MRO Archives | �ۿ۴�ý

Effective Strategies to Prevent Unwanted Stock Accumulation

�ۿ۴�ý — Thu, 14 Mar 2024 11:52:59 +0000

To mitigate the accumulation of undesirable consumable materials and spare parts in inventory, it is imperative to adopt a strategic approach to inventory management, wherein various practical guidelines can be implemented to effectively address this issue and prevent the unwarranted build-up of surplus items.

1. Regular Inventory Data Audits:

Conduct regular data audits to assess the current stock levels of warehouse materials.
Identify slow moving or obsolete items during these audits.
Identify Same Materials stocked in different places with different Material code and descriptions.
Identify Materials stocked and not used for more than 5 years.
Consider selling or donating items that are no longer needed.
Immediately Scrap, if any material no longer be used.

2. Refine Demand Forecasting:

Improve your demand forecasting processes to better predict the actual need for raw materials, consumable materials and spare parts.
Use historical data, market trends, and production schedules to refine and redefine forecasts.

3. Co-act with Suppliers and Implement Just-in-Time (JIT) Inventory

Maintain open relationship with suppliers to adjust orders based on actual production requirements.

Adopt a just-in-time inventory system for materials to minimize excess stock.

4. Set Min-Max Levels for Critical Parts:

Constitute minimum and maximum inventory levels for critical parts.
Implement automated systems to trigger reorders when stock levels reach minimum predetermined thresholds and investigate if it reaches maximum.

5. Utilize Vendor Managed Inventory (VMI):

Explore the use of Vendor Managed Inventory where suppliers/vendors monitor and manage predefined stock levels on your behalf.
This will improve efficiency and reduce the risk of overstocking.

6. Centralized Inventory Management System:

Implement a centralized inventory management system to review, track and control stock levels.
Utilize technology to automate inventory tracking and ordering processes in the best possible way.

7. Single Point Master data:

Centralized and single point control on master data should be maintained.

MRO experts should take the overall control on the entry, change and extension of the materials in the centralized ERP system.

8. Adequate and Frequent Training:

Provide training to all the employees involved in inventory related functions.

Ensure they understand the need of maintaining optimal stock levels.

9. Implement a Returns and Exchanges Policies:

Establish a clear returns and exchanges policy for all the direct and Indirect material.
So that excess stock can be managed by returning of unused items.

10. Continuous Improvement:

Regular check and audit by MRO experts on the overall data is must.
Regular Meeting to be conducted and feedback from different department involved in the inventory management process should be discussed and changes must be made if needed.

�ۿ۴�ý is well-equipped to assist in the implementation of these strategies and in maintaining a proactive approach to inventory management, thereby substantially mitigating the risk of accruing surplus raw materials, consumables, and spare parts in your inventory. The pillars of a successful inventory management system include continuous monitoring, strategic planning, and fostering partnerships with suppliers and vendors.

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Fundamental Elements of MRO Data Excellence Framework

�ۿ۴�ý — Wed, 04 Jan 2023 11:11:20 +0000

In today’s data-driven world, it is crucial for MRO teams to have access to accurate, reliable data in order to make informed decisions and optimize their operations. This is where the MRO Data Excellence Framework play a vital role to increase efficiency across supply chain, inventory, procurement and plant operations.

The MRO Data Excellence Framework is a set of best practices and guidelines for managing in an organization. It is designed to help all functions ensure that their data is accurate, complete, and up-to-date across ERP / CMMS / EAM systems.

Major components of MRO Data Excellence Framework

Accurate and complete data: This means having a comprehensive and reliable set of data that is as per ISO 8000 data quality standard and free from any errors.
Data Standards and Industry specific Taxonomy: a well-defined data taxonomy can ensure to cover a wide range of data parameters including data formatting, naming conventions, classification, category and many more.
Robust data governance: Defining Policies, procedures, and controls to ensure data integrity, security, and availability.
Data quality management: This involves implementing processes and tools to regularly assess, monitor, and improve the quality of the data.
Data integration and interoperability: Integrating data from multiple sources and systems and ensuring that the data can be easily shared and accessed by different stakeholders.
Data analytics and reporting: using advanced analytics and visualization tools to extract insights and trends from the data, and to provide meaningful and actionable reports to supply chain, procurement and maintenance activities.

Role of Data Governance in Data Excellence Framework

One key component of the MRO Data Excellence Framework is data governance. This involves establishing clear policies and procedures for managing MRO data, including how it is collected, stored, and used.

