Executive SummaryOn March 1, 2006, Hugh McCauley, COO of Riordan Manufacturing, requested a proposal to include specific systems changes that improve inventory or manufacturing processes. McCauley described how the organization would like to use computer systems to become more efficient. The expected results of this proposal are to create system upgrades and improvements to be given to the information technology (IT) Department or information consultants. After our team viewed Riordan's resources, we noticed a few aspects of the computer system to be upgraded. Each location has its own finance and accounting system, which is a problem because systems cannot communicate with each other. Electronic data interchange (EDI), barcode, and executive decision support system (EDSS) are only in San Jose; yet, all locations need these resources. The Michigan location purchased software from a vendor, but the vendor is not in business anymore. The Georgia location purchased software from a different vendor than Michigan location.
Some data is provided to the main office via hardcopy reports and must be retyped, while some data is provided via data files but must be converted to the proper account codes. These issues impact all stakeholders including owners, investors, consumers, and employees. Recommendations our group has for Riordan Manufacturing is for all locations to run under the same software programs and be compatible, all locations be networked together, all locations become equipped with radio-frequency scanners for stocking and unloading, and all locations become equipped with handheld scanners networked with all locations' computer software. These improvements to Riordan are going to cost a great deal; the long-term return on investment will likely surpass the investment because these areas of Riordan Manufacturing will increase production and customer satisfaction by consolidating the accounting, finance, inventory, and auditing systems into one centralized database and will significantly reduce IT support,