EXECUTIVE SUMMARY
Organizations continually make changes with the aim of achieving operational excellence. Information systems are equally approached this way in order to achieve excellence. Information systems are used to achieve efficiency and increased production through managed information, data and processes. Currently information systems are used in placing of orders, tracking processes to the warehouse, labeling, shipping and delivery to the final user
Riordan manufacturing is a global plastics manufacturer headquartered in San Jose. The company has production lines in Albany in Georgia, Pontiac in Michigan and Hangzhou in China. According to the infrastructural model and geographical location of the company, an ERP system is proposed for the company. ERP system will integrate all the business parts and components across all branches.
The paper details a high level description of the current standing in the company. It will then propose a new ERP implementation system for Riordan manufacturing. The literature includes infrastructural, operational, network and security considerations.
INTRODUCTION
ERP software comprise of different enterprise software modules that are packaged and purchased to aid in the management of internal and external information and data across an entire organization. The modules are based on the individual needs and technical capabilities of an organization. ERP integrates all the business departments –Production, accounting, finance, human resource, and facilitates the sharing of information to serve all those different department needs.
Despite the modular structure, achieving a seamless integration across an enterprise through effective sharing of databases comes at a price that many SME organizations cannot afford. Implementation of an ERP system involves complex technical software integration issues and people issues with the former being more profound in SMEs.
According to Glen (2012) open source technology is becoming an integral business practice that facilitates the development of customized applications that provide more reliability and quality at a low cost. Initially originating from UNIX open systems, open source software has become a powerhouse behind IT innovation in the efficient operation and creation of enterprise business value.
Open source softwares such as Compiere, CarrierNet and VTiger CRM leverage the benefits of an enterprise wide system by facilitating sales, marketing, support and decision making within an SME.
Riordan manufacturing could use information systems and computers to track and evaluate production trends and customer orders and tailor the process to suit each an individual member. They could use information systems for sales, marketing and informing its members of discounting deals. This will get in more members through efficient market research and niche definition leading to profits. In creating customer intimacy, they could allow its members to review their ordering trends. A network could be created and information systems used to share statistics among franchises and target projections.
CURRENT SITUATION AND BUSINESS REQUIREMENTS
Since 1992, the company has been relying on an outdated HRIS system. The system is used for tracking employee details, rate of pay, deductions, exemptions and other benefits. Payroll clerks are responsible for entering data into the system and updating it as need arises. The procedure is slow and do not prevent errors. Excel worksheets are used to keep training and development records while physical files are stored in lockers in HR department.
The lack of proper accounting and finance system for Riordan details the inconsistencies and inconveniences in processing and presenting data. The existing system is inefficient in handling corporate and branch accounting and financial activities. It thus requires a system that processes the consolidated general ledgers and income statement. This is because it usually takes two to three weeks to complete the statements after the end of every month.
Fig. 1 Data flow in HRIS
It is evident that analyzing numerous amounts of data from different branches is cumbersome and time consuming. An implementation of a system that analyzes each data from branches and consolidates them to obtain processed financial reports would be better. The new system will need to provide audit capabilities and track compliance with relevant government regulations.
An earlier ERP implementation in Georgia and Michigan branches is fully licensed from Windows and is used for manufacturing, distribution and financial management. However, the software is only useful in the two branches. The fact that it lacks organizational wide uniformity and integration means that the data derived from the system cannot be relied upon to a greater extend.
Riordan Manufacturing desires a system that handles all the employee data processing, storage and retrieval. The system will automate all the employee data and keep in a database for quicker storage and retrieval.
Data analysis is one component in business that is crucial for forecasting and planning. As it stands, Riordan uses file systems to track customers, orders and sales. Content information systems are necessary to help the company analyze, predict and plan on future production and sales targets.
PROPOSED ERP
The proposed system can either be off-the-shelf enterprise resource planning (ERP) or developed by the company through contracted vendors. A tailor made system is best suited to deal with Riordan functions. An ERP system will automate numerous processes in Riordan and centralize management and decision making purposes.
Implementation of an ERP system in Riordan will streamline services and eliminate the paper records. The entire employee, manufacturing, customer and other related parties information will be feed into the system. Different departments will utilize different components of the ERP software according to their needs. For instance, Human Resource Department will use the Payroll management systems to track employees and generate pay slips and salary. The system records all the employee details including work attendance, allowances, overtime, loans, advances and other types of deductions. The management software’s consist of activities that aid in the completion of work through efficient and organized quick methods. Generally, they improve the processing of information in a standard prescribed manner. The system will document the entire employee remuneration in all the branches of the company. Thus data analysis will be managed efficiently.
BUSINESS PROCESS CHANGES ANTICIPATED
As recommended in the follow up report, assessing feasibility of R&D using a global and proactive strategy is preferred for reviewing asset capabilities to determine the availability of resources and technical aspects of technologies. By doing so operating cost associated with training and implementation will be reduced.
An implementation of a customer relation management module in the headquarters and all the production plants will strengthen the relationship between existing customers while at the same time nurturing new markets. Sales, customer orders, inquiries and responses will be easily managed using CRM module.
SCM integrates a number of features such as value chain planning and execution, product life-cycle management, manufacturing, and order orchestration. Product design and development systems take care of the plastic product design and development processes. The information system is instrumental in the design and development of new models as well as the re-design of faulty products. Analysis of streamed data provides an insight in re-design and improvement of safety-oriented, stylish and reliable plastic products.
