Riordan Manufacturing MRP Evaluation Project

Overview

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.

Objective

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 ...

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...w for better tracking of goods, which prevents lost materials. This, in turn, will allow Riordan to reduce the cost of inventory and allow us to gain sales with lower customer prices.

The third objective is to improve the MRP infrastructure. Removing the legacy equipment and slow data lines will allow much more inventory to be processed. This will increase productivity throughout all of the plants.

Conclusion

Riordan Manufacturing will more than recover the expenditures of this IT project within two years of the upgrade. Riordan will experience an increase in sales and a decrease in inventory loss due to accurate and low-cost inventory management. On-going costs will be minimized with an internal IT department handling support and maintenance of the new system. All of the project's objectives have been met, and Riordan's expectations have been fulfilled.