Business / Riordan Inventory And Manufacturing Process Improvement Business Requirements
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Autor: anton 11 January 2011
Words: 2791 | Pages: 12
Riordan Inventory and Manufacturing Process Improvement Business Requirements
Service Request SR-rm-001 has been requested by COO Hugh McCauley of Riordan Manufacturing. McCauley has asked that Team D suggest specific systems changes that would improve their inventory or manufacturing processes. Riordan would like to use computer system utilization so that they may become more efficient. Our Team has been asked to create business requirements for system upgrades and improvements for either IT or IS consultants use.
During review of the Riordan Manufacturing Companies Inventory and manufacturing processes, we have found areas that are in need of improvement. We will discuss the present processes and how these can be changed to improve the efficiency.
Riordan Manufacturing currently processes the receiving of raw materials by manually entering the receipt of the materials, which could cause inaccurate information due to human error. The receipt of this material is not updated in the system until the next day, or even within the next week, which causes discrepancies to the inventory or raw material. This process could cause the unnecessary ordering of products not needed. With this new system, raw materials will be uploaded with a pre-designated number, which would allow the loading dock personnel to input the receipt of this material. The receiving dock would have a thin client/handheld computer with the information loaded on it for all of the raw material that would be received. When the material is received the employee would input the receipt and quantity. The invoice would then be scanned into the system for accounting purposes.
When looking at the inventory manufactured, the raw materials are being used and then reported to an inventory clerk who inputs this information into a system. Again, this is being done manually and may not be updated to the system for a day to a week later. This could cause inventory discrepancies such as having either over stock or having a shortage of material. Incorporating the use of a thin client or a hand held computer in this area, with the raw materialsÐ²Ð‚â„¢ information and quantity, would allow for an up-to-date account of the inventory.
The shipping department, at this time, fills the order for the invoice but does not account for the inventory on the shelves. We are proposing to utilize RFID tags on all inventories to simplify accountability. With the use of the RFID tags the shipping personnel will be able to use a handheld computer to scan the tag and subtract it from the inventory. This will allow for an accurate inventory list, which will eliminate the possibility of shortage or over stock of products.
Having all raw materials with the pre-designated number and quantity of each product in the thin client/handheld computer will allow a smother process. When the raw materials are being used, an authorized employee with correct access will scan or enter the type of raw material being used and the quantity being used. When the system detects a raw material usage from an approved employee, a timestamp will be created noting time/date the inventory was used. The system will accept the final product scan by an approved employee. When the system detects the final product scan, the system will automatically update the total number of products created and the number of products left to create for each order being processed. The system will store and display the information for all pending orders to any employees who have access.
The system will be designed on a bar coded type system with an identification number pre-designated for incoming raw materials and outgoing final products. Each company will be identified by a pre-designated company code for tracking of incoming and out going shipments. The system will assign all outgoing shipments with a master order number displaying all products in the shipment. The system shall accept all incoming orders either by individual scanning of all products in a shipment or by a master order number. The system will be able to distinguish all products listed under a completed order number and will be able to operate on a wireless, coded network for supervisors to have access. The system will automatically update data inventory for raw material once a shipment has been confirmed from an approved managerÐ²Ð‚â„¢s wireless device. The System shall provide a large data server for all invoices to be scanned in and stored for record purposes. Invoices scanned in will be stored by a Date-Time-Company Code-Order Number, as well as a search function providing employees the ability to retrieve original invoice forms. The system will update all data servers for receiving, shipping, raw materials used and final products produced continuously throughout day-to-day operations.
The following steps are example procedures when the new system has been implemented.
Raw Materials Receiving
- Required Materials: PDA
- Required Personnel: Receiving Area Supervisor (RAS), unloading crew
1. The RAS will preload the PDA with the scheduled order prior to the shipments arrival.
2. The RAS will verify the PDAÐ²Ð‚â„¢s incoming order against the shipping document.
a. The incoming order can be adjusted by the RAS should the shipping document differ in quantity or product.
3. Once all items of the incoming order have been verified, the RAS will mark the PDAÐ²Ð‚â„¢s incoming order complete.
a. Marking the order complete will update the inventory automatically.
4. The unloading crew may take the supplierÐ²Ð‚â„¢s order to RiordanÐ²Ð‚â„¢s inventory.
Manufacturing with Inventory
- Required Materials: Inventory PDA
- Required Personnel: Manufacturing crew
1. The manufacturing crew will decide on the type and quantity of raw material they need.
2. An employee ID will be entered into the inventory PDA to activate it for raw material inventory removal.
3. Raw material quantities will be marked as removed on the PDA by the employee.
a. The PDA will capture the employee ID, timestamp, material and quantity removed from inventory.
b. The inventory will be updated automatically.
