Service Request for Riordan Manufacturing (Virtual Company)
Finance & Econ
sales_marketing_-_riordan_9.zipSales_Marketing_-_Riordan_9.docx
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Home | Marketing Information System | Sales Plan - 2006 | Customer List | Sales Chart - 2005 | Product Catalog |
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Home | Marketing Information System | Sales Plan - 2006 | Customer List | Sales Chart - 2005 | Product Catalog |
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Home | Marketing Information System | Sales Plan - 2006 | Customer List | Sales Chart - 2005 | Product Catalog | Download Microsoft Excel™ version of Customer List
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Home | Marketing Information System | Sales Plan - 2006 | Customer List | Sales Chart - 2005 | Product Catalog |
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Legal_-_Riordan_0.doc
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Legal |
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Home | Overview | Communications | Corporate Governance Plan
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Lowell Bradford, Chief Legal Counsel, oversees all legal matters for Riordan Manufacturing. All contracts have to be approved by Mr. Bradford before they can be signed. Department heads forward all legal questions to Mr. Bradford who answers them from his personal knowledge and experience or after consulting with the attorneys at Litteral & Finkel, the law firm retained by Riordan Manufacturing. Mr. Bradford and Rick Ethridge handle all the company’s patent applications. Litigation, tax issues and real estate matters are referred to Litteral & Finkel, but closely supervised by Mr. Bradford. Per Mr. Bradford’s instructions, all communications between Litteral & Finkel pass through Mr. Bradford’s office. Litteral & Finkel have been representing Riordan Manufacturing since its inception. Dr. Riordan’s cousin was a partner in the firm and the close relationship between the two firms has continued even though Dr. Riordan’s cousin passed away eight years ago. Riordan Manufacturing pays Litteral & Finkel a monthly retainer to assure prompt response to any legal inquiries. If legal matters arise, legal fees are charged against the retainer. If the amount of the month’s legal fees exceeds the retainer, excess charges are billed to Riordan Manufacturing at the end of the month. Unused retainer amounts are not carried forward. Litteral & Finkel is a large international law firm that practices in all areas of the law. The firm has offices in a number of cities including: · San Jose, CA · Los Angeles, CA · New York, NY · Chicago, IL · Atlanta, GA · Detroit, MI · Washington, D.C. · Cleveland, OH · Mexico City, Mexico · London, United Kingdom · Paris, France · Geneva, Switzerland · George Town, Grand Cayman · Sydney, Australia · Perth, Australia · Dublin, Ireland · Tokyo, Japan · Seoul, South Korea · Kuwait, Kuwait · Doha, Qatar · Moscow, Russia Litteral & Finkel has provided Riordan Manufacturing with legal services in the areas of tax law, real estate transactions, employment law, immigration matters, civil litigation, workers compensation, labor law, and customs regulations. With its vast resources, Litteral & Finkel can immediately provide a team of attorneys, paralegals and clerks to any legal issue that confronts Riordan Manufacturing. With its international network, it can send attorneys from its closest offices and within a few hours be on the scene to provide legal advice anywhere in the world.
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Home | Overview | Communications | Corporate Governance Plan
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Corporate Governance Policies Selection of Board Board Leadership Roles Board Composition and Performance Criteria Board Meeting Etiquette and Proceedings Committee Matters and Membership Board Responsibility to Operations and Financial Activities
Download PDF copy of Governance Plan Corporate Governance Policies The Riordan Manufacturing Board of Directors carries the responsibility of overall management of business affairs of the Company in accordance with state corporation requirements, the Articles of Incorporation, and its By-Laws. The encompassing role of the board is to govern and manage the affairs of the Company for the benefit of shareholders. The Board endeavors to faithfully fulfill its obligations through oversight of quality management personnel who carry out the daily activities on behalf of the Board of Directors of Riordan. Top Selection of Board 1. Criteria for Board Membership The Board shall maintain a Nominating Committee with responsibility to review the skills and characteristics of the members of the Board. Those attributes sought in retaining and adding members of the Board will include industry knowledge, financial literacy, availability to participate, and commitment to act in the capacity of a Board member of Riordan. 2. Director Independence The Company shall engage a majority of Board members independent of current management of Riordan, as stipulated through standards set out by regulation. The Nominating Committee will review the relationship of each Director to the company on a regular basis. 3. The Board will have the responsibility to select new members to its body. The Board, under the supervision of the Nominating Committee, will be responsible to recommend new members. New Board members will be provided with information concerning the Company and be given access to senior management in an effort to orient them to their new position on the Board. Top Board Leadership Roles 1. Selection of Board Chairman and CEO The Board may designate as its Chief Executive Officer any current officer of the Company. The Chairman of the Board of Directors may be designated from any current seated member of the Board, including the Chief Executive Officer, if also a member of the Board of Directors. Top Board Composition and Performance Criteria 1. Size of Board The size of the Board shall be no larger than necessary to manage the operations of the Company. The Board shall, from time to time, assess the number of Directors and overall size in relationship to Company operations and size. 2. Assessing Board Performance The Nominating Committee shall assist the Board in carrying out a self-assessment of performance. The Nominating Committee, along with the Auditing Committee, shall compile performance reviews to present to the full Board for the purpose of evaluating overall performance and effectiveness of Board activities. 3. Resignation or Removal A Director may, for personal or other reasons, such as a conflict of interest, submit his or her resignation to the Chairman of the Board. The full Board may accept or reject the tendered resignation based on the best interests of the Company. For just cause, the Board, assisted by the Nominating Committee, may request and/or vote on an approved request for removal of a Board member. 4. Board Compensation Company Human Resources staff will provide an annual review of Corporate Board compensation. The report will provide the basis for proposed compensation of Board members, based on the recommendation of the Chairman of the Board. Top Board Meeting Etiquette and Proceedings 1. Board Member Attendance All Board members are expected to be present at a minimum of three quarters of the regularly scheduled meetings in a calendar year. Absences should be reported to the Board Secretary in advance, when possible, to allow the Board to disseminate Board business to the absentee member. 2. Selection of Agenda Items The Chairman of the Board will establish the agenda, based on advance submission of requested items from other Board members or the Chief Executive Officer of the Company. 3. Distribution of Board Materials Information pertaining to the agenda items for the upcoming Board meeting will be distributed to Board members, when feasible, three days prior to the Board meeting date. All reports, financial or otherwise, and any presentations should be included in the Board Meeting Package and distributed on behalf of the Board Secretary. Top Committee Matters and Membership 1. Committees will be established to support overall Board operations. A minimum of the following committees will be established and maintained during the life of the Company: Executive, Auditing, and Nominating. Other committees may be created by recommendation of the Chairman of the Board and approval by the full Board. 2. Committee Membership All committee members will be appointed by the Chairman of the Board with approval of the full Board. The Nominating Committee shall solicit membership from the full Board, based on desired participation of individual Board members. 3. Committee Meeting Frequency and Participation Frequency of committee meetings, length, and agenda will be the responsibility of the Committee Chairman, as elected by the seated Committee membership. Committee members are expected to participate in committee meetings as often as possible. The Committee Chairman is responsible for distributing materials to committee members prior to the meeting date and reporting committee findings and recommendations to the full Company Board through the Chairman of the Board. Top Board Responsibility to Operations and Financial Activities The Board of Directors designates its authority to operate the Company to senior management and Company staff, passing to them the responsibility to carry out Board policies and report back activity. The Board of Directors holds the ultimate fiduciary responsibility of managing affairs through its designated senior managers, with the right to remove senior management when it is in the best interests of the Company and its shareholders. The daily activity of operations shall by governed by departments through the development of a Departmental Governance Plan.
