Project Proposal
Project Proposal for Riordan Manufacturing
Scanning System Integrated with Data Collection Software
LaTasha Harris, Diane DeVoe, Michael Gilland, Natacha Hammerstad
CIS/319
David Horvath, CCP, MS
March 2, 2016
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Project Proposal
Executive Summary
Purpose of project
The purpose of this report is to present current issues that are observed within Riordan
Manufacturing’s inventory and manufacturing processes and suggest specific ways these
systems can be improved.
Current procedure
Currently Riordan Manufacturing has a manual inventory and manufacturing process.
This process requires area managers and manufacturing teams to compare and fill out
paper documents. The seven steps include:
1) Receiving documentation
2) Scheduled orders documentation
3) Orders received documentation
4) Raw materials/sub-assemblies documentation
5) Sub-assembly/final product documentation
6) Sales order form documentation
7) Shipping documentation
In addition, data entry clerks are needed to enter the information into the computer
system.
Issues with current process
In summary, the problems with the current procedures are:

Slow operation

Inefficient use of manpower

High cost of labor
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High cost of lost and damaged inventory
Solution
Riordan Manufacturing should invest in putting into place an automated system
for handling the inventory and manufacturing processes. Integrated Barcoding Systems or
IntelliTrack Inc. could assist the organization with implementing wireless, bar-code
scanning system. Both organizations also offer software that will automatically record
receiving, manufacturing, and shipping information.
Benefits

Track real-time inventory movement

Decrease cost of labor

Speed up manufacturing process

Increase accuracy and efficiency
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Project Proposal for Riordan Manufacturing
“Riordan Manufacturing, Inc. is an industry leader in the field of plastic injection
molding” (Apollo Group, Inc., 2004). Hugh McCauley, COO has requested suggestions
for specific systems changes that may improve Riordan Manufacturing’s inventory or
manufacturing processes. Mr. McCauley mentioned that particular attention be focused
on computer system utilization. Computer systems within Riordan Manufacturing need to
become more efficient. Riordan Manufacturing uses a manual inventory management and
shipping process. Employees use paper forms to record the movement of raw inventory,
assembled products, and orders. The documentation is then given to clerks for data entry.
This process will be analyzed and research will be done to determine if there might be a
more cost and time-effective way of doing business. The following proposal will address
detailed descriptions of upgrades and improvements that should be seriously considered
by Riordan Manufacturing’s information systems consultants.
Problem
This current procedure is outdated and in need of considerable improvement. The
manual inventory management and shipping process is slowing down warehouse and
distribution operations. This is costing Riordan Manufacturing time and money.
Inventory clerks are need for data entry into the inventory system. The cost of labor is up
due to the need for clerks to do redundant, manual work. Manpower is not being used
efficiently because area supervisors waste a great deal of time comparing shipping
documents to scheduled orders and logging inventory received. In addition to this,
manufacturing teams waste valuable time documenting the sub-assemblies and finalized
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products that are to be shipped. This time could be better spent developing the products.
In summary, the problems with the current procedures are:

