For better Operations & Maintenance outcomes in asset intensive companies, maximize the effectiveness of Maintenance and Supply Chain (MRO) business processes. The weakness is often in the supporting master data. MRO material identities, the combination of the descriptions, key specifications, and manufacturer’s part numbers (where applicable), are usually the weakest point. Ad hoc nomenclature standards are the root of the weak MRO material master identity problem. Applying a structured identification taxonomy gives comparable items so the clutter can be removed. Using the taxonomy post cleanse keeps it that way. A […]
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Migration of Quality Data is Key to S4HANA Implementation Success (Everyone Knows That)
The reality is that what quality master data is, must be defined for each master data object. The requirements for quality functional location and equipment master data are different from a quality set of general ledger accounts, and from my speciality MRO material master catalogue items. When looked at through the in vogue “data” lens, we hear that for data to be quality it needs to be Accurate, Complete, Consistent, Timely as well as other things. None of these speak of what is needed for your data to deliver value […]
Quality Material Identities are fundamental to MRO Inventory Control
Inventory control is an old concept. It has been part of the business vocabulary likely since the days of Henry Ford. The idea is to apply management science to optimize the value and effectiveness of inventory. A typical definition is the process of keeping the right number of parts and products in stock to avoid shortages, overstocks, and other costly problems. In the world of Energy, Utilities, Mining and Pipeline companies; Maintenance Repair and Operations (MRO) materials are the key inventory type because they are so significant in maximizing asset […]
Ambiguous MRO Material Descriptions Reduce Effectiveness in O&G
A Typical Story An energy industry firm grew, reached a point where standardized business processes were valuable. ERP was implemented. Master data was moved upwards from simpler local systems to the central system. Master data now represents knowledge in a way that was the duty of staff previously. The migration was executed without addressing structured consistent material identities. The Problem Unclear, ambiguous, standard free material descriptions are the root problem slowing and causing mistakes in materials related business processes. Procurement, inventory, maintenance planning and execution are affected. These are the […]
MRO Material Master Quality
What is the key quality trait of MRO material masters to deliver value to the business? The answer points to what is needed for success in a material master catalogue cleanse. People working in Maintenance, Supply Chain and Reliability processes in asset intensive businesses, know weak low quality MRO material masters are a significant and unnecessary value drain. Cleansing your MRO material catalogue is the common suggested fix to improve quality. But what does the cleanse need to achieve to return value? The answer, structured unique identities for every record […]
Does your asset intensive company grow by acquisition?
Standardize your MRO Material Identities to improve effectiveness. Inherent to a growth by acquisition strategy is betting that you run operations and maintenance more effectively than the acquired assets were run. Superior O&M performance shows up in financial results. Often acting as a counterweight to your superior processes and execution is the compounding effect of weak MRO material identities. If you do not have a solid MRO material identification taxonomy, then when you merge an acquiree’s items you are at best only partially deduplicating the combined catalogue. Worse you are […]
MRO parts and Enterprise Asset Mangement
The right time to identify the parts and materials needed to support an asset is during its design and build project. Particularly if you have maintenance strategies and a solid material identification taxonomy to apply. Sadly, for most assets, that ship sailed years ago, and we live with an MRO catalogue of very dubious value that is a constant drag on Maintenance, Operations and Supply Chain. The catalogue continues to expand with more items being added to support the same assets and getting worse over time. All is not lost. […]
If indeterminate MRO material master identities are a real business problem, why aren’t they a bigger deal?
Or how to get visibility so the problem gets solved? Poorly identified MRO materials IS a real problem in asset intensive industries. It’s a weak spot that has existed since the dawn of enterprise systems, sitting in no mans land. Software developers and implementation consultants say “that’s a business problem”. In the early days it was often owned by IT, now likely it’s SCM. The people most impacted are often in maintenance. The friction and mistakes caused are felt broadly resulting in higher costs, increased safety risk and when things […]