Riordan Manufacturing Service Request SR-rm-022: Analyze HR System

Tshombre Carter
BSA310-Business Systems
August 13, 2013
Susan Peterson

Introduction In this paper I will describe each of the key stakeholders or stakeholder groups in Riordan

Manufacturing who should provide requirements for the service request, describe two separate

information gathering techniques that should be used during the proposed project identify two

factors that are necessary to ensure that the information required for the project is gathered

successfully, define the scope of the project by specifying business functions that will be

included in the project describe the project’s operational, technical, and economic feasibility

areas that are examined in the SDLC analysis phase summary of the main points of the entire

paper.

Service Request Riordan Manufacturing placed a service request for all locations to review existing business systems. All areas within the organization are using various business systems; all of which represent challenges. The organization needs to identify problem areas and integrate solutions. The current systems differ at each location creating compatibility issues; the Michigan plant's application system developer is no longer in business leaving no access to updates or troubleshooting. San Jose accounting application contains no source code eliminating the ability to modify the program.
Scope
Riordan Manufacturing has many issues regarding their Finance and Accounting department. Although they have implemented some basic components to each system that include: General ledger; Accounts Payable; Accounts Receivable; Order Entry; Procurements; Sales and Purchasing History; Invoicing and Shipping; Payroll; Financial Reporting; EDI; Bar Code Reading; and EDSS (Executive Decision Support System), the EDI, Bar Code Reading, and EDSS are only implemented in their San Jose location (Apollo Group, 2012). Another area of concern regarding Riordan Manufacturing Finance and Accounting department is the lack of system compatibility between the company’s four locations. Each location uses independent software to handle their financial operations. The current system creates an extra workload and creates further issues such as requiring reports to be generated manually, data is provided through hardcopy reports requiring them to be re-entered, and data that is provided by data files must be converted to the correct account codes (Apollo Group, 2012). Riordan manufacturing is wasting valuable time and money by not updating the system so that it is compatible between all four locations. The implementation of a compatible system will create less work and generate a higher quality of data with fewer errors. The following, are suggested requirements that will provide Riordan with a more profitable and stable Finance and Accounting department: • Provide all locations and work stations with compatible hardware/software programs • Implement the EDI, Bar Code Reading, and EDSS in all three operating entities (Georgia, Michigan, and California) (Apollo Group, 2012) The Income Statement for Riordan shows a profit loss in 2005 versus 2004 although sales in 2005 where higher. Operating expenses have risen significantly between the two years which directly effects profit. Implementation of the suggested requirements will lower Riordan Manufacturing’s operating expenses which will result in a higher profit margin. As discussed previously the current normal operations for the finance and accounting department are missing goals and deadlines by 15 to 20 days regularly. This has nothing to do with an unsatisfactory workforce in this instance but a very archaic and unorganized operating scheme and plan for the department. Without a solid ERP there will constantly be unnecessary administrative tasks and procedures which take up the majority of the department’s time. A new system will also aid in the operational efficiency of other departments as well. The marketing department can benefit directly from the implementation of a Consolidated Reference Model (CRM) through ERP. Immediate results are anticipated and will accomplish digitalization of obsolete technologies and outdated methods of record keeping. This will enable the company to easily access and evaluate historical data and predict new trends. In addition, the development of a standardized integrated customer management database system will identify specific and projected needs of customers. This directly affects the objective of the company and lowers costs while increasing revenue. This ERP system would need to span the country and parts of the globe to connect with all branches and partners of Riordan to reach its maximum potential as currently most offices are using different procedures, software, and hardware. For example, Riordan’s Michigan office is using software that has reached the end of its projected life cycle and has zero technical support from the manufacturers. Problems like this are numerous within Riordan therefore an upgrade of all sites to a standard baseline consisting of up to date software and hardware is an immediate requirement. The current finance and accounting process puts a gigantic burden on Riordan employees and poses constant challenges. This negatively affects the way employees look at the company and reduces the likelihood of retaining a quality workforce. Perhaps even more important is the negative result problems such as this pose for the company’s fiscal outlook for the future. Using a current and proven ERP will include modules that assist all aspects of business from accounting to inventory management. Inventory management could be streamlined by including a bar code scanning system for all items within inventory which all ties into a database for easy access and locating. The tagging of all items currently within inventory will take some time but is essential and well worth it in the long run. This is one of the few processes that will not see immediate results.

