Team A
CIS/207
June 07, 2013
Dr. Russ Alizadeh
Companies have many business requirements that must be met for them to compete and thrive above their competition. These business requirements would affect how the any new information system created. Requirements that Riordan face are to produce enough items, ship items by due date, and pay employees on time. This is currently being completed by Riordan but the process is tedious and has a high probability for error. To make the company more proficient and to cut labor costs were implementing the ERP system. The main purpose of ERP system is to collect all of the data that is entered by the different branches.
Riordan is a manufacturing company and producing items is how they make money. Many factors come in to play when you are trying to make money off of manufacturing goods. Labor costs and transportation costs all have to be accounted for when figuring out how much to charge for a product. With implementing the ERP system labor costs can be calculated to the minute. Also, with the ERP system production can be calculated, which gives Riordan the opportunity to cut labor costs. If all of the data is real time then they would know how many items they need to produce for that day and how many items have all ready been produced. That gives them to opportunity to send employees home early. On the other side this would allow for Riordan to let the employees know if overtime was needed as they would know if they are behind on production. Riordan has demand to meet their clients requirements while making a profit. Installing the ERP system will help Riordan meet their client expectations while making a profit.
Every company needs to have employees and most state/countries require that you pay those employees in a timely manner. If the state/country doesn’t require you to pay them in a timely manner, then most employees will take that into their own hands. With the ERP system employee payroll will