BSA 400 Riordan: Development of an ERP System Final Report

Name: BSA 400 Riordan: Development of an ERP System Final Report
Brand: DeVry University
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Author: Eva Reed

Final report on the ERP system development for Riordan Manufacturing.

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Riordan: Development of an ERP System Final Report
BSA 400
Riordan Manufacturing is considering the implementation of an ERP system to improve
inventory management and optimize its production processes. Based on the provided case study,
explain how the ERP system will address key challenges in inventory control, material
procurement, and overall operational efficiency. Discuss the anticipated benefits, cost savings,
and improvements in accuracy and supply chain management. Your response should be between
600-800 words."

Enterprise Resource Planning System
Statement of Scope and Goals
Riordan Manufacturing, a fortune 1000 organization was established by Dr. Riordan, a lecturer
of chemistry, having a number of patents related to processing polymers into higher tensile
strength plastic material substrates. Realizing the industrial uses for his patents, Dr. Riordan
established Riordan Plastics, Inc. during 1991. The organization has their company office in San
Jose, CA having 125 workers, a plastic beverage bottle factory in Albany, GA having 45
workers, a customized plastic parts factory in Pontiac, MI having 130 workers, and a plastic fan
factory in China having 250 workers. All those offices and or factories place their info on a
variety of computer systems. Riordan Manufacturing presently has a legacy MRP Information
System set up. The assessment will offer info for the organization in order to update its system.
The update of the system will take into consideration the following:
Cost
Constraints
Risk

Benefits
Riordan Manufacturing would wish to have an assessment for the development of an ERP
system to monitor and control raw materials and a finished product stock throughout all
factories. Depending on the assessment, Riordan will increase their production by using a latest
ERP both for the clients and the organization. Riordan will perform the following:
Update their system to monitor stock correctly and control raw materials and finished
products.
Decrease stock cost of raw materials and finished products.
Improve MRP infrastructure.
Supporting Measures for Success
The execution of an ERP for Riordan Manufacturing will let a full understanding of the day to
day functions throughout all of its factories, and a reliable purchase and use of raw materials to
assist optimize savings over the life cycle of its products.

Being a leader in the industry in the plastic injection molding Riordan Manufacturing must be in
charge of those areas in which purchasing raw materials and manufacturing of items seem
sensible to its company procedure. The execution of an ERP will let Riordan Manufacturing to
have understanding of the industries for which it produces items and for that reason keep stock to
fulfill the requirements of its customers.
Just like all production industries Riordan Manufacturing is impacted by economical prediction
of the industries that it acts, however this understanding alone doesn't offer adequate
understanding to know exactly how internal sections react to economical changes. The effective
execution of ERP will produce palpable savings through purchase of materials to fulfill the
requirement of the beverage, army, automobile, and healthcare sectors, and the way the
information gathered with each item order is an easy procedure used over all of the sections.
Presently Riordan Manufacturing holds an inventory worth 3,727,922.40 to fulfill orders for its
clientele nevertheless; this stock of parts requirements store real state, specific warehouse
equipment, and time for handling and audit across several computers systems over the
organization. But with the execution of an ERP system there will be an accountable purchase of
materials in line with the info supplied by demand and supply strategies which will consequently
provide adequate information to have a lower stock of raw materials and finished products, yet
still be a responsible partner mindful of the customers’ requirements

Requirement Analysis
Project Feasibility Study
Team B will show that it's technically feasible and economically beneficial for Riordan to
employ the latest ERP System which meets the objectives which have been established for the
organization. Carrier expenses would be decreased by roughly 35% of present expenditures by
the usage of a far more integrated delivery method that may direct and combine deliveries
automatically to enable them to be delivered to typical addresses in shared packaging. While
main carrier would off discounts when Riordan linked into their invoicing system, the ERP
system would help this, which would be an additional cost savings of 15 %. Shortages of
supplies from vendors are also expected to be decreased and improved by 5% in the beginning
and increasing to 20% during 2 years, because of the removal of hand written Purchase Orders
and the automatic Cycle Count abilities and reviews. Improvements to stock precision are also
expected to be decreased and improved through similar numbers because normal cycle counts
progressively correct stock balances, and also the utilization of digital bar code methods and
marking to assist avoid wrong counting of piece parts.
Proposed Systems Requirements

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Riordan Manufacturing’s uniformity of activities and quality control rely on methods that need
assessment to better monitor and handle raw materials and stock of deliverable materials.
Execution of an Enterprise Requirements Planning (ERP) system will have the consequence of
integration of existing Information Systems to satisfy company needs at all of Riordan’s
production sites. A high-level performance for the benefits of a advanced ERP system which will
provide improvement in Riordan company procedures are divided into 9 stages fulfilling the
scope of the suggested venture and explain the range of activities to successfully develop the
ERP system. High-level overviews of the related project needs consist of (Motiwalla &
Thompson, 2009, p. 63):
Procurement: Purchasing is the procedure in which suppliers provide goods for operating
companies. This procedure will include supplier showing, quotes, assessment and lastly choice.
Purchasing will likewise incorporate allotment of organization owned devices e.g. laptop
computers to its workers. It will maintain check of organization property and cope with damages.
Production: Output analyzes needs using Riordan company system evaluation and current legacy
systems. Output will additionally make certain smooth running of procedures in live atmosphere.
Accounting: Pricing of software program, computer hardware, maintenance, and labor hours.
Distribution: shipping of essential software program, computer hardware, and staff
(implementers and contracted supplier support) to each of Riordans production plants.
Customer Services: Customer support will be an integral part of Riordan ERP. An effective
ticketing service together with monitoring will be maintained in the ERP to make sure interaction
with Riordan administration regarding execution status, functionality and any shortfalls
experienced.