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Human_Resources_-_Riordan_1.doc
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Human Resources |
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Job Titles & Locations
# of Incumbants
EEO Class FLSA Status Pay Band Corporate Pontiac, MI Albany, GA Joint Venture, China Tele-commute President & CEO A1 E Executive 1
Executive Asst. B4 E Professional 1
SVP R & D A1 E Executive 1
Executive Asst. B4 E Professional 1
Mgr. - Product Development A2 E Manager 1
Materials Engineers B2 E Professional 10
Packaging Engineers B2 E Professional 4
Development Engineers B2 E Professional 4
Administrative Asst. E1 NE Administration 2
CAD Operators C2 NE Technician 10
Mgr. - Research A2 E Manager 1
Research Program Manager B4 E Professional 3
Chief Operating Officer A1 E Executive 1
Executive Asst. B4 E Professional 1
VP Transportation A1 E Executive 1
Administrative Asst. E1 NE Administration 1
Mgr. - Logistics A2 E Manager 1
Logistics Planner B4 E Professional 1
Transportation Manager A2 E Manager 1
VP Sales & Mktg. A1 E Executive 1
Executive Asst. B4 E Professional 1
Director of Sales, Custom Plastic A1 E Executive 1
Sales Asst. E1 NE Administration 1
Sales Representative D1 E Sales
4 Director of Sales, Plastic Beverages A1 E Executive 1
Sales Asst. E1 NE Administration 1
Sales Representative D1 E Sales
4 Director of Sales, Fans A1 E Executive 1
Sales Asst. E1 NE Administration 1
Sales Representative D1 E Sales
4 Director of Sales, International A1 E Executive 1
Sales Asst. E1 NE Administration 1
Int'l. Sales Reps are contract mfg. reps
N/A
Marketing Manager A2 E Manager 1
Administrative Asst. E1 NE Administration 1
Market Analyst B4 E Professional 2
Product Specialist B4 E Professional 2
Chief Financial Officer A1 E Executive 1
Executive Asst. B4 E Professional 1
Director of Human Resources A1 E Executive 1
Recruiter — Professional Staff B4 E Professional 1
Compensation & Benefits Manager A2 E Manager 1
Compensation Analyst B4 E Professional 1
Benefits management is outsourced
Training & Development Specialist B4 E Professional 1
Employee Relations Manager A2 E Manager 1
Employee Relations Specialist B4 E Professional 1 1 1 1
Payroll Manager A2 E Manager 1
Payroll and Tax Clerk E1 NE Administration 1
Safety Manager A2 E Manager 1
Safety Technician C4 NE Technician
1 1 1
Director of Accounting & Finance — Corporate Controller A1 E Executive 1
Cost Accountant B1 E Professional 1 1 1 1
General Accounting Supervisor A2 E Manager 1
Accounts Receivable Clerk E1 NE Administration 2
Accounts Payable Clerk E1 NE Administration 2
General Accountant B1 E Professional 2
Credit Manager A2 E Manager 1
Credit Analyst B1 E Professional 1
Tax Accountant B1 E Professional 1
Audit is outsourced to a third party firm
Financial Planning Manager A2 E Manager 1
Financial Planner/Budget Specialist B1 E Professional 1 1 1 1
Chief Legal Counsel A1 E Executive 1
Administrative Asst. E1 NE Administration 1
Patent Specialist B4 E Professional 1
VP Product Support A1 E Executive 1
Customer Service Representative B4 E Professional 2 1 1
Warranty Service Technician C4 NE Technician 1 1 1
VP Operations A1 E Executive 1
Director, Plant Operations (Albany) A1 E Executive
1
Assistant Plant Manager A2 E Manager
1
Production Control Technician C3 NE Technician
1
Recruiter - Hourly Employees B4 E Professional
1
Team Superintendent A2 E Manager
1
Production Employee G1 NE Production
20
Shipping Employee G1 NE Production
4
Transportation Coordinator E2 NE Administration
1
Logistics Coordinator E2 NE Administration
1
Manufacturing Engineer B2 E Professional
1
Director, Plant Operations (Pontiac) A1 E Executive
1
Assistant Plant Manager A2 E Manager
1
Production Control Technician C3 NE Technician
2
Recruiter - Hourly Employees B4 E Professional
1
Team Superintendent A2 E Manager
5
Production Employee G1 NE Production
88
Shipping Employee G1 NE Production
15
Transportation Coordinator E2 NE Administration
1
Logistics Coordinator E2 NE Administration
1
Manufacturing Engineer B2 E Professional
3
Purchasing Manager A2 E Manager 1
Purchasing Agent B4 E Professional 2
Quality Manager A2 E Manager 1
Administrative Asst. E1 NE Administration 1
VP International Operations A1 E Executive 1
Administrative Asst. E1 NE Administration 1
Director, Plant Operations (China) - Expatriate
1
Assistant Plant Manager (host country national)
1
Production Supervisor
5
All other production employees
238
Chief Information Officer A1 E Executive 1
Administrative Asst. E1 NE Administration 1
Manager IT Services, San Jose A2 E Manager 1
Network Administrator B3 E Professional 1
Programmer Analyst B3 E Professional 2
Database Analyst B3 E Professional 1
CAD/CAM Support Specialist C1 NE Technician 1
Web Support Specialist C1 NE Technician 1
Telecommunications Specialist B3 E Professional 1
Manager IT Services, Field A2 E Manager
1 1
Network Administrator B3 E Professional
1 2
Programmer Analyst B3 E Professional
2 1
Database Analyst B3 E Professional
1 1
CAM Support Specialist C1 NE Technician
1 1
Manager IT Services, China (host country national)
Staff is contract
Total Employees
113 130 44 249 12
Note: Employees located in China are not considered for EEO purposes
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Job Title Description Education and/or experience required Accounts Payable Clerk Compiles, classifies, records, verifies and maintains data and payments to vendors. Must have high school diploma and excellent math skills. Good attention to detail is required as well. Accounts Receivable Clerk Compiles, classifies, records, verifies and maintains data and payments from customers. Must have high school diploma and excellent math skills. Good attention to detail is required as well. Administrative Assistant Provides administrative support (copying, word processing, scheduling, etc.) for one or more managers. Must have high school diploma and skilled at word processing, use of spreadsheets and calendaring software. Assistant Plant Manager Assists the plant director with day-to-day operations. Supervises teams of production workers, reviews daily and weekly schedules, ensures that all production targets are met. Troubleshoots as necessary. Bachelor’s degree with experience in all areas of production preferred. CAD Operator Work with CAD systems creating, modifying and releasing drawings and word drawings under direct supervision of a supervisor for use by other departments and customers. Degree from a recognized CAD training facility and 2 years experience, or 4 to 6 years experience in CAD systems. CAD/CAM Support Specialist Work with CAD systems creating, modifying and releasing drawings and word drawings under direct supervision of a supervisor for use by other departments and customers. In addition, support computer-aided manufacturing processes as they are designed. Degree from a recognized CAD training facility and 2 years experience, or 4 to 6 years experience in CAD systems. CAM Support Specialist Support computer-aided manufacturing processes within assigned plant. Provide technical assistance to computer system users. Answer questions or resolve computer problems for clients in person, via telephone or from remote location. May provide assistance concerning the use of computer hardware and software. Degree from a recognized CAM training program and 2 years experience, or 4 to 6 years experience in CAD systems. Chief Financial Officer Direct the accounting, finance and Human Resources functions toward achievement of the company’s key results while upholding company values. Requires MBA or CPA and 5-7 years experience. Chief Information Officer Chief IS/IT officer of organization. Develops strategy for information systems department based on long term corporate goals. Requires BS and 5 - 7 years experience. Masters degree highly desirable. Chief Legal Counsel Advises corporation concerning legal rights, obligations and privileges. Requires current law license in California and 5 - 7 years experience in corporate law. Chief Operating Officer Directs, administers and coordinates the activities of the organization in support of policies, goals and objectives established by the chief executive officer and the Board of Directors. Requires MBA or MM and 5 - 7 years experience. Compensation & Benefits Manager Determine overall compensation and benefits philosophy for the organization. Supervise compensation analyst as well as third party provider of benefit services. Requires MBA or MM and 5 - 7 years experience. Certification in HR or Compensation highly preferable. Compensation Analyst Assists in the development and administration of employee salary administration programs by performing job analysis, conducting and analyzing salary surveys and assisting managers in writing legally compliant job descriptions. Requires bachelor’s degree and 3 - 5 years experience. Certification in Compensation is highly preferable. Cost Accountant Applies principles of cost accounting to conduct studies which provide detailed cost information not supplied by general accounting systems. Requires bachelor’s degree in accounting, with a CPA, CMA or MBA strongly preferred. Credit Analyst Analyzes credit data to estimate degree of risk involved in extending credit or lending money to firms. Requires bachelor’s degree in accounting. Credit Manager Directs and coordinates activities of workers engaged in conducting credit investigations and collecting delinquent accounts of customers. Bachelors’ degree in finance or accounting with 3 - 5 years related experience. Customer Service Representative Interviews customers and records interview information into computer for customer service. Bachelors’ degree preferred. Database Analyst Designs logical and physical databases and coordinates database development. Requires 2 - 4 years relevant professional experience or equivalent combination of education and experience. Development Engineer Designs and develops new products and product improvements. Requires bachelors’ degree in mechanical or materials engineering. Director of Accounting & Finance - Corporate Controller Directs financial activities of an organization. Requires bachelors’ degree in accounting or finance, along with CPA, CMA, or CPA certification, 5 - 7 years of experience are also required. Director of Human Resources Develops policy and directs and coordinates human resources activities, such as employment, compensation, labor relations, benefits, training and employee services. Requires bachelors’ degree. MBA or MM preferred, along with professional HR certification. 5 - 7 years of experience. Director of Sales Manages sales activities of organization. Requires bachelors’ degree. MBA or MM preferred, along with 5 - 7 years of sales experience. Director, Plant Operations Directs production, distribution and marketing operations for branch plant, or assigned territory of industrial organization. Requires bachelors’ degree. MBA or MM preferred, along with 5 - 7 years of production and/or operations experience. Employee Relations Manager Supervises employee-related programs, manages resolution of employee relations problems and develops new employee-related programs. Requires bachelors’ degree. Professional HR certification preferred, along with 3 - 5 years of experience. Employee Relations Specialist Coordinates employee-related programs, participates in resolution of employee relations problems and gathers information on worker attitudes to facilitate employee satisfaction. Requires bachelors’ degree. Professional HR certification preferred, along with 1 - 3 years of experience. Executive Assistant Provides assistance to a senior executive, including board activities, publications, volunteerism and special events planning, to create and maintain favorable public image. Associates degree in business, along with 3 - 5 years business experience. Financial Planner/Budget Specialist Applies principles of accounting to analyze past and present financial operations and estimates future revenues and expenditures to prepare budget. Requires bachelors’ degree in accounting or finance along with 1 - 3 years of experience. Financial Planning Manager Manages financial planning activities for the organization. Supervises financial planners and budget specialists in the development of departmental and corporate budgets. Requires bachelors’ degree in accounting or finance, along with 3 - 5 years of experience. General Accountant Applies principles of accounting to analyze financial information and prepare financial reports. Responsible for maintaining general ledger for the organization. Requires bachelors’ degree in accounting or finance, along with 1 - 3 years of experience. General Accounting Supervisor Supervises accounting activities, including A/P, A/R and general accounting. Requires bachelors’ degree in accounting or finance, along with 3 - 5 years of experience. Logistics Coordinator Analyzes production schedules and determines inbound and outbound logistics needs for assigned plant. High school diploma or equivalent. Logistics Planner Directs and coordinates program activities designed to vendors and customers with logistics technology that ensures effective and economical support concerned for manufacturing or servicing of products. High school diploma or equivalent. Manager IT Services Directs and coordinates local area computer network activities. Requires degree and 5 years related experience. Manufacturing Engineer Plans, directs and coordinates activities concerned with design, construction, modification and maintenance of equipment and machinery in industrial plant. Requires bachelors’ degree in mechanical or industrial engineering. Market Analyst Designs marketing research projects and analyzes results. Requires degree and 1 - 3 years related experience. Marketing Manager Manages design and production of planned marketing programs. Requires degree and 3 - 5 years related experience. Materials Engineer Evaluates technical and economic factors, recommending engineering and manufacturing actions for attainment of design objectives of process or product. BS/MS in Materials Engineering required. PhD preferred. Manager, Logistics Manages the logistics operations for the organization, including oversight of plant personnel. Requires degree and 3 - 5 years related experience. Manager, Product Development Directs and guides the product development process for the organization, including capital budgeting and project proposals. Requires degree and 5 years related experience. Engineering degree preferred. Manager, Research Leads research activities into future customer needs. Requires degree and 5 years related experience. Network Administrator Installs, configures, and troubleshoots local area computer networks and associated assemblies. Requires a bachelor's degree in a related area and 0 - 2 years of experience in the field or in a related area. Packaging Engineer Plans and directs activities concerned with design and development of protective packaging containers. Requires bachelors’ degree in packaging engineering. Patent Specialist Researches patents, investigates facts and prepares documents to assist Lawyer in filing for patents. Follows through on patent applications. Requires paralegal certification, along with 1 - 3 years in patent administration. Payroll and Tax Clerk Compiles payroll data to maintain payroll records. Files all necessary payroll tax forms, ensuring accuracy. Associates’ degree preferred, with 1 - 3 years of experience. Payroll Manager Supervises and coordinates activities of workers engaged in recording hours of work, processing time records, compiling payroll statistics, maintaining payroll control records and calculating payrolls. Requires degree and 5 years related experience. President & CEO Determine and formulate policies and business strategies and provide overall direction of private sector organizations. Plan, direct, and coordinate operational activities at the highest level of management with the help of subordinate managers.
