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Riordan Inventory Management System Prop
Riordan Inventory Management System Prop
System Proposal 1
CIS/207
December 8, 2012
Efosa Osayamwen
Running head: Riordan Inventory Management System Proposal
Contents
Executive Summary..................................................................................................................4
Company Background...........................................................................................................4
Business/Product or Services................................................................................................4
Proposed Solution.................................................................................................................5
Stakeholders..........................................................................................................................5
Background...............................................................................................................................6
Business Requirements.........................................................................................................6
Drivers...................................................................................................................................6
Strategic Role........................................................................................................................7
Proposed Solution.....................................................................................................................7
Description............................................................................................................................8
Information Use....................................................................................................................9
OPC.....................................................................................................................................10
Web Technologies...............................................................................................................11
Governance.........................................................................................................................11
Implementation...................................................................................................................18
System Upgrades.................................................................................................................19
Telephone Support..............................................................................................................20
Success Stories........................................................................................................................20
Amcor..................................................................................................................................20
SI Flex.................................................................................................................................22
Reference................................................................................................................................23
Running head: Riordan Inventory Management System Proposal
Executive Summary
Company Background
Riordan Manufacturing, Inc. was founded in 1991 and is a leader in the field of plastic
injection molding. The company’s current locations are in Albany, GA, Pontiac, MI, Hangzhou,
China, and it headquarters in San Jose, CA. The company is 100% owned by Riordan Industries
and has over 550 employees. The customer base for Riordan includes automotive parts
Business/Product or Services
Riordan Manufacturing, Inc. researches and creates plastic injection moldings.
Plastic Bottles
Fans
Heart Valves
Medical Stents
Custom Plastic Parts
Presently, our products are in the maturity stage. They compete primarily based on our
cutting edge standards. Our future plans include developing a more improved inventory process.
consuming and not financially responsible. The process relies on manual entry at the end of each
business day by the warehouse department. Each of the locations within the company operates
Running head: Riordan Inventory Management System Proposal
department has its own inventory which could result in over purchasing of materials that another
location could have overstocked. The receiving of materials process is slow and time
consuming. A receiving department employee has to visually inspect the paper work and verify
that all materials arriving are on the manifest. These processes are paper based that could result
Proposed Solution
This outdated system needs to be updated so that it can compete in the global markets
with first class technologies. The updated system will launch Riordan into the 21st century with a
technologically advanced inventory system. A computer based program will replace the manual
paper system. These new processes will increase efficiency, lower cost, send out automated
updates and most importantly interface all departments and locations together. The new system
will have functions that will include, but not limited to, shipment tracking, receivable tracking,
product location tracking, and inventory level tracking. This system will utilize tools like bar
code scanners, smart handheld devices, and user friendly computer interface.
Stakeholders
Sales department
CEO
Executive management
Warehouse manager
Shipping manager
Customers
Background
Business Requirements
The current receiving, manufacturing, and shipping process throughout all Riordan plants
are predominantly manual and batch oriented. The manual processes are prone to error and are
labor intensive. The batch oriented nature of the processes lead to issues with regard to
inventory accuracy and this causes issues with the raw materials ordering process. In addition,
the annual physical inventory process is very costly across all of Riordan's facilities.
To address the above issues, we have identified the following as business requirements.
Automate all manual steps performed in the receiving, manufacturing, and shipping processes.
Make use of current technology such as bar codes to aid the automation. Provide a real-time
view of inventory. Improve the accuracy of the inventory and replace the annual physical
counting methodology. Implement a common waste handling procedure across all facilities.
Drivers
The primary business requirement driving this project is to remove all manual steps
within the inventory management processes. Addressing this business requirement will provide
Riordan with a lower error rate and more accurate system data. More accurate data will provide
a noticeable improvement across all areas of the business. In addition to more accurate data,
reduction by removing the end of year physical inventory process. As Riordan matures as an
automated organization, they will likely see opportunities to reduce or refocus human capital.
