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Riordan Business Systems
Riordan Manufacturing currently has four plants of operations. These plants are in San Jose, California, Albany, Georgia, Pontiac, Michigan and Hungzhou, China. Currently the Operations department runs on independent Microsoft SQL servers running Microsoft Project, and Microsoft Office 2003. The Research and Development department recently received an upgrade to there outdated Computer Aided Drafting Software from aSa Solutions because the system on hand was inadequate to handle the needs of the Pyramid Bottle project.
Human Resources
The human resources department utilizes the OpenPro ERP software to sustain and maintain all the business systems of the companies. In accounts receivable, OpenPro records sales and monitors customer payments and has a customer master file. Here an unlimited number of records can be maintained. Each customer is identified by a 15 digit alphanumeric code. In addition to the usual customer number, name and address, the file contains last payment amount and date, and discount and account balance information on the same screen. Opposed the old system in which you could not view multiple data.
With this new business system, sales transactions are recorded instantaneous allowing interactive entry, editing and posting of sales and credit memos. The due dates for the charges and prompt payment discounts appear on the printed customer invoice. Item codes are entered with the quantity sold. The description unit price appears as entered into the data file. There is no limit to the number of items that can be included in a single invoice.
OpenPro payroll at Riordan supports a variety of specials function ranging from calculating payroll checks with individual deductions to maintaining information required for state and federal reports. This system also supports many user defined pay periods such as daily, weekly, semi-monthly, quarterly and annual. Also, different employee classifications like hourly, salary, or salary with overtime, and multiple state income taxes.
A detailed listing of individual payroll transactions is maintained to determine cumulative figures. The system prints payroll checks for each employee or manual checks can be written. A built in time card system makes payroll processing easier.
The Job Costing Module at Riordan tracks all costs related to a specific job or project. It provides management the information it needs to quickly identify costs which are out of line with budget estimates and requirements. The Job Costing Module monitors each job’s activities, comparing the actual and budgeted figures in terms of units (labor hours) and dollars. Existing jobs with budgeted and actual labor, material, and overhead rates can be used in structuring new projects and providing comparative information to determine appropriate pricing.
Legal
The legal firm of Litteral & Finkel has been retained for all legal matters for Riordan Manufacturing All legal matters are approved and consulted with Lowell Bradford, the chief legal counsel of Riordan. All department managers forward any legal documents, contracts to Mr. Bradford for approval. The legalities of patents are handled by Rick Ethridge. Mr. Ethridge and Mr. Bradford consult on patent applications before being sent to Litteral & Finkel for legal signing and confirmation.
Litteral & Finkel is a large international firm that specializes in all areas of law and has offices in several cities both in the U.S. and overseas. The offices in the U.S. cities include New York, Los Angeles, Chicago, Atlanta, and Washington D.C. The overseas offices are London, Paris, Sydney, Tokyo, Moscow and Geneva.
Litteral & Finkel has provided legal services in the areas of tax law, real estate transactions, employment law, immigration matters, civil litigation, workers compensation labor law and custom regulations. Their firm consists of attorneys, paralegals, clerks and administrative assistants. Because of its international network, attorneys and anyone from the firm can be dispatched anywhere in the world within a few hours to provide any and all legal assistance to its clients.
Since Riordan Manufacturing is a Fortune 1000 company they have the money to expand and or upgrade its business systems. The current system being used has is slow and very outdated. Therefore Dr. Riordan has approved the upgrades of all business systems for its legal department for any hardware and software needed for his business to continue to be successful, remain competitive, and maintain its Fortune 1000 status.
With that in mind an IT service was contacted and servers were installed at the two main sites one in New York and one in London. New desk tops were installed in all offices; lap tops were given to those who felt they needed one. Databases were set up to maintain all records of cases, legal decisions and documents. Security software will be installed due to client confidentiality. A additional security software will be needed for those who work for the firm using an access code, user name, and password on a need to know basis only. A separate database will be used for each area of law such civil, labor, and custom regulations.
The business system that was recently installed with all the upgrades should help the legal firm of Litteral & Finkel run smoother, and efficiently in handling of all its legal matters without any delays due to slow moving equipment and outdated hardware.
Operations
The research and development department experienced a power outage during the development stage of the Pyramid Bottle product. This power outage set the development team back weeks do to lost data. The data entry methods are slow and inadequate to meet today’s fast paced market.
The CEO of operations is suggesting a total upgrade to the current systems. The proposed upgrade will take approximately 4 weeks to install and will run the company approximately $45,000 dollars. This upgrade will only affect the operations of a given plant for 3 days during the final change over. The system from OpenPro ERP Solutions is 100% compatible with our current databases and all OpenPro’s products are web-based, allowing company data and resources to be available at every location, even outside contractors can review the job status or production schedule over the internet.
