Executive SummaryHugh McCauley, COO has requested assistance to provide specific recommendations for improving the inventory or manufacturing processes through service request SR-rm-001. The objective for this service request is to analyze the current processes and define business requirements for system upgrades and improvements. After numerous interviews and investigations, the team determined that the inventory processes provided the greatest opportunity for improvement.
Business requirements were established using a set of metrics to evaluate three options for improving inventory practices at Riordan. The three options evaluated are Vender Managed Inventory (VMI), Enterprise Resource Planning system (ERP), and Materials Requirements Planning (MRP). The metrics allowed the three systems to be scored based on the priority of business requirements, which provided the basis for recommendations to Riordan. In addition to using a metrics table to evaluate the three systems, the evaluation team used a Gantt chart to develop implementation timelines for project management, assessment, hardware/software installation, user training, and software support.
Hugh McCauley advised the team of the constraints of a budget with a one year implementation deadline. The team also completed an analysis of the return on investment (ROI) for the ERP solution. This analysis proved that the ERP solution would greatly reduce inventory costs for Riordan. Taking into account the business requirements and parameters set by Riordan, the team can make a recommendation.
After careful analysis using the team recommends Riordan implement the ERP system to improve their inventory processes of raw materials. Riordan has two plants in the United States and one in China, so integration will be very important with implementation and meeting the time lines. The ability to use Riordan's existing hardware was also an important consideration for keeping cost down. The total implementation time for the ERP solution from start to finish is projected to be 12 months...