History of Riordan Manufacturing Riordan Manufacturer is a global producer of plastics.
They operate in four locations, three in the United States and one plant in the People’s Republic of China. Riordan’s United States’ plastic products include beverage containers produced in Atlanta, Georgia and custom plastic parts in Pontiac, Michigan. The Hangzhou, China plant produces plastic fan parts and corporate headquarters is in San Jose, California, (Apollo Group, 2006).Riordan Manufacturing is looking to update their Sales and Marketing Department with the newest and latest software recommendations. The following is a summary of the history, current set up of the department and a recommendation of the upgrade. Riordan is attempting to consolidate customer information to deliver more to the customer. Riordan Manufacturing has a combined sales and marketing system, which include many databases, paper files, and microfiche.
The sales and marketing systems are obsolete based on today’s standards of integrated information management.The information available to consolidate into a CRM includes Sales history; Previous marketing research files, marketing plans, and design awards; Sales records; Production files; Statements of profit and loss by item and group; Marketing budget, activities in marketing communications and expenditures marketing research. Marketing Research, Marketing Plans, and Design Awards The marketing department wants to build a database of past knowledge. Plans and results from past research studies stored in the marketing department.In the lobby, a showcase displaying the various design awards earned by the marketing department. The company is looking at the possibility to hire a student part-time to scan the documents. The Riordan has 20 major customers, including government contracts, and 12 minor customers.
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Using a variety of tools, each member of the sales team maintains customer records. The various types of record keeping is paper and pencil, Act software, a hybrid. The firm is evaluating a new integrated CSM system to help the new selling team that will soon be in operation.The goal for the marketing budget is to reach the $50 million revenue mark. This is a collaboration effort by Dr. Riordan and the executive team, which incorporates input of line managers closest to the day-to-day operations. The two objectives that Riordan hoped to achieved is increasing sales force promotions to increase sales to existing customers, price discounts, and customer user group services and, implementing public relations, trade shows, brand development, and sales force promotions to expand sales to new customers.
Recommendations for Sales and MarketingIt is recommended that Riordan update or upgrade the current system to a more user friendly, up-to-date, and efficient system that will allow an effective process of keeping historical, sales and marketing records for future planning. To assist the Marketing and Sales departments in keeping up with the daily intake of information a list of the following software could be implemented: * Oracle – Sells applications that leverage Oracle's database technology to provide CRM systems * SAP – CRM application part of SAP Business Suite * Microsoft – Microsoft Dynamics CRM.A modular system, which can purchase different components based on specific needs. Expands into an Enterprise Resource Planning (ERP) system (Microsoft, 2010). * Sage – SalesLogix CRM done by a popular accounting systems producer (Sage, 2010). * SalesForce CRM – A software as a service/Cloud computing-based system. (Apollo Group, 2003, 2004, 2006) Human Resources Information SystemsRiordan’s HRIS system was set up in 1992, part of the financial systems that keep track of employee information, rate of pay, exemptions, date of hire, seniority based on date of hire, which is difficult and different than the hire date, manager’s name, department information, and non-exempt vacation time.
Managers submit a form for changes to the employee information and then entered by the payroll clerk into the system. Microsoft Excel is used to keep records on training and development. Recruiters maintain information for each open position within Riordan.All resumes are filed in a central location and Excel is used to track application status. A third-party manages the Worker’s compensation and keeps records at that location, not Riordan. Each manager keeps employee information for that department, which there is no central location for keeping these files. Managers are responsible for tracking all FMLA absences and any ADA recommendations.
Excel spreadsheets are used for the compensation manager for job analyses, surveys on salary and compensation decisions on individuals.Specialists in the employee relation department keep track of complaints, harassment complaints, grievances, and all other employee relation information and, are then filed and locked in the employee relation department. Recommendations for Human Resources Information Systems Riordan has a diverse set of needs spread over four locations, one of which is an international factory that is located in China. This will require the HCM software to be flexible to handle different culture and regulatory environments.Also the system will have to be able to capture information form a diverse set of archival media. This is not limited to digital information but vast amounts of paper files will need to be integrated into the system. System that are complex will have specialized technical skills to deploy, customize, and maintain its operations.
