ordering system using a website over HTTPS. The ordering system interfaces with the sales, inventory, and finance systems and allows for a more effective and efficient way to take orders. The system will also be linked into our transportation providers' websites, allowing customers to easily track their shipments using the tracking numbers given to each shipment. Creating visibility from a purchase and sales interface into the inventory system will greatly reduce the possibility of error in the manual sales process that we currently employ. The products that are in stock and available at any Riordan location will be shown available for distribution and relocation to any other Riordan location or could be drop shipped directly from a Riordan distribution center to the customer's doorstep. Using this new system, customers could also create automatic reorder levels by date to replenish their stock automatically. This would be one system that allows every customer to use the same format, and eliminate the costly mistakes, and errors that are more likely to occur in the manual order process. Another way to streamline operations will be the implementation of a customer database. Without a centralized customer database system to track communications and reorders, we have Riordan Service Request 6 duplicated our efforts and at times have fallen short of our commitment to our customers. Not only will this database hold customer information, but also the system will be externally accessible, allowing all field sales reps and customers to access the system either through the VPN or over a passwordprotected web site to check the status of their orders. Any communication between the Riordan employee and the customer will be tracked in this database. This will help avoid duplicate communication between Riordan and our customers and will show an organized, unified, and professional face to the customer. The system will also be tied into the finance management area for those customers that need to charge purchases through our Net15 and Net 30 financing terms. All transactions and shipments will be able to be viewed through the proposed online office system. The benefits of this system in Riordan's efforts to improve customer satisfaction cannot be underestimated. Figure 1 depicts how the new IT model will function for Inventory Management and Control after the proposed changes are implemented. The last item on the list of improvements is to consolidate Riordan’s distributed network infrastructure. Riordan Manufacturing is an international corporation with 550 employees and 4 locations. Each location contains four nearly identical networks that are patched together over a variety of WAN connections. The corporate headquarters in San Jose, CA has the most modern network and will become the home base for all Information Technology. There is unnecessary hardware redundancy in the current network, which is not needed in the new infrastructure plan. The following suggestions would eliminate this redundancy and provide a lowercost IT solution for Riordan Manufacturing. San Jose, CA Office Riordan Service Request 7 Remove the Gateway Router currently connecting the Research network to the Satellite Base Station. Convert the existing Linksys switch to a Cisco 295024. Cancel the existing Satellite service between the China and San Jose offices for cost reduction. Remove the Satellite Base Station and the associated equipment and sell it. Increase the existing T1 line to T3. Install Chinese Language modules on the servers. Hang Zhou, China Office Cancel the existing Satellite service between the China and San Jose offices for cost reduction. Remove the Satellite Base Station and the associated equipment and sell it. Transfer the VOIP Router to the existing T1 line. Convert the three existing Linksys switches to a Cisco 295024. Remove the NAS and all servers from the China office and ship them to San Jose. Pontiac, MI Office Replace the existing Nortel 10 MB Hubs with Cisco 2950's of equivalent size. This will dramatically improve network performance in the Pontiac facility. Remove the NAS and all servers from the Pontiac office and ship them to San Jose. Albany, GA Office Replace the existing Nortel 10 MB Hubs with Cisco 2950's of equivalent size. This will dramatically improve network performance in the Albany facility. Remove the NAS and all servers from the Albany office and ship them to San Jose. This network conversion standardizes the hardware in each remote facility. It sets Cisco, as Riordan Service Request 8 the standard for the company in switching equipment. The elimination of hubs and the addition of switches will improve the network throughput, which will be necessary with the addition of the proposed terminal emulation system. The elimination of the satellite link eliminates an expensive piece of the leased line expense (leased line expenses = $50,400/yr). Another benefit is the elimination of unnecessary equipment, which can be sold to offset the cost of implementing the net new systems. Figure 2 depicts what the new, centralized; consolidated IT model will look like after the proposed changes are implemented to headquarters in San Jose, CA. Figure 3 shows the new network infrastructure for Hang Zhou, China. Figure 4 shows the new network infrastructure for Pontiac, MI and Albany, GA. The second recommendation is to implement Terminal Services at the remote offices. The reasons for this are as follows: The existing computers at the remote locations are already scaled to handle this change with minimal effort. The remote IT staffing can be eliminated further reducing costs to the company. Each office can be converted individually and the problems that occur during the conversion can be ironed out as they are discovered. The overall server plan is unchanged across the corporation but we anticipate employees will need some training related to using Terminal Services. The proposed changes will help reduce Riordan's expense in licensing ($42000 per year) as well as IT related travel expenses ($22000 per year). The changes will also help streamline the operations, and assist in customer support by eliminating different operating systems and hardware platforms. This