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Riordan Manufacturing Service Request: SR-rm-003

Documents service request SR-rm-003 for operational improvements.

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    Riordan Manufacturing Service Request: SR - rm - 003 1 Riordan Manufacturing Service Request: SR - rm - 003 Learning Team How will the implementation of the ERP system at Riordan Manufacturing support the achievement of the project's objectives, and what measurable impacts are expected in terms of cost reduction, cycle time, and operational efficiency? Discuss the alignment of the project goals with the roles of key corporate officers, including the CIO, Vice Presidents, and Directors. (Word count: 800 - 1000 words)

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    Riordan Manufacturing Service Request: SR - rm - 003 2 Contents Statement of Scope and Goals ................................ ................................ .................... 3 Supporting Measures for Success ................................ ................................ ................ 5 Summary of Project Feasibility ................................ ................................ .................... 7 Proposed Systems Requirements List ................................ ................................ .......... 9 Determination of Requirements ................................ ................................ ................ 10 List of Confirmed Requirements ................................ ................................ ................ 11 Proposed Logical System View ................................ ................................ .................. 14 Functional Allocation Modeling ................................ ................................ ................ 14 Proposed System Process View ................................ ................................ ................. 16 Design Model ................................ ................................ ................................ ........... 17 Design Trade - Off Approach ................................ ................................ ...................... 17 Detailed Design Process ................................ ................................ ............................ 18 Design Specification ................................ ................................ ................................ . 19 Test Process Summary ................................ ................................ .............................. 21 Installation Process Summary ................................ ................................ ................... 22 Training Plan Summary ................................ ................................ ............................ 23 Documentation Plan Summary ................................ ................................ ................. 25 Support Plan Summary ................................ ................................ ............................. 26 References ................................ ................................ ................................ ............... 29

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    Riordan Manufacturing Service Request: SR - rm - 003 3 Statement of Scope and Goals Project Goals The goal of this effort is the development and implementation of a fully integrated ERP system for Riordan Manufacturing to support its strategic goals listed within the project objectives. Project Objectives Within the overall goal the following objectives have been identified and listed below (Table 1: Project Objectives). Table 1 : Project Objectives Tracking # Description O1 Deliver user friendly tools which enable the organization to integrate ERP and MRP systems across the entire global enterprise. O2 Obtain a 99% on - time delivery of electric fans from local Chinese suppliers and reduce safety stock requirements on polymer materials. O3 Oversee high level deliverables from implementation of ERP and MRP across all plants. O4 Develop Just - In - Time (JIT) process for components required for the custom plastic fabrication. O5 Develop and implement a plan to meeting customer required due dates in the North and North - Eastern parts of the United States when winter conditions set it. O6 Lower Information Technology Costs by 10% O7 Reduce Cycle - Time by 15%

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    Riordan Manufacturing Service Request: SR - rm - 003 4 Project Scope The scope of this project includes the integration of existing business process into a seamless ERP system used to track and manage the raw materials, vendor supplied materials, finished product inventory levels, and delivery metrics across Riordan Manufacturing’s entire global enterprise. The business processes inclu ded within the scope are identified below (Table 2: Project Scope Statements). Table 2 : Project Scope Stat e ments Tracking # Scope Statements S1 Integration of the Raw Materials Receiving Process es including data collection, data transmission, data storage, and data retrieval. S2 Integration of the Inventory Management and Control Processes including data collection, data transmission, data storage, and data retrieval. S3 Integration of the Fine Product Shipping Process including data collection, data transmission, data storage, and data retrieval. S4 Integration of the Customer Shipping and Billing Process including data collection, data transmission, data storage, and data retrieval.

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    Riordan Manufacturing Service Request: SR - rm - 003 5 Supporting Measures for Success Primary Measure for Success The primary measure of success for the ERP initiative is a realized reduction in costs by 10% and a reduction in cycle time by 15%. The current period of performance realization is within the first annual period after implementation. Corporate Officer Goal Alignment In addition to the overall measures of success linked to the ERP initiative goal alignment has been identified for the CIO ’s role, each Vice President’s role, and each Director’s role as identified in the following table ( Table 3 : Goal Alignment). Table 3 : Goal Alignment Role Name Goal Chief Information Officer Maria Trinh Deliver user friendly tools which enable the organization to integrate ERP and MRP systems across the entire global enterprise. VP International Operations Charles Williamson Obtain a 99% on - time delivery of electric fans from local Chinese suppliers and reduce safety stock requirements on polymer materials. VP Operations Mark Neitzel Oversee high level deliverables from implementation of ERP and MRP across all plants. Director Plant Operations (Pontiac, MI) Ronald Nelis Develop Just - In - Time (JIT) process for components required for the custom plastic fabrication. Director Plant Operations (Albany, GA) Craig Granbeig Develop and implement a plan to meeting customer required due dates in the North and North - Eastern parts of the United States when winter conditions set it.

