Review of Riordan Manufacturing Business Systems

Team B Review of Riordan Manufacturing Business Systems

Greg Guntz, Jerad Kays, Armando Figueroa,

Lanone Mayfield, Rich Roberts, Bill White

University of Phoenix

BSA/310 Business Systems

Mission/Description

Riordan Manufacturing is an industry leader in the field of plastic injection molding that has earned them international acclaim. (Apollo Group, Inc., 2004,). The mission that Riordan Manufacturing has embarked on will lead the company into the 21st century with a sound footing in the plastics manufacturing industry. In order for Riordan Manufacturing to be able to meet its customer’s needs and expectations, there needs to be systems in place that not only focuses on the quality but also the management of the manufacturing process.

With the implementation of the Six Sigma practice Riordan Manufacturing will be able to manage the variations in product output, along with having a system where they will be able to measure, analyze, and control their manufacturing process to within a defined specification. This will lead to an improved product for their customers with a defect rating of 3.4 per million produced or less. (Six Sigma, 2000-2007). Along with the improvements to the products produced, this will also help Riordan control its cost on a per product basis through the adherence of the defined specifications in the manufacturing process.

Unlike Six Sigma which focuses on product variation management, Riordan also is ISO 9000 registered. Being ISO 9000 registered, allows Riordan to adhere to the business standards set forth by the International Organization for Standardization. Six Sigma (2000-2007) stated “The ISO 9000 standards are produced by an international consensus of countries with the aim of creating global standards of product and service quality. These sets of standards form a quality management system and are applicable to any organization regardless of product, service, organizational size, or whether it's a public or private company.” (para. 3). This is an ever changing climate where Riordan will be evaluated every three years for certification, which is administered by separate and independent certification bodies. This will ensure that Riordan has one of the best quality management processes. When problems are found or arise in the management process, there is a complete analysis done on the problem, ranging from why the problem arose and the corrective actions needed to fix the problem.

Riordan Manufacturing prides themselves on their research and development, in order for Riordan to maintain their status as having one the best research and development departments; they will need to be creative to their customers needs and be rigorous in the development of innovative solutions for their customers. This will allow Riordan Manufacturing to stay ahead of the competition, and maintain a steady growth pattern for future success.

Riordan not only has a commitment to their customers, by offering their customers’ solutions to their plastics needs at an affordable price, but also they ensure that the employees of the company have the necessary tools to promote innovation and a team centered environment. All these factors combined, will enable Riordan Manufacturing to offer their customers a quality product, at an affordable price, with long-term solutions.

Finance and Accounting

After reviewing the finance and accounting section for Riordan Manufacturing I would like to discuss the existing and needed systems for this area of the business. First is the current financial situation of Riordan Manufacturing. I would like to first examine Riordan’s income statement. “The income statement is the major device for measuring the profitability of a firm over a period of time.” (Block and Hirt, 2005, p.25). For two years in a row Riordan has had a gross margin of over 8.5 million dollars.