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Business Requirement Definition Service Request Sr Rm 001

3006 words - 12 pages

Executive SummaryHugh McCauley, COO has requested assistance to provide specific recommendations for improving the inventory or manufacturing processes through service request SR-rm-001. The objective for this service request is to analyze the current processes and define business requirements for system upgrades and improvements. After numerous interviews and investigations, the team determined that the inventory processes provided the greatest opportunity for improvement.Business requirements were established using a set of metrics to evaluate three options for improving inventory practices at Riordan. The three options evaluated are Vender Managed Inventory (VMI), Enterprise Resource Planning system (ERP), and Materials Requirements Planning (MRP). The metrics allowed the three systems to be scored based on the priority of business requirements, which provided the basis for recommendations to Riordan. In addition to using a metrics table to evaluate the three systems, the evaluation team used a Gantt chart to develop implementation timelines for project management, assessment, hardware/software installation, user training, and software support. Hugh McCauley advised the team of the constraints of a budget with a one year implementation deadline. The team also completed an analysis of the return on investment (ROI) for the ERP solution. This analysis proved that the ERP solution would greatly reduce inventory costs for Riordan. Taking into account the business requirements and parameters set by Riordan, the team can make a recommendation.After careful analysis using the team recommends Riordan implement the ERP system to improve their inventory processes of raw materials. Riordan has two plants in the United States and one in China, so integration will be very important with implementation and meeting the time lines. The ability to use Riordan's existing hardware was also an important consideration for keeping cost down. The total implementation time for the ERP solution from start to finish is projected to be 12 months for all three manufacturing locations (see Appendix 1). After comparing all the team' evaluations and Riordan's business requirements, the executive team at Riordan will agree that the ERP solution is the right choice for the company.The cost of the scanners and their software is $5,000 per unit and Riordan needs nine units. The cost of the RF hardware is $7,500 per unit and Riordan needs three units. The total investment for hardware is $67,500. The ERP software itself will cost the company $750,000. The system with implementation costs and training will total $1395,000 from beginning to end. The ERP system will ultimately allow Riordan Manufacturing to improve the raw materials receiving process but will also include functions that Riordan can integrate into all other processes at a later date. The initial investment would provide a starting point for Riordan, which will allow the company to save money in the future for these...

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