Why Asset-Intensive Organizations Can’t Afford to Ignore MRO Data

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For many asset intensive organizations, the thought of addressing your MRO master data can be overwhelming. You know that there is value to be found in your data, if only you can get that data into a usable state. But there are thousands, and in some cases hundreds of thousands, of items that require information normalized to a defined schema. That information can include category; noun; modifier; attribute labels or values such as size, type, and material; codification—and more.  

So what do you do to address the state of your MRO master data and how do you start?

Why MRO master data matters 

As we hinted at above, your MRO master data holds a lot of untapped potential. By taking advantage of the information you can glean from it, you can make better decisions across your organization, increase efficiency in your processes, and reduce your spending.  

The ROI opportunities that you can expect include: 

• Reduce duplicates in your inventory. On average, 10% of your uncleansed MRO master is duplicated. Of that, 25% of duplicates are generally available for inventory reduction. 

• Increase spend leverage. Typically, 60% of annual purchases qualify for leverage opportunities. 

• Purchase price reduction. On average, companies see a 5% purchase price reduction through spend leverage and vendor consolidation. 

• Fewer maintenance hours. Companies tend to see at least 0.5 hour saved per day per maintenance team member due to efficient search ability. 

• OEM conversion opportunities. Typically, 30% of an MRO master is represented by OEM items. Of that total, 10% of OEM items qualify for conversion to standard MRO items.  

• Item price reduction. When you complete OEM conversation, on average you’ll see a 25% average purchase price reduction. 

• Reduce stock quantity. Once you have actionable, accurate data, 10% of on-hand inventory exceeds the max stock quantity. You’ll be able to reduce your stored inventory. 

You can see your ROI broken down more specifically by using IMA’s free ROI calculator here. 

Where to begin 

MRO master data cleansing is the process of taking your existing data and standardizing it to a set schema. That schema determines what information you store about each item and how you structure the data, making your data consistent and easy to search. Since the schema is the key to your data organization, it’s important to think about what you need and what will suit your organization the best.  

Take a look at the example below. You can see how cleansing the data to organize it according to a schema makes it easier to read and search. 

Before: GAINSVILLE, GV407842, FESTO, VMPA1-M1H-M-PI, VALVE, SOLENOID, 24VDC, ALUM BODY, 5-WAY 2 POSITION, 0.9-10 BAR:

After: GAINSVILLE GV407842 FESTO VMPA1-M1H-M-PI SOLENOID VALVE

But how do you know what schema works for you? There isn’t an easy answer; you have to assess your data and determine what matters most. However, there are several commonly used schemas that you’ll likely want to choose between. These include UNSPSC, eCl@ss, and IMA’s own product classification system. For more information on schemas, check out our previous blog post. 

How does my ERP/CMMS fit in? 

Not only do you need to understand the schema you're going to use to prepare your data, but you also need to know where and how to put the data. There are a multitude of variations with regards to the ERP and CMMS systems that exist today. Some focus more on the financial aspect of the organization while others focus on the operational side. Does that mean one is better than the other? Not necessarily. The best system is the one that meets the needs of your organization.  

Regardless of which system you have chosen, there are MRO master data limitations related to data population and search capabilities. Your short description may have a 30 character limitation while others have 40 characters. Can you fit all the information related to a part in a 40 character field? Is there an industry standard for populating the 40 characters? Will you be able to find your parts when you need them? 

These are all good questions. Our suggestion is to align yourself with a qualified MRO master data organization, such as IMA, that understands your needs and the specifics of your ERP or CMMS. Leverage a company who has a core competency of cleaning and preparing MRO master data. Many have gone to market offering data cleansing as an addition to their core competency services only to find that it is much more complex than they anticipated. Cleansing and governing MRO master data is not a part time job; it requires years of experience combining programmatic and manual efforts. 

Considerations 

With all that in mind, there are a number of factors to consider when you’re trying to find a qualified MRO master data cleansing service. After all, you want a provider who has the expertise and tools that will make them an asset to you.  

As you start considering different providers, keep the following in mind: 

1. How long has the data company been in business? 

2. Is data cleanse and governance their core competency or part of a host of other service offerings? 

3. Do they have a schema that satisfies your specific data requirements? 

4. How well do they know your ERP or CMMS? 

5. Is a support team assigned to help you manage your data during and after the mass data preparation? 

6. Do they offer a robust governance solution to ensure your new data integrity is maintained? 

7. How flexible are their procedures and software / what customizations can be done, if needed? 

8. Do they offer a free data evaluation? (For example, see IMA’s free evaluation.) 

These are just a few factors to consider. The reality is that transitioning your MRO master data from raw data to best-in-class can be overwhelming if you aren't aligned with the right partner. Take the time to make sure your partnership will be mutually beneficial. When you do, the outcome is rewarding and will provide a great return on your investment. 

About IMA 

IMA is a longtime leader in the data management field, providing comprehensive and customizable options for turning your data into a world class resource. Not only do we offer data cleansing and governance with the most customization of any product on the market, but we have incredibly knowledgeable data experts to help you along the way.   

To learn more about what we can do for you, we recommend taking advantage of our no cost, no obligation Data Evaluation! With a few clicks, you can identify the current condition of your data and receive impactful before and after cleansing samples. We also offer a free, easy-to-use ROI Calculator to reveal the potential savings associated with data cleansing. 

Starting a data project doesn’t have to be complicated—not if you have the right resources to make it a success. IMA can be that resource. For more information, check out the rest of our website or contact us at info@imaltd.com.