Avoiding MRO management pitfalls with MDM – 2

Our 1st Blog post (of this series) described how MRO intensive Organizations tend to side line the Asset reliability processes that in turn results in negative business outcomes. Starting this week, we will be listing the most common pitfalls and steps to avoid them. Here are the 2 that you might encounter initially –
1. Free-text MRO descriptions – Want to see how your MRO data could turn into a hodgepodge of unrecognizable abbreviations? Give your employees the freedom to enter new data in any format they like. You are sure to see a ball bearing being sporadically described as –

a. Ball bearing
b. B.B
c. Ball Br
d. B Bearing etc.

The simplest way to counter this problem is by auto-generating standard long and short descriptions for each MRO part.

An MDM solution can ensure that all your MRO data is present in a standard format. It is also easy to search for and is intelligible to all employees, irrespective of departments or locations.

2. Lack of taxonomy – Though related to the first pitfall, this represents slightly different issues. Taxonomy is simply a way of categorizing information into small buckets that roll up into bigger buckets that eventually roll up into even bigger buckets. It has implications for –

• Search—the ability to easily locate specific MRO items in inventory, and
• Reporting and analysis—the ability gain enterprise-level and detailed views into such things as MRO spending, consumption patterns, and inventory.

Having no discernible taxonomy forces search and analysis into labor intensified tasks and failure. In some cases – simple, high level, proprietary taxonomies can help standardize your data, but for most of the MRO organizations, it becomes essential to adopt a global taxonomy such as UNSPSC as they grow and expand. Applying such a standard for MRO item master classification enables visibility into transaction, inventory, and consumption data through a single, powerful lens.
The above mentioned pitfalls are the 2 most common pitfalls in MRO management. The remaining parts of this blog series would talk about more complex issues that can arise. Please share your experiences and thoughts in the comments section below.

Further Reading:

Blog – Strengthening your E-BOM with MDM
Case Study – Large Wood products company leverages Verdantis for ERP consolidation across 25 plants
White Paper – The Business Benefits of Material Master Data Management (MMDM)

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Arthur Raguette

Arthur Raguette

Arthur Raguette is the Executive Vice President at Verdantis. Arthur is very passionate about the application of innovative technologies to solve real-world business problems with a strong emphasis on large enterprise solutions. He has more than a decade of experience of working with Software for Master Data Management and Data Governance for multiple domains and across industries. Arthur’s prior technology passions included high performance B2B middleware and hybridized SaaS applications for HR, Employee and Education related domains.

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