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Performance and Governance: Every quarter assessments of all workers will be completed to
make sure favorable and competitive working conditions.
Human Resources: Human Resource will consist of methods which cope with every aspect of a
worker. It includes hiring, training a worker, payroll, advantages and firing.
An extensive ERP execution strategy will meet Riordan’s costs, scope, and time limitations of
going operational through specific time-line goals. To achieve the development and eventually
execution of the ERP will need the high-level requirements mentioned above are completely
exploited to identify system performance and feasibility. These types of low level functions are
acquired after making consumer tales which together achieve the higher level needs. After
assessment of system performance is established current company procedures will be assessed to
find out customization and integration of Riordan’s legacy systems. The ERP will be a crucial
part of Riordan’s capability to monitor its raw materials and stock of manufactured items. The
ERP info system offers “automation to support Riordan’s this kind of company functions as
accounting, finance, advertising, customer support, human resource management, and
operations” (Motiwalla & Thompson, 2009, p.
Determination of Requirements
Team B has got the chance to find out the requirements of the workers of Riordan
Manufacturing. We have decided to achieve this by following people around, group interviews,
and prototyping. By carrying out these group interviews and following people around, Riordan’s

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stock division is presently manually entering inventory. Riordan would benefit from an
automatic scanning system which will automatically upgrade when an item is ready for stock or
sold. Depending on the information we received, we decided that the accounting and finance
division should modify their existing financial process. In order for Riordan to get the largest
bang for their money, they should be sure to execute the system nationwide. This system will let
the following:
Tailored reports
Charges
Payment posting
Collections
Prototype
Team B will be using prototyping to find out the requirements of Riordan Manufacturing.
Riordan Manufacturing has been successful so far however it is necessary for them to execute an
ERP system so they can take their company to the next higher level and continue competitive in
today’s market. Riordan should know where their weak point lies so we can improve them; here
the ERP system will come into play. Team B will suggest that Riordan Manufacturing use a
prototype process, this will examine all the information from group interviews, and following
people around. This will let to check the prototypes with the information and satisfy the

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stakeholder’s requirements. “This model works best in situations where not all of the project
needs are known in detail ahead of time. It is an iterative, trial-and-error procedure that takes
place between the developers and the users” ("Searchcio-Midmarket," 2007, para. 1).
Confirmed Requirements
This document shows the list of verified needs as a consequence of comments from the team’s
determination of needs for ERP development. Each requirement is either compulsory or elective
using info of present procedures. Additionally contained in the document is a reasonable view of
the information movement external and internal to Riordan’s 4 sites. Discussion regarding the
variations of the present system data movement and also the suggested ERP system shows the
advantage of using the latest system.
The analysis groups met up with each of Riordan’s project administrators to assess present
procedures at the Albany, Pontiac, Hangzhou, and San Jose sites. Meetings included queries of
present system performance, versatility, dependability, ease of use, and supplier satisfaction.
Assessment of the information from Riordan customers, practical proprietors, and information
systems managers is the foundation for arranging and assessing Riordan’s company
requirements. The present network facilities - quantity of servers, workstations, and present
software program (operating system and programs) has been ideal for dealing with the
production and delivery of Riordan’s raw materials. Comprehensive research into the company’s
resources and capabilities is important for personalization of an ERP program to migrate
Riordan’s present info.

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It's with confidence that the improvement or purchase of a good ERP system as a consequence of
the determination of needs will make monitoring and maintaining raw materials for Riordan sites
more effective.
Purpose
Integration of present info existing on systems found in Albany, Pontiac, Hangzhou, and San
Jose company head office having the improvement or purchase of an Enterprise Resource
Planning system.
Scope
A listing of verified needs depending on comments from Riordan functional administrators, input
from stake holders, GAP assessment of present system performance and possible ERP
performance, and overview of determination of needs outlined in the request for proposal and
preliminary evaluation.
Riordan’s board of directors is accountable for the company’s operation according to state
requirements, Articles of Incorporation, and by-laws. Therefore the board offers the oversight of
quality control and controls the path of the venture with the investors’ best interests.
Coordination with Riordan’s management will help the analysis and answer to make sure info
obtained is correct.

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Assessment of Riordan’s present network facilities with regards to combining an ERP system for
business wide use it was essential to classify needs taking into consideration appropriateness of
Riordan’s use, system characteristics, and advantages. Six factors in narrowing the determination
of needs right down to an appropriate listing are displayed in table 1.1
Enterprise Resource Planning Requirements Considerations
Item Description Mandatory/Optional
Functionality ERP characteristics meet the
requirements of the client
Obligatory
On-site Options Present software program offers
choices for SaaS through Web
interface.
Elective
Configuration Flexible to personalization to satisfy
particular requirements of Riordan.
Obligatory
Implementation Strategy Availability of educated experts to
apply data migration and assistance
making certain congruency of all
Obligatory

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Riordan sites.
Evaluation of Components Assessment and coordination of
present systems for probable changes,
e.g., computer hardware updates or
software program purchase.
Obligatory
Data Migration Moving present info; Code change for
unlike data formats.
Obligatory
Table 1.1 – ERP Requirements Considerations
Method
The data utilized in compiling this document was accumulated by surveys which outlined the
listing of needs on a weighted scale of 1.00 to 5.00. Surveys were made readily available for 550
workers; 400 from the 550 surveys were returned.

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DeVry University

Subject

Information Technology

BSA 400 Riordan: Development of an ERP System Final Report

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