BSA 310 Riordan Manufacturing Business Systems Term Paper
BSA 310 Riordan Manufacturing Business Systems Term Paper fin571
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Business Systems 14 . Riordan Manufacturing Business Systems University of Phoenix Business Systems 14 Riordan Manufacturing Business Systems In order for Riordan to be successful and possess real time information on customers, the company must employ updated systems equipped with appropriate software. Personnel will be able accomplish tasks in an expeditious manner based on updated systems. Completing tasks in a timely fashion will not only benefit customers but Riordan as well by allowing time for improvement. Riordan Manufacturing’s mission is to support existing customers in the best way possible while recruiting new loyal customers. This report will review current practices and provide suggestions to upgrade services that will better meet the company’s mission in the plastics design market. Company Description The company history and description of Riordan Manufacturing must be analyzed and revised. The current history is informative but has little social appeal. The history section needs to sound more customer friendly. Description of what the company does and how they do it should be addressed clearly an effectively. Incorporation of more personal facts about the organization and how it was created will better inform the audience and contribute to consumer memory. Changes to Focus, Customer Relationships, Employees, and Future will be necessary. Focus: Revise the use of technical language to accommodate all audiences. Company attitudes toward business not described. Focus needs to discuss company expectations and plans for improvement. Explain why Riordan is industry leader. Customer Relationship: Statements are not clearly worded. Elaborate further on Business Systems 14 how to maintain adequate customer relationships. What plans will Riordan implement establish better customer relationships? Implement standards of customer satisfaction that applies to all consumers. Employees: Vague statements again, how will Riordan maintain innovative environment? Revise statement to assure employees are well informed. Discuss job security and worker benefits supplied by Riordan Manufacturing. Future: Vague again. Revise statement to better explain how Riordan will sustain growth. Illustrate Riordan’s 10 year operating plan. Discuss Riordan’s balance sheet and projected profit margins over next 10 years. Mission Statement In order to develop effective mission statements, organization must ask the right questions to construct clearly defined goals. The purpose of a mission statement is to announce the core reason for company development. Mission statements should inform the intended audience and inspire others to want to know more about Riordan Manufacturing ideas. The number one step to remember is to state clearly industry objectives and goals. Review of Riordan Manufacturing’s mission statement indicates the current mission statement does not provide clear language indicating Riordan’s company goals. Much technical language is used which can leave readers confused regarding Riordan’s purpose. No central audience is indicated by the language used in the current mission statement. Define: Business Systems 14 What makes Riordan Manufacturing different from the competitors? Why is our Riordan’s product better? Whom is this mission statement intend for? Legal Department Review of the legal business system at Riordan consists of a relationship between the law firm of Litteral and Finkel with Riordan. “Lowell Bradford” the “Chief Legal Counsel” who “oversees all legal matters” (Apollo Group, 2004). Communications consists of email and hard copy documentation that is dispersed throughout the corporation. The company lacks a central knowledge base platform that can be accessed by individual companies for research or needed information. Further review showed that accrued legal fees do not have a separate account assigned to track expenses. Suggested upgrades and practices Legal expenditures should be placed under separate budget to allow planning and tracking. Tracking expenditures is the first step to ensure costs are regulated. Companywide procedures should be developed which explain the acquisition of legal counsel. Who is allowed to call counsel? Does counsel have to be authorized by a corporate executive or through the chain of command? A web based document server should be installed as a repository of all company documents. Access will be allowed by authorized personnel only. Document management software should be used to track all company documents, workflow, status Business Systems 14 of all legal matters, and security. All document requests will be closely monitored to ensure security. SAPS, IBM, Oracle all have custom designed business management software; some good off the shelf software is available as well. When a document management program aligns with the current goal of the business, many executives have reported company gains that raised competitive advantage in the marketplace. Sound document management saves costs related to replacing critical lost documentation, “improved operational efficiency” and “can enhance regulatory compliance” more effectively (Neal. 2008). Installation of a second document server should be installed as a backup to the original and should mirror the information on serverone. In the event of a failure on serverone, the backup server takes over instantaneously and when the primary server is repaired the backup server can restore the repaired server to its normal usage. Human Resources Department The current Human resource information system was installed in 1992 and is part of the financial software package currently in use. Changes to employee information are approved by the employee’s first line supervisor or manager using a special form. The supervisor or manager forwards the form to the payroll clerk for input. Microsoft Excel is used as a database to keep track of training, development records, status of applicants, job analysis, salary surveys, and