Service Request Sr-Rm-001

Service Request SR-rm-00

Organization: Riordan Manufacturing

Locations: All Locations

Requester: Hugh McCauley, COO

Description of Request:

Suggest specific systems changes that improve our inventory or manufacturing processes.

Finance & Accounting

During the due diligence process in which Riordan acquired the operating entities in Michigan and Georgia, the matter of F&A systems compatibility was not addressed.

Challenge:

The F&A Department has been unable to achieve a sufficient level of integration. Some F&A data is provided to corporate via data files, some via hard copy reports that must be re-entered, and some via data files that must be converted (redirected) to the proper account codes. Subsequently, Riordan has the following situation regarding F&A system outputs at the consolidated level:

a. Consolidated close of the General Ledger and subsequently the Income Statement and Balance Sheet is labor intensive and normally not completed until 15-20 days after month end.

b. Audit (to include external auditors) is required each month and is costly and labor intensive.

c. Compliance with new government required reporting requirements at the consolidated level is difficult at best.

Human Resources

Challenge:

The current HRIS system was installed in 1992. It is a part of the financial systems package and keeps track of the following employee information:

a. Personal information (name, address, marital status, birth date, etc.)

b. Pay rate

c. Personal exemptions for tax purposes

d. Hire date

e. Seniority date (which is sometimes different than the hire date)

f. Organizational information (Department for budget purposes, manager's name, etc.)

g. Vacation hours (For non-exempt employees)

Changes to employee information are submitted in writing using special forms by the employee's manager and sent to the payroll clerk for processing.

The following are entered in Excel Spreadsheets:

a. Training and development records

b. Applicant information for open positions (maintained by each recruiter)

c. The status of applicants (resumes are filed in a central storage area)

d. Results of job analyses, salary surveys, and individual compensation decisions (kept by the compensation managers)

Employee relations specialists track information about complaints, grievances, harassments, etc. in locked files in their offices.

Employee files are kept by individual managers; there is no central employee file area. Managers are also responsible for tracking FMLA (Family and Medical Leave Act) absences and any requests for accommodation under the ADA (Americans with Disability Act).

Workers' compensation is managed by a third-party provider, which keeps its own records.

Recommendations:

Check with Vendor for most recent version of HRIS. See if the vendor product has the capability to streamline the following requests:

a. Changes to employee information be done on-line through the intranet or be able to forward information to payroll clerk through the HRIS application.

b. Has modules that would allow data entered in spreadsheets to be converted and appended into a database for Training and Development records, applicant information for open positions, the status of applicants, and results of job analyses, salary surveys, and individual compensation decisions, and for tracking FMLA absences and requests for accommodation under the ADA.

c. Check with other vendors for similar products and for price quotes.

d. Also, create a central employee file area where employees' file can be secured safely using the HRIS system and hard copy.

e. Check with auditors to verify it is okay for managers to input employee's evaluations, disciplinary actions, recommended pay raises, annual reviews, etc. into the HRIS system and using an electronic pen employees could sign their name. A hard copy would be printed out by HR and one copy placed in the employees' file, one copy sent to the manager, and one given the employee.

f. Investigate amount of training that would be required for new version of application and potential down time for conversion.

g. Verify a version could be used in our Chinese factory. (NOTE: Different tax rates and codes for China employees).

Inventory Assessment

Background:

Currently when raw materials and sub-assemblies are received, the receiving area supervisor compares what is received to the scheduled deliveries. At the end of the day, a log is handed to a clerk to update the inventory system. First of all, anytime something is manually done there is room for error. All manual tasks cannot be removed from their processes, but they can be minimized. In addition, hard copies can get lost or damaged, so it would be beneficial to change this process.

Current Situation Regarding Inventory:

Currently when inventory is used, a form is filled out to list the type of material removed and the quantity. The form is handed off to a clerk to update the inventory system. When sub-assemblies and the final products are completed, another form is filled out and handed off to the clerk to update the system again. This process has a lot of paperwork and a lot of room for improvement.

Investigation of Possible Solutions:

The recommendation