Slow operation

Inefficient use of manpower

High cost of labor
Business Requirements
The purpose of this project is to implement computer software and hardware to
automate production and value chain management in order to increase productivity of the
company and reduce production costs. This project will implement three components of a
single unifying system to improve the inventory management and control at Riordan
Manufacturing based on the goals of each of three areas of the manufacturing processes.
Raw materials receiving will receive a computerized inventory check-in system.
Manufacturing will receive a computerized project management system. Final product
shipping will receive a computerized sales and order fulfillment system.
The current systems are outdated and cause the receiving area supervisor and
manufacturing team to not have the advantage of viewing real time inventory. Better
monitoring and control systems would alleviate the need for emergency purchasing.
Systems Development Life Cycle (SDLC) provides efficient solutions to how the
company manages its inventory and manufacturing processes. Raw materials receiving,
manufacturing, and the final product shipping are the three divisions of inventory and
manufacturing processes. Improvements in each of these stages will require updating or
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new implementation of a computer system that will guarantee accuracy, bestow
unsurpassed customer service, and most of all save the company time and money.
Riordan’s current system is a seven step process that includes a separate document for
each step. These steps or processes are expensive and time consuming, which hinder
future growth toward expanding into a global organization. The seven steps include; 1)
Receiving documentation; 2) Scheduled orders documentation; 3) Orders received
documentation; 4) Raw materials/sub-assemblies documentation; 5) Sub-assembly/final
product documentation; 6) Sales order form documentation; 7) Shipping documentation.
Along with each of these steps an inventory technician is responsible for putting the
information into a computer, which could conceivably be seen as 14 separate steps.
Through extensive study our research team believes that Riordan inventory and
manufacturing process would be greatly improved by putting into practice a Warehouse
Management System, also called WMS. According to Enterprise Resource Planning
(ERP) technology this system provides all subdivisions inside a venture. A Warehouse
Management System facilitates every section within the factory instantaneously and
effortlessly to retrieve any and all necessary inventory, shipping, and receiving
information. Riordan Manufacturing Company states in the mission statement that one of
the company’s goals is to make its products available to the customers. Riordan
Manufacturing will successfully achieve the target of making the company’s products
accessible to customers by applying the use of shipping label printers, a IntelliTrack
Software system and hand held computer devices with the capability of printing. An
Intelli Track Software system would network the whole company through a LAN, Local
Area Network. Production will be immensely increased through the enhancement of real
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time once this restructure is applied. Having innovative operating methods will offer
management a clear, imminent view on how to provide superior traceability.
In terms of the final product shipping, an Order Fulfillment System or OFS will
immensely improve any system that assists in fulfilling a customer order.
Implementation of an OFS typically includes a WHS. An OFS is a system that depalletizes and re-palletizes products for shipment to a sales center. OFS systems
generally vary greatly. The complexity and size of an OFS system is usually only limited
to the size and complexity of ones imagination.
Current Inventory Process Chart
Image Reference: Bond Engineering Solutions
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Solution
Switching to an automated system for inventory management and shipping
procedures will improve operations significantly. Riordan Manufacturing should
implement a wireless, bar-code scanning system that is used in addition with data
collection software. Specifically, the company should turn to Integrated Barcoding
Systems, Inc., a data collection solution provider. “Integrated Barcoding Systems has
been providing integrated data collection solutions for customers since 1988” (Integrated
Barcoding Systems, 2008). This company provides software such as QuikTrac that will
automatically record receiving, manufacturing, and shipping information.
Image Reference: BCIS Inc.
Benefits
Project Proposal
Updating the system can possibly cut the time in half that it currently takes to
move inventory and products. The inventory and manufacturing process would be more
accurate and efficient. Labor costs would decrease, as there would be little to not any
need for data entry clerks. Area supervisors would be able to focus on tasks of greater
important because the supervisors would not have to waste time comparing paper
documents to orders.
QuikTrac Automated Inventory Scanning Process Chart
How does it Work
The proposed integrated scanning system will be managed by the QuikTrac
Warehouse Management System. This system has is capable of tracking (real-time) any
inventory movements throughout Riordan Manufacturing. The system will be able to
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transmit through multiple RF transceivers located throughout the facility. Operators will
have the option of scanning the inventory using handheld RF scanners. This is made
possible due to product specific barcodes located on the inventory. The barcodes contain
information such as location, quantity, size and type of merchandise. If the wrong
barcode is scanned, the QuikTrac Warehouse Management System can instantly alert the
operator of the error. However, if the information is correct, the information is
transmitted within seconds to the inventory database and the operator will receive further
instructions on where to transfer the inventory. Upgrading to such a system can increase
production levels throughout the organization, make efficient use of labor while
drastically reducing operating costs.
Costs and Pricing
Several issues with the current manual process of tracking inventory exist. In
addition to decreased production and increased labor costs, Riordan has experienced a
substantial increase in the amount of lost or damaged inventory. Often the inventory is
lost, misplaced or damaged due to inappropriate handling. The cost associated with these
issues has increasingly cost Riordan about $100,000 per month in over all losses. These
losses are estimated to increase as our customer base increase due to additional demand.
Research conducted on the QuikTrac Integrated Barcoding Systems used at other
companies would provide many benefits to our company. According to Integrated
Barcoding Systems (2008), these benefits include:

Data collection integration into Manufacturing, Accounting and Production
Information Control Systems (MAPICS) with no custom coding.
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Manual data entry for shipping transactions elimination, reducing keystroke errors
by 80% and shipping transaction time by 66%, and saving more than $10,000 in
labor.

Automatic Shipping Information will be electronically entered into the system in
real time, so it will not longer be possible to ship product without properly billing
for it. Avoiding a single error of that type saved some companies an average of
about $60,000.

Automatic generation of manifests and bills of lading.

