Chief Data Officers need to measure data quality – it’s the old adage- “that which cannot be measured cannot be managed.”  Customer Data, Supplier Data, Chart of Accounts Data are all straight forward.  Master Records should be unique, should be linked hierarchically, and should be complete enough to serve the business functions.
 
How does the CDO measure Purchased Product Master data?  Multiple consuming organizations need different data elements.  Data quality for Purchased Products has similar requirements:

• Technical attributes must be consistently represented
• Technical attributes must be complete enough to be used by the consumer
• Technical attributes must be referenced in a searchable way for the consumer / consuming application

How does a CDO place value on this quality?  Multiple studies, white papers and case studies have been published on the Party masters – Customer and Supplier.  References to customer satisfaction, on-time deliveries, reducing duplicate invoice instance, etc.
 
Common Quality Measures:
 
Non Duplicative Data – (Initial reduction and the sustainment program)
 
Completeness of Data – (Are Business Critical Technical Attributes present?)
 
Accuracy of Data – (Can the attribute values be verified with the source – either OEM or Engineering)
 
For Purchased Products, the value drivers are as diverse as the consumers but the following value propositions have been realized repeatedly:

• Reduced Inventory levels of maintenance, repair and spares
• Correct inventory levels of B, C, and D parts
• Improved Usability of Masters / Catalogues

Business Results for improved data quality of Purchased Parts:

• Reduced Carrying Cost of Inventory
• Improved Product or Service Delivery Cycles due to increased part reuse
• Cost reduction of Purchased Parts due to part normalization
• Reduction in warranty processing due to better supply chain quality
• Reduced Outages (and the associated costs)

The emerging challenge for the CDO is to collaborate with the data consumers to define acceptable measurements.  Stay tuned for recommendations…
 
Recommended Reads:
Blog – Has the Chief Data Officer come to embrace Purchased Product Masters?

White Paper – Effective Plant Management – The Role of Sound Master Data

White paper – MRO Master Data Management for Enhanced Maintenance Performance

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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.

Latest posts by Arthur Raguette (see all)

• On Demand Webinar:Strategically manage data quality in an ERP rollout - August 27, 2018
• Benefits of Material Master Data Management-Part 5 - March 21, 2018
• Benefits of Material Master Data Management-Part 4 - March 1, 2018