Riordan Operations
Christopher E Jenkins
BSA 310
March 13, 2012
Ivon Young
Riordan Operations
Since the creation of Riordan Manufacturing, Inc. in 1992 the company has enjoyed success in the plastics manufacturing sector. The company has grown from a single manufacturing plant in Pontiac, Michigan to adding a Research and Development (R&D) facility in San Jose, California, a second manufacturing plant in Albany, Georgia and an overseas plant in Hangzhou, China. As the company has grown, it has consolidated its manufacturing processes so that each plant has a specific area of specialty, thereby reducing costs by eliminating a duplication of work between the facilities. The company, however, still endeavors to further trim manufacturing costs and increase efficiencies. One area that can be improved upon and streamlined is in the company’s operations.
Current System
To best illustrate where the company’s operations can best be improved, the current systems in place must first be explored. In the Human Relations (HR) department, Riordan currently uses the original system that was installed in 1992. This Human Resource Information System (HRIS) tracks employee information such as pay rate, personal information, tax information, and other organizational specific information. Any changes to an employee’s information must be submitted in writing on a HR form and are entered into the system by the payroll clerk. Other files, such as training records, development records, resume status and salary surveys are tracked using Excel spreadsheets by the different department specialists. Individual managers and Employee Relations specialists maintain their employee files as there is no central file repository for employee files and information.
In the sales department, the individual sales people maintain their own customer records. It is noted that some members use pen and paper, some use a sales management software application while others use a combination of the two systems. There is no collective database for tracking all of the approximately 30 customers. Sales are conducted either over the telephone or via fax and manually entered into the ordering system; there is currently no web-based ordering system.
Inventory management and control uses a process of paper shipping documentation and manual entry. The ordering system generates shipping documentation that is filled at the various plants, and the shipping clerk updates the inventory system based on the shipping documentation. Additionally, the inventory clerk conducts a physical inventory count and manually enters inventory data into the current inventory control system.
Packaging and shipping currently uses a bar code system to track completed assemblies. This bar code system contains the information that is provided by the ordering system. As the order is filled, a bar code is sprayed on the shipping container that identifies the recipient. As the container moves through the shipping department, the bar code is scanned and the appropriate shipping information is then sprayed on the container and the box is automatically routed to the correct loading dock.
For networking and hardware, each Riordan plant location currently houses at least one UNIX-based Enterprise and Manufacturing Resource Planning (EMRP) system computer for shipping operations, a Windows network server and a Windows Exchange server. Riordan currently has 140 Windows-based computers of various ages and capabilities for department operations and five Apple G5 computers for R&D. Each location has T1 connectivity to the internet for outside communications, with the China and San Jose locations using satellite base stations for corporate communications. Currently there is no online ordering system.

Operations Recommendations
To achieve the production efficiency that Riordan Manufacturing is seeking, a web-based, fully integrated EMRP system is recommended. Riordan already uses a small version of EMRP in its shipping and packaging departments for order shipping. By expanding this process to include sales, finance and HR, many of these time intensive and repetitive tasks such as data entry and manual inventory audits can be automated. In business, time saved on repetitive tasks is also money saved and will free up employee time for other tasks. Additionally, an EMRP will help standardize many of the operations processes within the company so that company defined goals are achieved and procedures are followed.
Most modern EMRP systems are modular in design. A comprehensive, integrated system will include modules that track orders and production, coordinate shipping and receiving operations, manage inventory and replenishment orders, coordinate finances throughout the corporation and manage HR data. With a centralized data base, company data can be collated, reports can be generated within minutes, and historical data can be better analyzed to help with forecasting future business. By basing the EMRP applications on the company intranet, Riordan can base the full suite of applications at one location and “farm-out” the client applications as they are requested. This will also reduce the need for a company-wide computer replacement as Windows computers have a web browser as part of the operating system package.
Connectivity between the locations should not be an issue as each location has a T1 connection to the internet, and the China and San Jose locations use a dedicated satellite for company communications. A concern that should be addressed is data security. Company data, including employee information is highly sensitive and subject to theft when transmitted over the internet. Plus a company is required by law to ensure that customer and employee data is kept secure. Updated firewalls that use Secure Socket Layer (SSL) or Transport Layer Security (TLS) protocols should be installed at each location. These protocols create a secure connection between the two computers, and all data sent and received is encrypted. Additionally, use of Public Key Infrastructure for emails should be implemented as email is not a secure form of communication.
With the automation of the operations of the company comes the need to add hardware to fully integrate the system. Hand scanners or iPads/iPhones for shipping and inventory control departments to scan in and out merchandise and materials. With these devices a localized wireless connection would be required for real-time updates. This connection can be tailored by the IT department for secure, 128-bit encryption to the intranet to mitigate potential security issues.
The final recommendation applies to training. With the integration of a new EMRP, all employees should be trained in recognizing the various ways that hackers try to gain access to company information. Spoofing, phishing, pharming and social engineering are all ways that outside entities gain personal and corporate information. Initial training should also be reinforced with annual refresher training, as there is nothing more dangerous to privileged information than employee complacency. Additionally, corporate officers and IT should draft an updated Acceptable Use Policies that reflects the use of the new systems.
These recommendations will help move Riordan Manufacturing toward its goals of reducing costs and increasing efficiency.

References
Laudon, K. C., & Laudon, J. P. (2010). Management Information Systems (11th ed.). Upper Saddle River, NJ: Pearson Education, Inc.
Turban, E., & Volonino, L. (2011). Technology for Management (8th ed.). Hoboken, NJ: John Wiley and Sons, Inc.