Fig. 2 Data flow in an ERP system
In an era where studying and understanding the user behavior is essential to continuously streamline the online business and arrive at the best business decisions that justify investments, content information systems are the way to go. CRM is used to manage the interaction of the company with current and future customers. It integrates multiple channels such as social media, telephone, email and search to organize, automate, and synchronize sales, customer service, technical support and marketing.
Today’s businesses have realized the need for a justified investment in every online presence they engage in. Content management systems are desired for best integration with web analytics and development and implementation of such systems will benefit the company in a big way. Businesses desire cutting-edge tracking and analytics from the content creation process to its use. The importance of CMS in web analytics transpires from the fact that non-technical staff such as the marketing staff can efficiently participate in the process of managing, updating and deriving reports without relying on the services of html experts. Integrating CMS with other data gathering and analysis tools will enable clients have quick visibility of who visited the Riordan websites, what they searched for, what needs to be changed and what is working well. The CMS will offer flexible workflows in managing data analysis and as such, offers efficiency and flexibility in the already resource constraint business entities.
DATABASE ARCHITECTURE
Management information system is used by the management to derive detailed reports. It manipulates data within the system to produce an in-depth report for decision making purposes. An example of such an information system is IBM Oracle Database 11g data management software. IBM Oracle Database 11g data management software is a key component of the Fusion application platform business software.
Oracle Database 11g is a beta edition containing more than just the basic database functionality. It runs on servers with more than four CPU and enhanced features in performance and security. The Oracles enterprise editions has unlimited memory limits and can utilize clustering through Oracle Real Application Clustering. When implemented along with Oracle Warehouse Builder, it centralizes customer information and analyzes it to create useful statistics such as profitability.
NETWORK CONFIGURATION AND SECURITY
The recommended system is web based and as such Riordan needs a dedicated network connection and file sharing infrastructure. The company may implement a Virtual Private Network. Since all the three operating entities in U.S Georgia, California and Michigan and China plant operate independently, ERP implementation will not yield many results until all the plants are linked together. This is possible through the use of a VPN. VPN will allow seamless connectivity over the internet which protecting the data on Riordan’s intranet.
Virtual Private Network is a combination networking architecture that permits employees, telecommuters, business partners and remote business branches to utilize the same company resources as those in the headquarters through a secure private connection with a host network. When implemented, Riordan employees all over the globe will access the company resources through virtual private connections deployed across the internet.
VPN connects via Internet to the outside world securing the internet traffic and the corporate assets of the organization. Most of the VPN networks are encrypted so that computers and other devices communicate with them through encrypted channels. Employees in San Jose, Michigan, Georgia and Hangzhou will be able to access the network resources such as files, applications, and printers through local area networks without compromising on the security and privacy. In addition, the proposed information system is highly successful when integrated with VPN. The LANs in each branch will be connected to the WAN and the VPN to concentrate all the servers and other networked resources among them all.
Traditionally, VPN is the preferred network for remote and home users. VPN is a combination of software and hardware components that permits employees, telecommuters, business partners and remote business branches to utilize the same company resources as those in the headquarters through a secure private connection with a host network. When implemented, the company employees all over the globe will access the company resources through virtual private connections deployed across the internet.
VPN is available in the entire Windows Server 2012 version but its set up and configuration is automated in the Essentials version providing easy deployment. Thus, once the Company’s VPN network is set up Remote Access and NAP is configured to improve security.
Remote Access is a server role in the Windows Server 2012 operating system that allows remote and telecommuting users to securely connect to the company’s internal resources using Direct Access or RRAS VPN.
Network Access Protection is a feature in Windows Server 2012 that controls the access to network resources basing on clients computer configurations and compliance with corporate policies set by the company. NAP allows the administrator to define the level of network access based on the identity of the client, his working group and degree to which the client is compliant with the governance policy. If the client is not compliant with the set corporate policies, NAP automatically brings the client back into compliance and dynamically increases his level of network access.
Thus, Riordan can either establish a VPN service and utilize this feature or opt for a Windows Server 2012 Essentials package that allows seamless integration with the organizations network through Internet-equipped remote location without the need for additional VPN settings and configurations.
RIORDAN TARGETS
Currently, the company aspires to attain a $50 million sales revenue mark by the year 2006. In order to meet this target, it needs to increase sales volumes, streamline its operational activities by automating ordering, processing and distribution to attain efficiency. A strong sales team is ready to increase sales to existing customers and explore new markets. In this regard, the project cannot fail to be implemented given the magnitude of what needs to be done to achieve the goals. A connected Riordan community will make it easy for managers and other decision making personnel to monitor sales matrix and progress in all the branches. Likewise, a VPN network will ensure that every telecommuting employee especially the sales force can log in to the company network and execute his functions as if he was in the office. Implementation of a universal ERP in all the branches and the headquarters is beneficial because it will reduce operational cost associated with paper work processing. It also means that customer orders can be tracked all the way from the first stage of manufacturing to the final dispatch stage.
ACQUISITION AND MAINTENANCE
ERP are business management software developed by different vendors to aid organizations in integrating functions and managing their businesses. Since Riordan will implement the ERP in all its plants and facilities, it has identified Microsoft as a reliable client. The application will be developed and customized according to company specifications to suit its manufacturing objectives.
Microsoft will be contracted to oversee training of staff and maintenance of the system for the first one year until the company’s personnel are competent enough to oversee management.
References
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