Running head: Riordan Inventory Management System Proposal
Russell (2007) ”Modern supply chains are customer-driven pull systems. The focal firm’s supply
capabilities must be synchronized with known and forecasted demand patterns of downstream
customers." (p. 60) (Russell, S. (2007). The FlexNet solution will help Riordan to become more
customer driven.
Strategic Role
The proposed implementation of the FlexNet system in Riordan's China facility is the
first step of a company-wide transformation from manual to automated. This system will be
rolled out to all of Riordan's plants across the world. The benefits of this implementation have
been discussed throughout this paper. In addition to the improvements in the inventory
strategic benefits available from the FlexNet system. This includes business intelligence, labor
management, paperless manufacturing, quality planning and execution as well as LEAN material
flow that will provide Riordan with the ability to quickly adapt to changing market conditions.
This will enable Riordan to be focuses on delivering what our customers need when they need it.
Proposed Solution
Running head: Riordan Inventory Management System Proposal
Description
The reconstruction of Riordan manual handling process with Apriso’s FlexNet
Production and FlexNet Warehouse will introduce flexibility, mobility, and efficiency with time
and expenses toward the inventory system. The new system will be modernized with computers
allowing Riordan to compete in global markets with first class technologies. A new inventory
management and production control system is being implemented to maintain consistency and
quality at all Riordan’s plants. The receiving, manufacturing, and shipping processes will make
use of current technology such as bar codes to aid the automation, tracking of receiving and
shipping numbers as well as product location. FlexNet will provide a real-time view of inventory
to refrain from physical errors and employees expenses, and install hand devices that will
Flexnet Productions allows Riordan plants to trace and ensure quality by utilizing the
Manufacturing Execution System (MES). This system allows enterprises to manage production
on a global scale. FlexNet will streamline Riordan operations with real time visibility, paperless
manufacturing and electronic work instructions that will improve resource management and
FlexNet Production and FlexNet Warehouse are perfect together providing Riordan
enterprises with real-time and visual of inventory tracking, material flows and many other
warehouse processes. FlexNet warehouse improves Riordan’s inventory control and production
requirements which satisfies customer demands and eliminate paperwork, improve productivity,
increase accuracy, reduce inventory, and cut labor costs. FlexNet Warehouse will compliment
Running head: Riordan Inventory Management System Proposal
Riordan’s enterprises with full control over warehouse operations as well as other operations the
warehouse interacts with. Operations will have: reduced work in progress (WIP) in the plant,
better cycle timing, fewer errors, increased productivity, simplified reports, and full control over
We are also incorporating mobile devices due to FlexNet for Android® and iOS®.
Employees will be able to check inventory, pricing, product availability and deliveries on their
Android® and iOS® mobile devices. The connection will be Wi-Fi based using WPA2
Enterprise utilizing 802.1x authentication protocols for cyber threat prevention. The costs for
these devices are inexpensive and the Apriso FlexNet Mobile is included with the
implementation. Riordan will benefit from this application because it will include production,
warehouse, maintenance, and time and labor; FlexNet’s main functions of operations.
Information Use
Riordan enterprises currently utilize an outdated manual process that is costly and harsh
on time consuming. The process relies on manual entry and the duties at the warehouse.
Unfortunately this process invites room for error based on employee work ethic and over
purchasing on material due to the fact that each department contains its own inventory. Now with
the new system, utilizing FlexNet Production, FlexNet Warehouse, and FlexNet for Mobile
devices, Riordan is granted the opportunity to compete with global markets with first class
technologies and finally be launched into the 21st century with a high-tech inventory system.
Implementing these new systems will enable Riordan plants to automate manual steps in the
achieving this objective, the Apriso FlexNet platform is compliant in working with non-
proprietary technologies. Apriso strives to comply with major software industry standards, and
("Apriso", 2012).
