An Mrp Solution for Riordan Manufacturing

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  • Topic: Inventory, Manufacturing resource planning, Material requirements planning
  • Pages : 17 (5023 words )
  • Download(s) : 95
  • Published : November 1, 2008
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An MRP Solution for Riordan Manufacturing

Table of Contents

Executive Summary ………………………………………………………………………..3 Scope ……………………………………………………………………………………….4 Project Feasibility ………………………………………………………………………….6 Current Operating State ……………………………………………………………………6 Requirements ………………………………………………………………………………10 Future Operating State ……………………………………………………………………..12 System Components ……………………………………………………………………….14 System Architecture ………………………………………………………………………..15 Cost Analysis ………………………………………………………………………………16 Maintenance and Support ………………………………………………………………….17 Assumptions and Constraints ………………………………………………………………19 Success Measures ………………………………………………………………………….23 Summary …………………………………………………………………………………..24 References …………………………………………………………………………………25

An MRP Solution for Riordan Manufacturing
Executive Summary
Riordan Manufacturing, an industry leader in the manufacturing of plastic injection molding, has hired our organization to analyze its current Materials Resource Planning (MRP) and Enterprise Resource Planning (ERP) systems in an attempt to reduce raw materials and finished goods inventory costs and to acquire a comprehensive plan that includes a complete requirements definition and a design and implementation proposal.

Riordan is seeking a solution to improve the tracking and management of its raw materials and finished product inventory across all its plants, located in San Jose, California; Albany, Georgia; Pontiac, Michigan; and Hangzhou, China. The four plants have a total of 550 employees. The company’s internal stakeholders are the receiving, shipping, and sales departments, inventory clerks, and technical staff. The external stakeholders are manufacturers, suppliers, and clients. Riordan strives to continue to be an industry leader in polymer materials manufacturing and distribution. The improvement of raw materials and manufacturing inventory management will help Riordan to achieve its goal of establishing long-term customer and business relationships by implementing rigorous quality controls and ensuring timely deliveries to clients. The company’s ultimate objective is to tighten inventory and reduce cycle times so that human capital is available for sustained growth. Our organization will design an MRP solution to support Riordan’s commitment to revamping its inventory management of raw materials and finished goods.

Scope
Currently, management of receiving inventory tasks and tracking of products throughout the manufacturing cycle are handled separately by each plant at Riordan Manufacturing. Therefore, the scope of the project is corporate-wide; all four data locations should be tightly meshed by the recommended solution. Riordan’s concrete aim is to reduce costs by 10% and cycle time by 15% through better inventory management. The solution provided should allow Riordan to abandon much of its labor intensive inventory, to cut down on shipping and ordering paperwork, and to eliminate many of its raw material procurement headaches. The company will be able to acquire raw materials more efficiently and to decrease delays in shipping if an up-to-date, company-wide MRP system is in place. Real time inventory management will save the company time and money and allow administrators to make timely strategic decisions. To satisfy those objectives, our organization will develop, install and integrate three MRP/ERP modules into the current Riordan infrastructure at its plants in the USA and China. The three modules, which comprise Raw Materials Receiving, Manufacturing with Inventory, and Final Product Shipping, will optimize the flow of information in Riordan’s mostly manual inventory processes. The solution must integrate with or replace the company’s present MRP systems and provide opportune updates to the centralized inventory database. MRP, according to SM Thacker and Associates, hinges on the principle of “[w]hat you need, minus what you have got, you...
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