RIORDAN TECHNOLOGY RENOVATIONS 1

Running head: RIORDAN TECHNOLOGY RENOVATIONS

Riordan Technology Renovations 2009,

Response to SR-rm-001/Project Proposal.

Ben Chheuth,

Ray Hernandez and

David “Toby” Meyers of

Silly Nerds Consulting, LLC.

Version 1 (June 16, 2009)

Revision 1 (April 5, 2010)

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Riordan Technology Renovations 2009

This proposal is divided into three parts: Hardware Networking, Radio Frequency

Identifier (RFID) tracking system installation and Client Vendor Accounting Inventory

Management (CVAIM) database installation.

Riordan Manufacturing’s inventory system necessitates a fine-tuned process of thorough

organization and strong communication. However, the process involves clerks and supervisors

who record orders and conduct checkpoint auditing with the use of order forms and segregated

database systems. Therefore, this process is comprised of excess steps that our firm finds to be

auxiliary. We feel that both time and human resources can be saved and used more efficiently.

We also believe that data flow must be streamlined in a consolidated system. By solving this

problem, the inventory workflow will prove to be effective and expedient. Furthermore, labor

will be reduced in all departments. Improving these areas will empower Riordan Manufacturing

to receive more orders and control them. Operations at all locations will also be able to

communicate and report more effectively.

Hardware networking is important in a corporation. It is use to communicate with the

same companies that are located in different states in the US and overseas. Riordan has a

hardware networking system that is difficult to manage and will cost if anything malfunctions.

Our plan is to reform their networking system and remove their redundant systems.

A Radio Frequency Identifier (RFID) tracking system is a utilization of logistical system

upgrades that improves your inventory and manufacturing process, by adding global positioning

technology to your management tools. An RFID is 18-digit number transmitted only when

specific frequencies of radio energy broadcasted at the unit. The unit then uses this energy to

broadcast its number and then picked up by the source. The source is some device, a computer
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terminal, a personal data device, a virtual clipboard or any hand held device. Then the source

connected to the database of information on parts and inventory. This gives better feedback of

operations by monitoring the physical location of inventory as it passes between operations

centers and through various changes in its assembly, maintenance or recall. Client Vendor

Accounting Inventory Management (CVAIM) database holds the corresponding inventory data.

The Global Positioning (GPS) data as coordinates to the CVAIM database, updates whenever it

passes by a source either in the field or in the office.

Executive Summary

Riordan hardware networking system is redundant and should be simplified to make it

easier to manage and save the companies money just in case one of the hardware breaks down. In

this proposal, we will come up with a downsized network, and the network will have virtual

private network (VPN) software, used to secure the network.

With a 100 base T backbone from a fiber optics to the office connection, a web and email server

will be located at the corporate headquarters as well as the CVAIM database and the controller

server for our proprietary RFID. The hardware networking system will be successful once we

send out customer surveys, and the respond with satisfied comments.

The aim of the CVAIM integration is to provide workflow expedience and reduce time

and human resource expenses. With the help of our firm, Riordan Manufacturing will possess all

the benefits previously listed. Riordan Manufacturing will possess a solid and efficient

technology system that will tremendously improve user capabilities in data management. To

accomplish this, we will develop a new electronic data management system, integrate an e-

commerce website, and implement a training program. In these initiatives, we will set up

complete system access, provide automated inventory tracking capabilities, outfit automatic data
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forwarding processes, and offer vender and client access to their own accounts and order status.

The result of these systems will be enhanced data accessibility and more effective inventory

management control.

This proposal also suggests introduction of RFID tracking system to monitor parts and

inventory of Riordan Manufacturing. The use of RFID could improve production efficiencies,

provide real-time inventory update with GPS, to improve shipping and receiving efficiencies,

enhanced product security and helps analyze organizational behavior. This proposal outlines

implementation of RFID system. This proposal suggests pricing for implementation and gives

initial estimate on RFID systems. Our firm intends to reduce time and human resource expenses

by enhancing data accessibility and strengthening management control. We intend to open

opportunities for efficiency and a streamlined workflow.

Scope

Devise a simple hardware networking system that operates without a high degree of

specialized technical knowledge and have the same security without costing too much. Install

four servers for the corporate office and each server will be setup with a T3 line. Develop an en

masse primary electronic data management strategy that offers access to multiple departments

from all operation locations with headquarters. Integrate an electronic commerce website through

which clients can place orders and manage company accounts. Implement a training program for

the electronic data management software. Our firm will not extract data from current databases,

or input data into the new database system.

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Requirements

The VPN software under a reliable system shall provide a reliable security system with

VPN software.

The first server shall exist for the RFID tracking system. The second server shall be used

for web and email. Each computer will have a unique address. Only users that are setup will be

able to communicate.

CVAIM shall allow networked access. Each user has a unique identification number. The

software will exist on a dedicated application server. Users shall access the software through the

server.

