BSA/500 IT Business Systems I
August xx, 2013
Riordan Manufacturing was founded in 1991 by Dr. Michael Riordan, a professor of chemistry. After sensing the commercial application of several of his patented Polymer processes, Dr. Riordan started Riordan Plastics, Inc., which initially focused on research and development. In 1992, Dr. Riordan acquired venture capital and purchased a manufacturing facility. Riordan Manufacturing Inc. has since grown into a global organization that specializes in the manufacturing of molded plastic products. With revenues in excess of $1 billion, Riordan employs 550 people and has projected annual earnings of $46 million. The organization operates three separate manufacturing facilities in Albany GA, Pontiac MI, and a joint venture in Hangzhou, China providing products to the Department of Defense, automotive parts manufacturers, beverage makers, bottlers, appliance manufacturers, and aircraft manufacturers (Apollo Group Inc. 2013). Although the company’s headquarters is in San Jose, California.
Riordan Manufacturing’s Account Models
Riordan Manufacturing accounting modules consist of the following components: 1.
Sales and Purchasing History
Invoicing and Shipping
EDI* (Electronic Data Interchange)
Bar Code Reading*
EDSS (Executive Decision Support System)
*San Jose Only
(Apollo Group Inc. 2013).
The accounting systems used by Riordan are different at each of the company’s facilities. The San Jose facility uses an Enterprise Resource Planning (ERP) integrated system for manufacturing, distribution and financial management specifically engineered for plastic and plastic parts manufacturing (Apollo Group Inc. 2013). The software is Windows integrated. ERP is a well-known system and many successful organizations use ERP solutions. Riordan could benefit by deploying ERP software across the enterprise.
The Michigan facility uses a vendor developed software application. Software vendors support software through lifecycle management and stop supporting software and applications as new products are developed and released. The vendor who provided Riordan’s software went out of business, and support is nonexistent. The system is a VMS Operating system with VAX4000 workstations. Finding another vendor to support the systems would be difficult, if not impossible.
The Georgia site has also purchased a vendor developed software and application. This server is running a UNIX operating system with Windows client workstations. With this disparity between facilities, the accounting systems are not running as smooth as Riordan desires. Riordan would like to have a seamless environment for the accounting system users. Hardcopies and conversion-intensive data files are used to transfer data between sites. If a hardcopy of data is provided, the employee at the receiving site often must re-enter the data into his or her system. Many accounting functions are taking considerably longer to complete than they should. The audits are expensive and time-consuming to run. Remaining compliant with new government required reporting is difficult. This situation is unacceptable to the organization and a better solution is required immediately.
Riordan Manufacturing’s inventory is crucial to its manufacturing processes...
References: Apollo Group, Inc. (2013) Riordan Manufacturing. Finance &Accounting - Overview. Retrieved BSA/500 – Business Systems I Course Website.
Apollo Group, Inc. (2013) Riordan Manufacturing. History. Retrieved BSA/500 – Business Systems I Course Website.
Business Expertise Consulting. (2013) (Web Image). Implementation of Enterprise Resource Planning. Retrieved on July 22, 2013 from http://bizxc.com/system/implementation-of-enterprise-resource-planning/
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