Riordan Manufacturing

Riordan Manufacturing

Running head: SERVICE REQUEST FOR RIORDAN MANUFACTURING

Service Request for Riordan Manufacturing

Doan Nguyen, Derek Henkelmann, Shannon Nix, AJ Ferguson

University of Phoenix

Computers & Information Processing

CIS/319

Jim Dearman

July 26, 2007

Service Request for Riordan Manufacturing

Riordan Manufacturing’s mission statement clearly outlines the company’s goal of efficiently supplying its products to the customer. The current inventory management system is adequate, but is not efficient enough to meet the goals of the mission statement. Mr. Hugh McCauley, COO of Riordan Manufacturing requested assistance in improving the inventory processes of the company. After thoroughly evaluating the current processes and determining areas needing improvement, many suggestions for improvement were discovered. These improvements to the inventory processes will significantly aid the company in meeting the goals of their mission statement.

The initial evaluation illustrated a number of flaws in the current inventory processes. Unfortunately, the number of failings in Riordan’s inventory process system was significant enough to create an inaccurate inventory throughout the company. The fundamental areas of the process needing improvement or change are:

1) Raw materials receiving.

2) Accurate access to the inventory data at all levels and at all sites.

3) A total company wide inventory control system/process.

Modifying these inefficiencies with the suggested improvements will ensure an accurate and up-to-date inventory control process.

In evaluating the current process Riordan utilizes for receiving raw materials, much efficiency was noted. Currently, the raw material arrives at the warehouse dock and is unloaded by the dock personnel. The dock supervisor gives the inventory control clerk the data regarding the quantity of material received. However, this action does not occur until the end of the day. The control clerk is then expected to enter the information into the inventory system, but this may not occur immediately. One to two days may pass before the inventory system is updated with the correct information regarding the delivery of the raw materials. This delay causes other departments within the company to operate without real knowledge of the amount of raw material available for their needs. This knowledge is essential to the manufacturing plant in order to produce assembled products. The addition and deletion of raw materials from the warehouse causes a serious problem for the inventory control personnel, as they are not able to advise manufacturing as to the material availability.

Another serious problem that exists at Riordan Manufacturing is the inability of all levels and sites to access accurate inventory information. Currently, there is no system in place that allows all departments to access the inventory system. All departments should be able to view the system to determine the quantity of material available. At this point all departments either estimate the amount of material available or proceed with the assumption that the usual quantity of material is present. No two-way communication exists between departments or sites as to the available raw material for manufacturing requirements. This makes forecasting and planning very difficult to develop. Manufacturing does not have the correct information regarding what quantity of raw materials will be available for them to use during normal day to meet sales demands. Sales staff cannot accurately advise a potential customer as to the expected delivery date of the product without the information from manufacturing. The shipping department is adversely impacted by the lack of information as they do not know when a completely order will reach the transfer dock. This lack of on demand information and the lack of two-way communication is an inadequate environment in which to develop a dynamic single point inventory control process.

The third flaw in the inventory system at Riordan Manufacturing is the lack of a total company wide inventory control system/process. All material in the warehouse should be entered into the system at the time of delivery. There is a critical need for all inventories to be located in one