Riordan Business Systems
August 12, 2012
Riordan Manufacturing’s (Riordan) Chief Executive Officer has requested a review of all Riordan’s business systems issued on Service Request SR-rm-012 (University of Phoenix, 2013). The comprehensive review will provide management the information needed to determine any improvements to Riordan’s business systems. First, the review will assess Riordan’s existing business systems by department while noting any interrelationships between departments. The review will also provide any business system suggestions that will increase productivity in each department. The Accounting & Finance and Operation department’s two primary alternatives are consolidating the Enterprise Resource Planning (ERP) at San Jose and the Enterprise Application Integration (EAI). Other improvements are implementing Vendor Management Inventory (VMI), adding access control to the intranet, implementing both Customer Relationship and Management systems, and workstation upgrade at the Pontiac plant. Departments reviewed are Accounting & Finance, Human Resources, Legal, Sales & Marketing, and Operations. Accounting & Finance
The accounting systems at Riordan’s 3 plants and headquarters operate completely independent of each other. Monthly accounting records from the 3 plants are all consolidated to the headquarters’ accounting system at San Jose by uploading files and manual entry. Because of amount of time required to update the San Jose accounting system, Riordan’s monthly accounting reports are not available until just before the next month. Also, audits of the accounting information require many man-hours to conduct. Riordan management is not pleased with the current accounting system situation and would like recommendations on a solution to the problem. The San Jose location has a fully licensed SAP® ERP system which was specifically designed for the plastic manufacturing industry. The Pontiac, MI plant purchased a custom ERP system; however, the company that created the system is no longer in business. The Albany, GA plant also purchased an ERP system which is currently contractor supported. The Hangzhou, China plant has a licensed SAP® ERP system same as San Jose. Based on the current system infrastructure, two of the most economical options for Riordan are either switch all accounting and production users to the same SAP® ERP system at San Jose or implement an EAI system. The Single ERP alternative consolidates all of Riordan’s ERP databases to the San Jose ERP servers. The first step in the consolidation process is to migrate the China plant database to San Jose. Because both locations use a SAP ERP system, the process should be straight forward. Next, both the Albany and Pontiac plants will need new Windows workstations. At first only a few of these systems will be needed for training the users at both plants on ERP. Once initial training is completed, all the old workstations will be replaced. During the training period, the ERP database will be compared to the SAP ERP database at San Jose to develop a data migration plan. Once training is complete, the Pontiac and Albany ERP’s transactions will be incorporated to the San Jose ERP database based on the migration plans for each plant. The benefits of the same enterprise wide ERP systems is information from each plant no longer need to be interpreted and recorded into the San Jose ER system either by software or manual entry. The accounting employees will see significant reduction in man-hours required for generating monthly and audit accounting reports. Switching to a single ERP system will need signification funding to support new licenses, equipment, and training. Consolidating the database to San Jose, plants will be required to maintain continuous communication with San Jose. Loss in communication may result in work stoppage. The EAI approach...
References: Murray, M. (n.d.). Vendor Managed Inventory (VMI). Retrieved from http://logistics.about.com/od/forsmallbusinesses/a/VMI.htm
Optimize freight and shipping operations with transportation management solutions from SAP. (n.d.). Retrieved from http://www54.sap.com/solution/lob/scm/software/transportation-management-overview/index.html
University of Phoenix. (2013). Riordan Manufacturing cirtual organization [Multimedia]. Retrieved from University of Phoenix, BSA/310 Business Systems website
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