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Organizational Issues And Trends

Introduction
The COO, Hugh McCauley has requested that a service request SR-rm-001 process evaluation be written for Riordan Manufacturing. The need is a suggestion of changes that will improve the inventory or manufacturing process for the company. To recommend changes for the inventory process, the computer system will be used and new tools and software will need to be used. Ultimately creating a proposal for system upgrades and improvements implemented for cost and time efficiency.

Executive Summary
Riordan Manufacturing is a global manufacturer of various plastics with annual revenues of $46 million. The two year sales objective for annual revenues is to reach $50 million while maintaining the current cost structure. The incremental revenue will originate from new customers as well as by quickly responding to customer’s requirements and developing new products. Currently inventory assets exceed $7.8 million and are projected to grow as new products are developed. Managing the inventory cost and accuracy at four of the Riordan Manufacturing locations will not be feasible with the current inventory management process and systems.
The intent of this project is to recommend a centralized inventory management system that will allow Riordan Manufacturing to manage efficiently inventory globally and reduce inventory cost by 20%. Additionally, the new inventory management system will prevent inventory inaccuracy and increase productivity in purchasing and logistics by accurately forecasting demand for materials.
The new inventory management system must be developed and integrated into the global operations within six months to achieve a 20% inventory cost reduction by the end of 2008. The inventory management system will allow for many different currencies, and users of multiple languages. Manufacturing operations will also use the system to determine the productivity and manufacturing yield in each of the manufacturing facilities to decrease...