Riordan Manufacturing Company Business Systems Essay Example
Riordan Manufacturing Company Business Systems Essay Example

Riordan Manufacturing Company Business Systems Essay Example

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  • Pages: 13 (3329 words)
  • Published: June 27, 2018
  • Type: Case Study
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Good communication is essential in every organization. Riordan Manufacturing Company, a multi-billion dollar plastics manufacturer, utilizes advanced technological equipment at its headquarters in San Juan. However, the company has not yet established a reliable technological infrastructure for its other locations in Michigan and Georgia.

Each location has finance and accounting departments, but communication between them is limited due to a lack of proper software installations and requirements. The San Juan location did not buy the application source code from the vendor, which hinders its ability to communicate effectively with the Michigan and Georgia locations. The Michigan locations' finance and accounting department purchased a software product with the application source code; however, the vendor is no longer in business. On the other hand, the Georgia location purchased a software product with the application source code, but it has an outdated net

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work system. This paper aims to describe the current and necessary business systems and subsystems for Riordan Manufacturing Company.

The team will conduct a comprehensive analysis of Riordan's departmental needs for an effective business system relationship and a secure network environment. They will provide guidance on implementing a much-needed network and security policy. In today's business world, it is essential for a company to have strong communication with its subsidiary companies. Riordan's main location in San Juan has the necessary tools for effective employee communication. However, with the establishment of two new locations, it is now crucial for the company to share information and data monthly. Riordan made a smart decision by purchasing a license for a fully integrated windows-based ERP manufacturing, distribution, and financial management software application for their headquarters. However, they overlooked acquiring the application's source

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code which would enable communication between the newly acquired distant companies.

Based on the team's review, it is advisable to buy the vendor's application source code and initiate the integration process for the Michigan and Georgia locations. Additionally, the team explored the possibility of implementing Cloud computing for Riordan. Cloud computing would seamlessly integrate Riordan's business systems. Cloud computing encompasses the delivery of hosted services over the Internet (Hartig, 2009). Utilizing this service would enable Riordan Manufacturing to share resources, software, and information among San Juan, Michigan, and the Georgia location.

Riordan can opt for either public or private services when implementing cloud computing. Some divisions within Riordan will have limited access. Right Safe Cloud management, which manages 3,257,143 servers (both private and public), was researched by the team (Right Safe, 2011). Utilizing the cloud for multiple locations allows each location to access crucial company information at any time and on any level.

Cloud computing has unique characteristics that are not expensive for Riordan Manufacturing. It possesses three features that demonstrate significant benefits for the organization. The first feature is the absence of maintenance, as cloud computing is an outsourced service provider that eliminates maintenance problems.

Riordan will benefit from saving facility space and expenses associated with employing a large IT department. Additionally, cloud computing enables uninterrupted service, as it is available online 24/7. This round-the-clock availability provided by the hosting provider is advantageous for meeting the company's needs. Moreover, Riordan will only pay for the services it actually uses, thanks to the pay-as-you-go characteristic of cloud computing.

Many traditional online computing services offer bundled business services. By accessing the Cloud, Riordan will only be charged for the services

they use, resulting in cost savings for the company. These three characteristics demonstrate that cloud computing is efficient and offers more benefits compared to traditional computing (Hartig, Dec). Riordan's human resources department is currently upgrading the business systems of each department. The management has requested the human resources department to gather information about the existing department business systems and subsystems. This includes the name of the system, how they work together, the information contained in the system, and the security measures implemented. The human resources department will conduct research on various business software systems and provide details about a new and secure system that can replace the current one.

Riordan currently utilizes an HRIS system that was implemented in 1992 as part of a comprehensive package system utilized by the financial department. This system is comprised of specialized forms and an Excel spreadsheet subsystem to retrieve data. The managers and employee relation specialists utilize these forms, which include employees' personal information, pay rate, tax details, date of employment, seniority date, vacation time, and organizational information. The employee relations specialist also utilizes forms to track employee complaints, grievances, and harassment claims. Whenever changes are necessary for any of the aforementioned information, the appropriate form must be completed and forwarded to the payroll clerk. The payroll clerk is responsible for entering and maintaining the data for this section of the HRIS system.

