Riordan Finance and Accounting Process Improvement Proposal

Riordan Finance and Accounting Process Improvement Proposal

CIS/207

December 04, 2012

Executive Summary

Riordan Manufacturing, Inc. is composed of three primary facilities in the United States, with locations in Georgia, Michigan, and California. Headquarters is located in San Jose, California. In addition to the core entities, Riordan Manufacturing has a joint business venture located in Hangzou, China. Investigation into the company’s operating procedures and expenses revealed several shortfalls requiring immediate attention. The implementation of a streamlined Enterprise Resource Plan (ERP) and Electronic Database Interchange (EDI) is expected to reduce operational costs by 10% while improving cycle time by 15%.

The finance and accounting departments are struggling with their existing record keeping and database configuration. The resources identified at each facility are made up of disparate and antiquated equipment. Current operations for the consolidated close of the General Ledger are completed, at a minimum, 15-20 days past deadline. Additionally, the current system adds unnecessary administrative costs for personnel re-adding documents that are manually written or not compatible with HQ IT systems. Monthly audits are daunting, costly, and labor intensive. Additionally, there is an immediate need for government compliance to meet the specific demands of that customer base.

The entire financial and accounting focus can benefit greatly and exceed current operating goals by the implementation of a standardized and modern information system upgrade. The standardized systems will streamline support efforts, resolving a majority of current administrative inconsistencies. Operational efforts will also benefit through reliable information dissemination, ultimately benefitting the customer. These benefits will be seen immediately upon implementation.

Riordan’s CIO allocated $150,000 to fund a project that will document the current operating...