Ordain Manufacturing Management Review Britain Dressed, Jose Jimenez, Jorge Garcia, Dianna Kirkland university Of Phoenix university of Phoenix BAS/502 Ordain Manufacturing, Inc is an industry leader in the field of plastic injection molding employing 550 individuals throughout its plants in the USA and China. Products produced at Ordain include plastic beverage containers produced at its plant in Albany, Georgia, custom plastic parts produced at its plant in Pontiac, Michigan, and plastic fan parts produced at its facilities In Hangout, China.
Research and development is conducted at the corporate headquarters in San Jose. The success of the company speaks for Itself with projected annual earnings of $46 million (Apollo, 2004). While studying Rolando, one can see the success on the company’s website by browsing the balance sheet and Income statements. Although successful and turning a profit the company could Improve Its efficiency and effectiveness in many areas including, but not limited to human resources, legal areas, and logistics and operations.
These three topics will be discussed in further detail in the following pages. Ordain Human Resources Ordain has a well organized Human Resources organization. From the impasses Organizational Charts, Job Classifications, Job Descriptions to Demographics, Employees, EEOC Reports, Communications and Employee Handbooks. Ordain has a well developed organizational platform that will keep its human resources organization well informed and well developed. As much as the Ordain HRS organization Is well formed there Is one recommended change that will greatly benefit the company.
The following recommendation Is made as Its Human Resources System Is antiquated and Is In major need of Improvement. Ordain Manufacturing Human Resources Information Systems (HRS) Ordain manufacturing currently uses a system that is 17 years old. This system is very outdated and relies heavily on Excel. It is unclear at this time if an upgrade to Excel would stop the current system from working. The system also relies on everything to be hand typed with no checks and balances on what is being entered into the system allowing for errors.
Much of the data that needs to be changed is submitted in writing. This is not an efficient or productive way to handle changes. It can take days or weeks to get everything updated. Due to the heavy reliance on Excel, this also means that only one person should be working in the file at time. If the file Is used as a shared filed, Ordain runs the risk of typing over another person’s data entry. There are many different Individuals who are responsible for keeping the system up to date with any new activity such as application updates or Job position posting.
If a person were to apply for one position there would be little chance that the resume gets revealer Tort a Deterrent position Tanat may De a netter NT Tort Don ten applicant Ana Ordain. All resumes are kept in a central storage area. It is unclear if this location is cure and if copies are made and kept at a different location in case of destruction of the original files or any type of system failure. There does not seem to be any backup system either by hard copies or by any type of electronic media.
Not having a backup system greatly puts the company’s employee information and files at huge risk. Officials are well aware of this situation and are looking for an immediate solution. Another unique problem found was that employee information is stored with each unit’s individual managers; there is no central location for all of the information. The managers are also responsible for filing important documents like leave of absences, pay, employee ranking or DAD accommodations. Employee compensation is kept by and outside vendor where the information is kept secure by that vendor.
However, a compensation manager does keep an Excel file of “results of job analyses, salary surveys and individual compensation decisions” (Apollo Group, 2007). Company relations specialists are responsible for keeping track of “information about complaints, grievances, harassment complaints, etc. In locked files in their offices” (Apollo Group, 2007). There is a greater margin for errors due to the fact that all vital information is scattered and kept by different individual and even outside vendors. Doing so allows for more errors, loss of data and no central location to keep all vital employee information.
Another concern is the security levels implemented if any to keep such information private and accessible only by need to know only individuals. Due to the managers being responsible for their subordinates’ entire personal file and no backup system in place for these files; the company runs an elevated risk of employee’s information leaking or becoming inaccessible if a anger must leave the company under unwanted circumstances. These circumstances could range from having to fire the manager, layoffs due to downsizing, or the manger being incapacitated to perform their management duties.
Recommended Human Resource Information System Filing employee information such as personal information, pay rate, personal exemptions for tax purposes, hire date, seniority date, organizational information, and vacation hours requires a specifically created system designed and suited to document such information. The Human Resource Department employs competent, experienced and educated individuals whose tasks would be easier if the HRS system was changed from the existing Excel format to Peoples. This is not going to be an easy transition as it will require time to convert the information in order to fit the new system.
Investing in such a system will provide a positive return on investment (ROI) as Ordain will increase efficiency by investing in a new up to date scalable system that will easily integrate with the other operating units. Peoples is a robust system that will integrate a seamless combination of applications such as Financial, Customer Relationship Management and Human Resource Management. Peoples is a software company offering a solution entitled Peoples, which “provides a wide variety of business applications to assist in the day to day execution and operation of business processes” (Enigma, 2008).
Peoples would allow for a more organized filing and tracking of employee information such as pay scale, seniority, hire dates, sick or vacation time and any other pertinent information. Peoples allows International entered Into ten dataset to De processed on multiple bevels, and allows all administrative functions of an organization to “operate seamlessly, so that all Management, Human Resources, Admissions, Finance and Records all interconnect” (University of Baltimore 2009).
