Technology / Bsa310 Service Request Sr-Rm-001 For Riordan Manufacturing

Bsa310 Service Request Sr-Rm-001 For Riordan Manufacturing

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Autor:  anton  23 November 2010
Tags:  Bsa310,  Service,  Request,  Riordan,  Manufacturing
Words: 2508   |   Pages: 11
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Riordan Manufacturing Inc. is a leader in the manufacturing of plastic bottles in conjunction with other production lines that create fans, heart valves, medical stents and custom plastic parts. Riordan Manufacturing has projected annual earnings of $46 million. The company has four locations on two separate continents in North America and China.

The headquarters is located in San Jose, CA and employs 125 people. Most of the Riordan research and development is done at the headquarters in San Jose. There also is a plant in Pontiac, MI that employs 130 personnel. At the Pontiac plant many different types of plastic parts are created too include custom plastic parts for a very diverse customer base. The Albany, GA plant has 44 employees and makes all the plastic beverage containers that Riordan sells. Riordan Manufacturing’s largest plant is in Hangzhou, China where 251 employees work. This is Riordan’s largest joint venture and is where the plastic fans are manufactured.

Riordan has plans to move the Hangzhou plant to another location within the next five years. The new location is in the city of Shanghai, closer to the shipping port. By moving the Hangzhou plant to Shanghai, Riordan will save money on the costs that are incurred by trucking their products to Shanghai where they need to go to be shipped out of the country.

Riordan Mission Statement

A mission statement needs to clear in communicating the company’s goals and proposition. “A good mission statement can be a rallying point that the entire company can embrace, while a bad one can confuse employees to the point of apathy.” (Dao, 2007) In other words, the mission statement is a way to give direction to a company’s goals and dreams. Not only does it get all the members of the organization to have the same values of the company now but as well as achieving the goals of the business. Riordan Manufacturing’s mission statement is set up uniquely in a bullet system featuring four admirable categories: Their focus, costumer relation, employees and their future. Riordan’s mission covers all aspects that most experts consider exemplary in a company mission statement. Other manufacturers in the industry such as Arrow use an essay format. This is confusing to some because the company’s main goals are not laid out to the consumer. A suggestion for Riordan is to market a mission statement slogan. Although Arrow’s mission is not laid out for the consumer, they make up for it by marketing “Count on us for reliability, flexibility, and innovation.” The four main goals are right under the company name on the website. Riordan Manufacturing has no existing marketing slogan and shall consider the benefits one offers.

The principles of mission statement and mission statement slogan are nearly identical. Both need to be clear representation of the businesses purpose except the slogan is normally only around one sentence. “Develop a strong purposeful identity for a company, and discover that people will go out of their way to be associated with you” (Patsula, 2007). The reason for this is people like to feel apart or attached to something. If Riordan can gain attachment from costumers, employees, suppliers, and investors, they will be loyal. However, loyalty is difficult for companies to achieve from just a slogan, but loyalty is a key element. Unlike the company name and logo, the slogan can easily be changed with new marketing strategies. A good slogan is also hard to forget. Even if it only has been heard a couple of time. This is because it appeals to a person’s emotion and leaves them with a positive image of the corporation.

A mission statement is a foundation for a corporation. Riordan has a meaningful, clear mission that is shared with everyone in the organization. It shows what the company is currently doing and what the company’s goals. With an addition of a company slogan, Riordan can expect a more loyal costumer base.

Finance and Accounting

Riordan Manufacturing has three operating entities and a joint business enterprise in China. Each operating entity has its own Finance and Accounting Systems and provides input to the corporate building in San Jose. After information is gathered at corporate the data is consolidated. The basic components of each system are as follows (Riordan Manufacturing, 2006):

• General Ledger

• Accounts Payable

• Accounts Receivable

• Order Entry

• Procurement

• Sales and Purchasing History

• Invoicing and Shipping

• Payroll

• Financial Reporting

• EDI*

• Bar Code Reading*

• EDSS (Executive Decision Support System)*

*San Jose Only

When Riordan acquired the operating entities in Michigan and Georgia the issue of Finance and Accounting capability was not addressed. The current situation does not look efficient. Currently data is provided to corporate by different methods. Some data is being sent as hard copy reports and must be re-entered. Other data is sent by data files but must be converted to proper account codes. Riordan’s balance sheet regularly not complete until 15-20 days after the end of the month. This makes external auditors expensive. The inefficient systems also make compliance with new government required reporting very difficult.

