Generating Higher Returns on Investments from MRO Data

Data cleansing and data governance are two solutions which brings out higher returns on Investment from MRO data. These two solutions, data cleansing and data governance, are two separate solutions that can be and are mostly executed together. When it is done so, the overarching project is called an MDM project.

Data cleansing assures of many immediate cost savings and improvement in efficiency through better spare part search, eliminating incorrect stock-outs, reducing downtime and precise reporting. These are obvious benefits, however, the most rewarding benefits are generated after applying and maintaining the cleansed data, if planned and executed properly. With an increasing importance for master data quality and cost saving, organizations are employing data cleansing strategy and governance projects to improve maintenance efficiency and realize cost savings. Below are the three key high lights to understand and achieve higher Returns on Investments from MRO Data

Clearly Defining Project Objectives

Defining clear and precise project objectives is a fundamental step towards viable long-term results and ensuring maximum return on investment. Project objectives must include inputs from all functions or departments who will be working with or be affected by the data. For example, maintenance and procurement, both are required to work with material master data everyday; however, the usage of the data is quite different for them. That’s why the project must be recognized before cleansing the data. It would ensure that the final data fulfills the requirements of all end users. Additionally, defining an achievable and measurable objective and requirements before the commencement of project allows establishing Key Performance Indicators and assessing progress towards meeting the target.

Establishing a Long-Term Data Governance Strategy

Data cleansing cannot be a "one-time executed, never-look-back" kind of project. Although the first major step towards achieving maintenance efficiency and cost savings is through the initial data-cleansing project. The long-term data quality needs diligent maintenance of cleansed data to have accurate and reliable information for decision-making. More often organizations are much focused on the initial data-cleansing project and receiving its desired results. However, what gets completely overlooked is the governance component, which is essential to maintain data quality after the data cleansing project gets over.

This hampers organizations drastically at various fronts like:

a. Finding themselves unable to implement the master data governance strategy since they did not allocate appropriate funds during project approval

b. Struggling in governing data internally because of limited resources, expertise, tools etc.

c. Being back to the same inconsistent state all over again due to failed data maintenance standards.

For these reasons, it becomes extremely important establishing and including a long-term data governance strategy in the initial project plan

Performing Post-Cleanse Implementation Tasks

Quite often organizations fail to allocate required time, resources and expertise to fully implement and realize benefits of a data-cleansing project. Eliminating duplicate entries, disposing obsolete inventory, enforcing compliance, analyzing expenses, identifying preferred vendor programs – all these that must be completed to attain maximum efficiency and return on investment made for the data cleansing project. If, for resources and expertise to perform, these are not available internally, organization can consider a third party service provider. The returns on the investment made in these post-cleanse tasks and the benefits will be available for a long time.

To summarize, a data-cleansing project is a foundation towards maintenance efficiency and cost optimization, however, there are many more pieces to the complex spend reduction puzzle that can be achieved in MRO. While it is very easy to pluck the low hanging fruits just after the project, to reap better return on investment it’s crucial to prioritize post-implementation tasks as well. The best advice would be to plan properly, establish a core project team that can epitomize the organization’s needs, and then identify the service provider who can provide best-practice solution support throughout the process.

The author is an expert in the field of master data management. The writer has flair for writing and he keeps on writing various articles and blogs related to the industry.