BSA 375 Essay

Currently Riordan uses a very conventional, antiquated process for inventory management. Most inventory checks are done through a printed form and then handed off to an Inventory Clerk for data entry. This process consumes time and allows room for human error.

To enhance the inventory management at Riordan Manufacturing, implementation of a barcode scanning system and Vendor Managed Inventory (VMI) system is recommended. This system will provide full automation of inventory tracking from the receipt of raw materials to the shipment of finished products. This will reduce human error, accelerate the movement of inventory, and reduce stock-out. In addition, it will solve Riordan’s supply chain problem by implementing a shorter and more efficient supply chain process.

Riordan Manufacturing’s objective in implementing a new inventory management process is to increase revenue and financial stability. Automation of the inventory management system will lessen human discrepancies/errors thus minimizing lost revenue/cost. The system will also minimize the time the current staff would need to enter manually inventory data allowing the company to effectively use those resources in other areas of the organization.

This proposal outlines the need for Riordan Manufacturing to implement a new system(s) that will enhance their current inventory and manufacturing processes. Suggested implementation consists of barcode scanning and fully automated inventory management, and Vendor Managed Inventory (VMI). Incorporating these processes will provide better efficiency, effectiveness and increased productivity to Riordan Manufacturing’s processes. These systems will need to be implemented corporate wide to give inventory and manufacturing controls.

The first step of the process design for this company is determining the requirements for the project software, team members, and hardware. The project team should consist of the project manager, three programmers, four IT techs, and testers from the Human Resources (HR) department. The project manager will keep track of the project by keeping documentation of each phase aspect and determine the software and hardware requirements for the project. The programmers will implement the new software, installing and customizing as necessary to the project. The IT techs will install and test the hardware, and network the new system among the HR department. The testers will test the new system and document and report any errors to the project manager. Any errors that do occur in the testing phase will be resolved by the project team, and then be retested. When all phases have been completed, a document of completion will be signed.

The hardware needed for the system will include upgraded workstations that will support the new software, barcode scanners and readers for shipping, receiving, and production areas, and printers that are current with new software. All new computers will run in compliance of the company policies. The computers will be networked within the HR department, which will allow give each member of the HR department access to the company’s intranet and data. Upgrading of the current hardware is also recommended. Upgrades of the cabling, server, routers, and switches should be included.

Implementation of the Barcode Scanning system will allow inventory control throughout all of Riordan’s plants, compiling inventory of raw materials and finished products in one central location for each plant. Raw materials can be coded upon arrival and scanned in to the system. When taken from inventory and placed into assembly the items will again be scanned removing them from initial inventory into the manufacturing process. When final assembly of the product is finished a new barcode will be placed on the item and scanned to enter in to finished product inventory. The barcode scanning is a mobile system that permits for extreme flexibility throughout the plant. It will sync to a PC to update

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