Riordan needs to have all entities using the same Financial and Accounting System. “San Jose has a license for a fully integrated Windows based ERP manufacturing, distribution and financial management software application specifically designed for plastics processors and process and assembly manufacturers” (Riordan Manufacturing, 2006). Riordan shall consider all entities integrate this system to be compatible with corporate. All data should all be sent electronically to corporate already converted to the correct account codes.

When all Riordan entities integrate one compatible Finance and Accounting System with corporate, results will show a more efficient system Balance and Income sheets will be produced just days after the end of the month. In addition, allowing Riordan to be compliant with government reporting requirements.

Sales and Marketing

Riordan sales and marketing plan specifies an approach that will help them meet their $50 million goal by way of, “Increased sales to existing customers” and “expanded sales to new customer” (Riordan Manufacturing, 2006). The plan focuses on products, promotions, pricing, and location.

To accomplish their goals, sales, Riordan’s marketing department has developed some housing solutions to consolidate their dispersed collection of consumer information. Implementing CRM, Customer Relationship Management, as a business solution will merge Riordan customer information into one system that will provide management with immediate access to all customer files (Riordan Manufacturing, 2006). Using CRM is the first step to managing customer information to facilitate marketing and sales.

This system’s purpose helps businesses capitalize on customer relations, income, and productivity. Additionally this system will facilitate Riordan’s global communications between their global offices, vendors, and customers to increase sales and assist in lucrative marketing techniques (Riordan Manufacturing, 2006). Creating a sales database of merge information will aid salespeople with united data to analyze productivity. Using this system, sales and marketing can speculate customer needs and provide them with those services and products at a cost that supports Riordan profit margin (Riordan Manufacturing, 2006). This approach is necessary to support customer satisfaction, maintain customer loyalty, and attract new customers.

In addition to CRM, Riordan should consider implementing another customer base strategy known as SIVA. “SIVA supports and builds on the true marketing concept--finding customer needs, wants, or desires and fulfilling them at a profit to the marketing organization” (Dev and Schultz, 2005, March/April, para. 22). This plan focuses on consumer needs and uses the customer demand approach for manufacturing goods or providing service. SIVA’s plan is to “…develop and manage solutions not just products, offer information instead of simply promoting, create value instead of obsessing with price, and provide access wherever, whenever, and however the customer wants to experience your solution rather than thinking merely where to place your products” (Dev and Schultz, 2005, March/April, para.5).

Riordan sale plans also include storing historical sales information to compare and contrast past and present performance to include financial information on ordered items and dates of activity (Riordan Manufacturing, 2006).

The marketing department plans include displaying past awards and storing market research to support future marketing solutions. Displaying the awards becomes an incentive for company employees to earn future awards and take pride in their efforts (Riordan Manufacturing, 2006).

Riordan’s marketing budget includes funds to support an array of marketing activity from communications to research expense. Some of these activities include public relations, sales promotions, tradeshows and more while research includes such tasks as customer focus groups and more (Riordan Manufacturing, 2006). Combined, these sales and marketing techniques and recommendation will help Riordan reach its “$50 million revenue mark” within their two-year plan. (Riordan Manufacturing, 2006, para. 8).

Human Resources

Riordan Manufacturing is a non-union company that keeps all employee relations subjects in the hands of human resources. Key company policies include the open door policy, which allows and encourages all employees to share concerns with a higher-level supervisor if they are not satisfied with a supervisor’s decision. An employee handbook is given on the first day and is considered imperative, that a new employee reads and understands the handbook. Safety technicians are in place to ensure safety in the workplace (Riordan, 2006).

Riordan also provides al the essential training for all employees. Within 90 days the company offers orientation, which is given every 30 days and Six Sigma training for all production, shipping and quality employees. Six Sigma means a measure of quality that strives for near perfection. Six Sigma is a disciplined, data-driven approach and methodology for eliminating defects (driving towards six standard deviations between the mean and the nearest specification limit) in any process -- from manufacturing to transactional and from product to service. (What is Six Sigma?, 2008).

Riordan is also dedicated to exceed the ISO 9000 (International Organization Standardization 9000) standards. These standards cover quality design, quality management, and quality assurance for different kinds of companies depending on the extent to which they design as well as manufacture products. Once used widely in Europe ISO 9000 is now becoming and industry standard worldwide. It also gives Riordan a chance to compete in a wider even international market (ISO 9000, 2008).

The company also has the HRIS system that has been implemented since 1992. This system tracks employee information, everything from personal information to vacation. Though an employee cannot make changes themselves, a supervisor has to submit the change in writing to a payroll clerk who then enters the change. Employee relation specialists track information about complaints, grievances and harassment complaints in locked files in their offices (Riordan, 2006).