individual compensation decisions. Documents such as resumes, complaints, grievances and harassment complaints are kept in locked files in the department that maintains each type of record. Business Systems 14 A central storage area of employee files does not exist. These files are dispersed throughout the corporation to an employee’s supervisor or manager who is responsible for maintaining an employee’s employment files. The supervisors and managers are also responsible for maintaining critical records such as attendance records, record of accommodations made under the American Disabilities Act (ADA) and the Family Medical Leave Act (FMLA). Suggested upgrades and practices A dedicated H.R. server should be installed that will accommodate the entire H.R. process, and accessible to all divisions worldwide. The current human resource software should be replaced by new software such as TrackIt HR software package ( TrakIt Solutions, 19882009). Move all existing records though out the company to the new software, thus eliminating Excel spread sheets and providing a central employee record center for Equal Employment Opportunity Commission review. Develop an intranet site for employees that allow site access from home or from the company premises. Encourage employees update personal information changes as well as heath care, vacation scheduling, 401K scheduling. Develop effective communication methods with employees while offering online training classes. A secondary HR server should be installed that mirrors the first to ensure continued operation and the prevention of data loss due to natural disaster, hardware failure or security breach. Marketing Business Systems 14 Files of Past Marketing Research, Marketing Plans, and Design Awards Riordan Manufacturing located in San Jose, California is a company that specializes in plastic injection molding with products such as, ”plastic bottles, fans, heart valves, medical stents, and custom plastic parts” (Apollo Group, 2004). This company has multiple positions dealing with various aspects of marketing. Market researching, development of products, product testing, and international marketing are examples of specialized areas design to facilitate growth. Marketing focuses on retaining valued customers and gaining customers. Riordan Manufacturing can generate and retain customers by providing quality products combined with superior customer satisfaction. Riordan monitors marketing strategies by tracking what is selling, who is buying it, where are they buying it, and who are they buying it from. Riordan is currently storing various files in multiple locations. The problem Riordan’s is experiencing is the many older files are in paper form. Suggested Upgrades and Practices Assess the company budget to determine if college students can be hired part time to scan the documents electronically onto an external storage device. Once the document transfer is complete, the external storage drive somewhere easy accessible to those who need to reference past information regarding marketing. (i.e. safe, localized cabinet, or have a point of contact who is responsible for safeguarding such material) Purchase servers that are capable of handling the company’s information with Business Systems 14 specifications that will meet requirements provide by Riordan. Ensure that the equipment purchased will be designed to meet all databases needs. All departments will have access to the ‘Master Server’ via computer access. Security will be maintained by developing access limits based individual security levels. Verify that a backup method is used for all information on the servers, including a security application, and an antivirus program. Establish restore procedures in case of a disaster Training on new software package Offer more duties to the college student, with a pay raise for the extra responsibilities. This will include: Inserting information into the new database Updating and maintaining the database Ensure that the database is being backed up Currently the production plan keeps records of the number of units produced by item and by shift which can be rolled up to the product group and year. Suggested Upgrades and Practices Place a computer at each station that will track unit production per shift. That information will then be recorded by the ‘Master Database’ for backup and other information. The marketing department is currently supported by the production and Business Systems 14 finance departments. Profit loss and gain statements are organized by item and group. The finance and production departments will coordinate with the marketing department for support and these three departments will have privileges to pertinent information on the ‘Main Server’ to accomplish statements. Marketing Budget The company has a past and existing budget for marketing communications and research. Communications activities include: Sales force promotions Price / volume discounts to key accounts Public relations Brand development Tradeshows, events, and sponsorships Customer user group underwriting Literature and other collateral material Marketing Research expenditures include: Market size / opportunity studies Customer focus groups Brand development research Business Systems 14 Suggested Upgrades and Practices Considering that the marketing department has an existing budget there will need to be alternate ways of conducting some business and cutbacks. Decrease the opportunity studies. Customer focus groups can be lessened as well. Riordan has an established customer base; maintaining loyalty between the current customers and the company will strengthen profit margins. Sales Department The sales department is a crucial part of the Riordan team. The sales team is responsible for understanding product functions, integration methods, and ways to market Riordan’s products. Understanding all details associated with Riordan’s various products is important to the sales and company profit. The sales department uses a database system to track all customer calls which compiles an alternative database specific to customer purchases. Gaining the trust of the