SPC Results offers sequential fixed price work packages as an alternative to hourly billing. This allows improved insight into the project risks and costs.
Consulting services are commonly billed by hours worked. It’s a simple method but comes with significant challenges. The desired objective for Client and Vendor is a particular outcome or result, but the job is measured and paid for by the inputs not the outcomes. The cost over run risk executing these agreements is borne solely by the client. This approach is a contributing factor to fixable business problems (of ongoing economic loss) being left unresolved because of the uncertainty of the full cost to fix the problem. When there is significant uncertainty to the effort needed to achieve the result, it may be rational to leave the value losses of the status quo in place. This is true regardless of the level of trust between the parties.
The ongoing business value lost by having an ineffective MRO material catalogue fits the above description. To address this problem, SPC Results offers sequential fixed priced work packages to evaluate and transform MRO material catalogues. This approach improves cost certainty while the progressive structure of the work packages identifies the risks and resource needed at each step for success. SPC Results will collaboratively work with a client any way that fits the client’s requirements. What follows is a suggested method to transform an MRO material catalogue by implementing a standard taxonomy and aligning the material records with the actual real items needed to operate and maintain the client’s current physical assets.
MRO Material Catalogue Transformation Work Packages
Initial Evaluation Work Package
The initial work package extracts data and reports needed to assess useful records on a last usage basis and get an overall scoping of the transformation project. Sometimes referred to as data profiling. The output provides the information that guides your decisions on systems, tools, methods, processes and governance that will be your MRO catalogue transformation. A benefits estimation is part of this package.
Detailed Catalogue Analysis Work Package
The detailed analysis package normalizes all descriptions to start with their noun. It flags the items with indeterminate identities for removal. While each catalogue has its own unique history, between 20 to 60% of items may not be needed and not considered in future work packages. This work package associates materials with the FLocs /equipment they have been consumed against, allowing removal of items supporting obsolete assets. It includes more detailed analysis including the impacts of current operations and maintenance strategies on required items, as well as fine tuning where last usage is not an appropriate criteria to exclude items.
Transformation Prep Work Package
This work package confirms the governance organization and appropriate process changes needed, as well as confirms a specific enterprise material description taxonomy. Search help enhancements are created to ignore materials flagged for deletion in search results. The material master administration process changes are implemented with the required change support and training. This work package is coordinated with a master data solution or process tool implementation if in scope.
Standardized Description & Other Enrichments
The approved taxonomy is applied to all valid catalogue items. Missing significant attributes are added to material identifications. BoMs are created if in scope. The updated records are moved into the ERP. Training and end user support is provided.