BSA 400 Riordan: Development of an ERP System Final Report

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Riordan: Development of an ERP SystemFinal ReportBSA 400Riordan Manufacturing is considering the implementation of an ERP system to improveinventory management and optimize its production processes. Based on the provided case study,explain how the ERP system will address key challenges in inventory control, materialprocurement, and overall operational efficiency. Discuss the anticipated benefits, cost savings,and improvements in accuracy and supply chain management. Your response should be between600-800 words."

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Enterprise Resource Planning SystemStatement of Scope and GoalsRiordan Manufacturing, a fortune 1000 organization was established by Dr. Riordan, a lecturerof chemistry, having a number of patents related to processing polymers into higher tensilestrength plastic material substrates. Realizing the industrial uses for his patents, Dr. Riordanestablished Riordan Plastics, Inc. during 1991. The organization has their company office in SanJose, CA having 125 workers, a plastic beverage bottle factory in Albany, GA having 45workers, a customized plastic parts factory in Pontiac, MI having 130 workers,anda plastic fanfactory in China having 250 workers. All those offices and or factories place their info on avariety of computer systems. Riordan Manufacturing presently has a legacy MRP InformationSystem set up. The assessment will offer info for the organization in order to update its system.The update of the system willtake into consideration the following:CostConstraintsRisk

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BenefitsRiordan Manufacturing would wish to have an assessment for the development of an ERPsystem to monitorandcontrol raw materials and a finished product stock throughout allfactories.Depending on the assessment, Riordan will increase their production by using a latestERP both for the clientsandthe organization. Riordan will perform the following:Updatetheir system tomonitor stockcorrectlyandcontrolraw materials and finishedproducts.Decreasestockcost of raw materials and finishedproducts.Improve MRP infrastructure.Supporting Measures for SuccessThe execution of an ERP for Riordan Manufacturing will let a full understanding of the day today functions throughout all of its factories, and a reliable purchase and use of raw materials toassist optimize savings over the life cycle of its products.

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Being a leader in the industry in the plastic injection molding Riordan Manufacturing must be incharge of those areas in which purchasing raw materialsandmanufacturing of items seemsensible to its company procedure. The execution of an ERP will let Riordan Manufacturing tohave understanding of the industries for which it produces items and for that reason keep stock tofulfill the requirements of its customers.Just like all production industries Riordan Manufacturing is impacted by economical predictionof the industries that it acts, however this understanding alone doesn't offer adequateunderstanding to know exactly how internal sections react to economical changes.The effectiveexecution of ERP will produce palpable savings through purchase of materials to fulfill therequirement of the beverage, army, automobile,andhealthcare sectors, and the way theinformation gathered with each item orderis an easy procedureused over all of the sections.Presently Riordan Manufacturing holds an inventory worth 3,727,922.40 to fulfill orders for itsclientele nevertheless; this stock of parts requirements store real state, specific warehouseequipment,andtime for handlingandaudit across several computers systems over theorganization. But with the execution of an ERP system there will be an accountable purchase ofmaterials in line with the info supplied by demand and supply strategies which will consequentlyprovide adequate information to have a lower stock of raw materials and finished products, yetstill be a responsible partner mindful of the customers’ requirements

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Requirement AnalysisProject Feasibility StudyTeamB will show that it's technically feasibleandeconomically beneficial for Riordan toemploy the latest ERP System which meets the objectives which have been established for theorganization. Carrier expenses would be decreased by roughly 35% of present expenditures bythe usage of a far more integrated delivery method that may directandcombine deliveriesautomatically to enable them to be delivered to typical addresses in shared packaging. Whilemain carrier would off discounts when Riordan linked into their invoicing system, the ERPsystem would help this, which would be an additional cost savings of 15 %. Shortages ofsupplies from vendors are also expected to be decreasedandimproved by 5% in the beginningandincreasing to 20% during 2 years, because of the removal of hand written Purchase Ordersandthe automatic Cycle Count abilities and reviews. Improvements to stock precision are alsoexpected to be decreasedandimproved through similar numbers because normal cycle countsprogressively correct stock balances, and also the utilization of digital bar code methods andmarking to assist avoid wrong counting of piece parts.Proposed Systems Requirements

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Riordan Manufacturing’s uniformity of activitiesandquality control rely on methods that needassessment to better monitor and handle raw materials and stock of deliverable materials.Execution of an Enterprise Requirements Planning (ERP) system will have the consequence ofintegration of existing Information Systems to satisfy company needs at all of Riordan’sproduction sites. A high-level performance for the benefits of a advanced ERP system which willprovide improvement in Riordan company procedures are divided into 9 stages fulfilling thescope of the suggested ventureandexplain the range of activities to successfully develop theERP system. High-level overviews of the related project needs consist of (Motiwalla &Thompson, 2009, p. 63):Procurement:Purchasing is the procedure in which suppliers provide goods for operatingcompanies. This procedure will include supplier showing, quotes, assessment and lastly choice.Purchasing will likewise incorporate allotment of organization owned devices e.g. laptopcomputers to its workers. It will maintain check of organization propertyandcope with damages.Production:Output analyzes needs using Riordan company system evaluationandcurrent legacysystems. Output will additionally make certain smooth running of procedures in live atmosphere.Accounting: Pricing of software program, computer hardware, maintenance,andlabor hours.Distribution: shipping of essential software program, computer hardware,andstaff(implementers and contracted supplier support) to each of Riordans production plants.Customer Services:Customer support will be an integral part of Riordan ERP. An effectiveticketing service together with monitoring will be maintained in the ERP to make sure interactionwith Riordan administration regarding execution status, functionality and any shortfallsexperienced.