CVAIM shall work in with client orders placed on the website. Order data conforms to

QuickBooks Enterprise software format. Sales orders are forwarded to the inventory factory.

Client accounts automatically update.

CVAIM shall work in conjunction with our proposed RFID technology for inventory

tracking purposes. Raw materials packages, manufacturing inventory packages, and final product

inventory packages statuses updated from RFID system, to the CVAIM system automatically

during checkpoint departure and arrival. The status in the CVAIM system will include location of

packages, quantity auditing, outbound location, and time elapsed from order submittal time.

CVAIM shall provide clients and vendors with account access. Clients and vendors will

possess secure access to account records, as well as tracking information on orders made. We

will provide Training for CVAIM software for appropriate employees. We will provide materials

to supplement the reference material and training videos.

RFID shall have networked access. Each item has a microchip that broadcasts a unique

identification number. The RFID access software will exist on a dedicated application server.
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Client Vendor Accounting Inventory Management (CVAIM) database shall hold corresponding

inventory data. Silly Nerds shall install user-defined number of RFID taggers. Silly Nerds shall

install user-defined number of RFID readers.

Silly Nerds shall train appropriate Riordian employees in the use of the RFID system.

The database management system shall utilize QuickBooks Enterprise software with

inventory and vendor plug-ins. The software shall be the primary accounting and inventory

tracking software. All software shall be licensed.

Project Location

The hardware networking, CVAIM systems implementation, and the RFID system

installation will take place in all four corporate offices.

Outputs

RFID installation shall consist of two parts: Physical installation of readers and taggers.

RFID control software shall be installed onto server at corporate headquarters, as well as

configuring permissions for CVAIM push/pull systems.

In order to successfully integrate the CVAIM system, employees must undergo operations

training. We also require that Riordan Manufacturing IT undergo troubleshooting training. When

our reports have been collected and analyzed, we will provide a comprehensive report. This

information will disseminate trends and an overall comparison from the current system to the

new system.

To measure the success of the CVAIM and RFID system, our firm will maintain a log of the

shipping records. We will also maintain a log of the product package order-to-receipt time cycle.

After one month of use, we will provide a survey to record user experience with the CVAIM

system. Surveys will be provided to both Riordan Manufacturing employees and clients. Client
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surveys will be prompted on the website immediately after orders are placed. Surveys will ask

users to compare prior systems use to new systems use. These reports will supply us with ample

information to measure the success of the CVAIM system.

Once the RFID system is in place, software will identify broadcast information as GPS

coordinates and add them to the CVAIM database system. We will provide materials to

supplement the RFID system: user manuals, instructional videos and quick-use operation

instruction. Once all tests are passed, we will give Riordan Manufacturing notification that the

CVAIM system and RFID system is ready for use.

Expenditures:

RFID tracking system Installation:

Minimum1 reader per operations center: $4,000.00

RFID Labelers 2 per operations center: $4,000.00

Software licensing: $3,000.00

Training: 20 employees @ $200 hr.

CVAIM Integration

Software License $300,000.00

Plug-in licenses $100,000.00

Labor $100,000.00

Hardware

Networking $13,500

T3 Line $3000 per location

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VPN Software $1500

Major Risks

Some risks that might happen are viruses that develop in the system over time, and the

system crashing. The major risks of integrating the CVAIM system involve security, server

connectivity, and basic technological malfunctions. We understand that in any technologically

dependent system, these risks may pose a threat to the welfare of Riordan Manufacturing’s

database and operations. However, we find that continuing with the current inventory and data

management system will only cause the company to accrue unnecessary costs and use of human

resources. If the CVAIM system is not integrated into the current operations, then the company

may continue or start to face data duplication, missed delivery deadlines and profit loss.

Minimizing Risks

To minimize the threat of a security breech or unauthorized access to company records,

we propose to implement measures that will enhance security for all operations locations. During

the testing phase of the project, we plan to set up anti-virus protection, secure networks, and

necessary precautions to prevent security risks. To minimize server connectivity issues, we plan

to incorporate high quality servers and backup systems in the event of a malfunction or

unforeseen technical problems. RFID only broadcasts an 18-digit number all other information

accessed through CVAIM database system.

Acknowledgements

Network Installation Responsible Individual:

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Ben Chheuth, Network Consultant, Silly Nerds LLC.

CVAIM installation Responsible Individual:

Ray Hernandez, Database Engineer/Graphic Designers, Silly Nerds LLC.

RFID installation Responsible Individual:

David Meyers, Senior Network Developer, Silly Nerds LLC.

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References

Stair & Reynolds. (2006). Fundamentals of Information Systems.

U.S.A.: Thomson Course Technology.

University of Phoenix, (2009). Service Request SR-rm-001 Processes Evaluation.

Retrieved June 16, 2009, from: phoenix.edu

RFID Journal, (2009). RFID System Components and Costs.

Retrieved June 16, 2009 from: RFID journal,

http://www.rfidjournal.com/article/view/1336/1/129.