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Riordan Manufacturing Mrp Evaluation Project Essay

1701 words - 7 pages

Scope of the Project
Riordan Manufacturing can continue to expand by reducing the inventory cost of raw materials and finished goods. Riordan currently has a legacy MRP Information System (IS) in place, and this project provides an excellent opportunity to upgrade the infrastructure to allow for a more cost-efficient way to track inventory.
Goals of the Project
Riordan would like to develop or acquire an MRP system that will track and manage raw materials and finished product inventory across all plants to help ensure reduced inventory costs throughout the entire company.
Business Objectives
The exploratory committee has identified the following as the Business Objectives for this project:
• Accurately track and manage raw materials and finished goods
• Reduce inventory cost of raw materials and finished goods
• Improve MRP infrastructure
Measures of Success
The following tasks will be performed to measure the success of the project at six (6) months and one (1) year:
• An inventory analysis validating the accuracy of tracked inventory
• A cost analysis comparing the cost of inventory management to previous reports
• Hire an IS analysis firm to analyze the new Riordan MRP system's efficiency

Statement of Scope, Objectives, and Constraints
Current Needs
Riordan Manufacturing needs to reduce the inventory cost of raw materials and finished goods. To reduce these costs, Riordan would like to develop or acquire an MRP system that can accurately track and manage raw materials and finished product inventory across all plants.
I am investigating the feasibility of developing or acquiring an MRP/MRPII information system to ensure that Riordan can accurately track and manage raw materials and finished goods and reduce inventory cost of raw materials and finished goods. In addition, I am going remove legacy technologies in order to improve Riordan's MRP communication infrastructure.
The following constraints exist for this project:
• Financial - The approved budget for this development project is not to exceed $750,000 for hardware, software, and technical analysis purchases
• Time – Due to upcoming financial deadlines, this project needs to be running parallel to the legacy system in six (6) months, with full implementation completed in twelve (12) months.
• Resources – There are no in-house staffing resources to complete this project. A third party technical analysis team will provide the technical expertise needed for this project to complete in the time specified.
• Organizational Policies - In order to provide continued quality merchandise and service, Riordan is committed to:
o Six Sigma, industry-leading R&D and exceeding ISO 9000 standards
o Staying the industry leaders in manufacturing plastic products
o Providing solutions for customers
o Maintaining long-term relationships
o Maintaining rigorous quality controls
o Providing innovative solutions
o A responsive business...

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