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Unformatted text preview: e all the shipping information is completed, the forms are sent to the inventory clerk for daily
end of the day entry into the computer system.
The Riordan Manufacturing Company has many sub-systems and is defined as follows:
Electronic Data Interchange (EDI), Bar Code Reading, and EDSS (Executive Decision Support
System). In some cases, such as a smaller company, these so-called sub-systems might not
necessarily be automated. However, for a company the size Riordan it is a necessity to automate
these sub-systems to maintain accuracy and accountability.
A company such as Riordan normally has several business systems that are composed of
sub-systems and different processes. The three sub-systems that were mentioned previously
would primarily fall under the umbrella of Information Systems. Noel Amerpohl, a writer for
PRO magazine, speaks of business systems in this manner, ³In the instance of this business,
every business is a system. Within the business, many sub-systems keep each area performing.
Like so many things in business, they are all interlinked; one area of business is dependent on the A complete business 4 performance of another.´ (2005 April. Systems for your company. Retrieved from Vol. 17 Issue
5, p14-17, 3p)
Riordan Manufacturing¶s current business systems are organized and used to their best
potential. However, upon deeper investigation there are several areas found where a business
system process improvement might enable the operation to run smoother. One such area
identified was that the supplier of the Finance and Accounting (F&A) software in Michigan is no
longer in business. Even if the software is operating smoothly, the vendor can no longer provide
support or product updates. Additionally, the Michigan division software differs from the
Georgia division software. Valuable time and expense is wasted trying to interpret and
document the data provided by each separate version and then process that information into the
main system. A solution to this problem would be to have headquarters purchase the F&A
software and licenses for every plant so they are all operating under the same terms. A second
issue is that of consolidating the general ledger, which, subsequently, makes the income
statement and balance sheet labor intensive. Right now, this process is running 15-20 days after
the months end. The above solution would help with the general ledger so all systems are
compatible and able to expedite the process of manually entering data after hard copy reports are
mailed. After this problem is corrected, then a database program or an auditing software system
should be purchased to produce monthly reports of the data already entered into the system. This
process improvement will assist in audit report creation and significantly reduce the current man
hours required to perform this end of month task.
The current reporting process also makes it difficult to comply with newly enacted
government regulations. Hiring an outside firm to assist in the reporting process would be a
simple solution in getting the reporting requirements done easily and accurately while at the A complete business 5 same time, saving internal personal ho...
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- Fall '11