Managers are responsible for tracking family medical leave absences and requests for medical accommodations in the workplace. Department heads manage and store files. At present, there is no centralized storage area for employee files. The employee relations specialists securely store files in the Managers office.

Human resources subsystems:

The human resources department utilizes Excel spreadsheets as their primary tool. Recruiters, the compensation manager, and the training development specialist all rely on these spreadsheets. Recruiters use them to store and track applicant information for job openings. Additionally, applicant resumes are stored in a central file storage system. The company's compensation manager maintains Excel spreadsheets to analyze job data, salary surveys, and individual employee compensation. However, the company has decided to outsource the management and maintenance of employee compensation records to a third-party provider.

The training and development specialist uses an Excel spreadsheet to store employee training and development. Currently, employee forms kept by the managers are not securely stored, and keeping data offsite can compromise company security. The human resources department has conducted research on business software systems and has found SAP and backup virtual cloud storage to be suitable replacements for the current HRIS system (SAP-Components & Tools of SAP Netweaver, 2011). By using a Shared Access Point system, the cost of workers compensation can be reduced by bringing it in-house. Each section of the human resources department can use the secure SAP system to enter and update employee data.

The paper files can be scanned and digitally stored in a backup virtual cloud storage after the data has been entered, providing protection against security breaches. Access to the SAP and backup cloud storage is granted through a username and password. Employees can also be given access privileges to track vacation time, update personal information, and manage tax information. This new system has the potential to remove the need for significant manager decision-making time when it comes to employee raises. Managers can simply log into

the system, review employee time and attendance, training records, and complaints, and quickly determine if a raise should be approved or denied.

However, the implementation of this method in place of the paper system can result in a decrease in paperwork and turnaround time for both employees and the company. Additionally, the new system will assist recruiters by alerting them when an applicant's resume matches a job opening and retrieving information on any necessary training for potential applicants. Moreover, this system can also streamline the training and development process by uploading training schedules for managers and individual employees onto the SAP system for completion (SAP-Components & Tools of SAP Netweaver, 2011).

Legal

Upon reviewing Riordan's legal system, Riordan Manufacturing has retained the services of Litteral & Finkel, a law firm capable of providing legal assistance worldwide.

In other words, the large law firm is able to quickly send attorneys, clerks, and paralegals to any of Riordan Manufacturing's branches worldwide to handle legal matters. This provides Riordan with the convenience of utilizing one firm that offers various services. The connection between the two entities was established through Dr. Riordan's cousin, who was a partner in the law firm. The business system between them is structured with a Chief Legal Counsel who supervises legal inquiries and contracts.

When the department heads have legal questions, they must send those questions to the Chief Legal Counsel. After the inquiries or contracts are received, the Chief Legal Counsel provides answers based on his legal knowledge or seeks assistance from an attorney at Litteral & Finkel. All legal matters are handled through the Chief Legal Counsel. One other person works with the Chief Legal Counsel to

manage the company’s patents. Litteral & Finkel provides a monthly retainer to Riordan Manufacturing. If the charged amount exceeds the retainer, Riordan Manufacturing pays the remaining balance.

The retainer system ensures that any remaining amount from the retainer at the end of the month does not carry over to the following month. This helps prevent unnecessary expenditure on legal issues that can be handled by the Chief Legal Counsel. Essentially, all legal matters must be approved by the Chief Legal Counsel, which helps prevent excessive use of the law firm for matters that may not be considered important at the time. As part of the legal subsystems, the Litteral & Finkel law firm is utilized as a final resort or for additional legal action or advice after approval from the Chief Legal Counsel.