Designed and built as a platform-based solution, FlexNet supports a suite of applications that
manage and execute manufacturing operations associated with Production, Quality, Warehouse,
Maintenance and Time & Labor. Recognizing the need for industry standards and consistency
when integrating shop floor operations to enterprise applications, the product design team at
Apriso paid close attention to the evolving ISA-95 standards to ensure alignment, which is the
case today. Apriso is currently a member of the International Society of Automation (ISA).
Apriso was the first North American MES company to be ANSI/ISA 95 NetWeaver certified by
SAP ("Apriso", 2012).
OPC
OPC (originally OLE for process control) is an industry standard created with the
working in cooperation with Microsoft. The standard defines methods for exchanging real-time
automation data between PC-based clients using Microsoft operating systems. The organization
Running head: Riordan Inventory Management System Proposal
that manages this standard is the OPC Foundation. Apriso’s FlexNet is "Compliance Certified,"
according to the OPC Foundation. FlexNet has passed a series of Independent certification tests
and usability testing. Products are only awarded the Compliance Certified status when all
interfaces they support have passed the Independent Certification Test Lab testing. The OPC
Foundation "Certified" logo is used under license agreement, demonstrating official certification
("Apriso", 2012).
need for custom driver development. FlexNet can be connected to RFID readers and writers
using TCP/IP or serial links, configured with FlexNet Machine Integrator. FlexNet supports EPC
Global Tag Data Standards version 1.3 and Tag Data Translation version 1.0, in addition to
Web Technologies
FlexNet utilizes the most current Web technologies, having embraced Microsoft .NET
since its inception in 1999. Users can leverage the de facto standard Internet Explorer to access
FlexNet functionality or alter its configuration. Web technology support extends to each of the
most common protocols, including: HTTP, XML, XSLT and SOAP. The FlexNet platform is a
Services Oriented Architecture (SOA), and supports Web services integration capabilities
embedded throughout its platform. FlexNet's Adaptive Business Process Management (BPM)
platform supports the publishing of business processes as Web services, as well as consuming
Governance
Apriso customers use FlexNet to report production and inventory status. FlexNet is a key
component of the information chain fueling financial reporting requirements for companies
adhering to Sarbanes Oxley compliance. The FlexNet security framework and audit trail
capabilities are key components that ensure information is secure, valid and not modified without
a sufficient audit trail. Apriso diligently maintains industry, government and other standards
requirements in FlexNet. In addition, security access, audit trail, process traceability and
Riordan can leap with firm sturdy steps into the 21th century. With this new system Riordan will
have an up-to-date system that will allow flexibility and mobility within the walls of the
production area. This will ensure Riordan to keep Six Sigma process intact, identifying and
removing what causes errors; which is Riordan’s current system. The updating of Riordan’s
outdated system promises to allow an efficient way to manage and maintain the manufacturing
environment.
Riordan will also be able to increase accurate real-time inventory count and will reduce
unwanted mistakes. With the real-time recording of inventory, Riordan can deliver goods with
precision and accuracy. The replacement of Riordan manual materials handling process with
Apriso’s FlexNet Production and FlexNet Warehouse will unlock a very convenient way to
manage business. In most business settings workers are mostly attached to their desktops.
Now with the new FlexNet Mobile, Riordan employees no longer have to be making
inquiries on their desktops abandoning the production area. Employees will be able check
Running head: Riordan Inventory Management System Proposal
inventory, pricing, product availability, deliveries details on their mobile devices. It can be a
smartphone or a tablet. The cost of these devices is fairly feasible. The use of a mobile device
With the launch or Apriso’s FlexNet Mobile, paper inquiries will be at a minimum and
paperless requests can be done. The overall idea is to provide faster service practically anytime
and anywhere. Riordan can greatly benefit from this application as it will include FlexNet main
functions of operation. It will include production, Warehouse, Quality, Maintenance and Time
and Labor.
With the assistance of Apriso’s Flexnet production, FlexNet Warehouse and FlexNet
Mobile applications; Riordan will be able to leap into the 21th without any difficulties and will
be able to keep its clients very content with the services provided and allow flexibility and
mobility.