As well as experts to provide training for our personal. Ultimately careful consideration must be given to the existing processes and the final results of the project.Because HCRM service are going to be provided company wide careful consideration as to the capabilities of the program to adapt to different culture mores and holidays is a must Also, the services that are provided to employees need to be available in the local languages of the countries that they reside. To accomplish this provider of the software must be fluent in both countries of operation. They should also have an established presence in both countries to provide service in and by local professionals.Riordan has a long history of data for its operations many of the records are stored in paper files and legacy office products that are rapidly nearing their production life. As such in order to pull historical data for strategic planning the system will need to collect data form a wide range of active and archival sources.
Providers who have a long history will often have experience with these both with their own products and that of their competitors. As a manufacturing company of plastic parts and bottles there is a fair chance that the company will not have the skills required for such an undertaking.So the provider must be established in the market to have spawned a large pool of expert professionals that have used its solution. This will help in negotiating service and training contracts. Therefore, we recommend that we open negotiations with a few of the larger information technologies companies that provide these services. To that end we would suggest IBM as a well known systems integrator with extensive Business Intensiveness Product lines with offices in both countries (IBM, 2010). Second, is SAP this company has a well known product line and is also an international company (SAP, 2010).
Others that may be of interest are Oracle and Microsoft. Research and Development Riordan manufacturing research and development department tests new products, evaluates new chemicals, polymers, and dyes used in the manufacturing process. The research and development is currently working on the production of a pyramid bottle project and a CardiCare Valve proof-of-concept. Only a small amount of raw materials and components needed to build proof-of-concept models with new product development.Because the research and development department deals with small amounts of raw materials orders are shipped by truck and received at the main entrance. Logistics The operations and logistics systems at Riordan is a company quickly moving from a small research company working in polymers to a company that manufactures and distributes polymer products nationally and internationally. Whereas Riordan’s past operations and logistics systems have served them in the past, there is evidence that it is time to upgrades these systems.
The current procedures for inventory operations consist of raw materials received by the area supervisor, physically comparing shipping documents to a scheduled orders receiving report, unloading the material, handing the log to the receiving clerk. The inventory clerk must manually enter the information to the system. During the manufacturing process, the inventory clerk enters the information of raw materials into the system to track the inventory. Recommendations for Operations and Logistics A recommendation that Riordan could implement in to their operations and logistic system would be from Operations Concepts, Inc.The Warehouse Management System/Transportation Management System. Logistics System provides an assessment of detailed logistics operations, study of logistic processes, detailed functional specification development, solicit system vendors, system demonstration, proposal, and presentation reviews. OCI also assists in vendor selection, exporting and clean up of data, development of host interface, configuration and detailed design rules application, project management software, and training and post Go-Live support.
OCI assists with a detailed review of operations, activities, processes, data coverage of various functional areas including inspection, receiving, put away, picking, replenishment, shipping, transfers, and inventory management. OCI Project Management Services support clients in implementing and improving changes in environmental workplace. OCI professional handle various environments within a workplace such as union, non-union, government, military, regulated industries, and bioscience industries.The operation and logistics systems at Riordan must be upgraded to ensure consistent customer service across all manufacturing plants in the United States and China. A review of the existing operation and logistic system currently deployed at Riordan require a software system and vendor that will automate most of the current processes and provide expertise. By implementing the recommended operation and logistic system, Riordan will be able to meet its customer’s expectations, delivery, and time schedules. Riordan Legal IssuesThe potential legal issues that Riordan Manufacturing management needs to be aware of are the implications on design, manufacturing, the supply chain, and distribution of their product.
Another potential legal issue that Riordan Manufacturing needs to be aware of is ethical issues in the workplace. Riordan Manufacturing is a global business its management needs to consider the wide ranges of issues, including acceptable working conditions, minimum wage levels, product safety issues, and environmental protection.Riordan Manufacturing should consider developing a legal strategies plan, which is a fundamental part of a business formation and strategic operation (Nickels W. G. , McHugh J. M. , McHugh, S.
M. , 2005). Incorporating legal planning into the business planning process would allow them to plan strategies for operations to minimize risks arising from legal and regulatory sources (Nickels W. G. , McHugh J. M. , McHugh, S.