MAPICS Customer Order Management (COM) training time on average was
reduced by 50%.
The QuikTrac Integrated Barcoding System is relatively inexpensive depending on
the type of setup that is chosen. Basic cost estimates compared to other available models
show the basic system setup starting at $100,000 for a small operation. However, that
estimate can increase depending on the size of the facility and the type of functionality
that is requested for the system. The cost can be expensive as options are chosen that will
better suite our operation. However, the continued rising cost associated with the current
inventory issues, the pros would definitely outweigh the cons if the option to purchase
this system is decided upon.
The QuikTrac 5.5, which is the latest release of its screen integration tool for enabling
OS/400 applications to support wireless barcode scanners would prove to be beneficial
(IT Jungle, 2008). The QuikTrac permits the AS/400 and I-Series shops to chart their
OS/400-based ERP and MRP to a wireless fixed or portable data collection device
without requiring adjustment to the underlying application. Several enhancements with
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QuikTrac 5.5 include allowing the QuikTrac Development module to support scrolling,
SQL interfaces, and grouping of users on a project. The QuikTrac 5.5 furthermore gives
greater control over which users, or groups of users, will have access to sign into the
QuikTrac Manager component. The QuikTrac 5.5 provides another level of security, over
and above any existing I-Series software, by giving users the ability to control other users
when they sign on, which group they access, and what screens they are able to use.
Policies and Procedures
These policies and procedures are designed to address any Inventory Control issues at
Riordan Manufacturing. If an operator should have any questions concerning this policy,
they should immediately address any concerns with the Supervisor.
1. Inventory accuracy must be a priority throughout the organization and is
everyone's responsibility. This level of importance should be demonstrated at all
levels. Remember that all processes are specifically designed to address the
concerns of the customer. There should be no attempt to compromise them in any
way. In short, always follow the process.
2. All operator’s should responsibly and quickly to notify his or her supervisor
immediately of any discrepancies. While no system is human proof, errors can
and will happen. All operators should seek opportunities to address them
immediately if such discrepancies are found. Always maintain inventory integrity.
3. As stated earlier, no system is human proof, always look for opportunities to
make the processes work better. Operators should look for errors and contact his
or her Supervisor to implement changes that will help eliminate or reduce them.
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4. All operators are required to attend any operator level training on the Quik Trac
Warehouse Management System. Operators will be required to take a test to
determine if the minimum skill set was achieved and must successfully pass with
at least 80% proficiency to be considered certified in this process. This test will be
re-administered every 45 days or at the discretion of Management.
5. Even though the Quik Trac Warehouse Management System is fully automated,
random cycle counts must be conducted manually to ensure system integrity.
Inventory accuracy must be maintained at 98% compliance rate at all times.
Everyone is responsible to ensure that this level of accuracy is maintained.
6. Errors are errors and all operators make them, however, if an operator is not
following a documented procedure, it would be considered a deliberate decision
made by the operator not to follow the procedures that he or she was trained to do.
Anyone caught not following the documented procedures will be disciplined
according to the guidelines set forth by the Human Resources Department.
Conclusion
Riordan Manufacturing’s inventory and manufacturing processes are out-of-date
and in need of extensive upgrading. Riordan Manufacturing is using a manual system of
comparing and filling out paper documents that are later input into the computer system
by data entry clerks. Integrated Barcoding Systems or IntelliTrack both provide an
effective solution to the manual system Riordan Manufacturing is currently using.
Operators will scan inventory as it flows through the manufacturing process. This can
potentially reduce shipping transaction time by 66% and inventory such as raw materials,
sub-assemblies, and final products can be tracked through the system at real-time of
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movement. While the setup costs for implementing an automated system can be costly,
Riordan Manufacturing will be saving time and money in the long run. Data entry clerks
will no longer be needed which will save on labor costs. Managers and manufacturing
teams will be able to focus attention on the important functions required by their
positions. Policies and procedures were suggested in this report to propose a minimum
skill level requirement, explain how operators of the new automated system should
handle any issues that arise, and clarify certain steps that operators will need to endure
throughout the process.
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References:
Apollo Group, Inc. (2004). Riordan Manufacturing. Internet Site. Retrieved January 20,
2009. CIS/319-Computers and Information Processing.
https://ecampus.phoenix.edu/secure/aapd/CIST/VOP/Business/Riordan/Internet/In
dexPort.htm
BCIS, Inc. (2008) Company Website. Image retrieved on January 24, 2009, from
http://www.barcode.co.th/BCIS/bcisp1.jpg
Bond Logistics Inc (2008) Company Website. Image retrieved on January 24, 2009 from
http://www.bastiansolutions.com/images/handheld-scanner.jpg
Integrated Barcoding Systems. (2008). Case Studies. Retrieved January 20, 2009 from
http://www.intbarcode.com/
Integrated Barcoding Systems. (2008). Home. Retrieved January 20, 2009 from
http://www.intbarcode.com/
ITJungle: Midrange Stuff. (2008.). Retrieved January 25, 2009, from Midrange Stuff:
http://www.itjungle.com/mso/mso111103-story06.html
Riordan Manufacturing: Technology Integration For Inventory And Manufacturing
Processes. Anti Essays. Retrieved January 25, 2009, from the WorldWide Web:
http://www.antiessays.com/free-essays/17701.html
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