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    Riordan Manufacturing Service Request: SR - rm - 003 6 Additional Measures of success The measures of success for each of these goals will vary based on point of measurement as well as period of measurement. The following tab le (Table 4 : Measures of Success) will outline the measure of success for each of the identified goals. Table 4 : Measures of Success Traceable Objective Goal Measure of Success O1 Deliver user friendly tools which enable the organization to integrate ERP and MRP systems across the entire global enterprise. • The measure of success for this goal will be measured against just the local Chinese market. This measure will only be considered a success if 99% of electric fans are received on time from the supplier. • In addition to the 99% on time delivery there must also be a reduction in the amount of safety stock of polymer materials. The reduction will be measured quarter over quarter and there has to be a reduction in each quarter. O2 Obtain a 99% on - time delivery of electric fans from local Chinese suppliers and reduce safety stock requirements on polymer materials. • The measure of success for this goal will be measured against just the local Chinese market. This measure will only be considered a success if 99% of electric fans are received on time from the supplier. • In addition to the 99% on time delivery there must also be a reduction in the amount of safety stock of polymer materials. The reduction will be measured quarter over quarter and there has to be a reduction in each quarter. O3 Oversee high level deliverables from implementation of ERP and MRP across all plants. • This goal will be measured based on the detailed project plan. Each phase of the project plan will include a sign - off. The successful sign - off of each phase will constitute a success for this goal. In addition to the individual phases, this goal will be measured at the end of the post - implementation period. This goal will only be considered successful if all of the plants have implemented and are using the ERP solution. O4 Develop Just - In - Time (JIT) process for components required for the custom plastic fabrication. • The measure of success for this goal will be based on the successfu l implementation of the Just - In - Time (JIT) process within the ERP solution. This goal will be measured during the post - implementation period. O5 Develop and implement a plan to meeting customer required due dates in the North and North - Eastern parts of the United States when winter conditions set it. • The measure of success for this goal will be measured during the 4th and 1st quarter of the post - implementation period. This goal will only apply to the North and North - Eastern US locations as designated by the US postal zip code mapping. This goal will b e considered successful only is 100% of the customer requests are processed by the due dates for both the 4th and 1st quarter.

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    Riordan Manufacturing Service Request: SR - rm - 003 7 Summary of Project Feasibility Background Riordan Manufacturing is currently maintaining four separate ERP systems with each facility locally maintain their own system. The operational headquarters and research and development group located in San Jose California currently has an ERP/MRP server running a licensed Windows based ERP software application specifically designed for the plastics industry. The Joint Venture Plastic Fan Plant located in Hangzhou China currently maintains similar server hardware for its ERP/MRP server however the ERP application has not yet been identified. The Plastics Beverage Container Plant located in Albany Georgia is currently running a vendor developed software application for their Finance & Account and manufacturing processes. The source code, developed in RPG400, was also purchased for the Georgia system and was developed to run on the UNIX operating system. The Custom Plastics Parts Plant located in Pontiac Michigan is operating a vendor developed Finance & Accounting and process application, the vendor for this application is no longer in business. The source code for this application was developed in C and is running on the VMS operating system. Operational Feasibility Riordan Manufacturing’s current ERP systems are having problems integrating as they to do not communicate well lacking a structured interface. As an example Finance and Account applications have varying data inputs from facility to facility requiring manua l re - entry.

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    Riordan Manufacturing Service Request: SR - rm - 003 8 The proposed system shall incorporate all Riordan Manufacturing’s ERP into a seamless system. The benefits of a seamless ERP system and standardized data entry will eliminate the labor intensive need to re - enter data from multiple sources. The data shall also be stored in centralized locations accessible by all four facilities for individual ERP needs. The seamless integration of ERP systems and reduction of manual data entry will likely result in dramatic data accuracy increases of up to 90%. These accuracy improvements will be a result of standardized data entry rules and reduction of data silos into a centralized system. This centralized system will also create an easily queried database of reliable information. Technical Feasibility Riordan Manufacturing’s current IT infrastructure can currently support to seamlessly integrate corporate wide process data. Although many ERP software components currently exist at each of the facilities compatibilities between systems may be difficult. Current ERP system components shall remain in place if integration is possible. The fully integrates ERP system specifically designed for the plastics industry has been identified as a feasible platform for full system integration. Further research into th e system is underway including the identification of risks associated with not owning the source code. Economic Feasibility The economic feasibility of integrating ERP systems is developed from cost savings in information processing, documentation, and data entry labor costs. The cost savings in information processing is target at 15% system wide by reducing unnecessary documen ts and proc essing by 50% to 90%.

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