Simply put Ordain can greatly benefit at all levels from implementing this new way of tracking employee information throughout its operating organizations and cut cost if they were to deploy Peoples. This new method will seamlessly combine all of the organizations into one easy to use, up to date, scalable way of tracking employee records into one user friendly method that upper management can easily use and understand. Peoples is the affordable software that will bring a more robust way of tracking, updating and projecting software that will carry Ordain into the future with a great ROI.
Ordain Manufacturing is well on its way to becoming a successful, growing company with customers throughout the Unites States as well as customers throughout the world. Its United States operations combined with it Chinese operations will propel the company into a financial success in the future. Adding Peoples will make this move seamless and it will also grow with the company to keep it competitive and successful. The company’s current use of Excel based formatted forms greatly hinder the company’s ability to manage information related to the company’s employees, finances and other important information.
Add to this the fact that the company also outsource some if it’s critical information making it that much more difficult to update, retrieve and keep safe any company information. In conclusion the addition and deployment of Peoples will greatly enhance the company’s ability to manage, update and secure its employee information and any other data pertinent to the company’s day to day functions. Peoples will take care f all of the day to day activities. A system should also be put in place to record all paper information into a digital format. This paperwork would include any signed documents by the employee.
These documents could include hiring information (other than resumes as Peoples can handle recording the information), promotion documentation, annual reviews, disciplinary reviews, excellence reviews, or grievances filed. A simple solution for this information would be to have all originals mailed to the human resource department. At that time a PDF version of the document would be made and stored on a secured server at the company. The human resource department could have read and write capabilities to this information, but managers would only be able to read the information from the server.
A solution like this allows the information to be controlled better by the company. Legal Issues and Management Today’s business environment requires strategic risk assessment and risk management tactics. In order for any organization to proceed in a logical manner management should determine or identify the assets and people in need of protection, the types of laws that may affect the companies assets, people, and the monetary or legal impact if particular events occur or particular laws are broken (Brooder, 2000). Management must continually monitor changing laws and policies that could affect the organization.
Individuals often consider legal issues as a lawsuit due to unjustifiable termination, accidents, discrimination, sexual harassment on the job, or faulty products. These are only a few of the many legal areas in which management Ana learning In any organization wall need to contend Walt Management must keep updated on laws concerning production laws, non- production laws, employee laws, and everything in between. Legal Areas Affecting Employees Ordain Manufacturing has operations in both the United States and China.
Each country has its own set of laws and regulations concerning employee labor in which management must be aware. The United States has many laws that include minimum wage, work safety, equal employment opportunities, veteran status, disabled individuals employment opportunities and the many aspects of discrimination. There are also union regulations that Ordain may have to work within the guidelines of. The Department of Labor (DOLL) controls United States minimum wage laws. Currently the DOLL requires that every employee in manufacturing and other labor sectors be paid the minimum wage of $6. 5 an hour (Department of Labor, 2009).
This helps protect an employee from being paid so little that they cannot have the basic needs in life. A department within the DOLL called Occupational Safety and Health Administration (OSHA) controls worker safety laws. OSHA is very strict on its manufacturing guidelines. If these guidelines are not followed to Ash’s standards company’s can face large fines and the potential to be shut down until the problem is corrected. The United States also has laws in regards to employee discrimination. These laws include hiring, firing, and promoting employees.
Although the intranet site does not say that Ordain Manufacturing has any unions, the potential for employees to Join union is still a possibility. When a union is present in a company there are certain regulations that need to be followed. These can include having a special contract with union employees or having the right to have a union representative present in disciplinary actions. Production Affecting Laws U. S. Customs law includes federal statutes that regulate the importing and exporting of goods, procedures, penalties, and tariff statutes (Lowdown, 2001).
Management must keep updated on local laws and license requirements in order to keep things running smoothly. Modern product litigation is complex and the proving or disproving of product defects and the involvement in personal injury requires analytical expertise (MIR, 2009). Non Production Laws Legislation has enacted anti monopoly laws regulating trade and commerce by preventing unlawful restraints, price fixing, and monopolies, to promote competition, and to encourage production of quality goods and services at fair prices.
One of the goals of anti monopoly laws is to protect the public by demanding quality goods be made at reasonable prices (West, 1997). Environmental protection laws do not affect all organizations federal government regulates these. Ordain Manufacturing needs to be aware of environmental laws in South Korea and other global markets where they conduct business as well as America (Frontline, 2009). Consumer laws and copyright and patent laws are laws in which management at Ordain continuously monitor due to new designs and products.
Consumer laws are becoming important worldwide requiring focus on these laws. Other legal areas in which Ordain Management must be aware of would be criminal laws, tort laws, the Uniform commercial code, warranties, contract law, Ana tax laws Don In ten unlace and in any country they do business in. Knowledge of these laws assists management in vulnerability identification and establishing how to proceed in every department of the organization. Each countries legal system is slightly different, however, the penalties for breaking one of these laws is stiff in every country.
