As a supplemental point, a question I have been asked on several occasions from involved SMEs is why not just make use of maintenance BoMs to bypass the low-quality description problem? BoMs give a direct connection to the equipment or functional location the material supports bypassing the material master search challenge. My best answer was found in one company’s attempt at a BoM creation project that failed after being well over schedule and over budget. The low quality of the source data made constructing the BoMs problematic, several variations of a BoM could be built from the indeterminate items, exactly the same problem other business users had with the material masters. Bypassing building a solid foundation for material master identification will likely lead to further challenges, not successes. Net Results Group can standardize all your MRO materials/parts data and provide missing data specifications or attributes that are key to describing the material/part using our MRO Material Master Database of Content.
There has to be governance over master data supported by inventory information management system. Our subject matter experts and professional services provide https://business-accounting.net/ clear visibility into your MRO master data. SPC Results will work with you to understand your unique situation to develop your plan and business case.
- IBM supply chain consulting services can also strengthen supply chain management, helping clients build resilient, agile and sustainable end-to-end supply chains for the future.
- In an asset extensive organization, there is a significant focus on the MRO supply chain, as MRO items are critical for plant uptime and reliability.
- Emerging solutions that are promoted as machine learning or artificial intelligence driven have a fundamental weakness in that they are looking into existing random data to find the patterns to form your new standard.
- SPC Results can do the analytical work to flag the indeterminate, unused, and obsolete material records in your catalogue.
- It is obvious to say that master data quality is important for materials related ERP business processes to run effectively and efficiently.
With a data-driven and industry-template approach, EY US is helping enforce standardization and governance into the material master process, enhancing productivity and managing costs. A leading energy company utilized the unique EY data management approach to streamline its material master system, saving time and money. The MRO material master catalogues of six companies with 714,488
material short descriptions were analysed. 5 of the 6 catalogues were formatted allowing the noun to be broken out (comma delimited for example).
For clients who prefer to align to such an industry standard, we provide taxonomy implementation and commodity coding services. But if the standard taxonomy does not suit a client, we can also customize the taxonomy to include the required commodity groups or add additional levels or attributes, as required by the Client to make it more comprehensive. Many managers in asset-intensive industries like energy, utilities or process manufacturing, perform a delicate high-wire act when managing inventory. Finding the right balance becomes crucial for helping ensure the success of maintenance, repair and operations (MRO) initiatives, specifically the spare parts that support them. Another consideration would be to extend these concepts into engineering before MRO processes begin. I would imagine the identity characteristics as a subset of the design datasheet for that object.
Short descriptions from Oil & Gas and related industry MRO material catalogues were analysed for their usability in searches in support of ERP business processes. Rigorous description standards are not apparent in any of the catalogues studied. In short, the descriptions studied are likely a representative sample of much of the industry as most have experienced a common evolution of their material master data records. Short descriptions from Oil & Gas and related industry MRO
material catalogues were analysed for their usability in searches in support of
ERP business processes.
Selection Criteria for ERP Systems in Oil & Gas
A comprehensive material master Data Classification system will lead to benefits in different areas, one of which is improved spend analytics. Most executives struggle with gaining insights into inefficient purchases, and root cause analysis usually points to poor data classification and analytics. The mission of the MRO Materials Management function is to provide the right part, to the right place, at the right time, for the lowest total cost. To get the right part relies on the person in need of the item being able to select the right material from the system. This critical link that starts the whole process has never been given its due significance.
Companies across the globe have adopted UNSPSC Code (United Nations Standard Products and Services Code) as a preferred classification standard, especially when the goal is to support inventory optimization and spend analytics. Furthermore, we assist clients with implementing multiple classification systems or mapping items across classifications such as eCl@ss to UNSPSC or the other way around. From the beginning, it was clear that MRO master data management was a major pain point for this energy company (and many others).
Material Master Taxonomy for SAP MDG (Master Data Governance)
These can take many different formats, often PDFs or paper printouts, making contract management a laborious, manual task. AI technology can automate the identification and correction of errors, assist in data classification and standardization, and enhance the overall efficiency of the cleansing process. IBM supply chain consulting services can also strengthen supply chain management, helping clients build resilient, agile and sustainable end-to-end supply chains for the future.
To add, this process is allowing the company to cleanse and enrich its material master data sets prior to migration to SAP S/4HANA® so it can maximize the value of its investment and migrate with clean material ledger capability. Even with governance efforts in place, setup is often spotty, with employees making multiple entries of the same part with different nomenclature, permissible by open text entry. To avoid redundancy, a material data entry should only be created once in the system and assigned a unique description code and taxonomy.
UDGA™ dramatically reduces the overall time and cost for SAP Master Data Governance implementations. UDGA achieves this by delivering the required industry standard, ready-to-use, pre-configured content in a broad bundled offering. As a result, customers can expect a 40% reduction in implementation timelines and costs and can achieve the benefit of a live SAP MDG solution in as little as 12 weeks. Our proven processes have shown a complete effective solution for identifying and validating your MRO parts. We perform this with ease using our MRO3i cloud-based tablet tool supported with millions of validated parts in our database. Some managers choose to stock excess spare parts due to past encounters with delays and other negative consequences.
Is Your MRO Material Catalogue Broken?
If you have started down a path, SPC Results can work with you to optimize the value return from material master identities. Manage your own master data now, do not wait for the world to coalesce on a standard, or you will be behind, and that day may never come. The methods and processes I am suggesting are compatible with the ISO 8000 standard for Data Quality and Enterprise Master Data but do not use the electronic Open Technical Dictionary (eOTD) to encode in XML and share. When you find value mro material taxonomy in sharing your master data dictionary with the world it is portable, ready, and compliant, it only needs to be registered in the eOTD. With these guideposts, the project began with the creation of an industry standard template for MRO materials that worked with the company’s existing ERP system and established a pathway for future growth opportunities. Once that was approved, the company gave the EY team more than 100,000 data sets to run through the AI software to clean up and standardize.
Other benefits include accurate EAM reporting and analysis, structured bill of materials, reduced operational downtime, and full visibility of stockroom. Specifications recorded as part of the record may help Technical Authorities identify and validate material masters in their work. This may come up in debottlenecking projects, reliability, or other technical investigations that need support of ERP data. A useful approach is to record the specification attributes and allowed values for each MRO noun in the identification template. Then when processing the record into the ERP, CMMS, or MD system; all the attributes get recorded in a class named as the Noun Identity Class as characteristics with values.
Sample of MRO Data Taxonomy:
At best, the UNSPSC provides an initial noun for the description with no support on which identifying attributes or in what standard order they should be used for the record’s description. Is it any wonder that MRO material master identities are problematic in catalogues that relied on the UNSPSC to guide material master administration? Sadly, most MRO material master improvement projects over the last twenty years suffer from this. Again, for a material master record to be a quality record, it must uniquely identify the real-world item it represents in the ERP / CMMS. This is the primary requirement of a material master record to be used in business processes. To back that up, just imagine if we treated the underlaying identity of personnel records, that is which person does a record represent, as weakly as we treat MRO material identities.