HRIS system requires updating. This system should be accessible to the employee. The immediate supervisor or manager can monitor changes to the system. The company offers a wide array of benefits from 401k, vacation and tuition reimbursement. Allowing the employee to view and monitor these categories can be helpful so they can keep in mind things from their attendance to the flex spending account (medical reimbursement account).


Lowell Bradford oversees all legal matters for Riordan Manufacturing. All contracts and legal questions from department heads go through Mr. Bradford. Mr. Bradford then answers to the best of his knowledge or consults with attorneys at Litteral & Finkel, the law firm retained by Riordan Manufacturing. Litteral & Finkel has provided Riordan Manufacturing with legal services in the areas of tax law, real estate transactions, employment law, immigration matters, civil litigation, workers compensation, labor law, and customs regulations. If a legal matter arises Riordan pays a monthly retainer to ensure prompt response to any legal matters. Litteral & Finkel can immediately provide a team of attorneys, paralegals, and clerks to any legal issue that may arise (Riordan, 2006).

Operations Review

Riordan’s current operation is called Pyramid Bottle Project. This operation uses a peer and subnet architect design to create a project plan that helps management track and manage facility operations. Areas of focus include:

I. Initial new product screening stage

II. Preliminary investigation stage

A. Perform due diligence

B. Technical feasibility analysis

C. Assess manufacturing capabilities

1. Evaluate IT support requirement

2. Develop IT support plan

D. Development stage

1. Market evaluation

2. Technical product evaluation

3. Concept evaluation

E. Pilot Stage

1. Trial product manufacture

2. Trial analysis

F. Commercialization stage

1. Product manufacturing and monitoring

2. Logistics plan

3. Commercialization analysis

4. Perform maintenance review cycle

5. Post commercialization review

6. Close-out project

Each stage of the Pyramid Bottle Project has specified durations that will help Riordan’s resources complete their portion of the operation in a timeframe suggested by the project manager (Riordan Manufacturing, 2006).

Another aspect of Riordan’s operations include CardiCare Valve Proof-of-Concept that uses an end project report that documents its historic chain of events, a lessons learned report that includes recommendations that is used to help minimize errors, and a follow-up report that ensures recommendations are performed according to specifics. Combined, these reports assist Riordan’s decision makers with research and development strategies to improve operations (Riordan Manufacturing, 2006).


After a thorough review of Riordan business systems, Team A has found a few suggestions in order to operate Riordan Manufacturing in a more efficient manner. Riordan should consider developing a mission statement slogan. A well-written and marketed slogan will add to the foundation of Riordan’s Mission statement providing more loyal customers. The current Finance and Accounting system needs to be addressed as soon as possible. The system that is currently in place is inefficient. Riordan needs all branches to use software that is compatible to the software that is being used at the corporate headquarters and all data shall be sent to corporate via data files. Riordan’s existing Marketing plan is designed to help them reach the $50 million goal using the CRM method. In addition, Riordan shall consider implementing another customer strategy known as SIVA to increase sales and reach the sales goal in the next two years. Riordan’s human resources use the HRIS system to keep track of all employee information. Riordan shall consider an upgrade to the current system that would allow employees to access their own information. Allowing the employees to monitor their own benefits through the company is very useful to keep things in mind such as flex spending. All Riordan’s legal matters are through Lowell Bradford. Riordan’s present law firm is Litteral and Finkel. Riordan will continue to use these services. The company’s current operation is the Pyramid Bottle Projects. The project helps management operations in the facility. In addition Riordan has the CardiCare Valve Proof-of-Concept. The reports are used to develop strategies for improvement. Pyramid Bottle Projects and CardiCare Valve Proof-of-Concept are excellent review systems for Riordan. The few suggestions combined with current operations will make Riordan’s systems more efficient while continuing to be leaders in the plastic manufacturing industry.


Dao, Francisco. (2007). Marketing Your Mission Statement. Retrieved February 27, 2008, from

Dev, C., & Schultz, D. (2005, March/April). Simply SIVA. Marketing Management, 14(2), 36-41. Retrieved March 3, 2008 from EBSCOhost database.

International Organization for Standardization. (2008). International Standards for Business,

Government and Society. Retrieved March 5, 2008, from

ISO 9000. (2008). ISO 9000. Retrieved Marc 5, 2008, from

Patsula, (2007). Writing a company mission. Business Planning, Retrieved March 5,

2008, from

Riordan Manufacturing. (2006). Retrieved February 22, 2008, from Virtual Organizations

Portal web site:

Six Sigma. (2008). Six Sigma – What is Six Sigma? Retrieved March 5, 2008, from

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