In order to ensure consistency of operations and quality control at all Riordan plants, a
new inventory management and production control system is being implemented. These
common set of procedures have been developed for the management of receiving raw materials,
tracking products during manufacturing, and accounting for the finished goods inventory. In
addition, this new system will eliminate waste both in inventory and production.
raw materials, an order is imputed into the Flexnet Warehouse system. This order would be
submitted to the supplier electronically. The supplier would respond back with the quantities
Running head: Riordan Inventory Management System Proposal
and the time of arrival. The arrival time is crucial for traffic management at the receiving area.
All containers have 2 barcodes applied at the supplier, one that contains the shipping information
and one that contains the actual product information. At the time of delivery, the truck driver
will pass the shipping documents to the Riordan shipping area supervisor who will scan the
barcode on the manifest. Each container has the same barcode corresponding to the manifest. An
additional barcode is on each container corresponding to the type of material in the container and the
shipped weight, volume, or quantity depending on the material. All of this information is
electronically entered into the system from the handheld scanner. Since each plastic pellet container
has the same amount of product, the weight is an accurate inventory control method. Those
containers are weighed at receiving and checked against the shipped weight.
The following flow diagram describes the receiving of raw materials process at all plants.
Running head: Riordan Inventory Management System Proposal
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operations. The amount of raw materials and sub-assemblies used during each manufacturing
run is entered into the inventory system by either a workstation or a handheld device. This
As completed products come off the line, they are barcoded, automatically scanned,
and entered into the inventory system indicating the number of sub-assemblies and final
The following flow diagram describes the usage of raw materials and sub-assemblies
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customer shipping and billing system. Those orders are then transmitted to FlexNet
After orders are fulfilled and loaded for shipment, the truck number, date and time of
shipment are updated into the customer shipping and billing system and FlexNet Warehouse
raw materials, sub-assemblies and finished products on hand with the inventory system.
The following flow diagram describes the shipping process at all plants.
will be provided by the existing infrastructure. Apriso’s FlexNet product will integrate with
the existing ERP system and utilize the access control mechanisms already in place. Below
is a process flow of how the information will flow between FlexNet and the ERP system.
ERP
Enterprise Resource Planning
CRM HRM FRM
Customer Relationship Human Resource Finance Resource
Management Management Management
MRP
SCM
Manufacturing Resource
Supply Chain Management
Planning
Suppliers Shipping
Shipping
Suppliers
Receiving
Receiving Warehouse
Warehouse Inventory
Inventory Production
Production Sales
Sales Packaging
Packaging
Running head: Riordan Inventory Management System Proposal
With proper training of your employees on the Flexnet system, should cut down on
system maintenance. With more than 70% of their employees in technical positions, Apriso
can support your organization from almost anywhere in the world. Their educational
professionals offer comprehensive product training to help you learn how to implement,
configure, and maintain your FlexNet® system. Regularly scheduled classes are held at
Implementation
Apriso has worked over the last 15 years with its network of partners and integrators to
develop and refine the FlexNet Accelerated Services Track (FAST) methodology. FAST is
Apriso's proven rapid implementation program and is one of the key reasons FlexNet
deployments are the fastest in the industry ("Apriso", 2012). Implementation starts with:
Educating your staff on the technology and transferring knowledge to your staff.
