CIS 319 Week 2 Riordan Manufacturing Service Request Process Evaluation
CIS 319 Week 2 Riordan Manufacturing Service Request Process Evaluation
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Date Created: 11/13/15
Riordan Manufacturing 1 Running Head: RIORDAN MANUFACTURING SERVICE REQUEST PROCESS EVALUATION Riordan Manufacturing Service Request Process Evaluation Team Member Names Here University of Phoenix Riordan Manufacturing 2 Riordan Manufacturing Service Request Process Evaluation Like any modern business, Riordan Manufacturing acknowledges the necessity of innovation. While the competition has computerized procedures, Riordan persists in manually processing invoices and records. The potential for this manufacturing giant demands they wait no longer and the journey of improvement must begin. Executive Summary Riordan Manufacturing is a global plastics manufacturer with facilities located in California, Michigan, Georgia, and China. Products that are manufactured at Riordan include plastic beverage containers, custom plastic parts, and plastic fan parts. The major customers for Riordan Manufacturing include automotive parts manufacturers, aircraft manufacturers, the Department of Defense, beverage makers and bottlers, and appliance manufacturers (Riordan Manufacturing, 2006). Riordan Manufacturing is a Fortune 1000 enterprise with revenues in excess of $1 billion. Research and development at Riordan Manufacturing will remain the industry leader in identifying industry trends. The mission statement for Riordan Manufacturing states that Six Sigma and the exceeding ISO 9000 standards define the attitude and abilities of Riordan Manufacturing. Six Sigma is a measure of the number of defects in a specific process or operation. With Six Sigma, no worries remain regarding defective parts, which often preoccupy a manufacturing company. The defect opportunity has three important variables that to keep in mind. The first defect opportunity variable to consider is the amount of different defects that occur on an assembled part. The second defect opportunity variable to take into account is the Riordan Manufacturing 3 number of places on that part where the defects can occur. The last defect opportunity variable to bear in mind is that every production step could cause one or more of the defects on the part. Riordan Manufacturing wants to improve its inventory and manufacturing processes. By improving the inventory and manufacturing processes, the company will reduce the expense of using paper and become a much greener company. By turning the company into a computer based information system, it will cut down on the time of having to mark on paper for inventory and manufacturing. The supervisors along with the manufacturing team will only have to type in the number of subassemblies and final products completed for that day. Business Summary At Riordan, keeping up with inventory and allowing the company to evolve into a greener more environmentally safe company is an ongoing process. This sensitivity to the world will allow manufacturing tools to become more efficient while continuing to produce a product that provides consumers with a clearer conscience regarding their purchases. The Riordan Manufacturing Corporation has a very strong company mission statement. The mission statement includes focus, customer relationships, the employees, and future goals. Without having this mission statement, the company would not have a solid ground to build upon to make the company a stronger business. However, a number of key operational areas at Riordan Manufacturing need improving if the company wishes to keep pace with the double digit sales forecasts for a new fiscal year. The current inventory management procedures for Riordan Manufacturing consist of the following: raw materials receiving, manufacturing with inventory and final product shipping. Riordan Manufacturing 4 Raw Materials Process Flow Source: Riordan Manufacturing. (2008). http://www.ecampus.phoenix.edu/secure/aapd/cist/vop/Business/Riordan/Ops/Riordan%20Inventory %20Management.pdf Riordan Manufacturing 5 Manufacturing with Inventory Process Flow Source: Riordan Manufacturing. (2008). http://www.ecampus.phoenix.edu/secure/aapd/cist/vop/Business/Riordan/Ops/Riordan%20Inventory %20Management.pdf Riordan Manufacturing 6 Final Product Shipping Process Flow Source: Riordan Manufacturing. (2008). http://www.ecampus.phoenix.edu/secure/aapd/cist/vop/Business/Riordan/Ops/Riordan%20Inventory Riordan Manufacturing 7 %20Management.pdf Riordan Manufacturing 8 The recommendations for improvement fall into three 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. One of the biggest improvements that would assist the manufacturing, delivery, and shipping systems are changes to the inventory management system. For instance, upgrading the inventory management system to a less manual system and a more automated system using barcode technology. Barcodes or Universal Product Codes (UPC) would be placed on each product built and every raw material received by Riordan. Inventory products are scanned