Riordan Manufacturing Service Request: SR-rm-003

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

Michael Davis
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Riordan Manufacturing Service Request: SR-rm-0031Riordan Manufacturing Service Request: SR-rm-003Learning TeamHow will the implementation of the ERP system at Riordan Manufacturing support theachievement of the project's objectives, and what measurable impacts are expected in terms ofcostreduction, cycle time, and operational efficiency? Discuss the alignment of the project goalswith 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-0032ContentsStatement of Scope and Goals....................................................................................3Supporting Measures for Success................................................................................5Summary of Project Feasibility....................................................................................7Proposed Systems Requirements List..........................................................................9Determination of Requirements................................................................................10List of Confirmed Requirements................................................................................11Proposed Logical System View..................................................................................14Functional Allocation Modeling................................................................................14Proposed System Process View.................................................................................16Design Model...........................................................................................................17Design Trade-Off Approach......................................................................................17Detailed Design Process............................................................................................18Design Specification.................................................................................................19Test Process Summary..............................................................................................21Installation Process Summary...................................................................................22Training Plan Summary............................................................................................23Documentation Plan Summary.................................................................................25Support Plan Summary.............................................................................................26References...............................................................................................................29

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Riordan Manufacturing Service Request: SR-rm-0033Statement of Scope and GoalsProject GoalsThe goal of this effort is the development and implementation of a fully integrated ERPsystem for Riordan Manufacturing to support its strategic goals listed within the projectobjectives.Project ObjectivesWithin the overall goal the following objectives have been identified and listed below(Table 1:ProjectObjectives).Table1: Project ObjectivesTracking#DescriptionO1Deliver user friendly tools which enable the organization to integrate ERP and MRP systems acrossthe entire global enterprise.O2Obtain a 99% on-time delivery of electric fans from local Chinese suppliers and reduce safety stockrequirements on polymer materials.O3Oversee high level deliverables from implementation of ERP and MRP across all plants.O4Develop Just-In-Time (JIT) process for components required for the custom plastic fabrication.O5Develop 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.O6Lower Information Technology Costs by 10%O7Reduce Cycle-Time by 15%

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Riordan Manufacturing Service Request: SR-rm-0034Project ScopeThe scope of this project includes the integration of existingbusiness process into aseamless ERP system used to track and manage the raw materials, vendor supplied materials,finished product inventory levels, and delivery metrics across Riordan Manufacturing’s entireglobal enterprise. The business processes included within the scope are identified below (Table2: Project Scope Statements).Table2: Project Scope StatementsTracking#Scope StatementsS1Integration of the Raw Materials Receiving Processesincluding data collection, data transmission,data storage, and data retrieval.S2Integration of the Inventory Management and Control Processes including data collection, datatransmission, data storage, and data retrieval.S3Integration of the Fine Product Shipping Processincluding data collection, data transmission, datastorage, and data retrieval.S4Integration of the Customer Shipping and Billing Process including data collection, datatransmission, data storage, and data retrieval.

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Riordan Manufacturing Service Request: SR-rm-0035Supporting Measures for SuccessPrimary Measure for SuccessThe primary measure of success for the ERP initiative is a realized reduction in costs by10% and a reduction in cycle time by 15%. The current period of performance realization iswithin the first annual period after implementation.Corporate Officer Goal AlignmentIn addition to the overall measures of success linked to the ERP initiative goal alignmenthas been identified for the CIO’s role, each Vice President’s role, and each Director’s role asidentified in the following table (Table 3: Goal Alignment).Table3: Goal AlignmentRoleNameGoalChief Information OfficerMaria TrinhDeliveruserfriendly tools whichenable the organization to integrateERP and MRP systems across theentire global enterprise.VP International OperationsCharles WilliamsonObtain a 99% on-time delivery ofelectric fans from local Chinesesuppliers and reduce safety stockrequirements on polymer materials.VP OperationsMark NeitzelOversee high level deliverablesfrom implementation of ERP andMRP across all plants.Director Plant Operations(Pontiac, MI)Ronald NelisDevelop Just-In-Time (JIT) processforcomponents required for thecustom plastic fabrication.Director Plant Operations(Albany, GA)Craig GranbeigDevelop and implement a plan tomeeting customer required duedates in the North and North-Eastern parts of the United Stateswhen winter conditions set it.

