What does material data quality mean? – 1
The end of 2016 is fast approaching and it’s time to get ready for Christmas. People tend to reminisce around the holiday season – and we decided to do something similar; but with a twist.
We are going to spend the last month of this year going back to our roots – material master data quality. The quality of material data is what we know, and dare we say, know well. Over the last dozen or so years, we have helped enterprises improve, maintain, and govern their material master data quality and it’s time to discuss what we mean by the term.
Material Master Data Quality
Let’s start by breaking down the phrase into its components – material, master, data, and quality. This week, we’ll focus on material, master and data while quality will be dealt with next week.
The word ‘material’ in this context refers to the items utilized by industries such as manufacturing, oil and gas, chemical among others to create, assemble, extract, or otherwise produce their final products. The term is generally divided into two categories – direct materials (such as raw materials) and indirect materials (such as spare parts).
‘Master’ refers to the central source of truth that structures and defines the templates for material data. To avoid the circular reference, this is really an information technology term related to the hierarchy of information authority.
The ‘data’ part of the phrase refers to the data that represents the above-mentioned materials in the company systems (most commonly ERPs). We are concerned with the data and not the actual materials that go into the manufacturing of the products. Irrespective of whether the client manufactures billion dollar jets or tiny semiconductors, our responsibility is ensuring the integrity of the underlying data.
The discussion will continue next week with the most interesting word in the phrase – quality. It has been defined and debated for decades, and we’ll add our own two cents to the discussion in a week. As always, we’d love to hear your impressions and experiences. What do you understand by the phrase ‘material master data quality’? Please share your thoughts in the comments section below.
Further Reading –
Blog – Unreliable material master data can be a BIG problem – avoid it
Blog – Leveraging Item masters in Procurement
White Paper – Improve Enterprise Data Quality through Master Data Management
Latest posts by Arthur Raguette (see all)
- Benefits of Material Master Data Management-Part 5 - March 21, 2018
- Benefits of Material Master Data Management-Part 4 - March 1, 2018
- Benefits of Material Master Data Management-Part 3 - February 19, 2018