during the removal of inventory. In addition, inventory products are scanned when placed on transit and upon arrival and departure at any Riordan facility. This procedure is established 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 from our customers. The system will have reorder quantities established and will autoreorder when inventory levels get low. This will help automate the ordering of the raw materials critical to the manufacture of Riordan products. In order for Riordan Manufacturing to use the barcode system, the company will have to submit an application to the Uniform Code Council (UCC) to obtain authorization to be in the UPC system (Brain, 2009). The budget committee will need to make necessary arrangements for Riordan Manufacturing 9 an annual membership fee. The UCC will issue out UPC numbers upon approval (Brain, 2009). Inventory specialists at Riordan must send a list of products with the application and applicable fees. Once confirmation of acceptance has been successful, various department heads will come together to establish a final method of handling the UPC codes according to the UCC governing guidelines. It will be necessary to establish a team of inventory specialists known as UPC coordinators. This job specifically is to keep track of all these numbers and to establish a running tally of inventory during a given period as to keep both numbers and products together and in place. A network of computers specifically designed to make the process for the UPC coordinators more efficient will save the company money. One thing to consider regarding a universal coding method is the need to take certain security steps to prevent miscalculations in summarizing the amount of product stored at Riordan warehouses. For instance, placing a separate network of tracking within the overall system creates a more structured basis of where a supply is located on the premises. Furthermore, the company and its 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 on back order, in the manufacturing process, in stock, or in transit. The customer would be able to place orders directly through this system. The ordering system interfaces with the sales, inventory, and finance systems and allows for a more effective and efficient way to take orders. Riordan’s system also links into transportation providers' websites, allowing customers to track their shipments easily using the tracking numbers given to them with each shipment. Riordan Manufacturing 10 Creating visibility from a purchase and sales interface into the inventory system will greatly reduce the possibility of error in the manual sales process currently employed. The products that are in stock and available at any Riordan location will show as available for distribution and relocation to any other Riordan location. Using this new system, customers could also create automatic reorder levels by date to replenish their stock automatically. This system allows every customer to use the same format and eliminate costly 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, efforts duplicate and, at times, fall short of Riordan’s commitment to 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 check the status of their orders through a passwordprotected website. Further, this database will track any communication between the Riordan employee and the client. This will help avoid duplicate communication between Riordan and its customers, showing an organized, unified, and professional face to the customer. The proposed systems will provide Riordan with the opportunity to increase profits and market share by generating a larger consumer base. The consolidation and reorganization of the information systems will permit Riordan Manufacturing to increase the bottom line while decreasing operating expenses. Each of the proposed changes will not only benefit the employees and shareholders but clients as well. The changes will create and maintain the longterm relationships that Riordan Manufacturing has valued in the past and will continue to build. Riordan Manufacturing has tremendous potential to expand their manufacturing and Riordan Manufacturing 11 inventory processes to a barcode system. If they choose to move forward with these suggestions, however, is another matter entirely. Forwarding this proposal on to financial consultants should only underline the necessity of innovation. The time for change has come to Riordan. Riordan Manufacturing 12 References Brain, M. (2009). How UPC Bar Codes Work: the introduction to how UPC bar codes work. Retrieved on July 7, 2010 from http://www.howstuffworks.com/upc.htm. Riordan Manufacturing. (2008). Inventory and Management Control at Riordan Manufacturing. Retrieved July 8, 2010 from Riordan Manufacturing: https://ecampus.phoenix.edu/secure/aapd/cist/vop/Business/Riordan/Ops/Riordan %20Inventory%20Management.pdf Riordan Manufacturing. (2006). Riordan Manufacturing History. Retrieved July 1, 2010 from http://ecampus.phoenix.edu/secure/aapd/cist/vop/Business/Riordan/RioMfgHome002.ht m
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