Service Request SR-rm-012: Business Systems Overview for Riordan Manufacturing
Learning Team A: Ray Babula, Desiree Cervantes,
David Osakoda, Gigi Warburton
BSA 310
January 30, 2010
Jack Davis
Service Request SR-rm-012: Business Systems Overview for Riordan Manufacturing
Riordan Manufacturing has operating entities in Georgia, Michigan, and California, and a joint venture in the People’s Republic of China. Each operating entity uses their own business systems and provides data for consolidation to Corporate Headquarters in San Jose, CA. Management finds the current state of company business systems unacceptable and has hired Learning Team A to conduct a complete evaluation and provide recommended solutions.
Finance and Accounting
Problem Statement
The Finance and Accounting Department cannot achieve anything remotely resembling “seamless compatibility”. When Riordan Manufacturing acquired the Michigan and Georgia locations they did not address incompatibility issues with the finance and accounting information systems (FAIS). The current systems are not compatible for relaying data from the individual locations. Data collected electronically must often be converted to the proper accounts codes, and some data is still collected through hardcopy reports that must be re-entered. It is necessary to minimize the use of human input from hardcopy reports to reduce the number of errors with manual entry.
Current Environment
Riordan experiences the following situation at the corporate level:
← 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.
← There are currently entries in the general ledger that have not been accounted for, and depreciation not calculated.
← Cross-filing under the wrong cost centers skews the budget for different departments.
← An audit (to include external auditors) is required...