Suggestions for Legal Ordain Manufacturing, like many companies, needs to be aware of current laws and regulations. There are many laws that apply to the company, the laws in the country in which they conduct business, employee rights, product laws and international laws. Ordain also carries the responsibility of being aware of any regulation or law changes that administrative agencies are currently promoting to be permanent changes. Ordain would need to analyze their current systems and see if they will need to change their current operations in order to comply with new legislations.
If Radian’s management or employees are in violation of any laws or regulations it could led to the company facing huge fines, forced to fire employees, emperors shut downs, or worst case permanent shut down of the company. Staying aware and up to date in regards to the many laws is imperative for any company to stay within the law and business guidelines. Operations and Logistics in Ordain Manufacturing Operations and logistics form the base of every organization, whether in manufacturing, service or nonprofit industries.
Operations management and logistics within Ordain Manufacturing although not perfect has lead to Ordain becoming an industry leader in the field of plastic injection molding. Radian’s current operations ND logistics and suggestions for improvements will be described. Ordain Manufacturing Operations and Logistics Product development at Ordain involves idea generation, product design, detail engineering, market research and market analysis. This team is responsible for creating, modifying and releasing drawings and word drawings on CAD systems, designing and developing new products, and designing marketing research projects.
The operations under product development also include analyzing results, designing and managing. Designing and producing of planned marketing programs, evaluating chemical and economic factors, recommending engineering and manufacturing actions for attainment of design objectives of process of product is yet another operation under product development assisting in the success of Ordain. Quality team coordinates and directs quality control programs designed to ensure continuous production of products consistent with established standards (Apollo, 2004).
Ordain takes quality management serious and the operations, which take place to ensure quality control, quality assurance, and quality improvement as well as the measures taken to focus on product quality is extensive and detailed. Logistics team analyze production schedules and determine inbound and outbound logistics needed for assigned plants as well as direct and coordinate program activities with vendors and customers. Logistics team also schedule inbound and outbound shipments, compute freight rates, and direct and coordinate activities of international operations.
The Warranty Service team receives records and distributes work orders to service crews upon customers’ requests for service (Apollo, 2004). Operations Ana Logistics systems Ordain Manufacturing utilizes two systems in their operations and logistics recesses. An inventory system that is used to enter material reception information, material usage, new inventory sub assembly and final product manufacturing, as well products that have been shipped to the customer. The second is a customer shipping and billing system. The sales department keeps customer order information in this system.
The shipping team uses this system to identify which products and quantity must they draw out of the inventory system. Shipping team also records truck number, date and time of shipment for tracking purposes. A clerk manually enters cost of inventory and shipping information into inventory as well customer shipping and billing systems. Receiving area supervisor received materials during the day, then delivers log to inventory clerk at the end of this. Clerk manually feeds the system. The manufacturing staff completes inventory usage form; inventory clerk manually feeds system with this data.
As manufacturing builds products, staff delivers a form to inventory clerk for manually updating the system with new inventory information. The shipping team fulfills orders based on customer shipping and billing system information. Inventory clerk updates inventory system based on what has been shipped to customer. Ordain Manufacturing Recommended Systems Ordain Manufacturing can greatly improve logistics of the process from raw goods to final products. Ideally, Ordain would be able to process under a zero inventory system. A shipment of raw goods would come in once a day to cover all orders for the day.
The receiving area supervisor should have a hand held system where he can find the order of products and check off that it has arrived. This would let the manufacturing sector know that the raw goods are available to for use. The computer system, would then replace the need for the inventory clerk at this point in the process. Manufacturing the raw materials into a product will require the inventory clerk to keep track of what is going to manufacturing and assembly verse going to sub assembly and final productions. The inventory clerk should know where these goods are at all times.
At the end of the shift the inventory clerk should have a detailed list of where all the products are in the manufacturing process. Orders are called in by the customers and are entered into the customer shipping and billing system. When the order is entered it should trigger a tally into the system that orders the raw materials. When the order is complete in the manufacturing phase it will be shipped out to the customer. When the order is placed on the truck the boxes should be scanned into a tracking system and will be removed from the inventory list.
At the end of the day the inventory clerk will verify what the system says was shipped really was sent to the client. Suggestions of Operations and Logistics There are several areas of improvement opportunity at Radian’s operations and logistics departments. The key is to minimize manual information gathering and move into a more automated system that can track inventory levels, materials placement, and material storage as well as shipment information accurately, seamlessly and in real time.
The organization could benefit from the use of RIFF and Bar codes; nevertheless the technology is important but the process as well. It is strongly recommended Investing on process Improvement as well Inventory Ana shipment tracking technologies. A strong combination consisting of a streamlined receiving, storing, inventory, processing and materials tracking via the use of RIFF, Bar Codes will greatly improve the materials process from input, throughput and output.
Saving time, saving money and a minimal need for personnel will greatly benefit Radian’s customer service requirement, materials purchase and the saving of money for the company. Conclusion Ordain Manufacturing has been very successful as a company and as a producer of fine plastic parts and custom plastic parts. Ordain has many companies throughout the United States and in Hangout, China. I order for Ordain to stay competitive and ahead of its competition it will need to make many changes. What irked before and what works now may not work for tomorrow.