Product Specialist Directs the development of a comprehensive product marketing cycle in a post-development environment. Ensures that product line statistics are maintained and analyzed. Assesses product line performance compared with expectations. Requires degree and 1 - 3 years related experience. Production Control Technician Coordinates and expedites flow of materials, parts and assemblies between sections or departments. High school diploma, or equivalent, along with 1 year of related experience. Production Employee Performs repetitive bench or line assembly operations to mass-produce products. Operates numerically-controlled machinery in the production of high-quality plastic products. High school diploma, or equivalent, along with appropriate training on NC machinery. Programmer Analyst Analyzes requirements and develops computer programs. Requires degree and 0 to 2 years of experience. Purchasing Agent Coordinates activities involved with procuring goods and services such as raw materials, equipment, tools, parts and supplies for organization. Requires degree and 0 to 2 years of experience. Purchasing Manager Directs and coordinates activities of personnel engaged in purchasing and distributing materials, equipment and supplies in an organization. Requires degree and 5 years related experience. Quality Manager Plans, coordinates and directs quality control program designed to ensure continuous production of products consistent with established standards. Requires degree and 5 years related experience. Recruiter Recruits, researches, interviews, screens and refers job candidates for job openings. Requires degree and 0 to 2 years of experience. Research Program Manager Manages research and development activities for organizational products, services or ideologies as assigned by Research. Requires degree and 5 years related experience. Safety Manager Plans, directs and implements organization safety program to ensure safe, healthy and accident-free work environment. Requires degree and 5 years related experience. Safety Technician Inspects machinery, equipment and working conditions in industrial or other setting to ensure compliance with Occupational Safety and Health Administration regulations. Requires degree and 0 to 2 years of related experience. Sales Assistant Provides administrative support (copying, word processing, scheduling, etc.) for one or more managers. In addition, provides limited sales advice directly to customers in support of sales representatives. Must have high school diploma and skilled at word processing, use of spreadsheets and calendaring software. Sales Representative Sells products for manufacturer to business and industrial establishments at customer's place of business. Requires degree and 2 - 3 years of related experience. Shipping Employee Verifies and keeps records on incoming and outgoing shipments and prepares items for shipment. Loads trucks and operates forklift equipment. High school diploma, or equivalent, along with appropriate training on forklift equipment. Must pass and maintain certification on forklift. Senior VP R & D Directs and coordinates activities of R & D and aids Chief Executive Officer in formulating and administering organization policies.
Tax Accountant Prepares federal, state, or local tax returns of organization. Assesses opportunities for reducing tax liabilities. Requires bachelor’s degree in accounting, with a CPA, CMA or MBA strongly preferred. Experience in corporate tax is also preferred. Team Superintendent Directs and coordinates activities concerned with production of company product(s). Requires degree and 1 - 3 years related experience. Telecommunications Specialist Installs and repairs telecommunications systems and equipment. Requires an associate's degree or its equivalent and at least 5 years of experience in the field or in a related area. Training & Development Specialist Develops and conducts training programs for employees of organization. Requires degree and 0 to 2 years of experience. Transportation Coordinator Compiles and computes freight rates, passenger fares and other charges for transportation services, according to rate tables and tariff regulations. Schedules inbound and outbound shipments. High school diploma or equivalent. Transportation Manager Conducts studies on company freight and passenger classifications, rates and tariffs and formulates changes required to provide for increased revenues and profitability of operations. Requires degree and 3 - 5 years related experience. VP International Operations Directs and coordinates activities of international operations and aids Chief Operating Officer in formulating and administering organization policies.
VP Operations Directs and coordinates activities of operations and aids Chief Operating Officer in formulating and administering organization policies.
VP Product Support Directs and coordinates activities of product support and aids Chief Operating Officer in formulating and administering organization policies.
VP Sales & Marketing Directs and coordinates activities of sales and marketing and aids Chief Operating Officer in formulating and administering organization policies.
VP Transportation Directs and coordinates activities of the transportation department and aids Chief Operating Officer in formulating and administering organization policies.
Warranty Service Technician Receives, records and distributes work orders to service crews upon customers' requests for service. Repairs products under warranty as needed. High school diploma or equivalent, along with 1 year of related experience. Web Support Specialist Supports Web-based products and services through email support, desktop support and telephone support. Interacts with customers and troubleshoots problems to provide a high level of customer satisfaction. Requires a bachelor's degree with at least 4 years of experience in the field.
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Human Resources |
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Recruitment & Selection Practices Annual Pay Adjustments The company has a process for annual performance evaluations and pay adjustments, which happens on a fiscal year basis, with all raises taking effect the first day of the new fiscal year. Managers complete a performance appraisal with each employee using a behaviorally-anchored rating scale. At the end of the performance appraisal, each employee receives an overall rating of “does not meet expectations” “meets expectations,” or “exceeds expectations.” Managers receive a pool of merit increase dollars, which are divided among employees using the following matrix (where “x” is the average percentage of wage increase). Managers may not allocate more money for raises than they receive in their increase budget.
Does Not Meet Meets Exceeds Position in relation to the external market … Above market median 0 ½x 1x Position in relation to the external market … Near market median (+ or – 10%) 0 1x 1.5x Position in relation to the external market … Below market median 0 1.5x 2x
Compensation Philosophy and Rewards Practices Our Employees · We will maintain an innovative and team-oriented working environment. · By assuring that our employees are well informed and properly supported, we will provide a climate focused on the long term viability of our company. Other Factors · R & D is critical to the mission (industry leader in identifying industry trends). · Exceeding ISO 9000 standards is important to the organization. Compensation Philosophy The purpose of the pay program at Riordan Manufacturing is to help the company achieve its mission and goals by attracting, motivating and retaining the most highly-qualified people, with a particular focus on attracting people in critical disciplines such as R & D and quality. Base pay opportunities will be competitive by targeting the median of the appropriate external comparative group for average or satisfactory performance. Because we are focused on creating a team oriented working environment, teams who perform in an above average manner will have the opportunity to earn variable pay to improve their competitive pay position. The company is closely held, therefore, stock options will be available only to officers of the corporation. Our pay bands are broad ranges which allow for considerable flexibility in rewarding individual performers based on their specific skills and contributions. We expect managers to make base pay decisions based on market information, which is provided annually during the salary review process. Incentive plans for teams are developed individually, based on the specific results that each team is expected to achieve. Because we want to properly support our employees, we will offer the following benefits to all full-time, U.S. employees, in addition to those benefits required by law, such as social security and workers’ compensation. · Health insurance for employees and their dependents · Dental insurance for employees and their dependents · Life insurance for employees · Flexible working schedules, when approved by individual managers or teams · 401(k) savings program, with a company match · Vacation (schedule varies with seniority) · Paid holidays · Educational assistance/tuition reimbursement We also provide the following benefits through our flexible benefits program. · Child care reimbursement account · Medical reimbursement account (flexible spending account) International pay and benefits are based on applicable laws in the country in which we operate.
Employee and Labor Relations Currently, all of Riordan’s facilities are non-union facilities. Employee relations are part of the Human Resources department. Key employee relations policies include the following: 1. The company has an “open-door” policy, where employees are encouraged to share any concerns with higher-level supervisors if they are not satisfied with a supervisor’s decision. The process is loosely defined, and employees do not have a formal process for appealing supervisory decisions. 2. There is an employee handbook given to employees on their first day of employment. Employee policies, such as attendance, etc. are explained in the handbook. Employees are encouraged to read and understand the handbook. 3. Safety technicians are in place to encourage safe and healthy work practices. The Pontiac facility is a provider of parts to the automotive industry. To date, there have been no attempts by any union to organize the facility; however, there are rumors that an organizing drive may be focused on the plant during the next 12 months. While the company has officially agreed to remain neutral if there is an organizing campaign (as required in its vendor agreement), unofficially, company officials are opposed to unionization and would prefer to stay union-free.
Employee Recognition Programs In addition to compensation and team-based incentives, the company has some programs for recognizing outstanding employees. 1. Outstanding Employee Award — One employee per year is named as the outstanding employee of the year. Employees are nominated by their peers, and a committee of executives and employees selects the winner. The criteria for this award are as follows: a. Performed above and beyond normal job duties b. Demonstrated a high level of teamwork and support for others c. Modeled respect for diversity 2. Employee Suggestion Program — Employees can make suggestions for improving products or the work process. When a suggestion is adopted, employees receive a $25 check for their contribution and their picture in the company newsletter. 3. Seniority Awards — These awards are given to employees upon their first, fifth, tenth, and 20th year of employment, as follows: a. One year — 1 day off with pay b. Fifth year — Silver company logo lapel pin c. Tenth year — Gold company logo lapel pin d. 20th year — Gold watch and induction into the “20-year club” – Annual dinner with Riordan president for the club.