4. The manufacturing crew may take the raw materials for processing.
5. Riordan manufacturing will take place as usual.
a. In addition, manufactured products will now be tagged with Radio-frequency identification (RFID).
6. An employee ID will be entered into the inventory PDA to activate it for product inventory additions.
7. The employee will scan product RFIDs into the PDA.
a. Scanning RFIDs will update the inventory automatically.
8. The manufacturing crew may take RiordanÐ²Ð‚â„¢s product to inventory.
Final Product Shipping
- Required Materials: Shipping PDA
- Required Personnel: Shipping crew
1. The shipping crew will preload the PDA with the dayÐ²Ð‚â„¢s orders from the customer shipping and billing system.
2. An employee ID will be entered into the shipping PDA to active it for shipping.
3. While loading orders based on the PDAs shipping document, RFIDs will be scanned until the shipping document is marked complete.
a. Scanning RFIDs will automatically update the inventory.
b. Scanning RFIDs will calculate against the current shipping document.
c. Scanning RFIDs will also capture the employee ID, timestamp and product ID.
4. The drivers may deliver their shipments as usual.
1. Devices will be activated and used by the same employee who's employee ID is entered.
2. Inventory and shipping devices will not be interchanged.
3. Receiving Area Supervisors will have incoming orders preloaded before shipments arrive.
4. The shipping crew will preload shipment orders at the beginning of the work day.
5. Product inventory will be assessed nightly using RFIDs.
1. Devices will not leave the work site.
2. Devices will be cradled on their respective charges when not in use.
3. Devices will be under precision measurement, calibration and testing every 6 months.
RiordanÐ²Ð‚â„¢s current manufacturing process
As you can see from the above illustration, Riordan Manufacturing current process for the receiving of raw materials is a manual system, which could cause inaccurate information due to human error. With the slow process of each station information could take days before entering the system for others to see.
Raw Material is inventoried when it is being used for final products and handed to the clerk; the clerk enters the forms into the database. Final products are done the same way. The Flow process allows a lot of room for human error, missing forms, labor costs and unnecessary loss of man hours transferring data.
Orders come in and are shipped in a timely manner. All shipping documents are handed to the clerk for entry into the system, which could take hours to update due to forms or slow shipping docks. Customers who call about orders may be told orders have not shipped when shipment has already taken place.
RiordanÐ²Ð‚â„¢s Proposed New Raw Material process
Material is received at the receiving docks, where an Employee scans in new material via the new bar code system. His scanner updated to the clerks computer letting the clerk now material has been received and is ready for use and storage. A Clerk then enters the information into the database; the database then sends information to receiving managers PDA and Material is moved to storage in the productions area. Everyone working at the same time makes material move faster which creates a faster, more efficient receiving area.
RiordanÐ²Ð‚â„¢s Proposed New Tracking of Final and Raw Material used process
This method eliminates the need to fill out two sets of forms, and eliminates the man hours of having to write it all out. This method enables information to be send seconds after the inventory arrives and allows the production teams to start moving on products. This creates a faster, more productive Riordan for todayÐ²Ð‚â„¢s business.
RiordanÐ²Ð‚â„¢s Proposed New Shipping and Ordering Inventory process
Orders come in and are shipped in a much faster manner. All shipping orders are entered into the database from the orders clerk. The database gets its information from production that an order is finished and the database then sends a signal to the shipping supervisorÐ²Ð‚â„¢s PDA. The shipment is immediately started and delivered to customers, with the database also providing the orders clerk with information on whether shipments have been shipped or delivered. This makes shipping faster and creates fewer errors in the process.
In addition, we have included a projected timeline that shows that in 30 days the implementation should be completed.
Projected Time Line - 30 Days
Item Start Time End Time
Sign Up 2/28/08 2/28/08
Data requirements 2/29/08 2/29/08
Set up system 3/1/08 3/5/08
Evaluate system 3/6/08 3/9/08
Convert data 3/12/08 3/16/08
Training 3/19/08 3/22/08
Go Live 3/23/08 3/23/08
The first step would be to sign up with POSGuys.com and speak with a business analyst and customer support team and going over any data requirements that are needed. Next, a team is set up involving key employees to head up the implementation of POSGuys.com. This would involve setting up the system, evaluating the data and converting the data. This step is crucial as this is when user permissions, vendors, GL codes, and business units will be defined and integrated into the existing accounting system. Once completed, there will be training for the employees and then POSGuys.com, is ready to go live.
