Riordan Virtual Organization
June 1, 2009
INTRODUCTION
The Riordan Manufacturing Organization has recently redesigned its operational format. Due to these changes they will now be in need of new operational processes. It has been the charge of this work group to have an open discussion on the possible new design plans for this company and the pros and cons of each of these new options. The following is what the team has developed as the dialogue to start the transition to the new processes. In the coming weeks the new processes will be chosen and implemented within the Riordan Manufacturing Organization.
FINANCE and ACCOUNTING-BOTTLENECKS
Current Situation Regarding F and A Systems:
San Jose has a license for a fully integrated Windows based ERP manufacturing, distribution and financial management software application specifically designed for plastics processors and process and assembly manufacturers.
Michigan had purchased a vendor developed software application and the attendant source code for their F and A and process application.
Georgia had purchased a vendor (different from Michigan) developed software application and the attendant source code for their F and A and manufacturing process applications.
Challenges:
The F and A department has been unable to achieve anything remotely resembling "seamless compatibility." Some F and A data is provided to corporate via data files; some data is provided via hardcopy reports and must be re-entered; some data is provided via data files but must be converted (redirected) to the proper account codes and the list goes on.
Consolidated close of the General Ledger and subsequently the Income Statement and Balance Sheet is labor intensive and normally not completed until 15-20 days after month end.
Compliance with new government required reporting requirements at the consolidated level is difficult at best.
Riordan Enterprises finds the situation unacceptable and has mandated a...