A robust data governance system ensures:

Defining roles and responsibilities for data management within the organization
Designing Implementing an industry specific data taxonomy
Establishing processes to meet the ISO 8000 data quality standard
Setting standards for data formatting and naming conventions
Establishing clear policies and procedures for managing MRO data
Developing a system for tracking and documenting data changes and updates
Assuring appropriate permissions and safeguards are in place to control and secure data edit privileges

It is important to note that while data governance is a crucial component of the Framework, it is not the only one. Other components, such as data quality, integration, and reporting, are also essential for ensuring that MRO data is being used effectively to drive business value. However, if the data itself is of poor quality or is not properly integrated with other systems and processes, it will not be able to provide the insights and value that the MRO team is seeking. Similarly, robust reporting and analytics capabilities are necessary to extract meaningful insights from MRO data. Without the ability to analyze and interpret the data, it will be difficult for MRO teams to make informed decisions and optimize their operations.

Talk to one of our MDM specialists today to learn how you can implement MRO Data Excellence Framework at your organization and drive business value.

Talk to our MRO Data Excellence Expert

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�ۿ۴�ý Supply Chain and Asset Solutions division wins an MRO Data Excellence contract to transform inventory management for a large mining company in the ANZ region

�ۿ۴�ý — Mon, 01 Feb 2021 04:00:48 +0000

Portsmouth, NH; January 15, 2020 – �ۿ۴�ý has been awarded an order by a large mining company in the ANZ region to standardize their MRO Data during its migration to SAP systems. The scope for project includes providing such as Data Standardization, Enrichment, and Governance to achieve supply chain efficiencies.

The client is known for surface and underground mining in the ANZ region and has been mining various commodities such as coal, iron, copper, gold, nickel, and many more. Along with mining, the client also possesses specialized engineering services capabilities providing design, construction, and a complete range of engineering services on-site for its customers.

This engagement is a primarily via consulting with the client to understand their key MRO data issues. Based on findings, �ۿ۴�ý will implement solutions addressing their immediate goals towards optimize their inventory, while keeping in mind the long-term goals, around – procurement, plant maintenance and asset utilization.

The managed service offering by �ۿ۴�ý with a dedicated team of MRO Engineers, Data Catalogers, SAP MM experts, and QC specialists is supported by an online platform – Partlinq – to automate tasks such as workflow management, data integration, and on-going governance.

The major objective for the client to engage with �ۿ۴�ý is to seamlessly migrate their material data to SAP and achieve maximum ROI. The issues identified in their material data were high number of duplicates, inconsistent item descriptions, absence of industry-specific taxonomy, and lack of standard classification system. �ۿ۴�ý will standardize, classify, enhance item descriptions and supplier data for all MRO materials in the inventory.

The will be achieved with the use of an AI-based cloud platform – Partlinq – which enables:

Mapping of noun modifiers and technical attributes with ease
Deduplicate parts by analyzing part number, manufacturer name, and descriptions
Assign industry specific taxonomy, classification and standardize materials as per UNSPSC
Define standard data rules for new item additions and on-going data governance
Integrate with SAP in real-time to automatically generate materials descriptions as per SAP standards

“We are excited to be part of this engagement to help a large mining company migrate their MRO data catalogs to SAP. This is a very important move for client to achieve operational excellence across functions. The vital aspect in this journey is accurate data, we have dedicated our services to deliver the best of MRO data management practices and we will continue to transform the client’s ability to increase their readiness towards inventory optimization, procurement cost reduction and supply chain optimization activities.” Says CK Bharathan – Head of , �ۿ۴�ý.

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�ۿ۴�ý awarded MRO Master Data Governance contract from a Global Leader in Cosmetics and Skincare

�ۿ۴�ý — Fri, 24 Jul 2020 01:00:27 +0000

Portsmouth, NH July 24, 2019 – �ۿ۴�ý was awarded a project with the global leader in cosmetics and skincare. �ۿ۴�ý will deploy its proprietory cloud-based MDG platform – Partlinq MDG – to manage the on-going MRO data governance to improve data accuracy and consistency integrated with Maximo EAM, optimize supply chain operations, and lower inventory costs.

The client is a global leader in beauty products such as cosmetics and skincare, with sales in over 150 countries and 30+ brands under its umbrella. An R&D led company with superior quality products and their need is to optimize supply chain and maximize operational excellence. The major challenge for the client was data getting corrupt despite performing an extensive data standardization activity. With the involvement of multiple stakeholders at various locations, without defined data inputs rules the data quality eroded in no time.

