Riordan Manufacturing

Currently, there is not a comprehensive view of the existing and needed business systems at Riordan Manufacturing. As such, the CEO has requested (Service Request #SR-rm-012), this document, which is a summary of all the business systems at all of Riordan Manufacturing’s plant locations. The summary will be the basis for a systems plan for more effective management and includes detail for the following divisions within Riordan Manufacturing: Finance and Accounting, Sales and Marketing, Human Resources and Legal, and Operations.

Riordan Manufacturing’s finance and accounting services division has systems in place, but key systems are missing. The typical systems are in place to have the company’s Financial and Accounting function properly. Additional systems are in use and are unique to Riordan Manufacturing. Finally, the typical missing systems are the systems that should be in place but are not. It is important to break up finance and accounting into two separate entities to identify each department’s existing structure as well as any missing structures.

Accounting’s business systems are the most complete when compared to Finance. The typical systems that are in place are as follows. The General Ledger is for tracking finances. Accounts payable tracks the debts owed. Accounts receivable tracks the debts that customers and suppliers owe, and payroll processes paychecks and salaries.

There are also additional systems that support the company’s mission. The systems are as follows. Order entry is for inputting all orders. Procurement acquires assets for Riordan Manufacturing. Sales and Purchasing History is used for recording all sales. The Invoicing and Shipping department ships all products to the customer along with an invoice. Financial reporting “is to provide information that is useful to both present, and potential, creditors, investors, and other users for decision-making purposes” (Dedicated Writers, N.D). “EDI is the computer-to-computer exchange of business data in standard formats. In EDI, information is organized according to a specified format set by both parties, allowing an automated computer transaction that requires no human intervention or rekeying on either end. The information contained in an EDI transaction set is, for the most part, the same as on a conventionally printed document” (EDI (Electronic Data Interchange), N.D.). “A barcode reader also called a price scanner or point-of-sale (POS) scanner is a hand-held or stationary input device used to capture and read information contained in a bar code” (WhatIs.com, N.D.). EDSS “can be understood as a friendly, fully customized and interactive DSS to be mostly used by top executives and policy-makers to get permanent and updated assessment in relation to key questions (information and knowledge)” (EDI (Electronic Data Interchange), N.D.).

The typical missing systems needed to maintain accounting are important. The systems are as follows. “A fixed asset can be defined as a specific piece of property that has the following attributes. A tangible nature, a life longer that the current fiscal year and a significant value” (Massdor.com, N.D.). Purchasing is for all other purchases, and inventory is important to maintain all assets.

Financing is the most incomplete department of the two. The typical systems for financing are not in place and additional systems are not in place. Riordan Manufacturing needs typical systems for financing. The systems are as follows. “Cash management is the process of maximizing the liquid assets through the acceleration of receivables and the disciplined control of disbursements” (Nwagwu, N.D.). Investments are defined as “In finance, the purchase of a financial product or other item of value with an expectation of favorable future returns” (Investor Words.com, N.D.). Stocks are “An instrument that signifies an ownership position (called equity) in a corporation, and represents a claim on its proportional share in the corporation’s assets and profits” (Investor Words.com, N.D.). “Bonds are another word for loans taken out by large organizations, such as corporations, cities, and the U.S. Government” (Amadeo, N.D.).

Finance and Accounting have business systems in place, but they are not adequate to function smoothly. Accounting has some basic systems with additional systems. The missing systems will help the function of accounting. The current systems should be used to the fullest.

Financing needs all of the typical systems. It would be important to track all cash, investments and bonds for the growth of the company. As much value that Riordan has, the inability to track the company’s assets would be devastating if something went wrong.

Riordan Manufacturing is currently trying to consolidate all