The subsystem of the Chief Legal Counsel's approval is essential in initiating a legal inquiry. Initially, the Chief Legal Counsel must provide approval before the subsystem can take any action. Furthermore, the Chief Legal Counsel personally assesses the situation to determine if he is capable of handling it independently. If the Chief Legal Counsel determines he cannot handle the legal matter on his own, professionals from the Litteral ; Finkel law firm are engaged to handle the issue. To enhance the efficiency of Riordan Manufacturing's legal department, implementing a legal information database system would bridge the gap between the Chief Legal Counsel and the retained law firm. Additionally, by appointing legal counsels, overseas branches can promptly receive legal advice.

Using a legal information database, like the Global Legal Information Network (GLIN), would enable Chief Legal Counsels to electronically search for necessary information before seeking assistance

from an attorney. This system would also help the legal department with their inquiries and expedite the processing of legal inquiries and contracts for overseas branches. As a result, this method would reduce retainer overages and alleviate the burden on the Chief Legal Counsel (Group, 2011). Riordan, through its founder's expertise, has expanded its company into three plants across the globe - China, Georgia, and Michigan. While aiming to retain current customers and contracts, Riordan also aims to attract new clients.

Upper management has created an action plan that aims to satisfy their current customers and potentially attract new ones. The plan involves boosting sales for existing customers and expanding sales to new customers. The company believes that this plan, which is in line with their 2006 sales plan, will help them reach $50M in revenues. During the review of Riordan Manufacturing's sales and marketing plans, the team observed that there was no mention of the current line of products.

The sales plan focuses on the customer and their purchases. The team proposes that if upper management investigates the existing product line, there is an opportunity to expand the variety of products and services. Customers desire more value for their money, so increasing the number of products offered by Riordan could result in increased sales. This marketing strategy could eventually transform Riordan into a diversified manufacturing company with a comprehensive range of products. Moreover, expanding to serve both small businesses and the general public has the potential to generate higher profits for the company.

This marketing strategy will benefit both the customer and client by offering convenience for conducting all their business transactions with one company instead of

multiple companies. Additionally, it will help Riordan establish a long-term relationship with its customer base and has the potential to target various markets. By providing customers with multiple service options, Riordan can ultimately reach its goal of generating $50 million in revenue. Currently, Riordan uses a manual system to manage documents, clients, proposals, and product lists stored in file cabinets. However, this system does not support efficient data management. To address this issue, Riordan aims to install a customer management database system (CMDS) which will improve data efficiency and enhance customer satisfaction for increased profits.

Riordan Manufacturing should consider engaging a company that provides a comprehensive solution for storing profiles of up to 20 employees, including public and private information. This data includes personal details like name, address, zip code, country, and telephone number. Each profile should also have a unique customer number that links it to all aspects of the company's operations. The team recommends purchasing Alpha Software for this purpose. Alpha Software has been in the industry since 1980 and initially started as a DOS product application company but has now evolved into a windows-based database environment. With Alpha Software's database capabilities, Riordan will be able to create desktop and web-based applications effortlessly. Additionally, this software seamlessly integrates with various database platforms such as Microsoft Access, MySQL, Oracle, MS SQL Server, DB2, and File Maker Pro. By adopting this software solution, Riordan Manufacturing can finally eliminate paper-based storage systems along with their associated fire hazard risks.

By utilizing this software system for all their data entry, Riordan Manufacturing will be able to pull all types of reports quickly and easily without the headache of someone

missing a number or misplacing a file (AlphaSoftware, 2011). The company needs a sales and marketing software package to keep track of current consumers and the company's marketing strategy. This system will allow management to identify all available sales and new markets in the target areas.

This software should also provide a convenient and efficient method for generating reports for potential and existing customers. The research team has identified a suitable software company for Riordan named Salesfusion. Salesfusion is a marketing company that offers integrated software, enabling the company to concentrate on growth without the burden of workload tracking (www.salesfusion.com, 2010).

Salesfusion, a company established in 2006 and headquartered in the United States, offers impeccable reporting capabilities and efficient organization of entries. With three offices, two in Georgia and one in Pennsylvania, Salesfusion prides itself on its passionate employees who are dedicated to providing Riordan with exemplary customer service. This commitment to customer satisfaction is evident in their mission statement: "We help our customers generate more leads and earn more revenue" (www. Salesfusion).

