In the contemporary economy the problem of efficient data management is of a paramount importance and practically all companies realise this fact and pay a lot of attention to improvement their database management system. This is particularly significant for large companies which database is enormous and naturally needs proper management. Not surprisingly that nowadays database management spending is ranked as the third most planned software purchase for 2006 and estimated at $46.6 million (McFadden 2005). One of the companies that used database management system quite effectively is Riordan Manufacturing.
Speaking about the efficiency and the role of database management system applied to Riordan Manufacturing, it is necessary to briefly define this notion. Traditionally, database management system is defined as “a computer program designed to manage database and run operations on the data requested by different clients” (Chamberlin 1976:43). Often database management system may be applied in different spheres and the example of Riordan Manufacturing proves that the wider this system is applied the more efficient it operates.
In this respect, it worth to note that in Riordan Manufacturing database management system has been applied in all stages of the production and distribution chain. To put it more precisely, the system is applied on the stage of the perception of raw materials into the plant, than on the stage of transferring information to verify by the scheduled incoming order. After this the database management system assists to deliver the order to the plant where the sub assemble part is followed by getting the customers orders and eventually billing is created. Finally, the last to stages, in which database management system of Riordan manufacturing is applied, are shipping products and retaking inventory.
It should be pointed out that database management system applied in Riordan Manufacturing is very efficient since it provides coordinated work of all units involved in the process of production and distribution of the company’s products. In such a situation it would logical to discuss what makes the system really efficient.
First of all, it should be said that one of the main goals of the company’s administration, when its database management system was implemented, was to involve possibly larger number of companies into this system. In other words, Riordan Manufacturing has managed to implement the system in all its units and many of its partners. It is really important because the implementation of unique system provide the company and its partners “to meet their needs, but it’s [database management system] really becoming the desirable thing to do” (McFadden 2005:73). Such a unique system for many companies improves the cooperation between companies or within units of one and the same company.
Furthermore, the implementation of new database management system by Riordan Manufacturing make the data control more simple due to the improvement of taxonomy that implies that nowadays within the company it is possible “to create as diverse or simple taxonomy as they need: by business unit, division, plant, function, and product line” (McFadden 2005:81).
Thus, it is possible to conclude that the implementation of database management system on all levels of production and distribution may lead to the improvement of the financial and market position of a company and the investments in this system would be as efficient as they are in Riordan Manufacturing.
1. Chamberlin, D. D. “Relational Database Management Systems” Computing Surveys, March 1976, p. 43-78.
2. McFadden, M. “Quality Software and Analysis: Push for Paperless”. Quality Magazine, Dec, 2005, p.50-116.