Global Operations The company has a joint venture facility in Hangzhou, China, where plastic fan parts are produced. Riordan owns 60% of the joint venture, and the plant manager is an expatriate from the United States who is one year into a three-year assignment. All of the other employees are host-country nationals. The plant manager is compensated on a home-country based method. His pay level is comparable to that of the plant managers in Pontiac and Albany. The plant manager also participates in a management incentive plan, which is based on overall corporate performance, not performance of the joint venture. Specific allowances for expatriate duties include the following: · Foreign service premium — 25% of base pay · Home visit leave — One visit to the US per year with his family (not counted as part of regular vacation) · Relocation benefits · Educational assistance for two children (tuition at a school for English-speaking students) · Housing allowance · Cost of living adjustment based on international survey data The company uses a balance sheet approach in calculating benefits, including equalization of taxes. The manager has been asked to develop a host-country national who can assume the plant manager position at the end of his three year assignment and the manager will receive a one-time incentive payment if he does this successfully. Engineering personnel may travel between the US and China for specific projects, but there are no expatriate engineers from the US in China, and no Chinese employees currently work in the US operations.
Key Jobs As a company that specializes in leading in R & D, engineering jobs, particularly in R & D are critical. In addition, those who work on patent and legal issues are very important to the organization. Another group of employees that are very important to operations are the CAM support specialists—most of the products manufactured are produced by NC machinery. If this machinery is down, production schedules cannot be met.
Pay Grades Pay Grades Jobs Included FLSA Status # of Incumbents Executive Band All Officers, Vice Presidents and Directors Exempt 21 Manager All positions with supervisory responsibility Exempt 25 Professional All other exempt professional positions - no supervisory responsibility Exempt 76 Sales 1 Sales representative Exempt 12 Technicians All technicians Nonexempt 23 Administration All non-exempt, clerical or administrative positions Nonexempt 21 Production All production and shipping employees Nonexempt 127
Remaining employees are in China and on a home-country pay system.
Recruitment and Selection Practices Riordan Manufacturing currently recruits employees primarily from outside the organization for entry-level jobs, whether they are hourly or professional. The company also recruits most engineering staff from outside the organization. The organization uses the following methods for recruitment: · Online advertisements at Monster.com · Local newspaper advertisements · Employee referrals · Use of employees from temporary agencies · Attendance at engineering conferences There is a formal job-posting process in the company when there are openings. However, the company does not pay for relocation from one facility to another unless the position has budgeted for relocation as part of the hiring process. In the past two years, two managerial positions have been filled by internal candidates. There is currently no formal succession planning process. The company uses contract workers for some engineering work, international sales and IT support in China. It has some part-time jobs, and there are two women who job-share in the corporate office. Benefits administration has been outsourced to a third-party provider. Riordan is a small employer in both Pontiac and Albany and sometimes has trouble attracting the types of employees it would like. It also has had some difficulty attracting employees in San Jose although its reputation is somewhat better there. Average turnover rates are low; most employees have been with the company for longer than two years. The selection process uses the following tools: · Application · Résumé review · Face-to-face interviews with the HR recruiter · Face-to-face interviews with hiring managers (In the case of production teams, these are group interviews with team members.) The company does not conduct reference checks and does not use any form of testing, other than testing all prospective employees for drugs using standard testing methods. The company has no federal contracts and does not have any affirmative action plans or goals.
Training & Development Riordan provides the following mandatory training for all employees within 90 days of hire: · New employee orientation (1 day) — offered once per month · Six Sigma — for all production, shipping and quality employees Supervisors are also expected to attend the following workshops within 12 months of becoming a supervisor: · Interviewing guidelines · Preventing EEO claims and sexual harassment in the workplace · Performance reviews Self-directed teams operate throughout the plants in Pontiac, Albany and China. Team members cross-train on jobs within the team, as well as attend training sessions on goal setting, scheduling, selection processes and managing conflict. These are provided on an “as-needed” basis by the HR employee relations specialist at each site. The company offers tuition reimbursement for work-related educational activities. The company will also pay for professional organization fees for engineers in order to encourage them to stay current in their field.
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HRIS System The company’s HRIS system was installed in 1992. It is a part of the financial systems package and keeps track of the following employee information: · Personal information (such as name, address, marital status, birth date, etc.) · Pay rate · Personal exemptions for tax purposes · Hire date · Seniority date (which is sometimes different than the hire date) · Organizational information (department for budget purposes, manager’s name, etc.) · Vacation hours (for non-exempt employees) Changes to this information are submitted in writing (on special forms) by the employee’s manager and are entered into the system by the payroll clerk. Training and development records are kept in an Excel worksheet by the training and development specialist. Each recruiter maintains applicant information for open positions. Résumés are filed in a central storage area, and an Excel spreadsheet is used to track the status of applicants. Workers’ compensation is managed by a third-party provider, which keeps its own records. Employee files are kept by individual managers; there is no central employee file area. Managers are also responsible for tracking FMLA absences and any requests for accommodation under the ADA. The compensation manager keeps an Excel spreadsheet with the results of job analyses, salary surveys and individual compensation decisions. Employee relations specialists track information about complaints, grievances, harassment complaints, etc. in locked files in their offices.
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Communications_Memo_-_Riordan_2.pdf
M E M O R A N D U M
To: Charles Williamson, Dale Edgel, Lowell Bradford, Clyde Cousins, Maria Trinh, Robert Lord From: Hugh McCauley Re: China Relocation
Confidential
Our initial decision to locate our China operations in Hangzhou was driven largely by the fact that our Chinese partners already had facilities there and the city’s proximity to the Qiantang River. We thought that the river access which led on to Hangzhou Bay would be sufficient to handle our shipping needs.
As the production volume from the China plant has increased, we are seeing that significant savings can be had by utilizing container shipping companies such as the China Shipping Container Lines, a branch of the China Shipping (Group) Company. Most of the container shipping companies utilize ports in Hong Kong and Shanghai.
While the Shanghai port is only 180 kilometers away from our current location, we are incurring additional logistical steps in shipping out of Shanghai.
• Currently, our products are trucked to a port on the Qiantang River and loaded into shipping containers. The containers are then loaded onto barges that make their way to the Shanghai port. The barges dock in Shanghai where the containers are offloaded and trucked to another area of the port where they are loaded onto to the ships that will take them to their final destinations.
• Alternatively, we could transport the products by truck to the port at Shanghai where they would be loaded into containers and then directly onto the ships that will be taking them to their final destinations. However, the trucking companies, knowing that they are being used as an alternative to the local shipping companies to move the same products to the Shanghai ports, generally charge just as much as the shipping companies for the same volume of goods.
We believe that the relocation of the China operations to the city of Shanghai will result in significant cost savings, will provide our operations with a more substantial urban infrastructure and will put us into a better position to market and ship our Chinese products throughout Asia and Europe.
China Relocation Memo Page 2
We have incorporated a move of the China operations to Shanghai within the next five years into the strategic planning of Riordan Manufacturing and Riordan Industries. Please begin drafting strategic plans for how such a move will impact your areas of responsibility and how your areas will facilitate the relocation.
Capital_Budget_Executive_Summary_-_Riordan_3.pdf
Riordan Manufacturing, Inc. Capital Budget Executive Summary
FY 2005
Financial Reporting Systems As discussed in the Finance and Accounting section of the Riordan Intranet site, the financial reporting systems need a complete overhaul. Extensive research has revealed a state-of-the- art system that will resolve many of the issues discussed. The remaining issues will be resolved with internal policy changes and additional training. The cost of this system is $1,350,000. Riordan’s CFO has agreed to make two cash payments of $250,000 each in January and April. The remaining amount will be financed through the bank at an annual interest rate of 8%. The loan will be for a term of 60 months beginning on May 1st of 2005. The CFO has incorporated the $250,000 payments into the cash flow forecast but has not had time to build in the interest expense to the financial forecasts. Manufacturing Equipment The VP of Manufacturing has submitted a capital budget calling for $1 million of new manufacturing equipment and supplies. He estimates that this equipment will result in annual operating savings of $250,000 over the next six years. The equipment will be depreciated on a straight-line basis for internal reporting purposes. This project has not been incorporated into the company’s financials at this time. The VP would like to place the equipment in service on June 30th of this year. Miscellaneous Capital Items The CFO has placed $350,000 into the cash budget as an outflow in July to cover other capital items that may be required. Cost of Capital Riordan Manufacturing’s holding company, Riordan Industries, is willing to fund projects as long as their hurdle rate of 12% is met or exceeded and a positive net present value can be
Riordan Manufacturing, Inc. Capital Budget Executive Summary FY 2005 Page 2 demonstrated. The CFO will propose that the manufacturing equipment discussed above be funded through Riordan Industries.
Economic_Forecast_-_Riordan_4.pdf
ECONOMIC FORECAST FOR RIORDAN MANUFACTURING
June 16, 2005
Riordan Manufacturing is a global plastics manufacturer with projected annual earnings of $46 million. The company is wholly owned by Riordan Industries. Riordan Industries is a Fortune 1000 enterprise with revenues in excess of $1 billion. Riordan Manufacturing is an industry leader in the field of plastic injection molding creating innovative plastic designs that have earned international acclaim. Riordan Manufacturing uses state-of-the art design capabilities in its processes to facilitate extreme precision and enthusiastic quality control. Riordan Manufacturing’s products include plastic bottles, fans in all sizes, heart valves, medical stents, and custom plastic parts. The firm’s major customers and markets include; automotive parts manufacturers, aircraft manufacturers, beverage makers and bottlers, appliance manufacturers, health care, and the Department of Defense. The firm has operations in Georgia, Michigan, California, and a joint venture in China and employs over 300 employees plus 250 employees in its joint venture in China. The firm’s products 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 Hangzhou, China. Research and development is done at the corporate headquarters in San Jose.
Economic Overview The markets for plastic bottles, fans, and custom plastic parts are affected by changing economic conditions. As a result, it is the impact of the economy on Riordan Manufacturing’s major customers and markets that must be analyzed in order to determine how the future direction of the economy will affect Riordan Manufacturing. Automotive parts manufacturers, aircraft manufacturers, and appliance manufacturers are all impacted by the strength of the overall economy, and appliance manufacturers are also affected by the strength of the housing market. Beverage makers and bottlers are impacted by changes in demand for the drink products that are contained in the bottles they produce, but overall demand for drink products is only marginally affected by the overall economy. In general, it can be assumed that a strong economy will support continued sales of the products produced by beverage makers and bottlers, but the competitive business decisions made by Riordan Manufacturing’s customers are significant. The demand for heart valves, medical stents, and health care services in general is primarily affected by demographic trends and the availability of health insurance. The question related to health insurance is too uncertain to analyze here. The demographic question is easier to address. The baby boomer group includes more than one-fourth of the population in the United States, and as it ages, it is natural to assume that the demand for health care services, including heart valves, medical stents, will increase as this demographic cohort ages. The Department of Defense is another customer whose demand is largely unaffected by changing economic conditions. The ability of the Department of Defense to meet its current and anticipated obligations is affected by funding and
appropriations. The Congressional Budget Office’s March 2005 Baseline for Discretionary Spending for Defense indicates $422 billion in 2005 and $432 in 2006 following $486 billion in 2004 (figure impacted by the ongoing wars). These figures indicate continued strong levels of discretionary spending for defense. Given the above, it is important to consider future economic conditions when planning for the next two years for the demand by appliance manufacturers, automotive parts manufacturers, aircraft manufacturers, and to a lesser extent beverage makers and bottlers. The focus here will be on real GDP growth, inflation, labor cost, and the value of the dollar, interest rates, and transportation and shipping costs (fuel prices). More detailed discussion related to the appliance, automotive parts, and aircraft markets will also be presented below. Real Gross Domestic Product (GDO) Growth The United States economy has shown some weakness during the first half of 2005. This weaker growth has led to a slight decrease in estimates for economic growth in 2005 and 2006. One reason for this relative weakness in the economy is the large and persistent trade deficit, a factor that continues to reduce estimates for economic growth. The high level of oil prices is another important contributor to weaker than expected economic growth early this year. Consumers are adjusting to the reality that oil prices will remain high rather than being a temporary event, and even if oil prices fall the decrease will be small. Another problem confronting the economy is the weak labor market. One last factor was the end of accelerated depression. On the positive side, consumer demand continued to be strong, and capital spending has been stronger than expected. An important contributor to economic growth starting in 2001 has been very stimulative fiscal and monetary policies. We should expect slower increases in government spending, and possible tax increases in 2006 in order to reduce the government budget deficit from excessively high levels. At the same time, the Federal Reserve has been raising its target for the Federal Funds rate. This should continue throughout at this year. These policies should tend to reduce economic growth in the near future. The greatest immediate uncertainty is the impact of these policies on long-term interest rates. Long-term interest rates are more impacted by the bond market than Federal Reserve policy. To summarize, the economy will continue to demonstrate slower but still a good level of economic growth. Consumer spending will moderate, capital spending should continue show relative strength, the housing market will slow only to strong rather than the very strong levels we see today. Lower oil prices will tend to support economic growth. A stabilizing factor for consumer spending will be the large increase in the net worth of households we have seen due to the strong housing market. Offsetting these positive trends will continue to be the sizeable trade deficit, slightly higher interest rates, and high levels of household debt.
Percent Change-Gross Domestic Product (GDP) 2004 2005 2006 Congressional Budget Office – January 2005 4.40% 3.80% 3.70% Mortgage Bankers Association – May 2005 4.40% 3.40% NA National Association for Business Economics – May 2005 4.40% 3.40% 3.40% RSQE Forecasts – May 2005 4.40% 3.30% 3.50% The Value of the Dollar The large trade deficit will lead to further declines in the trade weighted value of the dollar. This decline will lead to the dollar/euro exchange rate continuing to equal about 1.25 dollar to the Euro. Uncertainty due to the rejections of the constitution for European Union will lead to a short-term increase in the value of the dollar relative to the Euro, but this trend will not persist due to the trade deficit. The dollar should also lose value relative to the yen. It is expected that China will not maintain its currency peg with the dollar and as a result the value of the dollar will decline relative to China’s currency, but this decline will not be significant. It is expected that foreign exporters, including those from China, will be will to accept lower profits rather than raising prices and risking losing market share. It is the persistently large trade deficit caused by the combination of the relatively strong economy in the United States, the relatively weak economies of the majority of our trading partners, and continued strong consumer spending in the United States, that will ultimately lead to a weaker dollar. Real Trade-Weighted Value of the U.S. Dollar-Broad Index 2004 2005 2006 National Association for Business Economics – May 2005 99.8 96.0 94.2 RSQE Forecasts – May 2005 /1 99.8 95.2 90.3 Note: /1 Based on the actual value in 2004 and forecasted percent changes. Inflation Rate High oil prices, and to a lesser extent the weaker dollar, are contributing to raised expectations for inflation. An expected decrease in the rate of increase in labor productivity is another factor that it contributing to higher inflation expectations. On the other hand, there are factors that are contributing to lower inflation expectations. These include the fact that while it is expected that the rate of increase in labor productivity will decline, productivity gains are still relatively good or at least on trend. Other important factors are the relatively weak labor market (wage gains should be small but on an increasing trend), the expectation that Federal Reserve policies will restrain inflation, strong competition in the retail market, and strong international economic competition. These factors all balance to forecasts for the inflation rate continuing to be less than 3.00%.
Percent Change-Consumer Price Index (CPI) 2004 2005 2006 Congressional Budget Office – January 2005 2.70% 2.40% 1.90% Mortgage Bankers Association – May 2005 2.70% 3.00% NA National Association for Business Economics – May 2005 2.70% 2.80% 2.50% RSQE Forecasts – May 2005 2.70% 2.90% 2.40% Labor Costs Labor costs are expected to increase during the course of the next two years. Continued economic growth will lead to higher payrolls and begin to exert greater upward pressure on wages. In addition, decreases in productivity growth to levels more consistent with long-term trends will lead to increases in labor costs per unit of output. Another important factor is the continued fact that the costs of providing benefits, especially health benefits, will continue to increase at an above average rate. Unemployment Rate 2004 2005 2006 Congressional Budget Office – January 2005 5.50% 5.20% 5.20% Mortgage Bankers Association – May 2005 5.50% 5.20% NA National Association for Business Economics – May 2005 5.50% 5.20% 5.10% RSQE Forecasts – May 2005 5.50% 5.20% 5.00% Percent Change-Employment Cost Index 2004 2005 2006 Congressional Budget Office – January 2005 2.70% 3.10% 3.30% Percent Change-Private Nonfarm Compensation/Hour 2004 2005 2006 National Association for Business Economics – May 2005 4.50% 4.20% 4.40% Interest Rates The Federal Reserve is expected to raise the Federal Funds rate through the balance of this year. This will allow the Federal Reserve to raise short-term rates to a level that is considered “neutral” and will allow the Federal Reserve to have the flexibility needed to act if the economy weakens unexpectedly. This will contribute to restraining inflation in the face of continued economic growth and increases in inflation expectations due to high oil prices. The effect of this will be higher short-term lending rates. Long-term interest rates should also increase but at a slower rate. The reason for this is continued relatively low inflation expectations discussed above. The biggest contributor to the low interest rates the economy has experienced recently has been relatively low inflation expectations. The reasons for this include the still relatively poor labor market, wage increases less than the
inflation rate contributing to the expectation that aggregate demand will suffer in the future, domestic and foreign competition restraining price increases, and the belief that the Federal Reserve will act to control the inflation rate. The effect of the higher short-term interest rates identified above is slightly reduced rates of economic growth, a factor that will tend to reduce increases in long-term interest rates. Another important factor is continued demand for long-term U.S. Treasury bonds by foreign central banks and other foreign investors, an activity supported by the dollars received by foreign firms due to the large U.S. trade deficit discussed above. The impact of this is lower long-term interest rates. The reliance on foreign investors to support increased borrowing by the U.S. government and American consumers and firms may not be sustainable raising the risk that long-term interest rates may increase. This suggests that financing to expand operations, replace equipment, or other purposes, should be secured sooner rather than later. Federal Funds Rate 2004 2005 2006 Mortgage Bankers Association – May 2005 1.35% 3.10% NA National Association for Business Economics – May 2005 1.35% 3.20% 4.00% 3 – Month Treasury Bill Rate 2004 2005 2006 Congressional Budget Office – January 2005 1.40% 2.80% 4.00% RSQE Forecasts – May 2005 1.40% 3.10% 3.80% 10 – Year Treasury Rate Yield 2004 2005 2006 Congressional Budget Office – January 2005 4.27% 4.80% 5.40% Mortgage Bankers Association – May 2005 4.27% 4.50% 5.10% National Association for Business Economics – May 2005 4.27% 4.58% 5.20% RSQE Forecasts – May 2005 4.27% 4.70% 5.40% Fuel Prices Oil prices at level above $50 per barrel as they are now are much higher than they were at this time last year. However, despite the significant increases in demand we have seen from China and India, it is expected that slower world wide economic growth and increases in supply should lead to prices below $45 per barrel by next year. As reported in the May, 2005, NABE Outlook, a National Association for Business Economics panel’s average response to a request for a forecast of the price of West Texas Intermediate oil (WTI) at the end of calendar year 2005 was $46.17 per barrel. This compares to prices that are currently in the range of $50 to $55 per barrel. RSQE Forecasts reported in their report, The U.S. Economic Outlook for 2005-2006, Executive Summary: May 2005, the expectation that the
average price per barrel will fall to $47 per barrel by year-end 2005 and $38 per barrel by year-end 2006. Jet Fuel Prices (FY 2004 $) 2004 2005 2006 Federal Aviation Administration 101.73 126.96 117.38 Appliance Manufacturers Sales of appliances are influenced to a great extent by the strength of the housing market. People tend to purchase new household appliances when they purchase a new or existing home. Given this, it is important to evaluate the housing market and its future strength. The strength of the housing market during recent years has been fueled by low interest rates. Other factors include the relatively strong economy, increasing home prices, uncertainty related to the financial markets since the stock market bubble burst in 2000, and moves to perceived secure assets after 9/11. The future strength of the housing market will also be affected by changes in these factors. Since relatively low interest rates have been the greatest contributor to the strength of the housing market, the future strength of the housing market will also be affected by changes in interest rates in the future. 30 – Year Fixed Rate Mortgage 2004 2005 2006 Mortgage Bankers Association – May 2005 5.80% 5.90% 6.30% National Association of Homebuilders – May 2005 5.80% 5.90% 6.60% RSQE Forecasts – May 2005 5.80% 6.10% 6.80% As of June 3, 2005 the 10-Year Treasury rate Yield equaled approximately 3.95 percent, the 30-Year Fixed Rate Mortgage rate equaled 5.65 percent, and the 15-Year Fixed Rate Mortgage rate equaled 5.25 percent. Given the above forecasts, and conditions that should tend to limit further increases in the inflation rate, I expect only marginal increases in the 15 and 30-Year mortgage rates between now and the end of this fiscal year, and only .75 to 1.00 percentage point increases in mortgage rates by the end of Fiscal Year 2006. This implies continued strength in the housing market. Housing Starts (Thousands) 2004 2005 2006 Mortgage Bankers Association – May 2005 1,952 1,947 1,790 National Association of Home Builders – May 2005 1,952 1,936 1,820 National Association for Business Economics – May 2005 1,952 2,000 1,800 RSQE Forecasts – May 2005 1,952 2,007 1,894 These forecasts, when compared to historical data, indicate the expectation that the national housing market will continue to be relatively strong. It is likely that
there will be real estate markets that will experience weakness due to the potential for corrections or declines in home prices. If this occurs, this will largely be confined to markets on the west coast, Florida, and some markets in the New England area. It is suggested that these local markets be monitored in order to plan sales and marketing efforts. Overall, it the data and forecasts related to long-term interest rates and mortgage rates, and housing starts, is positive in the near term suggesting that the demand for appliances will continue to be strong. Automotive Parts Manufacturers Sales of automotive parts are greatly affected by light vehicle sales, a variable that is greatly affected by changes in real GDP. Projections are for little change in sales of light vehicles. The reason for this is the expectation that economic growth measured by changes in real GDP should be moderate, and interest rates are expected to continue to be relatively low. These conditions are good for consumer spending on all items, including automobiles and other light vehicles. The important risk to monitor is a decrease in domestic automobile production due to weak sales. Light Vehicle Sales (Millions of Units) 2004 2005 2006 National Association for Business Economics – May 2005 16.8 16.7 16.8 RSQE Forecasts – May 2005 16.8 16.8 17.1 Aircraft Manufacturers The details presented above relate to overall economic conditions and interest rates supports continued purchases of new aircraft by airliners and other businesses. The economy will continue to demonstrate relatively slow if not spectacular economic growth. Consumer spending will moderate, but the trend continues to be positive. The inflation rate will be less than 3.00%, low enough to not pressure consumers too much to limit airline travel. Short and long-term interest rates are both expected to increase only moderately. This suggests that financing the acquisition and construction of aircraft will continue to be feasible. Finally, relatively high fuel prices will continue to encourage the purchasing of new aircraft to promote fuel efficiency and reduce costs. This indicates continued strong demand for Riordan Manufacturing’s products by aircraft manufacturers. The following forecasts by the Federal Aviation Administration support these trends. Passenger Jet Aircraft – Total Jets 2004 2005 2006 Federal Aviation Administration 4,046 4,151 4,320 Cargo Jet Aircraft 2004 2005 2006 Federal Aviation Administration 974 996 1,011
Summary The data presented to this point indicates positive economic conditions for Riordan Manufacturing and opportunities to leverage relatively low interest rates into new investments to enter new markets and increase productivity. Economic growth is expected to be steady, although at a lower rate than 2004 level of 4.40% growth in real GDP. The inflation rate may decline, and interest rates will increase moderately. Oil prices are expected to fall, and as a result, reduce transportation and shipping costs. The value of the dollar will decline, marginally improving export opportunities. If China removes its practice of pegging its currency to the dollar then sales by the China joint venture may decline a little but not significantly. The labor market should strengthen and this will result in larger payrolls nationally and higher labor costs for Riordan Manufacturing, but also will support consumer spending. The appliance and aircraft markets are expected to continue to be strong. Projections for sales of automobiles suggest consistent sales of automotive parts, but Riordan Manufacturing should expect pressure from domestic automakers to cut costs. Continued sizeable increases in the costs of providing employee benefits are highly likely to continue. Despite this particular issue related to costs, the stable economy described in the forecast presented above should provide for the basis to at least meet the firm’s sales goals. Sources for reputable forecasts include: 1. Mortgage Bankers Association of America includes mortgage finance
information and economic forecasts. This is a resource for information related to residential finance, commercial and multifamily finance including industry surveys and statistics, state and local Mortgage Bankers Association initiatives, and conferences. Mortgage and market data including interest rate data, reports on housing activity, special reports are also available. The address is: http://www.mbaa.org/
2. National Association of Homebuilders Resources here includes economic and housing data including economic forecasts. Additional information include details about NAHB, Home Builders Institute, NAHB Research Center, National Housing Endowment, publications, news, and resources related to land development and housing. The website address is: http://www.nahb.com/
3. See the Congressional Budget Office for current budget and economic forecasts, publications, and other budget and economics information. The website address is: http://www.cbo.gov/
4. RSQE Forecasts is another source for economic forecasts and other economics information. RSQE Forecasts is published by Research Seminar in Quantitative Economics, University of Michigan. The website address is: http://rsqe.econ.lsa.umich.edu/
5. National Association for Business Economics (NABE) is an excellent resource for professional economics. Membership in NABE is required to view forecasts and other resources. The website address is: http://www.nabe.com/
6. Federal Aviation Administration is an excellent source for economic forecasts, and forecasts and actual data related to the aviation industry. The website address is: http://www.faa.gov
- Economic Overview
- Real Gross Domestic Product (GDO) Growth
- The Value of the Dollar
- Inflation Rate
- Labor Costs
- Interest Rates
- Fuel Prices
- Appliance Manufacturers
- Automotive Parts Manufacturers
- Aircraft Manufacturers
- Summary
- Sources for reputable forecasts
Finance_Accounting_-_Riordan_5.doc
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Riordan Manufacturing has three operating entities…Georgia, Michigan and California…plus a joint venture in the People’s Republic of China. Basically, the operating entities each have their own Finance & Accounting Systems and they provide input that is consolidated at Corporate…San Jose. The basic components of each system are as follows: · General Ledger · Accounts Payable · Accounts Receivable · Order Entry · Procurement · Sales and Purchasing History · Invoicing and Shipping · Payroll · Financial Reporting · EDI* · Bar Code Reading* · EDSS (Executive Decision Support System)* *San Jose Only Background: During the due diligence process in which Riordan acquired the operating entities in Michigan and Georgia the matter of F & A System’s compatibility was not addressed. Current Situation Regarding F & A Systems: · San Jose has a license for a fully integrated Windows based ERP manufacturing, distribution and financial management software application specifically designed for plastics processors and process and assembly manufacturers. The license does not include application source code. · Michigan had purchased a vendor developed software application and the attendant source code for their Fd & A and process application. The vendor is no longer in business. The application runs on a pair of DEC Alpha’s, using the VMS operating system, VAX4000 work stations and programmed in C. · Georgia had purchased a vendor (different from Michigan) developed software application and the attendant source code for their F & A and manufacturing process applications. The systems run on a pair of AS400’s, using UNIX operating system, use PC’s (Windows) as workstations, and is programmed in RPG400. Challenge: The F & A Department has been unable to achieve anything remotely resembling “seamless compatibility”. Some F & A data is provided to corporate via data files; some data is provided via hardcopy reports and must be re-entered; some data is provided via data files but must be converted (redirected) to the proper account codes and the list goes on. Subsequently, Riordan has the following situation regarding F & A system outputs at the consolidated level: · Consolidated close of the General Ledger and subsequently the Income Statement and Balance Sheet is labor intensive and normally not completed until 15-20 days after month end. · Audit (to include external auditors) is required each month and is costly and labor intensive. · Compliance with new government required reporting requirements at the consolidated level is difficult at best. · Riordan Enterprises finds the situation unacceptable and has mandated a solutions(s)/alternatives be recommended soonest. NOTE: This situation is transparent to customers and suppliers as each operating entity has maintained invoicing, payments, etc., as was prior to acquisition.
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Finance & Accounting |
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Home | Overview | Balance Sheet | Income Statement | Budgets | Economic Forecast | Communications | Product Inventory | Invoices Download Historic Balance Sheet Data
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Riordan Manufacturing, Inc. Consolidated Balance Sheet
Fiscal Year Ending September 30th
2005 2004
Assets
Current Assets
Cash
$305,563 $357,216 Accounts Receivable
$6,062,838 $5,657,216 Current Portion of Notes Receivable
$70,825 $117,888 Inventories
$7,850,970 $7,854,112 Deferred Income Taxes - net
$328,832 Prepaid Expenses and Other Items
$264,896 $328,192 Total Current Assets
$14,555,092 $14,643,456
Notes Receivable, less current portion
$256,583 $177,408 Investment in Joint Venture
$283,504 $133,504 Property, Plant and Equipment - net
$19,114,830 $18,511,360 Intangible Assets - net
$329,405 $336,128 Other Assets
$52,768 $54,400 Total Assets
$34,592,182 $33,856,256
Liabilities and Stockholders' Equity
Current Liabilities
Current Portion of Long-Term Debt
$1,219,258 $1,106,304 Accounts Payable
$3,650,073 $3,573,248 Accrued Liabilities
$1,350,144 $1,350,144 Income Taxes Payable
$754,619
Total Current Liabilities
$6,974,094 $6,029,696
Bank Line of Credit
$253,727 $487,936 Long-Term Debt - less current portion
$2,763,752 $2,535,552 Deferred Income Taxes - net
$2,485,354 $3,107,072 Total Liabilities
$12,476,927 $12,160,256
Common Stock Stated par value is $.01. 20,000,000 shares authorized. Issued and Outstanding 15,801,332 net of treasury shares.
$29,055,488 $29,055,488 Other Accummulated Comprehensive Losses
($202,496) Accumulated Deficit
($6,940,233) ($7,156,992) Total Stockholders' Equity
$22,115,255 $21,696,000
Total Liabilities and Stockholders' Equity
$34,592,182 $33,856,256
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Finance & Accounting |
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Home | Overview | Balance Sheet | Income Statement | Budgets | Economic Forecast | Communications | Product Inventory | Invoices Download Historic Income Statement Data
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Riordan Manufacturing, Inc. Income Statement For the 12 months ending September 30, 2005
2005 2004
Sales $50,823,685 $46,044,288 Direct Cost of Goods Sold $42,037,624 $37,480,050 Gross Margin $8,786,061 $8,564,238
Operating Expenses
Sales, Marketing & Other $1,012,974 $920,886 Depreciation $343,445 $349,937 Quality Assurance $1,139,688 $1,095,854 Research & Development $911,676 $828,797 General & Administrative $1,706,953 $1,524,066 Machining & Systems $628,505 $598,576 Total Operating Expenses $5,743,241 $5,318,115 Profit Before Interest & Taxes $3,042,820 $3,246,122
Non-Operating Expenses
Interest Expense $143,175 $230,221 Taxes $943,274 $1,025,406 Total Non-Operating Expenses $1,086,449 $1,255,628 Net Profit After Taxes $1,956,371 $1,990,495
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Finance & Accounting |
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Home | Overview | Balance Sheet | Income Statement | Budgets | Economic Forecast | Communications | Product Inventory | Invoices Download Microsoft Excel™ Spreadsheet
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Item Number Description Price Qty. on Hand 9/30/2005 Extension 1010001 Cooling Fan 120mm $10.00 7200 $72,000.00 1010002 Cooling Fan 250mm $12.50 7200 $90,000.00 1010003 Cooling Fan 80mm $7.50 7200 $54,000.00 1010004 Cooling Fan 140mm $4.00 7200 $28,800.00 1010005 Cooling Fan 92mm $6.50 7200 $46,800.00 1010006 Cooling Fan 360mm $17.50 7200 $126,000.00 1020001 Desk Fan 100mm $10.00 7200 $72,000.00 1020002 Desk Fan 180mm $13.00 7200 $93,600.00 1020003 Desk Fan 300mm $15.00 7200 $108,000.00 1020004 Desk Fan 400mm $12.50 7200 $90,000.00 1030001 Personal Fan 25mm $6.00 7200 $43,200.00 1040001 Window Fan $20.00 7200 $144,000.00 2010001 Coronary Stent $165.55 5040 $834,372.00 2020001 Ureteral Stent $129.40 5040 $652,176.00 2030001 Prostatic Stent $125.31 5040 $631,562.40 2040001 Vascular Stent $118.55 5040 $597,492.00 3010001 Opaque Bottle w/ embossed logo (Custom) 12oz $0.65 7200 $4,680.00 3010002 Opaque Bottle w/ embossed logo (Custom) 6oz $0.33 7200 $2,376.00 3010003 Opaque Bottle w/ embossed logo (Custom) 3oz $0.17 7200 $1,224.00 3020001 Clear Plastic Bottle (Custom) 1 liter $0.36 7200 $2,592.00 3020002 Clear Plastic Bottle (Custom) 0.5 liter $0.28 7200 $2,016.00 3030001 Pyramid Bottle (Custom) 680ml $0.44 7200 $3,168.00 3040001 Clear Plastic Bottle (Custom) 1 liter $0.36 7200 $2,592.00 3040002 Clear Plastic Bottle (Custom) 0.5 liter $0.28 7200 $2,016.00 4010001 White Bottle w/ Screw Lid 1oz $0.05 7200 $360.00 4010002 White Bottle w/ Screw Lid 3oz $0.15 7200 $1,080.00 4010003 White Bottle w/ Screw Lid 6oz $0.30 7200 $2,160.00 4010004 White Bottle w/ Screw Lid 8oz $0.40 7200 $2,880.00 4020001 Pink Bottle w/ Screw Lid 1oz $0.05 7200 $360.00 4020002 Pink Bottle w/ Screw Lid 3oz $0.15 7200 $1,080.00 4020003 Pink Bottle w/ Screw Lid 6oz $0.30 7200 $2,160.00 4020004 Pink Bottle w/ Screw Lid 8oz $0.40 7200 $2,880.00 4030001 Blue Bottle w/ Screw Lid 1oz $0.05 7200 $360.00 4030002 Blue Bottle w/ Screw Lid 3oz $0.15 7200 $1,080.00 4030003 Blue Bottle w/ Screw Lid 6oz $0.30 7200 $2,160.00 4030004 Blue Bottle w/ Screw Lid 8oz $0.40 7200 $2,880.00 5010001 Storage Container w/ lid (Custom) 1qt $0.30 7200 $2,160.00 5010002 Storage Container w/ lid (Custom) 0.5qt $0.15 7200 $1,080.00 5010003 Storage Container w/ lid (Custom) 0.25qt $0.08 7200 $576.00
$3,727,922.40
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I.T._Budget_-_Riordan_6.xls
Sheet1
| Riordan Manufacturing, Inc | |||||||||||||
| FY2004 | |||||||||||||
| Consolidated Operating Budget - Cost Center IT | |||||||||||||
| Item | Oct | Nov | Dec | Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Total |
| Compensation | |||||||||||||
| Wages & Salaries | $ 92,666 | $ 92,666 | $ 92,666 | $ 92,666 | $ 92,666 | $ 92,666 | $ 92,666 | $ 92,666 | $ 92,666 | $ 92,666 | $ 92,666 | $ 92,666 | $ 1,111,992 |
| Benefits | 21,313 | 21,313 | 21,313 | 21,313 | 21,313 | 21,313 | 21,313 | 21,313 | 21,313 | 21,313 | 21,313 | 21,313 | $ 255,758 |
| Bonuses | 50,000 | 50,000 | 50,000 | 50,000 | $ 200,000 | ||||||||
| Total | 113,979 | 113,979 | 163,979 | 113,979 | 113,979 | 163,979 | 113,979 | 113,979 | 163,979 | 113,979 | 113,979 | 163,979 | $ 1,567,750 |
| Other Expenses | |||||||||||||
| Conferences | 1,500 | 1,500 | 750 | $ 3,750 | |||||||||
| Contracts (1) | 3,600 | 3,600 | 3,600 | 3,600 | 3,600 | 3,600 | 3,600 | 3,600 | 3,600 | 3,600 | 3,600 | 3,600 | $ 43,200 |
| Hardware (2) | 1,500 | 1,500 | 2,000 | 2,000 | 1,500 | $ 8,500 | |||||||
| Leased Lines | 4,200 | 4,200 | 4,200 | 4,200 | 4,200 | 4,200 | 4,200 | 4,200 | 4,200 | 4,200 | 4,200 | 4,200 | $ 50,400 |
| Maintenance | 250 | 250 | 250 | 250 | 250 | 250 | 250 | 250 | 250 | 250 | 250 | 250 | $ 3,000 |
| Office supplies | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | $ 1,200 |
| Postage | 50 | 50 | 50 | 50 | 50 | 50 | 50 | 50 | 50 | 50 | 50 | 50 | $ 600 |
| Shipping | 200 | 200 | 200 | 200 | 200 | 200 | 200 | 200 | 200 | 200 | 200 | 200 | $ 2,400 |
| Software Licenses | 3,500 | 3,500 | 3,500 | 3,500 | 3,500 | 3,500 | 3,500 | 3,500 | 3,500 | 3,500 | 3,500 | 3,500 | $ 42,000 |
| Special Projects | 150,000 | $ 150,000 | |||||||||||
| Subscriptions | 50 | 50 | 50 | 50 | 50 | 50 | 50 | 50 | 50 | 50 | 50 | 50 | $ 600 |
| Telephone | 250 | 250 | 250 | 250 | 250 | 250 | 250 | 250 | 250 | 250 | 250 | 250 | $ 3,000 |
| Training | 500 | 500 | 500 | $ 1,500 | |||||||||
| Travel | 1,500 | 1,500 | 1,500 | 1,500 | 3,500 | 1,500 | 1,500 | 1,500 | 3,500 | 1,500 | 1,500 | 1,500 | $ 22,000 |
| Entertainment | 200 | 200 | 400 | 200 | 400 | $ 1,400 | |||||||
| Total | $ 17,400 | $ 13,700 | $ 15,400 | $ 163,700 | $ 18,600 | $ 13,700 | $ 15,400 | $ 15,700 | $ 16,600 | $ 14,450 | $ 15,200 | $ 13,700 | $ 333,550 |
| Total Operating Expenses | $ 131,379 | $ 127,679 | $ 179,379 | $ 277,679 | $ 132,579 | $ 177,679 | $ 129,379 | $ 129,679 | $ 180,579 | $ 128,429 | $ 129,179 | $ 177,679 | $ 1,901,300 |
| Notes: | |||||||||||||
| (1) Contracts covered: a: Off site data storage, b: Web Hosting, c: Hardware Maintenance | |||||||||||||
| (2) Capital threshold is $2,000…all purchases, to include hardware, $1,999 or less will be expensed |
Sheet2
Sheet3
Mission_History_-_Riordan_7.doc
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Riordan Manufacturing |
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Riordan Manufacturing is a global plastics manufacturer employing 550 people with projected annual earnings of $46 million. The company is wholly owned by Riordan Industries, a Fortune 1000 enterprise with revenues in excess of $1 billion. Its products 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 Hangzhou, China. The company's research and development is done at the corporate headquarters in San Jose. Riordan's major customers are automotive parts manufacturers, aircraft manufacturers, the Department of Defense, beverage makers and bottlers, and appliance manufacturers.
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Mission |
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Our Focus · Six Sigma, leading edge R&D and exceeding ISO 9000 standards define the attitude and abilities of Riordan Manufacturing. · We are industry leaders in using polymer materials to provide solutions to our customers challenges. · Our R&D is, and will remain, the industry leader in identifying industry trends. Our Customer Relationships · We will strive to be a solution provider for our customers and not be a part of our customers challenges. · Long-term relationships will be sought by maintaining rigorous quality controls, innovative solutions, a responsive business attitude and reasonable pricing. Our Employees · We will maintain an innovative and team oriented working environment. · By assuring that our employees are well informed and properly supported, we will provide a climate focused on the long term viability of our company. Our Future · We must be focused in achieving and maintaining reasonable profitability to assure that the financial and human capital is available for sustained growth.
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History |
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The company was founded by Dr. Riordan, a professor of chemistry, who had obtained several patents relative to processing polymers into high tensile strength plastic substrates. Sensing the commercial applications for his patents, Dr. Riordan started Riordan Plastics, Inc. in 1991. Initially, the company's focus was on research and development and the licensing of its existing patents, but in 1992 Dr. Riordan obtained venture capital which he used to purchase a fan manufacturing plant in Pontiac, MI. At that time, the company's name was changed to "Riordan Manufacturing, Inc." In 1993, the company expanded into the production of plastic beverage containers when it acquired a manufacturing plant in Albany, GA. The company's most recent expansion took place in 2000 when it opened its operations in China. At that time, the entire fan manufacturing operation was moved from Michigan to China and the Pontiac, MI facility was retooled for the manufacture of custom plastic parts. |
Operating_Cash_Budgets_-_Riordan_8.xls
Operating-Cash Budget
| Riordan Manufacturing, Inc. | |||||||||||||||
| Operating Budget FY 2005 | |||||||||||||||
| Oct. 2004 | Nov. 2004 | Dec. 2004 | Jan. 2005 | Feb. 2005 | Mar. 2005 | Apr. 2005 | May 2005 | Jun. 2005 | Jul. 2005 | Aug. 2005 | Sep. 2005 | Annual | |||
| Sales | $3,976,000 | $4,182,000 | $4,798,000 | $4,182,000 | $4,190,000 | $3,846,000 | $3,460,000 | $3,578,000 | $5,210,600 | $5,350,200 | $4,726,000 | $2,765,221 | $50,264,021 | ||
| Direct cost of Goods Sold | $3,236,464 | $3,404,148 | $3,905,572 | $3,404,148 | $3,410,660 | $3,130,644 | $2,816,440 | $2,912,492 | $4,241,428 | $4,355,063 | $3,846,964 | $2,250,890 | $40,914,913 | ||
| Gross Margin | $739,536 | $777,852 | $892,428 | $777,852 | $779,340 | $715,356 | $643,560 | $665,508 | $969,172 | $995,137 | $879,036 | $514,331 | $9,349,108 | ||
| Operating Expenses | |||||||||||||||
| Sales, Marketing & Other | $85,000 | $85,000 | $85,000 | $85,000 | $85,000 | $85,000 | $85,000 | $85,000 | $85,000 | $85,000 | $85,000 | $85,000 | $1,020,000 | ||
| Depreciation | $36,000 | $36,000 | $36,000 | $36,000 | $36,000 | $36,000 | $36,000 | $36,000 | $36,000 | $36,000 | $36,000 | $36,000 | $432,000 | ||
| Quality Assurance | $98,500 | $98,500 | $98,500 | $98,500 | $98,500 | $98,500 | $98,500 | $98,500 | $98,500 | $98,500 | $98,500 | $98,500 | $1,182,000 | ||
| Research & Development | $75,250 | $75,250 | $75,250 | $75,250 | $75,250 | $75,250 | $75,250 | $75,250 | $75,250 | $75,250 | $75,250 | $75,250 | $903,000 | ||
| General & Administrative | $151,000 | $151,000 | $151,000 | $151,000 | $151,000 | $151,000 | $151,000 | $151,000 | $151,000 | $151,000 | $151,000 | $151,000 | $1,812,000 | ||
| Machining & Systems | $54,500 | $54,500 | $54,500 | $54,500 | $54,500 | $54,500 | $54,500 | $54,500 | $54,500 | $54,500 | $54,500 | $54,500 | $654,000 | ||
| Total Operating Expenses | $500,250 | $500,250 | $500,250 | $500,250 | $500,250 | $500,250 | $500,250 | $500,250 | $500,250 | $500,250 | $500,250 | $500,250 | $6,003,000 | ||
| Profit Before Interest & Taxes | $239,286 | $277,602 | $392,178 | $277,602 | $279,090 | $215,106 | $143,310 | $165,258 | $468,922 | $494,887 | $378,786 | $14,081 | $3,346,108 | ||
| Non-Operating Expenses | |||||||||||||||
| Interest Expense | $21,450 | $21,450 | $21,450 | $21,450 | $21,450 | $21,450 | $21,450 | $21,450 | $21,450 | $21,450 | $21,450 | $21,450 | $257,400 | ||
| Taxes | $74,064 | $87,092 | $126,048 | $87,092 | $87,598 | $65,843 | $41,432 | $48,895 | $152,140 | $160,969 | $121,494 | ($2,505) | $1,050,161 | ||
| Total Non-Operating Expenses | $95,514 | $108,542 | $147,498 | $108,542 | $109,048 | $87,293 | $62,882 | $70,345 | $173,590 | $182,419 | $142,944 | $18,945 | $1,307,561 | ||
| Net Profit after Taxes | $143,772 | $169,060 | $244,680 | $169,060 | $170,042 | $127,813 | $80,428 | $94,913 | $295,331 | $312,469 | $235,842 | ($4,863) | $2,038,547 | ||
| Riordan Manufacturing, Inc. | |||||||||||||||
| Cash Budget FY 2005 | |||||||||||||||
| Oct. 2004 | Nov. 2004 | Dec. 2004 | Jan. 2005 | Feb. 2005 | Mar. 2005 | Apr. 2005 | May 2005 | Jun. 2005 | Jul. 2005 | Aug. 2005 | Sep. 2005 | ||||
| Cash Inflows | |||||||||||||||
| Collections from Sales | $2,535,000 | $3,976,000 | $4,182,000 | $4,798,000 | $4,182,000 | $4,190,000 | $3,846,000 | $3,460,000 | $3,578,000 | $5,210,600 | $5,350,200 | $4,726,000 | |||
| Interest Income | $11,500 | $11,500 | $11,500 | $11,500 | $11,500 | $11,500 | $11,500 | $11,500 | $11,500 | $11,500 | $11,500 | $11,500 | |||
| Total Cash Inflows | $2,546,500 | $3,987,500 | $4,193,500 | $4,809,500 | $4,193,500 | $4,201,500 | $3,857,500 | $3,471,500 | $3,589,500 | $5,222,100 | $5,361,700 | $4,737,500 | |||
| Cash Outflows | |||||||||||||||
| Payments for Raw Materials | $735,000 | $1,132,762 | $1,191,452 | $1,366,950 | $1,191,452 | $1,193,731 | $1,095,725 | $985,754 | $1,019,372 | $1,484,500 | $1,524,272 | $1,346,437 | |||
| Payments for Direct Labor | $2,103,702 | $2,212,696 | $2,538,622 | $2,212,696 | $2,216,929 | $2,034,919 | $1,830,686 | $1,893,120 | $2,756,928 | $2,830,791 | $2,500,527 | $1,463,078 | |||
| Operating Expenses | $500,250 | $500,250 | $500,250 | $500,250 | $500,250 | $500,250 | $500,250 | $500,250 | $500,250 | $500,250 | $500,250 | $500,250 | |||
| Depreciation | ($36,000) | ($36,000) | ($36,000) | ($36,000) | ($36,000) | ($36,000) | ($36,000) | ($36,000) | ($36,000) | ($36,000) | ($36,000) | ($36,000) | |||
| Interest Expense | $21,450 | $21,450 | $21,450 | $21,450 | $21,450 | $21,450 | $21,450 | $21,450 | $21,450 | $21,450 | $21,450 | $21,450 | |||
| Corporate Tax Payments | $287,203 | $240,532 | $242,467 | $279,957 | |||||||||||
| Capital Expenditures | $250,000 | $250,000 | $350,000 | ||||||||||||
| Total Cash Outflows | $3,574,402 | $3,831,159 | $4,502,977 | $4,315,346 | $3,894,081 | $3,954,882 | $3,762,111 | $3,364,574 | $4,504,468 | $4,800,991 | $4,510,499 | $3,575,173 | |||
| Net Cash Flows | ($1,027,902) | $156,341 | ($309,477) | $494,154 | $299,419 | $246,618 | $95,389 | $106,926 | ($914,968) | $421,109 | $851,201 | $1,162,327 | |||
| Beginning Cash on Hand | $357,216 | ($670,686) | ($514,344) | ($823,821) | ($329,668) | ($30,248) | $216,370 | $311,758 | $418,684 | ($496,284) | ($75,174) | $776,027 | |||
| Ending Cash on Hand | ($670,686) | ($514,344) | ($823,821) | ($329,668) | ($30,248) | $216,370 | $311,758 | $418,684 | ($496,284) | ($75,174) | $776,027 | $1,938,354 |