M. , 2005). Ultimately, the additional planning would protect their organization better.Potential legal issues for Riordan Manufacturing can include a multiple of subjects because of Riordan's position as a manufacturer and research and developer of plastics with sites in various states as well as China. These issues can cover the basic areas like wrongful lawsuits, to tax laws as well and human resources issues. However, other areas not normally thought of require looking at and this is why the Riordan legal team needs to be vigilant in keeping up-to-date in a multiple of areas. One of the major areas of legal issues that Riordan must invest in is that of patents.
Patenting Riordan's property is imperative because not only does it protect Riordan's property "from making, using, selling or even importing an invention for a period of 20 years from the filing date of the first patent application" (Gilcrest, 2008, Patent Strategies in Times of Economic Downturn, para. 3 ), but it protects income that can be made by license income royalties. However, the process of patenting an innovation of Riordan can be time-consuming as well as costly, and with this, Riordan's legal team needs to be well up-to-date in patent laws.With a manufacturer partner in China and items sold in both countries, it will be important for the legal team to be up-to-date in the patent laws in both countries. Another area that Riordan's legal team must be up-to-date is that of the changing laws throughout the country and the individual states. California for instance is introducing a new bill that would ban non-compostable and non-recyclable food service packaging; this includes plastic containers for beverages. Riordan's legal team needs to be aware of the changing laws in any state and country Riordan is to do business in and make sure the company’s products ill continue to be compliant.
Recommendations for Riordan Legal Issues Riordan Manufacturing’s legal matters are the responsibility of Lowell Bradford, Chief Legal Counsel. Mr. Bradford uses his knowledge and experience, or the advice from attorneys at Litteral and Finkel to answer legal questions from department heads. The law firm of Litteral and Finkel is on a monthly retainer to ensure prompt responses to legal questions. Each month, Riordan pays legal fees and excess charges against the retainer fee.Litteral and Finkel have an international network of offices providing legal services in all areas of the law for Riordan. Aquiring offices internationally, they can provide immediate legal services anywhere in the world.
Riordan Board of Directors is responsible for governing and managing the business affairs of Riordan for the benefit of its shareholders. Board members must be knowledgeable about the industry, have financial experience, be available to participate, and be able to serve at the level of a Board member of Riordan.The Board is responsible for selecting new members recommended by the Nomination Committee. The Chief Executive Officer (CEO) and the Chairman of the Board go through an election process by the Board. Riordan's operations and size determines the membership of the Board. Board performance is determined by using a self-assessment with the assistance of the Nominating Committee. The Nominating Committee an auditing committee presents performance and effectiveness of the Board activities.
A Board member may resign or be removed when there is a conflict of interest.Based on the best interest of the company, the Board may accept or reject the resignation request. Board members must attend at least three quarters of annual Board meetings and should report their absences to the Board Secretary. The Chairman of the Board establishes the agenda based on the requests of other Board members or the CEO. The board secretary will distribute agenda items, reports, presentation, and information three days before the Board meeting. The Board is required to have a minimum three committees for the life of the Company. The committees are Executive, Auditing, and Nominating.
The Board can create new committees and select committee members based on the recommendation of the Chairman of the Board and with the approval of the Board. The frequency of committee meetings, duration, and agenda will be the responsibility of the Committee Chairman. The Board is responsible for operations and financial activities. Riordan Board of Directors designates the authority to operate the company through its designated senior managers. If it is in the best interest of the Company and its shareholders, the Board has the right to remove senior management (Riordan Mfg.Legal - Overview, 2003, 2004, 2006). References Apollo Group, I, (2003, 2004, 2006).
University of Phoenix Business Material. Retrieved April 5, 2010, from Riordan Manufacturing: https://ecampus. phoenix. edu/secure/aapd/cist/vop/Business/Riordan/RioMfgHome002. htm University of Phoenix. (2010). Riordan Manufacturing Inc.
[Computer Software]. Retrieved from University of Phoenix, Simulation, BSA502 website. SAP (2010) SAP Worldwide Sites.Retrieved May 11, 2010 from http://www.sap. com/contactsap/countries/index. px IBM (2010)New Intelligence, Why data matters—and what you can do with it Retrieved Ma7 11, 2010 from: http://www. ibm.com/smarterplanet/us/en/business_analytics/ideas/index. html? sa_campaign=message/leaf1/corp/smarterplanet/intelligence Apollo Group, . (2008).
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