�ۿ۴�ý will provide Master Data Governance as a managed solution combined with Data Quality Expertise and a robust cloud-based platform – – which seamlessly integrates with the client’s Maximo EAM system for real-time data exchange and update. The platform supported by MRO data quality experts enables consistent data quality checks, platform customization, define UNSPSC classifications, a uniform, and multi-lingual MRO taxonomy as applicable.

The platform provides for identifying duplicate & obsolescence, defining data standard rules, categorize MRO catalogs, help maintain data integrity and consistency on an ongoing basis.

�ۿ۴�ý’s Partlinq MDG solution will provide the client with:

A well defined built-in work-flow management
Ability to implement Custom data rules
Multilayer approval options to ensure data quality
Integration with ERP & EAM/CMMS systems like SAP, Oracle, and

Bharathan CK, VP Operations – Supply Chain and Asset Solutions, �ۿ۴�ý said, “Our expertise in MRO data excellence has always transformed our customers in achieving supply chain optimization. With cutting-edge tech solutions and multilingual capabilities, our team has alleviated data-driven decision making for more than 300 clients across the globe.”

About �ۿ۴�ý:

�ۿ۴�ý Engineering (enventure.com) is a privately-held, ISO 9001:2015 & ISO 27001:2013 certified Engineering and Supply Chain Solutions company, with full-fledged delivery centers in India. �ۿ۴�ý has been serving clients in North America and Europe since 1997 and is today a preferred supplier of engineering and master data management services to Fortune 500 companies, across different industry verticals such as Hi-tech Electronics, Oil & Gas, Water Treatment, Automotive and Industrial Manufacturing. �ۿ۴�ý provides a wide variety of services to Clients, in areas such as Plant Design Engineering, Building Engineering, Master Data Management, MRO Data Services, Component Engineering, Environmental Compliance Support and Product Design.

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�ۿ۴�ý wins a contract to Optimize Supply Chain and Enhance MRO data for a multi-million Energy producer in the Middle East

�ۿ۴�ý — Sat, 30 Nov 2019 10:32:08 +0000

Portsmouth, NH November 30, 2019 – �ۿ۴�ý has been awarded a contract to Optimize Supply Chain and Enhance MRO data for a multi-million Energy producer in the Middle East. The major objectives of this engagement are – Inventory optimization, Procurement Cost Reduction, and Improve Equipment Maintenance effectiveness.

The client is a large power producer in the Middle East, owning 950MW Power Plant and generates over 25% of the peak electricity consumption in their country of operation.

The major challenges for the client were:

Conflicting and incorrect materials data
Lack of quality data in the ERP and EAM systems
Non-availability of required spare parts
The inaccurate parts and supplier information resulting wrong procurement

The client will use �ۿ۴�ý’s to take control of . The scope of work includes end-to-end data management activities such as Data Audit, Taxonomy Design, Data cleansing and Enrichment through Plant Walk down and tech enabled Supplier Engagement. The initial task is to analyze the entire supply chain data consisting of over 30000 materials. The entire data is uploaded into an AI based proprietary tool to identify inconsistencies and incorrect information. �ۿ۴�ý will also perform a plant walk down to gather data from all equipment in the plant. Further, the dedicated supplier engagement team will connect with suppliers worldwide to gather all material data.

Each material data is accurately classified as per UNSPSC, enriched with mandatory attributes and standardized descriptions. Furthermore, the data is integrated back into the SAP system, which will flow into other EAM systems to monitor asset performance.

The benefits for the client from this engagement include high spares availability, reduced inventory cost, as well as an enhanced equipment availability with accurate material data. The client can take informed decisions with the help of real-time inventory visibility and implement a robust maintenance program to enhance OEE of the plant.

C K Bharathan, Head – Master Data Management Services, �ۿ۴�ý said, “It is important for such a large organization to Harmonize, Optimize and Automate data management to achieve economies of scale and cost effectiveness. We are committed to ensure that the client get the right support in reducing procurement costs, managing inventory levels, mitigating supply chain risks, and improving spend analytics – collectively leading to enhanced profitability.

About �ۿ۴�ý:

�ۿ۴�ý Engineering (enventure.com) is a privately-held, ISO 9001:2015 & ISO 27001:2013 certified Engineering and Supply Chain Solutions Company, with full-fledged delivery centers in India. �ۿ۴�ý has been serving clients in North America and Europe since 1997 and is today a preferred supplier of engineering and master data management services to Fortune 500 companies, across different industry verticals such as Hi-tech Electronics, Oil and Gas, Water Treatment, Automotive and Industrial Manufacturing. �ۿ۴�ý provides a wide variety of services to Clients, in areas such as Plant Design Engineering, Building Engineering, