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Inventory Process Improvement Term Paper

Inventory Process Improvement This work is focused on "Inventory Process Improvement" and will be comprised of Part One, or the Executive Statement to this work, Part Two which will consist of process flow charts, procedures, or policy statements which articulate the business requirements in terms of specific process or business development needs, Part Three which will include software and hardware recommendations for the information technology solution and Part Four which will summarize the project proposal.

This project is centered on "Riordan Manufacturing." Manufacturer of global plastics, Riordan, employs approximately 550 individuals whose salaries total an estimated $46 million on an annual basis. Listed by Fortune 1000 as having $1 billion plus yearly revenues Riordan Industries completely owns the company. The product line is inclusive of containers for beverages made from plastics in Albany, Georgia while Pontiac Michigan produces plastic parts that are custom made and the Hangzhou,

China plant manufactures fan parts made from plastic. Research and developments is located in San Jose, California. The customers of Riordan include manufacturers of aircraft, auto parts as well as the Department of Defense, makers and bottlers of beverages and manufacturers of appliances.

I. Executive Summary

Ideally speaking the information for each transaction within the Riordan should be entered by the individual or team within the department taking action with or making removal of or being the mover of the materials instead of all of this being performed by the inventory clerk. Although the inventory clerk is at the specific location of the actions with the material the information being keyed in by the department taking the action with materials would be much more efficient as well as giving a "real-time" accounting on the company's intranet.

The purpose of this project is to streamline operations as well as make cutbacks within Riordan Manufacturing Industries.

Stakeholders associated with the project are the employees of Riordan Industries in all locations in Georgia, San Jose, Michigan and in the country of China. This would also be inclusive of the owners of Riordan Industries, as well as the customers of Riordan.

II....

Processes within the Company
Raw Materials Receiving:

Common procedures are followed to effectuate consistent control of quality and operations in all locations. When receiving raw materials, product tracking during the manufacturing phase and finished goods inventory accounting is performed a set procedure is required. Upon arrival of the shipment by truck from the supplier in the receiving area, which is weekly and is on a date organization system, the Supervisor will compare the shipping document on record to the incoming orders schedule. After the supervisor validates the materials in the receiving area the teams in the receiving area will move the raw materials to the area marked for such raw materials within the factory. At the days end the supervisor in the receiving area will give to the receiving clerk the log of all raw materials receiving that day as well as the shipping documents associated with the received raw materials for the day. The information related to the received raw material will be entered into the inventory system by the inventory clerk. The inventory clerk will enter all types of materials received as well as the vendor and the quantity of materials received from the vendor on that date.

Manufacturing with Inventory:

After the raw materials and sub-assemblies are removed from the inventory usage form indicating the materials and types that were removed from inventory as well as stating the quantity of the materials are filled out by the manufacturing staff. The information on the raw materials and sub-assemblies usages are entered into the inventory system by the inventory clerk. As the sub-assemblies are built as well as the final products being completed this information is entered into an inventory form and then given over for updates into the inventory system performed by the inventory clerk. The inventory clerk will enter all of this information that is in relation to the sub-assemblies and finished products into the inventory system.

Shipping -- Final Product:

As orders are completed by the sales department those orders are then entered in the shipping and billing system relating to the customers. The sales orders can be taken by phone or fax and there is a sales staff that can place the orders…

Sources used in this document:
The original processes within the company involved a lag between making the sale and ordering the materials which slows down the entire process within the company costing time and money. Further the lack of automation results in a large loss of time and revenues for the company each year. A system which uses automation in ordering, scheduling receiving, shipping, and building of parts within the company as well as has the ability to after a one-time entry to track real time information in relation to company inventory and cash on hand is a great asset to any company and will result in Riordan Industries saving of time, expenditures and will streamline the company which should show in a reduction in costs and a raise in revenues upon implementation of this inventory management system within all four locations of Riordan Industries.

Microsoft Net (2004) Driving Business Value from the Microsoft Platform) available at: http://www.microsoft.com/NET/Basics.aspx

Ibid.
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