Human Resources

The human resources department at Riordan Manufacturing currently uses HRIS as the system of choice for basic personal information, pay rate, personal exemptions for taxes, hire date, Seniority date (which can be different from hire date)**direct citation from intranet**, organizational information to include managers names and department for budge purposes, and vacation hours for employees. The payroll clerk authorizes information changes that must be requested in formal writing with special company documents to modify the system. Policies and procedures are broken down into several areas outlining how the system works. The areas include annual pay adjustments, compensation philosophy, employee and labor relations, employee recognition programs, global operations, key jobs, pay grades, recruitment and selection practices, and training and development. Under this section each area explains how the employee will be affected and rewarded. This section also outlines particulars that affect the company. Currently the company employs Microsoft Office Excel for most record keeping. These files are usually stored in separate locations depending upon the information. Excel is employed for job classification to include: title, location of position within the company hierarchy, education, and experience required. The company hierarchy is displayed as a chart within the Human resources office to give a breakdown of where each position is within the company. This provides a visual representation for the data contained within the Job Classification Excel sheet. Managers keep Excel sheets with employee information including FMLA absences and all requests for accommodations under the American Disabilities Act (ADA). The training and development specialist maintains an Excel sheet for all training and development activities, while recruiters maintain Excel sheets for open positions within the company and applicant information for current available positions. Applicant resumes are stored in a central location with an Excel sheet tracking the status of an applicant. Job analysis results, salary surveys, and individual compensation decisions are all kept in an Excel sheet with the compensation manager, while employee specialists maintain information about complaints, grievances, and harassment complaints in locked file cabinets in their offices. Workers compensation is handled by a third party that maintains the records separate of the company. All excel files are kept separate from other internal departments, thus record keeping is a daunting and laborious task. The human resources department at Riordan Manufacturing currently uses HRIS as the system of choice for basic personal information, pay rate, personal exemptions for taxes, hire date, Seniority date (which can be different from hire date)**direct citation from intranet**, organizational information to include managers names and department for budge purposes, and vacation hours for employees. The payroll clerk authorizes information changes that must be requested in formal writing with special company documents to modify the system. Policies and procedures are broken down into several areas outlining how the system works. The areas include annual pay adjustments, compensation philosophy, employee and labor relations, employee recognition programs, global operations, key jobs, pay grades, recruitment and selection practices, and training and development. Under this section each area explains how the employee will be affected and rewarded. This section also outlines particulars that affect the company. QuickBase is a software solution that provides easy migration of most other software information into one central database with spreadsheet abilities and usage. This software will allow each department to share files but also to keep updated information available for the human resources department. This software provides the ability for encryption of files as a security measure and the ability to initiate usage and access restriction. Other issues that the human resources department currently faces can be resolved with additional features available with this new software, to include securing employee files and information, and allowing only authorized users to view certain files from the intranet. Access restriction will be able to dictate who can view what information from the system but allow endless access to needed information for the users who are authorized. This will give a superior advantage to the management team, as they will be able to view current information and generate unlimited reports for future record keeping. This system also provides the human resources department the ability to track employee progress, and store resumes of applicants in one central system. This system works as a database with spreadsheet functionality. This solution is to provide work efficiency, enhance communication between departments, expand profitability, and maintain accurate accounting within the company’s assets. Unlimited QuickBaseHuman ResourcesReports feature can produce reports for the human resources department to provide additional planning and accountability to increase company profits.

Summary After thorough analysis of the business systems used at Riordan Manufacturing, it has been determined that these systems and subsystems have room for improvement. The current systems lack communication between systems and departments, therefore resulting in inaccurate, problematic, or even missing records. Errors like that directly affect the business and customer relations in a negative way. The implementation of recommended programs, subsystems, and policies will benefit the overall business operations of Riordan Manufacturing. It would be unfortunate for a company as large as Riordan to go out of business due to antiquated IT gear and poor standard operating procedures, yet that is exactly where Riordan is heading if drastic changes are not made. The business desperately needs an ERP update to improve all operating procedures and departments. Yet updating software will not be enough. All hardware needs to be standardized across the entire company to include every branch within the United States and the satellite branch operating in partnership with a company in China. The partnership with a Chinese company does pose other more specific security dilemmas that must be addressed. Data security should be a major part of any company regardless of where they operate but even more so with a foreign business partner. New hardware and software must be acquired to bring Riordan’s information security up to speed. Riordan is a good name that is already out across the market with a large supply of loyal customers. If these changes are made immediate results will follow with a more successful company drawing in a larger profit with a secure future in the respective market.
References
Apollo Group Inc.. (2012). HRIS. Retrieved on May 20, 2012 from: https://ecampus.phoenix.edu/secure/aapd/cist/vop/Business/Riordan/HR/HRIS.asp
Apollo Group Inc.. (2012). Legal Overview. Retrieved on May 20, 2012 from: https://ecampus.phoenix.edu/secure/aapd/cist/vop/Business/Riordan/Legal/Overview.asp
Apollo Group Inc.. (2012). Riordan Manufacturing Inc.. Retrieved on May 20, 2012 from: https://ecampus.phoenix.edu/secure/aapd/cist/vop/Business/Riordan/index.asp
Apollo Group Inc.. (2012). Sales and Marketing Overview. Retrieved on May 20, 2012 from: https://ecampus.phoenix.edu/secure/aapd/cist/vop/Business/Riordan/Marketing/MIS.asp
Bureau of Consumer Protection (2006). Financial Institutions and Customer Information: Complying with the Safeguards Rule. Retrieved on May 20, 2012 from: http://business.ftc.gov/documents/bus54-financial-institutions-and-customer-information-complying-safeguards-rule