is a winwin scenario for all of the stakeholders of this Riordan Service Request 9 project, providing a more homogenous system and reduced TCO. The third recommendation for the current year is to implement Virtual Private Network (VPN) access to allow our sales force to connect to the company network from the field. The VPN will provide a safe, secure, encrypted channel that the sales force can use to access the corporate network. This will allow them to sell to realtime inventory levels and have access to business and financial data on the corporate network. This will improve efficiency in placing and processing sales orders. This concludes the proposed network changes for the first year. In the second year, we are suggesting these goals: Form a steering committee from each of the divisions with the broad goal of establishing a video teleconferencing system. This system will improve communications of the upper management teams across the company and reduce the travel costs associated with face toface meetings. Increase our customer base and increase participation in all areas, including sales and all business management. (i.e. expand future partnership relations) Revise budget estimates to reflect savings created by eliminating the outlining IT staff. Then introduce those savings into technology improvements. In the third Year, we recommend this goal: Expand VPN capability to include video teleconferencing with the sales force while in the field. In the fourth year, we recommend this goal: Introduce web enabled, java based application server technology to streamline order management and allow our customers to place orders online. Riordan Service Request 10 In the fifth year, we recommend this goal: Assess the last four years progress, and make appropriate changes to the next 4yrs budget plan and future goals of the company. Figure 5 illustrates the projected 5year in a flowchart for Riordan Corporation. The operations department at Riordan has determined that a combination of net new automated systems (to replace manual systems) and consolidation of existing systems will provide a more efficient, costeffective inventory and management system. This system will service our internal and external customers more effectively. This proposal has referenced the documentation detailing the current environment, has produced the five year projected technology requires for the business, and has made a variety of recommendations on systems integration, acquisition, and consolidation for the current year. By consolidating the IT operations to one location, eliminating costly WAN links, and creating a VPN solution, the overall efficiency of the IT operation will be increased while costs are decreased. Streamlining the inventory and ordering system, will allow Riordan to continue to adjust to the needs of our existing and any prospective clientele. This will also play a part in decreasing the shrinkage of our inventory and the satisfaction of our clients will improve noticeably. The proposed systems will afford Riordan the opportunity to increase profits and market share by generating a larger customer base. The consolidation and reorganization of the information systems will permit Riordan Manufacturing to increase the bottom line while decreasing operating expenses. The company itself as well as its employees and shareholders will benefit from these changes. Riordan’s customers, however, will benefit more significantly than anyone with the changes to the proposed information systems. Remember Riordan Riordan Service Request 11 Manufacturing’s mission statement, "We will strive to be a solution provider for our customers and not be a part of our customer's challenges. Longterm relationships will be sought by maintaining rigorous quality controls, innovative solutions, a responsive business attitude, and reasonable pricing"(Apollo, 2006, para. 4). Each of the proposed changes will benefit our clients. The changes will create and maintain the longterm relationships that Riordan Manufacturing has valued in the past and will continue to build in the future. References Apollo Group Inc. (2006). Riordan Manufacturing. Retrieved May 3, 2009, from http://aapd.phoenix.edu/CIST/VOP/Riordan/Internet/IndexPort.htm Figure Caption Figure 1. New Inventory Management and Control Processes. Figure 2. New network infrastructure implementation for San Jose, CA. Figure 3. New network infrastructure implementation for Hang Zhou, China. Figure 4. New network infrastructure implementation for Pontiac, MI and Albany, GA. Figure 5. Projected 5year network changes. Riordan Service Request 12 New Inventory Management and Control Processes. IInternal SStep RRaw Material Raw Material RReceived delivered EExternal SStep Customer Place Barcode Customer Place Barcode OOrders from oon Raw IInternet MMaterials Suppliers RReceive/Sen d Order Sale Force Scan Raw HTTPS Secure Orders MMaterials Connection Connection HTTPS Secure Connection Reorder when Raw Material Level Low Customers /Sales EERP/MRP Force Database Database Server Server Database Server Server Manufacture According to Raw Material Levels and HTTPS Secure Levels and Connection Sales Finished Deliver To TTransportati Scan Customer oon Data Finished Product Products Barcoded Products Riordan Service Request 13 New network infrastructure implementation for San Jose, CA. Riordan Service Request 14 New network infrastructure implementation for Hang Zhou, China. Riordan Service Request 15 New network infrastructure implementation for Pontiac, MI and Albany, GA. Riordan Service Request 16 Projected 5year network changes First Year Network changes and VPN Setup Second Year Second Year Setup a committee with a goal of establishing a video Teleconferencing system Expand Future Partnership relations Revise budget estimate to reflect saving Introduce the saving in to Technology Introduce the saving in to Technology improvements Third Year Fourth Year FFifth Year EExpand VPN capability to include Video TTeleconferencing with the salesed department.n server technology to s and mstreamline order management and allow4 year budget plan and future goals.llow our customers to place orders online.
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