Riordan Manufacturing is a leader in their industry of plastic injection molding. They have state-of-the art design capabilities that allow them to create plastic designs that are innovative and gained nation and international acclaim. They create everything from plastic bottles to medical stents to custom plastic parts. They strive to be a solution provider and maintain innovative and team oriented working environments. Their goal for the future includes being focused in achieving and maintaining reasonable profitability to make sure that “financial and human capital is available for sustained growth” (Apollo Group, Inc. 2006). Statement of Scope and Goals The objective of Riordan Manufacturing is to create a newly designed Systems Development Life Cycle or SDLC.
That is to deliver high quality systems, provide effective and strong management control measures thru various projects, and maximize productivity of designated systems. The goal is to enhance development within operational measure of the company’s processes, improve efficiency of production and service delivery throughout different departments, and create a positive impact in manufacturing and operational costs in supply of materials and manufacturing (Apollo Group, Inc. 2006). The goals that have been requested are to reduce cost through process improvement and reduce operating costs. Develop and deliver product in a timely fashion, remembering that customer satisfaction is crucial. Develop and MRP process and tools that reduce cost and cycle time. Saving money is the ultimate goal. What is needed for the company is an MRP system that can track and manage raw materials and a finished product inventory across all of their plants (Apollo Group, Inc. , 2006).
The requirements consist of three parts: technical requirements, functional requirements, and general requirements. Technical requirements include software and hardware components including growth and maintenance. Functional requirements include inputs and outputs of the system user interface and projected enhancements. Maintenance and support fall under the general requirements and all documentation and training needs. Supporting Measures for Success One way to measure success of the current project is the actual cost reduction that is asked for by the company. Time management and the time it akes to actually complete the project is another way to verify whether the project is a success. The project must also meet the technical, functional, and general requirements suggested by Riordan Manufacturing for the project to be successful. Remembering at all times that customer satisfaction and cost reduction is the ultimate goal of the company. Summary of Project Feasibility Riordan Manufacturing has a request for an evaluation for the development of an MRP system to track and manage their raw materials and the finished product inventory across all their plants.
To obtain this evaluation, a Systems Development Life Cycle process (SDLC) will be used. In particular, the waterfall method of a SDLC will be used. This stage of the project examines the view of the project and sets the goals (Kay, 2002). Riordan Manufacturing is looking to the reduction of raw materials and finished goods inventory costs. This reduction of raw materials and inventory costs will allow Riordan Manufacturing to focus on better efficiency and reduced cost of manufacturing throughout their plants.
This project will be integrated into the existing database. The SDLC will list all involved parties of the project. Systems analysts, software programmers, and end-users will play a role in the development. Areas to be examined will include current cost of raw materials and finished goods inventory. These costs will be compared to the costs of the finished project. Current Business Process Summary The diagram below demonstrates the SDLC method using the waterfall model. Typically, the waterfall method calls for a 10 step process in the development of the project.
These stages can often be combined, depending on the scope and size of the project (Waterfall Method, 2007). Proposed System Requirement List with Measurable and Objective Terms Riordan Manufacturing has four main offices. The corporate offices are located in San Jose, CA. The San Jose facility uses an IBM pSeries 6E4 Unix ERP/MRP server that communicates over a T1. Riordan Manufacturing has a Custom Plastics Plant in Pontiac, MI. The Pontiac facility uses a RS6000 IBM AIX UNIX MRP II server and a HP-UX UNIX ERP server communicating over a fractional T1 (256k) line.
Riordan has a Plastic Fan Plant in Hangzhou, China. The Hangzhou facility uses an IBM pSeries 6E4 UNIX ERP/MRP server communicating over a T1. The IT Department of Riordan Manufacturing should consider upgrading to PlexOnline’s system that has both components that are purchased and a monthly subscription fee for each plant. With monthly subscriptions, Riordan Manufacturing will not need to implement upgrade processes as upgrades are continually performed by PlexOnline.
Riordan Manufacturing will see increases in productivity, lower inventory levels, less waste of scrap materials, shorter lead times, compliance with other standards of manufacturing, and timely decision-making with better reporting capabilities with the PlexOnline system (ERP Software Systems Index for Manufacturing, n. d. ). Each of the four Riordan plants would have an initial investment of $5,000 for the purchase of the hardware needed to use the PlexOnline system. Then each plant would have a monthly subscription fee for the services provided by PlexOnline (ERP Software Systems Index for Manufacturing, n. d. ).
The system analysis of the Materials Requirements Planning (MRP) showed that an upgrade for all facilities to the MRP II/ERP system would allow Riordan Manufacturing to tie raw materials, sub-components and inventory systems to “marketing, finance, accounting, engineering, and human resources” (Material Requirements Planning, 2006). Each of the four facilities would also need to upgrade servers and line connections for optimal running of the database and more secure communication over the Internet. Determination of Requirements Evaluating the needs of Riordan Manufacturing has shown that there needs to be a more robust MRP system.
Having such a system will allow for the inventory reduction of raw materials. The current system does not provide an efficient means to reduce the raw material inventory and does not met the future needs of Riordan Manufacturing. To accomplish the goals and requirements, a feasibility study will be performed. Soliciting feedback via interviews will be crucial to determining the correct requirements of the system. Within the MRP, several areas will be examined: Inventory supply and demand, control over purchase orders and the flow of inventory (Jonsson & Mattsson, 2008).
List of Confirmed Requirements To implement the PlexOnline system, Riordan Manufacturing would need to purchase hardware for each plant at a cost of $5,000 each. This would be mandatory to run the PlexOnline system. The PlexOnline system does not contain optional products at this time. Proposed System Process View The below process view shows the basic requirements that will be used during the MRP phase. The processes may be updated as the need arise but currently will serve as a focal point. Functional Allocation Modeling (Kim) Logical System Model (Kim)