goal is to deliver the most comprehensive support and training options available in the
market today. To date, they support more than 400 customer locations worldwide with a
comprehensive network of global support and training centers, highly skilled personnel and a
System Upgrades
All customers have access to full-version upgrades, as well as maintenance releases,
patches, and fixes. This level of support provides investment protection for Apriso software
from ongoing product upgrades to licensed modules. In addition, you have access to a skilled
support organization structured to collaborate with your personnel in the successful use of
options include:
Silver (Standard) Support - available eight hours a day, five days a week
Gold Support - includes all the benefits of Silver Support plus 24 hour availability,
Platinum Support - includes all the benefits of Silver and Gold Support, plus 24 hour
Telephone Support
Telephone Assistance and Support Services offer phone access to our skilled staff of
analysts for problem reporting, determination and resolution. Support is also available via
Secure, 24/7/365 access to our customer support Web site for case input and
Ongoing product development for new modules and enhancements (more than
Success Stories
Amcor
Amcor is proud of its tagline: “Innovative packaging.” In fact, its inventive culture
helped the Australian-based firm become one of the top three packaging companies in the
world. So, when faced with the complexities of globalization and large-scale acquisitions in
2002, Amcor’s PET (Polyethylene Terephthalate) division chose to think outside the box –
or in their case, the bottle – becoming an early adopter of Apriso’s FlexNet solution. The
Apriso FlexNet solution is much more than just a Manufacturing Execution System, or MES,
managing everything from production, warehouse and quality processes, while integrating
data from individual machines all the way into their Enterprise Resource Planning (ERP)
system. Amcor faced a serious challenge of rapidly rolling out a solution in a timely manner
without disrupting daily operations. Benefiting from a truly global presence and an
manage and execute manufacturing operations at 46 Amcor PET packaging facilities around
the world. These diverse facilities, primarily producing bottles for soft drinks, juices and
Running head: Riordan Inventory Management System Proposal
sports drinks, are served by a common SAP / Apriso configuration (Apriso Success Stories.
execute Lean processes, manage packaging operations and improve operations performance.
Amcor realized these benefits by synchronizing production and warehouse functions both
inside the plant and across their enterprise. Currently implemented at 50 Amcor PET
packaging facilities around the world, Apriso’s WMS for Manufacturers solution integrates
with Amcor’s SAP system to synchronize warehouse, quality, packaging and production
material flows and production processes (Apriso Success Stories. (2010, June. 24). Amcor
SI Flex
Inside your mobile phone, camera, optical pick-up or VCR, you may have a component
made by SI FLEX. The company is one of the largest and most dynamic manufacturers of
Flexible Printed Circuit Boards (FPCBs) in Korea. SI FLEX is a Tier 1 and/or Tier 2
supplier to industrial giants, including Samsung, LG, Sony, Sanyo and Hitachi. SI FLEX
was challenged with efficiently managing their warehouse operations while accurately
tracking inventory from logistics through production. Complicating matters further, the
manufacturing process uses many chemicals, some of which could be harmful and dangerous
to both employees and the environment. Rapid growth had hampered the company’s ability
to institute optimal materials handling and management procedures. Managers had difficulty
determining current inventory levels, including the quantity of chemicals on hand. Without
this visibility it was difficult to know which materials were approaching safety stock levels,
to then trigger a manual process to order new materials. The company went looking for a
Running head: Riordan Inventory Management System Proposal
solution. After reviewing cost, time to deploy and adaptability requirements, Apriso FlexNet
was selected as a ‘best of breed’ supply chain execution system. According to Hangmin Cho,
Manager of the Management Information Team at SI FLEX, this decision was based on the
three factors: “First, Apriso’s solution is extremely flexible, making it easy for us to quickly
handle all operations, from logistics to manufacturing. Third, the system supports both
global and local policy creation, helping us to integrate distributed operations between
factories located in Korea and China.” (Apriso Success Stories. 2010, June. 24). SI FLEX
Reference
APRISO. (2012). Retrieved from
http://www.apriso.com/products/flexnet_platform/industry_standards_compliant.php
Russell, S. (2007). Supply Chain Management: More Than Integrated Logistics. (Cover
http://www.apriso.com/library/success_stories/Apriso-AmcorPETSS.pdf
Apriso Success Stories. (2010, June. 24). Amcor Injects Performance into Warehousing.
http://www.apriso.com/library/success_stories/Apriso-AmcorSS.pdf
Apriso Success Stories. (2010, June. 24). SI FLEX Improves Supply Chain Visibility, and
Materials Management.
http://www.apriso.com/library/success_stories/Apriso-SIFLEXSS.pdf