Riordan Inventory or Manufacturing Processes Paper

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Riordan Inventory or Manufacturing Processes Paper

University of Phoenix

CIS 319 Computers and Information Processing


The success of any manufacturing company is dependent on its manufacturing system design. The system design concept has been the basic force in manufacturing advancement. Without manufacturing design, all manufacturing would be stuck in the “square wheel” era. The first system design was the invention of the forerunner of the modern factory nearly 200 years ago. New design concepts are continually improving and impacting the worlds manufacturing.

The Information Revolution is said to be a massive change in the way organizations conduct business. In this day and age when time and information means money, information technology is critical to a business’s success. In order for Riordan Manufacturing to become known as a leader of manufacturing and be able to provide added value to customers, it must evaluate the current business processes and discern how technology can correct operations in a cost effective way while at the same time focus on using the technology in the areas that would give immediate results.

By using the service request process, Riordan can evaluate these areas and make educated decisions in the correct areas. In the following paragraphs, Team D will explain Riordan’s business objectives, current business processes, project constraints, the business’s functional requirements, the new business processes, design requirements and cost benefit analysis.

Business Objectives

What are the business objectives of Riordan Manufacturing? To increase productivity by better tracking methods and of course; increase profits. How does one measure the success of such a project? By setting up databases with which to track sales, both with and without; the new bar code scanners recommended by Team B. We propose a three month (one fiscal quarter) period of business tracking. We feel that bar code scanners will greatly improve inventory control; both product ordering and product tracking; thereby speeding up the inventory reporting process and accurately collating information to determine cost of sales versus cost of supplies. By speeding up this process, we feel that the company will benefit both in saved time and money and increase the profit margin for Riordan Manufacturing.

Another valid point in this scenario would be, by removing the human element (manual errors) in the old inventory and spreadsheet system, Riordan will have more effective reporting measures with which to track inventory, ordering, employee time management per job; and storage cost. The IT department should establish two databases based on the following factors, with the capability of running side by side analysis and reports. One database should be based on three months of non-bar code scanner data. The second database will be based on the sane three months with bar code scanner information. By using the a 3 month time frame we are comparing a relatively stable period of manufacturing business, both before and after the holiday season, thus the figures should be accurate for a comparison. Information needed for accurate database comparison:

- Number of products ordered.

- Cost of each bar code scanner (average price $190.00 for the handheld scanner). (BarcodeDiscount, 2009).

- Time involved in ordering supplies to make product.

- Time (days) in which product was stored and time to delivery.

- Number of employees required to process orders; times average hourly salary ($13.75).

- Time taken between product being ordered and inventory adjusted accordingly.

It is the contention of Team B that by converting Riordan Manufacturing from the manual spreadsheet inventory system to the handheld bar code scanner system, the company should immediately see improved productivity and cost effectiveness in doing business....
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