Transaction Processing System of Riordan Manufacturing
BSA/310

Transaction Processing System of Riordan Manufacturing Riordan Manufacturing is a global plastics manufacturer who is an industry leader in the field of plastic injection molding. They produce everything plastic from plastic containers, fans, plastic bottles and even heart valves and stents. With the amount of goods being shipped every day a critical information system is the transaction processing system (TPS) to keep track of the inventory in house as well as the products being shipped to the customer. A transaction processing system is one of the most important information systems because it is the building block from which the other systems receive their information. Without a transaction processing system management information systems, decision support systems, and enterprise resource planning, would not have the data needed to analyze to make the correct decisions in their systems. Transaction processing systems are used within a company to monitor and process large amounts of data used on a day to day basis. Companies will use a TPS to when processing orders, purchasing materials, updating inventory and accounts payable and received. After reviewing Riordan’s inventory management, they are using transaction processing system to keep their raw materials updated in the system. At the end of the day the receiving area supervisor will give the log of raw materials and associated shipping documents to the receiving clerk to enter into the inventory system. This system will keep track of all of the materials and inventory available for use in the factory. From there the raw materials are taken out of inventory and the manufacturing staff will complete an inventory usage form to show the amount of materials taken from the inventory. The inventory clerk will then enter the information about what material was taken into the inventory system updating the amount of raw materials left to use. After the final products and sub-assemblies are built the manufacturers complete an inventory form and give it to the clerk to update the inventory system with the amount of final goods made. From there orders are placed by the customer and the inventory system is updated after the goods are shipped. The transaction process system at Riordan Manufacturing is currently a manual where all of the inventory information is being entered manually by a clerk. A TPS in batch processing mode for a specified amount of time and processes and stores the information for later (Turban & Volonino, 2011). This is different from using an online transaction processing system where the TPS processes each transaction as it occurs. Using batch processing is more cost efficient but the downfall is the data is not always up to date. By using the On-Line processing system the Riordan is able to keep their system updated with the most up to date information no matter which part of the factory is updating the inventory or raw materials in the inventory system. With a company as large as Riordan Manufacturing it is critical that every department has the most updated information in order to avoid any errors. The transaction process system at Riordan Manufacturing is a critical information system in order to keep the inventory, manufacturing, and order fulfillment working seamlessly. Without a TPS Riordan would be trying to keep all of the information by hand or in a spreadsheet; which wouldn’t be an efficient use of labor or time.
References
Rainer, R. K., & Cegielski, C. G. (2011). Introduction to information systems: Supporting and transforming business (3rd ed.). Hoboken, NJ: John Wiley & Sons.

Turban, E., & Volonino, L. (2011). Information Technology for Management Improving Strategic and Operational Performance (8th ed.). Hoboken, NJ: John Wiley & Sons.
Riordan Manufacturing. (2012). Retrieved from https://ecampus.phoenix.edu/secure/aapd/cist/vop/Business/Riordan/Internet/index.asp