Riordan Inventory And Manufacturing Process Improvement Business Requirements
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Riordan Inventory and Manufacturing Process Improvement Business Requirements
Service Request SR-rm-001 has been requested by COO Hugh McCauley of Riordan Manufacturing. McCauley has asked that Team D suggest specific systems changes that would improve their inventory or manufacturing processes. Riordan would like to use computer system utilization so that they may become more efficient. Our Team has been asked to create business requirements for system upgrades and improvements for either IT or IS consultants use.
During review of the Riordan Manufacturing Companies Inventory and manufacturing processes, we have found areas that are in need of improvement. We will discuss the present processes and how these can be changed to improve the efficiency.
Riordan Manufacturing currently processes the receiving of raw materials by manually entering the receipt of the materials, which could cause inaccurate information due to human error. The receipt of this material is not updated in the system until the next day, or even within the next week, which causes discrepancies to the inventory or raw material. This process could cause the unnecessary ordering of products not needed. With this new system, raw materials will be uploaded with a pre-designated number, which would allow the loading dock personnel to input the receipt of this material. The receiving dock would have a thin client/handheld computer with the information loaded on it for all of the raw material that would be received. When the material is received the employee would input the receipt and quantity. The invoice would then be scanned into the system for accounting purposes.
When looking at the inventory manufactured, the raw materials are being used and then reported to an inventory clerk who inputs this information into a system. Again, this is being done manually and may not be updated to the system for a day to a week later. This could cause inventory discrepancies such as having either over stock or having a shortage of material. Incorporating the use of a thin client or a hand held computer in this area, with the raw materials’ information and quantity, would allow for an up-to-date account of the inventory.
The shipping department, at this time, fills the order for the invoice but does not account for the inventory on the shelves. We are proposing to utilize RFID tags on all inventories to simplify accountability. With the use of the RFID tags the shipping personnel will be able to use a handheld computer to scan the tag and subtract it from the inventory. This will allow for an accurate inventory list, which will eliminate the possibility of shortage or over stock of products.
Having all raw materials with the pre-designated number and quantity of each product in the thin client/handheld computer will allow a smother process. When the raw materials are being used, an authorized employee with correct access will scan or enter the type of raw material being used and the quantity being used. When the system detects a raw material usage from an approved employee, a timestamp will be created noting time/date the inventory was used. The system will accept the final product scan by an approved employee. When the system detects the final product scan, the system will automatically update the total number of products created and the number of products left to create for each order being processed. The system will store and display the information for all pending orders to any employees who have access.
The system will be designed on a bar coded type system with an identification number pre-designated for incoming raw materials and outgoing final products. Each company will be identified by a pre-designated company code for tracking of incoming and out going shipments. The system will assign all outgoing shipments with a master order number displaying all products in the shipment. The system shall accept all incoming orders either by individual scanning of all products in a shipment or by a master order number. The system will be able to distinguish all products listed under a completed order number and will be able to operate on a wireless, coded network for supervisors to have access. The system will automatically update data inventory for raw material once a shipment has been confirmed from an approved manager’s wireless device. The System shall provide a large data server for all invoices to be scanned in and stored for record purposes. Invoices scanned in will be stored by a Date-Time-Company Code-Order Number, as well as a search function providing employees the ability to retrieve original invoice forms. The system will update all data servers for receiving, shipping, raw materials used and final products produced continuously throughout day-to-day operations.
The following steps are example procedures when the new system has been implemented.
Raw Materials Receiving
– Required Materials: PDA
– Required Personnel: Receiving Area Supervisor (RAS), unloading crew
The RAS will preload the PDA with the scheduled order prior to the shipments arrival.
The RAS will verify the PDA’s incoming order against the shipping document.
The incoming order can be adjusted by the RAS should the shipping document differ in quantity or product.
Once all items of the incoming order have been verified, the RAS will mark the PDA’s incoming order complete.
Marking the order complete will update the inventory automatically.
The unloading crew may take the supplier’s order to Riordan’s inventory.
Manufacturing with Inventory
– Required Materials: Inventory PDA
– Required Personnel: Manufacturing crew
The manufacturing crew will decide on the type and quantity of raw material they need.
An employee ID will be entered into the inventory PDA to activate it for raw material inventory removal.
Raw material quantities will be marked as removed on the PDA by the employee.
The PDA will capture the employee ID, timestamp, material and quantity removed from inventory.
The inventory will be updated automatically.