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Riordan Manufacturing Service Request: SR-rm-0036Additional Measures of successThemeasuresof success for each of these goals will vary based on point of measurementas well as period of measurement. The following table (Table 4: Measures of Success) willoutline the measure of success for each of the identified goals.Table4: Measures of SuccessTraceableObjectiveGoalMeasure of SuccessO1Deliveruserfriendly tools whichenable the organization to integrateERP and MRP systems across theentire global enterprise.Themeasureof success for this goal will be measuredagainstjust the local Chinese market. This measure willonly be considered a success if 99% of electric fans arereceived on time from the supplier.In addition to the 99% on time delivery there mustalsobe a reduction in the amount of safety stock of polymermaterials. The reduction will be measured quarter overquarter and there has to be a reduction in each quarter.O2Obtain a 99% on-time delivery ofelectric fans from local Chinesesuppliers and reduce safety stockrequirements on polymer materials.The measure of success for this goal will be measuredagainst just the localChinese market. This measure willonly be considered a success if 99% of electric fans arereceived on time from the supplier.In addition to the 99% on time delivery there must alsobe a reduction in the amount of safety stock of polymermaterials. The reduction will be measured quarter overquarter and there has to be a reduction in each quarter.O3Oversee high level deliverables fromimplementation of ERP and MRPacross all plants.This goal will be measured based on the detailed projectplan. Each phase of the project plan will include a sign-off. The successful sign-off of each phase will constitutea success for this goal. In addition to the individualphases, this goal will bemeasured at the end of the post-implementation period. This goal will only beconsidered successful if all of the plants haveimplemented and are using the ERP solution.O4Develop Just-In-Time (JIT) processfor components required for thecustom plastic fabrication.The measure of success for this goal will be based on thesuccessful implementation of the Just-In-Time (JIT)process within the ERP solution. This goal will bemeasured during the post-implementation period.O5Develop and implement a plan tomeeting customer required due datesin the North and North-Eastern partsof the United States when winterconditions set it.The measure of success for this goal will be measuredduring the 4th and 1st quarter of the post-implementationperiod. This goal will only apply to the North and North-Eastern US locations as designated by the US postal zipcode mapping. This goal will be considered successfulonly is 100% of the customer requests are processed bythe due dates for both the 4th and 1st quarter.

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Riordan Manufacturing Service Request: SR-rm-0037Summary of Project FeasibilityBackgroundRiordan Manufacturing is currently maintaining four separate ERP systems with eachfacility locally maintain their own system.The operational headquarters and research and development group located in San JoseCalifornia currently has an ERP/MRP serverrunning a licensed Windows based ERP softwareapplication specifically designed for the plastics industry.The Joint Venture Plastic Fan Plant located in Hangzhou China currently maintainssimilar server hardware for its ERP/MRP server however the ERP application has not yet beenidentified.The Plastics Beverage Container Plant located in Albany Georgia is currently running avendor developed software application for their Finance & Account and manufacturingprocesses. The source code, developed in RPG400, was also purchased for the Georgia systemand was developed to run on the UNIX operating system.The Custom Plastics Parts Plant located in Pontiac Michigan is operating a vendordeveloped Finance & Accounting and process application, the vendor for this application is nolonger in business. The source code for this application was developed in C andis running ontheVMS operating system.Operational FeasibilityRiordan Manufacturing’s current ERP systems are having problems integrating as they todo not communicate well lacking a structured interface. As an example Finance and Accountapplications have varying data inputs from facility to facility requiring manual re-entry.

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Riordan Manufacturing Service Request: SR-rm-0038The proposed system shall incorporate all Riordan Manufacturing’s ERP into aseamlesssystem. The benefits of a seamless ERP system and standardized data entry will eliminate thelabor intensive need to re-enter data from multiple sources. The data shall also be stored incentralized locations accessible by all four facilities forindividual ERP needs.The seamless integration of ERP systems and reduction of manual data entry will likelyresult in dramatic data accuracy increases of up to 90%. These accuracy improvements will be aresult of standardized data entry rules and reduction of data silos into acentralized system. Thiscentralized system will also create an easily queried database of reliable information.Technical FeasibilityRiordan Manufacturing’s current IT infrastructure can currently support to seamlesslyintegrate corporate wide process data. Although many ERP software components currently existat each of the facilities compatibilities between systems may be difficult.Current ERP systemcomponents shall remain in place if integration is possible. The fully integrates ERP systemspecifically designed for the plastics industry has been identified as a feasible platform for fullsystem integration. Further research into thesystem is underway including the identification ofrisks associated with not owning the source code.Economic FeasibilityThe economic feasibility of integrating ERP systems is developed from cost savings ininformation processing, documentation, and data entry labor costs. The cost savings ininformation processing is target at 15% system wide by reducing unnecessary documents andprocessing by 50% to 90%.
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