customer will establish loyalty. The company’s sales department needs to have an error free, flawless, organized manner of developing key strategies that provide customers satisfaction. Having multiple ways of maintaining customer records contributes to turnover, backup, upkeep of files and records. Using an organized and standardize method, employees will be able to have innerdepartmental transfers of customer files in case of emergencies or reviews. All customer records will be ‘backedup’ by the ‘Main Server’ though electronic format. Records can be restored as needed. Routing or approval processes could be quicker for management and easier on employees. Business Systems 14 Suggested Upgrades and Practices Roll out a new system that has a database application on each sales department employee’s desk that will ultimately be connected to the ‘Main Server’. The new and the employee’s old method of retaining records will coexist for a certain period before full elimination of old method. Train employees on how to update database and maintain records. Require that ALL employees enter their past information of customer records from paper and other databases into new system. Operations In a manufacturing environment many key factors have to be taken into consideration while developing and operating a cost efficient facility. Production is a major part of any manufacturing’s operation. Five factors make up production they are: land, labor, capital, entrepreneurship, and knowledge. Land includes the land and natural resources that are used to make companies products. Labor is the cost of having employees work in the facility. Capital includes machines, tools, buildings, and any other means of manufacturing. Entrepreneurship is important as well, because with customers buying a company’s products, business cannot survive. Knowledge has made it possible to make changes needed to adjust to customers demands through information technology. Business Systems 14 Riordan Manufacturing’s inventory management system separately handles each manufacturing plant separately. The inventory is entered into and stored on an office computer. Riordan Manufacturing has four manufacturing facilities located in: San Jose, California, Albany, Georgia, Pontiac Michigan, and Hangzhou, China. Headquarters is located in the California plant, the Georgia facility produces plastic bottles, Michigan is the fabrication facility and the China produces plastic fans. Suggested upgrades and practices: Inventory is another area that is important to the success of any business. Incoming raw materials along with finished products going out the door are extremely important and referred to as a supply chain. Riordan inventory should be controlled by an ERP (Enterprise Resource Planning) system which is companywide computer software system that is used to manage and coordinate all the resources, information, and function of a manufacturing business. This would allow head quarters to monitor inventory. Another recommended change would be to combine the Michigan plant with R and D that is located in the San Jose plant. Currently, Riordan Manufacturing is having raw materials delivered to both facilities. Combining both R and D and the Michigan plants it would allow the company to have less raw material storage. They will save money on storage space and the amount of raw materials that are needed to support both departments. The Albany, Georgia facility is investigating if they should switch to a VMI supply Business Systems 14 chain system. With a VMI supply chains the vendor or the supplier, becomes responsible for managing the inventory at the customer’s sites. If Riordan manufacturing manages customer inventory the company ship only full truckloads in an effort to reduce delivery costs. Making the switch to VMI supply chain at the Hangzhou, China plant would allow Riordan manufacturing to still negotiate customer’s yearly contracts, but deliveries can be done on a regular schedule. This would allow Riordan manufacturing to better manage production and increase the ontime delivery percent. Internet Site The internet is a global network of interconnected computers. A computer connected to the internet can access information as well as share information to other computers on the network. The intranet is a private computer network that uses internet technologies on a secure network. Riordan manufacturing’s internet web page is very simple and can be improved in ways that support company missions and goals. Suggested upgrades and practices: Riordan Manufacturing should place the company mission statement and company history on the company’s website homepage. A list of all products coupled with pictures should be linked to the homepage. I believe these changes will provide customers with a better understanding of the company and the products that they offer. This in turn will increase sales. Finance/Accounting Department Business Systems 14 The finance and accounting departments of the three U.S. plants are overseen by the corporate office in San Jose. The plant in China operates as a decentralized unit. In this status, the plant’s decisionmaking control exists entirely within itself, and therefore, its accounting system is independent of the corporation (BNET Business Dictionary, 2009). Due to this scenario, China will not be discussed further. Each entity operates its own finance and accounting systems. The components within the Albany and Pontiac plants’ systems are (a) general ledger, (b) accounts payable, (c) accounts receivable, (d) order entry, (e) procurement, (f) sales and purchasing history, (g) invoicing and shipping, (h) payroll, and (i) financial reporting. In addition, the San Jose facility has electronic data interchange (EDI), executive decision support system (EDSS) and barcode reading. Each location provides input to the corporate office, which consolidates the data each month. The San Jose location uses a fully integrated ERP system consisting of manufacturing, distribution, and financial management applications. This system is specifically tailored to plastic processors and process and assembly