PDA Barcode Scanner Barcode Scanner
Barcode Printer Receipt Printers
Computers/Monitors Inventory Program Software
One Riordan Plaza
San Jose, California 95112
Dear Dr. Riordan:
The Manufacturing, Shipping and Receiving departments of Riordan Manufacturing is in need of a change to keep pace with the companies we support. Business today in some areas of the production line is mediocre, at best. With areas that have huge down falls due to human error and slowing paper trails, Riordan is in need of an upgraded system that can support the fast pace environment with little error. Upgrading to a new IT based inventory system will greatly improve Riordan and its business. Please review the following suggestion for a system that can improve on the current inventory and manufacturing process.
Ð²Ð‚Ñž The system will identify each material scanned in with a pre-designated number
Ð²Ð‚Ñž The system will remove raw material from the inventory stock when an authorized employee with the correct access id scans item for use in the larger product.
Ð²Ð‚Ñž When the system detects a raw material usage from an approved employee, a timestamp will be created noting the time and date the inventory was used.
Ð²Ð‚Ñž The system will accept the Final product identifying scan by an approved employee
Ð²Ð‚Ñž When the system detects a final product scan, the system will automatically update total number of products created and left to create for each order being processed.
Ð²Ð‚Ñž The system will store and display information for all pending orders to any employees who have access.
Ð²Ð‚Ñž The system will be designed on a Bar coded type system with a pre-designated identification number for incoming raw material and outgoing final products.
Ð²Ð‚Ñž Each company will be identified by a pre-designated company code for tracking of incoming and outgoing shipments
Ð²Ð‚Ñž The system will assign all shipment outgoing with a Master order number displaying all products in shipment.
Ð²Ð‚Ñž The system shall accept all incoming orders either by individual scanning of all products in shipment or a Master order number.
Ð²Ð‚Ñž System shall be able to distinguish all products listed under a completed Order number
Ð²Ð‚Ñž The system shall be able to operate on a wireless coded network for supervisors to have access will on shipping docks.
Ð²Ð‚Ñž The system will automatically update data inventory for raw material once a Shipment has been confirmed from approved Managers wireless device.
Ð²Ð‚Ñž The system shall provide a large data server for all invoices to be scanned in and stored of recorded purposes.
Ð²Ð‚Ñž Invoice scanned in will be stored by Date-Time-Company code-Order Number, as well as a search function providing employees to retrieve original invoices form in same fashion database
Ð²Ð‚Ñž The system will update all data servers for receiving, shipping, raw materials used, final products produced continuously though out day to day operations.
Training of programs
The implementation of the system will be well planned and coordinated around RiordanÐ²Ð‚â„¢s normal business schedule. The following are suggestions in which the implementation and training of the new IT system will be done.
Ð²Ð‚Ñž One month prior to the program being implemented, each facility will have multiple two hours training classes on the new program for each employee. This will use a virtual program.
Ð²Ð‚Ñž Each training class will be designed to explain the program and then allow each employee to have hands on experience
Ð²Ð‚Ñž Each department in the different facilities will have a specific training day assigned for them to come to these classes to allow training to be specific to their department.
Ð²Ð‚Ñž Once the program has been implemented, an IT trainer will visit each department throughout the next two months to make sure the implementation process is going smoothly and that each employee had individual training, if needed.
Ð²Ð‚Ñž Every department in each facility will have a toll free number that will give access to an IT help desk.
Ð²Ð‚Ñž Each department in each facility will be trained on the specific equipment that they will be using, such as the main computer or a hand help device.
Ð²Ð‚Ñž Each facility will have a team of IT professionals to implement the programs and to install any equipment needed.
Ð²Ð‚Ñž The implementation will be installed outside of business hours. This will allow the facilities to continue with their daily work.
Ð²Ð‚Ñž All patches and upgrades will be implemented on after business hours to ensure optimal working capability.
Sir, the system is in need of these upgrades. Riordan is moving forward into the future of technology and so should the way it does business. These systems will make Riordan a company well-prepared for the rigors of new competition, and help them take on more companies in which to support. With these upgrades and new systems, RiordanÐ²Ð‚â„¢s everyday business will improve, which ultimately means a better Riordan. Thank you for your time and consideration for these upgrades, and we will stand by ready to do what is needed to be done for the betterment of Riordan Manufacturing.
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