Service Request SR-rm-Processes Evaluation
Organization: Riordan Manufacturing
Locations: San Jose, California, Albany, Georgia, Pontiac, Michigan and Hangzhou, China
Description of Request:
To analyze the current procedures in their inventory control; and to define business requirements for possible upgrades to the system and improvements.
Summary:
Riordan Manufacturing requested assistance in order to provide specific recommendations for possible improvements to their inventory control system. Business requirements were established using a set of metrics to evaluate three options for improving inventory practices at Riordan.
Background of Request:
Counting by hand can sometimes cause a miscount. To avoid any miscounts that could be created by such counting. Riordan had several options evaluated. Two of the three options that were evaluated were Materials Requirements Planning (MRP), and Vender Managed Inventory (VMI) from Enterprise Resource Planning system (ERP). The metrics allows the two systems to be scored based on the priority of business requirements, which provided the basis for recommendations to Riordan. In addition, to evaluate the two systems, the evaluation team utilized a Flow chart to develop implementation reasoning for project management.
Summary and expected results when completed:
At the end of December, the end of the year, their inventory Clerk performs a physical count by hand. Once counted, the results are entered into their database which starts the process of shipping requested items and entering the customer’s billing for those items. When companies like Riordan use a scanner to count the inventory the data that is scanned would then be uploaded into the system automatically, this reduced human error. The Inventory Clerk then has full access to the shipment so that they can place each product into the right customer’s account for billing and shipping at the touch of a button. This also enable the...