The implementation of software programs can greatly benefit Riordan Manufacturing (com, 2010). Despite the cost of these programs amounting to several thousand dollars, they will contribute towards achieving the annual revenue goal of $50 million dollars. Bringing Riordan into the technological era of the twenty-first century is a necessity for the company.

Riordan Manufacturing’s clients, both old and new, will feel more informed about the company and have confidence that their information is protected by ceasing the use of paper and pen for record keeping. The Operations department supervises the production of various projects such as the pyramid bottle and Cardicare Valve projects. They collaborate with

the Research and Development, Shipping and Receiving, and Production departments to ensure high-quality products. Unlike the current receiving standard, the Shipping and Receiving department lacks a reliable inventory control system. The team suggests implementing both an inventory control system and a barcode tracking system.

This system will count all shipments received and remove the product from inventory when it is moved to production. Placing a barcode on the product will enable the production team to track production inventory and consider it removed from inventory upon shipment to the consumer. It is recommended that the purchasing agent in Finance and Accounting be granted access to this system for inventory control oversight. The purchasing agent can also utilize the system for cost-effective inventory tracking.

The production employees are expressing concerns about product safety and quality. Some letters written by these employees were ignored due to poor communication between the production floor and upper management. As a result, the company may ship defective heart valve equipment and face legal consequences. The team suggests implementing an intranet or extranet to improve communication among different departments at various locations.

In today's business world, technology has revolutionized the way companies market and sell their products and services. Riordan Manufacturing and other companies prioritize information security to safeguard both company and customer information. Security measures are becoming increasingly common across industries. For any company with an IT department, it is crucial to allocate budgets, establish infrastructures, and develop strategies that are essential for the company's economic survival. As technology continues to evolve, it becomes increasingly important to comprehend and effectively address the potential negative impacts it may bring.

In the age of technology, information security

has become crucial. The Internet offers companies the opportunity to market globally and reduce expenses by not needing a physical presence. With technology advancements, businesses can now operate online anywhere with internet access. To increase the likelihood of success, Riordan should prioritize data security.

Riordan has a large amount of data that is shared among different departments and locations. Due to this, there is always a possibility of a cybercriminal gaining unauthorized access, modifying, or erasing information. Because information is freely transmitted in an electronic cloud, the need for information security will always exist. Like any other company, there are concerns regarding the security of cloud computing. In virtual environments, an organization is taking a significant risk by exposing sensitive data in cyberspace. The outsourced nature of the cloud necessitates a more proactive approach to monitoring sensitive data to guarantee its protection.

According to Markovich (April), there are three important architectural issues that need to be considered when resolving the problem of transferring sensitive data. Cloud computing and virtualization enable flexibility and efficiency in shifting servers and adding or removing resources, which can improve system usage and reduce costs. However, there is a higher risk of hackers targeting provisioned and de-provisioned data servers. To effectively monitor server activity without manual intervention from management, it is crucial to find a method and implement it on database servers. Additionally, each instance in the cloud should have a sensor running locally.

The software should be capable of automatic provisioning without requiring manual intervention from management. Cloud providers often have restrictions on the installation of certain software that requires privileges (Markovich, April). Cloud computing is usually implemented in the form of a

wide area network (WAN), enabling communication between various locations. To ensure security and filtering for users, it is recommended to install a monitoring agent between these locations. Data security is a priority, and implementing a security policy on the database will likely result in local protection and alert mechanisms.

The monitoring of "privileged users" is a challenging task. To address this issue, it is possible to implement separation of duties. This involves managers verifying their staff to ensure there are no alerts raised regarding cloud network infiltration. Additionally, the "privileged users" can be enhanced through the implementation of new perspectives, storage procedures, and triggers that will trigger an alert if any suspicious activities occur.

Lastly, automatic alerts when unauthorized data is accessed minimize company downtime. By implementing additional software to safeguard company data, Riordan can benefit from the convenience of accessing company information from one central location.

Reference

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