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Performance and Governance:Every quarter assessments of all workers will be completed tomake sure favorableandcompetitive working conditions.Human Resources:Human Resource will consist of methods which cope with every aspect of aworker. It includes hiring, training a worker, payroll, advantagesandfiring.An extensive ERP execution strategy will meet Riordan’s costs, scope,andtime limitations ofgoing operational through specific time-line goals. To achieve the development and eventuallyexecution of the ERP will need the high-level requirements mentioned above are completelyexploited to identify system performanceandfeasibility. These types of low level functions areacquired after making consumer tales which together achieve the higher level needs. Afterassessment of system performance is established current company procedures will be assessed tofind out customization and integration of Riordan’s legacy systems. The ERP will be a crucialpart of Riordan’s capability to monitor its raw materialsandstock of manufactured items. TheERP info system offers “automation to support Riordan’s this kind of company functions asaccounting, finance, advertising, customer support, human resource management,andoperations” (Motiwalla & Thompson, 2009, p.Determination of RequirementsTeam B hasgotthechancetofind outtherequirementsof theworkersof RiordanManufacturing. We have decided toachievethis by following people around, group interviews,andprototyping.Bycarrying outthese group interviewsandfollowing people around, Riordan’s

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stockdivisionispresentlymanually entering inventory. Riordan would benefit from anautomaticscanning systemwhichwill automatically upgradewhenan item isreadyforstockorsold.Dependingon the information wereceived, we decidedthat the accounting and financedivisionshouldmodifytheirexistingfinancial process. In order for Riordan to get thelargestbang for theirmoney, theyshouldbe sure toexecutethe system nationwide. This system willletthe following:TailoredreportsChargesPayment postingCollectionsPrototypeTeam B will be using prototyping tofind outtherequirementsof Riordan Manufacturing.Riordan Manufacturing has been successful so farhoweverit isnecessaryfor them toexecuteanERP system so they can take theircompanyto the nexthigherlevel andcontinuecompetitive intoday’s market.Riordanshouldknow where theirweak pointlies so we can improve them;herethe ERP system will come into play. Team B willsuggestthat Riordan Manufacturing useaprototype process, this willexamineall the information fromgroup interviews, and followingpeople around. This willlettocheckthe prototypes with the information andsatisfythe

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stakeholder’srequirements. “This model works best insituationswhere not all of the projectneeds are known in detail ahead of time. It is an iterative, trial-and-errorprocedurethat takesplace between the developersandthe users” ("Searchcio-Midmarket," 2007, para. 1).Confirmed RequirementsThis document shows the list of verified needs as a consequence of comments from the team’sdetermination of needs for ERP development. Each requirement is either compulsory or electiveusing info of present procedures. Additionally contained in the document is a reasonable view ofthe information movement external and internal to Riordan’s 4 sites. Discussion regarding thevariations of the present system data movement and also the suggested ERP system shows theadvantage of using the latest system.The analysis groups met up with each of Riordan’s project administrators to assess presentprocedures at the Albany, Pontiac, Hangzhou, and San Jose sites. Meetings included queries ofpresent system performance, versatility, dependability, ease of use, and supplier satisfaction.Assessment of the information from Riordan customers, practical proprietors, and informationsystems managers is the foundation for arranging and assessing Riordan’s companyrequirements. The present network facilities-quantity of servers, workstations, and presentsoftware program (operating system and programs) has been ideal for dealing with theproduction and delivery of Riordan’s raw materials. Comprehensive research into the company’sresources and capabilities is important for personalization of an ERP program to migrateRiordan’s present info.

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It's with confidence that the improvement or purchase of a good ERP system as a consequence ofthe determination of needs will make monitoring and maintaining raw materials for Riordan sitesmore effective.PurposeIntegration of present info existing on systems found in Albany, Pontiac, Hangzhou, and SanJose company head office having the improvement or purchase of an Enterprise ResourcePlanning system.ScopeA listing of verified needs depending on comments from Riordan functional administrators, inputfrom stake holders, GAP assessment of present system performanceandpossible ERPperformance, and overview of determination of needs outlined in the request for proposal andpreliminary evaluation.Riordan’s board of directors is accountable for the company’s operation according to staterequirements, Articles of Incorporation, and by-laws. Therefore the board offers the oversight ofquality control and controls the path of the venture with the investors’ best interests.Coordination with Riordan’s management will help the analysis and answer to make sure infoobtained is correct.

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Assessment of Riordan’s present network facilities with regards to combining an ERP system forbusiness wide use it was essential to classify needs taking into consideration appropriateness ofRiordan’s use, system characteristics, and advantages. Six factors in narrowing the determinationof needs right down to an appropriate listing are displayed in table 1.1Enterprise Resource Planning Requirements ConsiderationsItemDescriptionMandatory/OptionalFunctionalityERP characteristics meet therequirements of the clientObligatoryOn-site OptionsPresent software program offerschoices for SaaS through Webinterface.ElectiveConfigurationFlexible to personalization to satisfyparticular requirements of Riordan.ObligatoryImplementation StrategyAvailability of educated experts toapply data migration and assistancemaking certain congruency of allObligatory

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Riordan sites.Evaluation of ComponentsAssessment and coordination ofpresent systems for probable changes,e.g., computer hardware updates orsoftware program purchase.ObligatoryData MigrationMoving present info; Code change forunlike data formats.ObligatoryTable 1.1–ERP Requirements ConsiderationsMethodThe data utilized in compiling this document was accumulated by surveys which outlined thelisting of needs on a weighted scale of 1.00 to 5.00. Surveys were made readily available for 550workers; 400 from the 550 surveys were returned.

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