Our business will be accessible anytime from anyplace with any Internet accessible devices, including laptops, PDA’s and cell phones. Field reps traveling from city to city will always have the latest product availability and production schedules. The system will provide shop floor visibility to the entire enterprise. With a few mouse clicks customer service can quickly view the status of a customers order without having to interrupt the shop supervisor.
Advance Manufacturing provides instant visibility to see which employees are currently on the clock in any production facility. The GAAP-compliant job costing system helps identify which manufactured items are generating the most profit and which items cost money. The shop foreman will be able to identify production bottlenecks and respond in real time to last minute engineering changes for high priority orders.
Multimedia files and Computer Aided Drafting drawing can be viewed at both the header and detail levels, allowing users to see and comment on product building blocks versus nearly completed projects. The new shipping and receiving system will incorporate complete RF bar coding and tracking throughout the inventory cycle process. New hand held bar code scanners will enter the shipping data right from the receipt and only requires the shipping supervisor to use the electronic signature pad to add it directly into the inventory for real time updates.
The new servers and database systems are tied together and have redundancy systems, UPS backup power, and hard copy data storage off site to eliminate lost time do to power outages or last data.
The Riordan Lessons learned report form the Pyramid Bottle project has opened our eyes to the issues revolving around our current system. In this report we found that the input of important information was slowed by having only a single contact for entry of information, loss of research data and delays caused by power outages and the lack of redundancy systems, and the inability of the users to comment on the product until near completion have causes significant delays driving up the estimated cost of development. The new system will address these concerns and improve processes that are already in place making Riordan even more competitive in the market place.
Finance and Accounting
A highly competitive global industry requires Riordan Manufacturing to continuously investigate and implement necessary changes that will enhance the manufacturing and distribution processes, reinforce its Mission Statement, and maintain its acquired leadership position. A recent investigation revealed that Riordan Manufacturing’s business systems of finance and accounting is inefficient in some of the companies’ locations.
The current F & A System’s are not tied into each other’s network and thus do not allow for real time reporting and the Income Statement and Balance Sheet is so labor intensive that it can cause delays of up to 15-20 days after month end to complete. This is unacceptable as a Fortune 1000 enterprise with revenues in excess of $1 billion. Efficient and accurate updates with real time access to consistent data, enhanced communication capabilities, instant response time, and immediate adjustments can be achieved by upgrading the system capabilities and implementing a uniform control process at all the Riordan Manufacturing sites. The Pontiac, Albany and Hang Zhou plants must be technologically upgraded to the capacities of San Jose. In order to update the system capabilities of all of these plants it is necessary to purchase new software. The proposed software to re-align the companies financials is a program called OpenPro ERP software solutions.
“OpenPro supports most industries with a complete ERP software solution. As a provider of manufacturing ERP software, OpenPro excels in its MES software and manufacturing inventory software. The financial accounting software supports a closed loop financial flow. Another of the many business software solutions is a complete retail POS system, while distributors benefit from the supply chain management software. Because OpenPro is built using open source technology, both the initial purchase price and the ongoing maintenance expense can be up to 80% less than Windows-based ERP software solutions, while offering a broader range of functionality. Our latest version 4 is capable of running on any operating system and SQL database. “(OpenPro 2007)
The recommended OpenPro ERP system is to be installed in all four Riordan plants. The cost of the OpenPro ERP software program for all locations will be $35,000 each, this will be for the Enterprise version. The total OpenPro ERP System’s installation cost, which will include training, downtime due to upgrading and maintenance, will be $140,000. Total project including source code programming license is estimated at $145,000. These upgrades are estimated to save and reduce company processing time by at least 25%.
“Proven ROI according to a recent independent survey, OpenPro Software Systems customers reported average increases of 12% in revenue, 20% in employee productivity, and 20% in their own customers’ satisfaction from the use of OpenPro Software eBusiness Applications—with an ROI in fewer than ten months.” (OpenPro 2007)
Estimates show that with real time response, statement and balance sheet labor may be reduced up to 80%, which will significantly shorten the time from days to hours. OpenPro will aid the company in all these areas: General ledger, budgets, payroll, accounts payable, accounts receivable, timecard and fixed assets.
The company will also benefit from this new software, because it complies with the Sarbanes-Oxley SOX Act of 2002. What is the Sarbanes-Oxley SOX Act of 2002? Effective in 2004, all public companies will be required to submit an annual assessment of the effectiveness of their internal financial auditing controls to the Securities and Exchange Commission (SEC). What does Sarbanes-Oxley compliance require? All applicable companies must establish a financial accounting framework that can generate financial reports that are readily verifiable with traceable source data. OpenPro integrates document imaging to all processed transactions. This source data must remain intact and cannot undergo undocumented revisions. In addition, any revisions to financial or accounting software must be fully documented, OpenPro will help with this.
What are the penalties for noncompliance with Sarbanes-Oxley? Lawsuits and negative publicity, a corporate officer who does not comply or submits an inaccurate certification is subject to a fine up to $1 million and ten years in prison.