There are many costly pain points arising from poorly identified MRO spare parts in asset intensive companies. When, as is common, the naming or identity standards for MRO materials are weak, value leakage plagues SCM and Maintenance functions. SPC Results has the experience and skills to fix to the MRO material identity problem. The solution is to apply a rational structured identity taxonomy to make items not just unique, but comparable.
First the pain of the problem. Does your business live with any of these ongoing value leakages?
Pain from the SCM perspective:
- Excess purchase of directly expensed maintenance items ordered by non catalogued (free text requisition)? This happens because ordering parts with system material numbers is challenging and error prone. Requestors use free text descriptions, order extra just in case and then manage the spares build up in invisible off system inventories.
- Slower and more labour-intensive procurement process with off contract pricing due to free text orders
- Weak MRO item identity standards impedes or prevents resolving stocks of duplicate warehouse items
- Inability to investigate inter plant stocking strategies due independently catalogued and not-comparable items
- Wasted warehouse time on pick and return of mis-identified items
Pain from the Maintenance & Reliability perspective:
- Excess work order planning time finding and validating MRO material requirements
- Maintenance work schedule delays because of mis-identified materials and returns
- Production impeded by delayed completion of maintenance tasks with the root cause being provision of wrong materials
- Excess risk of production upset or disaster from maintenance installation of unsuitable and mis-identified materials
- Maintenance BoM creation projects negatively impacted by uncertainty of material ids
SPC Results Inc. guides the transformation of your MRO materials with structured unique and comparable identities. Our Structured Materials Identities (SMI) taxonomy was developed to be more rational than alternatives and solve the often-encountered refrain, we paid for a material master cleanse and the data doesn’t work any better. Using SMI is flexible and can be applied in house, in an outsourced data cleanse project, or as an element of a Master Data Management system implementation. Think of SMI as a set of data quality rules. Most MDM vendors boast their system can implement any data quality rules you have, the SMI is the set of identity rules that will deliver results for MRO materials.
Conrad and team have an MRO Material Identity Transformation Cookbook that proceeds from initial assessment through to stock consolidations post data cleanse. A defining difference is experience with both industrial MRO material nomenclature, as well as deep ERP skills (SAP in particular). You will be dealing with people that know the difference between an armature and a ferrule to support your successful and valuable MRO transformation.
Boost operational effectiveness with high ROI and rapid payback in addressing this long-standing master data weakness.
Contact SPC Results with the link below to book an information meeting and see how easy it can be to get an introductory MRO Health Assessment of your material catalogue.