manufacturers. The license for this software package does not include the source code. The Pontiac location uses a vendordeveloped software application as the basis for their finance and accounting system. This application runs on two DEC Alpha computers and VAX4000 work stations. The software is programmed in C on the VMS operating system. The vendor for this system is no longer in business, but Riordan has obtained the application’s source code. Business Systems 14 Albany also uses a vendordeveloped application, though not the same vendor as Pontiac. This system runs on a pair of AS/400s, is programmed in RPG400 on the UNIX operating system, and uses standard PCs running Microsoft Windows. This license also includes the source code. Riordan obtained the Pontiac and Albany locations through acquisitions in 1992 and 1993 respectively. At the time of the acquisitions, due diligence was performed, where detailed examinations of each location’s operations and management took place (BNET Business Dictionary, 2009). However, this process failed to discover the incompatibilities that exist among the finance and accounting systems of each location. As a result, the monthly consolidation process is an arduous task. Some data files can be imported into the corporate system, while others must be converted to the proper account codes first. Other data files are completely incompatible and must be entered manually from hardcopy. Additional difficulties exist with the finance and accounting systems. Consolidating the general ledger, the income statement, and the balance sheet is time consuming, generally taking 15 to 20 days to complete. Additionally, external audits are required each month, requiring additional cost and resources. Finally, the disorganized situation with the accounting systems makes compliance with federal regulations such as the SarbanesOxley Act difficult. Suggested Upgrades and Practices The primary area of concern with Riordan’s finance and accounting system is the Business Systems 14 incompatibility between the three locations. Implementing an ERP that is able to integrate San Jose, Pontiac, and Albany into one system should be at the top of Finance and Accounting’s list of priorities. For manufacturers with complex operations and operating multiple facilities, a properly managed ERP can be their lifeblood (Keeping your eye on the ball, 2009). Fully integrated ERP systems include not only finance and accounting modules, but also may include human resources and operations functions as well. Additionally, many software packages are designed to work over the internet, making them exceptionally easy to use. While the initial cost of many of these systems can be quite high, and implementation can be time consuming and training intensive, the benefits of streamlining operations are worth the effort (Moore, 2008). An additional consideration for Riordan would be for the inclusion of a Certified Public Accountant (CPA) on the IT staff. Since, virtually all the company’s financial data is stored and processed through the use of technology; IT and accounting are critically linked. Organizations are increasing reliant on information systems for their accounting data and financial reporting. For this reason, having IT professionals who are also CPAs will help a corporation to make the most of what technology can do for finance. In addition, a CPA/IT professional can better assist in assuring that the finance and accounting systems are SarbanesOxley compliant (Bourke, 2008). Conclusion Riordan Manufacturing has potential room for advancement with adoption of our Business Systems 14 suggested upgrades and practices that will allow for a stronger business process. With new systems being implemented, customer service for all departments will be more reliable due to the extra tasks that the upgrades may handle to ensure a more smooth business system. Each department was analyzed with Riordan’s business goals in mind as current systems are presented followed by suggestions for department upgrades to give a competitive advantage in today’s market. Business Systems 14 References Apollo Group, (2004). Administration. Retrieved May 22, 2009, from Riordan Manufacturing web site: https://ecampus.phoenix.edu/secure/aapd/cist/vop/Business/Riordan/Internet/Ind exPort.htm Bourke, J. (2008, August). Showcasing and Leveraging IT Expertise. Practical Accountant, pp. 40,40. Retrieved May 27, 2009, from Business Source Complete database. Emigh, J. (1999, August 23). VendorManaged Inventory. Computerworld, 33(34), 52. Retrieved May 19, 2009, from MasterFILE Premier database. Decentralization. (2009). In BNET business dictionary. Retrieved May 16, 2009, from http://dictionary.bnet.com/definition/Decentralization.html?tag=col1;rbDictionary Due diligence. (2009). In BNET business dictionary. Retrieved May 16, 2009, from http://dictionary.bnet.com/definition/due+diligence.html?tag=content;col1 Keeping your eye on the ball. (2009, February). DEMM: Engineering & Manufacturing, Retrieved May 27, 2009, from Business Source Complete database. Moore, D. (2008, December 22). Right software streamlines operations, management. Construction, 75(24), 1818. Retrieved May 27, 2009, from Business Source Complete database. Nachiappan, R., Anatharaman, N., & Muthukumar, N. (2009, May). Integrated Approach Business Systems 14 to Total Productive Lean Six Sigma (TPLSS) Implementation in a Manufacturing Industry. ICFAI Journal of Operations Management, 8(2), 1435. Retrieved May 12, 2009, from Business Source Complete database. Neal, K. (2008, November). Driving Better Business Performance with DOCUMENT MANAGEMENT PROCESSES. Information Management Journal, 42(6), 4850. Retrieved May 28, 2009, from MasterFILE Premier database TrakIt Solutions, (19882009). Your choice is simple. !trakit hr. Retrieved May 8, 2009, from TrakIt Solutions Web site: http://www.hrissoftware.net/index.html Triplett, T. (2009, April). ERP Software’s Flipside: Helping Users Downsize. Metal Center News, 49(4), 2437. Retrieved May 19, 2009, from Business Source Complete database.
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