Systems 1
The Development Life Cycle
The Systems Development Life Cycle
Narciso Astorga, Chee-Chee Manghram, Brandi Murobayashi
Rhonda Powell, Tina Schniebs
ACC 210
September 13, 2010
Michael Wells
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The Systems Development Life Cycle
The Systems Development Life Cycle
In reviewing Riordans current accounting systems, it has been noted that it is no
longer acceptable to continue with the current accounting system because of problems
presented when integrating information for the creation of financial statements. The
extensive manual labor that it requires to compile data and the need for all reports to have
the same format have contributed to the lack of support for the current systems.
However, to implement a new accounting system, it is important to follow the four stages
of Systems Development Life Cycle (SDLC) so as to achieve the best results from the
process. SDLC is divided into the next four stages: Planning and Investigation, Analysis,
Design and the last Implementation, Follow-up and Maintenance (Bagranoff, Simkin, &
Norman, 2008). Because it is the first step in the SDLC, we believe that it is of immense
importance to plan before implementing that way we know exactly what is needed from
the new system and can plan for any problems that may arise. By planning before we can
eliminate excess costs, and time invested into failing projects.
To determine the requirements needed for the accounting information systems for
Riordan Manufacturing, first the organization must outline what is needed.
At the
present time, Riordan Manufacturing needs a Finance and Accounting system that will be
compatible throughout the company at all of its sites.
Currently, one location has
software that can be used only at that location, as the license does not include application
source code. Another location is using software produced by a company no longer in
business. Finally, a third location has purchased an entirely different system from the
two previously mentioned.
Riordan Manufacturing has determined that the basic
components of each system are the general ledger, accounts payable, accounts receivable,
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The Systems Development Life Cycle
order entry, sales, and purchasing history. Thus, Riordan Manufacturing needs to acquire
a system that will allow all locations to be compatible and work simultaneously (Apollo
Group, 2006).
The SDLC has already been implemented into the organization through planning
and initial investigation. Because Riordan Manufacturing knows that several of their
locations have software allowing the plant to produce reports. Riordan must research and
find what software works best. The best option would be for Riordan to assemble a
steering committee. This committee would be responsible for visiting each plant and
investigate all current systems. The committee must ultimately report to management the
technical, operational, schedule, legal, and economic feasibility.
Once this is
accomplished, Riordan Manufacturing can move forward with the detailed system design
my paying close attention to the processes, data elements, data structure, inputs, outputs,
documentation constraint controls, and reorganization.
Finally, the committee must
present a system specification report, which will be the deciding factor if Riordan
Manufacturing will go with the committees recommendation, and then begin the
purchases, installment and implementation of the new system throughout all their
locations (Apollo Group, 2006).
Riordan Manufacturing faces big challenges in their accounting information
systems. Each facility uses different type of software for their accounting system. In the
Michigan facility they use VMS operating system and VAX4000 workstations,
programmed in C. The Georgia facility uses the UNIX operating system and Windows
as their workstations, in programmed RPG400. The corporate office in San Jose uses the
Windows-based ERF manufacturing, distribution, and financial management software
The Systems Development Life Cycle
application.
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The F&A Department cannot achieve anything remotely resembling
seamless compatibility (Apollo Group, 2006, para. 7).
When Riordan acquired the Michigan and Georgia operating entities there was no
discussion about the financial and accounting systems being used at each location. It is
imperative that Riordan address the incompatibility of their systems because of many
problems arising and wasted resources as a result. The first major problem is that the
extended time of the consolidated close. The General Ledger, Income Statement, and the
Balance Sheet currently do not close until 15-20 days after month end because of the
extensive labor required to consolidate between the three facilities (Apollo Group, 2006).
Company audits, both internally and externally, are also labor intensive and costly. In
addition, Riordan must stay in compliance with reporting requirements imposed by the
government, which has become a challenge because of the incompatible systems.
Based on the above issues and after a thorough analysis of Riordans financial and
accounting systems we recommend that Riordan undergo a major overhaul of their
financial and accounting software. Based on our review, it appears that the San Jose
facility is the hub of F&A consolidation for Riordan. We are also aware that San Jose is
using a fully integrated Windows-based ERP manufacturing, distribution and financial
management software application specifically designed for the plastic processing and
manufacturing industry. We recommend that Riordan continue to use this software, and
train employees at the Georgia and Michigan facilities how to use the program. We
understand that Riordans current license does not include the application source code.
We recommend that they purchase the source code, and phase out Georgia and
Michigans software.
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The Systems Development Life Cycle
The first reason is that Michigans software is no longer supported, and cannot
adapt to the changing industry. Michigans software will be costly to maintain and is
unnecessary. Georgias software is an acceptable solution but is not compatible with San
Joses system. The best solution is to have integrated and compatible systems throughout
an organization to minimize costs and enable communication. These changes will help to
reduce transaction-processing time, assist in developing companywide procedures for the
F&A systems, and increase productivity between departments.
Also because the
software will be constantly updated in accordance with federal regulations, Riordan will
remain in compliance with new reporting laws and procedures.
In conclusion, after completing the four stages of the SDLC, we have determined
that it would be in the best interest of the company to replace current systems at the
Michigan and Georgia facilities.
While keeping and upgrading the system at
headquarters in San Jose, California, so that it would incorporate all three systems of the
company into one. It would be a challenge to train employees at the two new locations
but with the help of the site supervisors and managers, all employees can be transitioned
over to the new system. There will also be online support to help with any question.
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The Systems Development Life Cycle
References
Apollo Group. (2006). Riordan Mfg. Finance & Accounting - Overview. Retrieved from
https://ecampus.phoenix.edu/secure/aapd/CIST/VOP/Business/Riordan/Finance/R
ioFandA001.htm
Bagranoff, N. A., Simkin, M. G., & Norman, C. S. (2008). Core Concepts of Accounting
Information Systems Tenth Edition. Retrieved from University of Phoenix eBook
Collection database.