Cis 568 Week 2

Riordan Manufacturing Outsourcing FMS Project

Jason Lee, Latoya Jones

CIS/568 Information Systems Concept

February 13, 2012

Kemal Tekinel

Riordan Manufacturing Outsourcing FMS Project

Background

Riordan Manufacturing has three locations within the United States and one located in China. The current financial management system (FMS) is managed separately at each location and is not currently communicating with each other. This situation offers slow payment processing and accounting practices at corporate offices to reconcile each locations financial management systems. Riordan could outsource its financial management system to consolidate their accounting practices within one central location. This would also reduce costs and increase accounting efficiencies. The following are some additional pros and cons of outsourcing.

Pros:

* Gain in productivity (Go4bpo, 2010)

* Increase or decrease the company’s workforce to meet production demands, and also reduce the cost of resources and equipment (Go4bpo, 2010)

* Outsourcing can make companies more globally competitive (Go4bpo, 2010)

* Concentration on core business areas (Go4bpo, 2010)

* Sell world class technology at lower rates (Go4bpo, 2010)

* Tax benefits (Go4bpo, 2010)

Cons:

* The company can run into problems if the service provider, no longer provides business due to financial and labor matters (Go4bpo, 2010)

* It could hurt production of current employees who might feel threaten due to the company outsourcing (Go4bpo, 2010)

* Cultural differences (Go4bpo, 2010)

* Also investment and support issues (Go4bpo, 2010)

Scope

The scope of this project is to analyze, define and develop an enterprise financial management system that uses a central database and is accessible from all Riordan Manufacturing locations. This will include, timekeeping, payroll, invoicing and financial audits that can be used by all employees and...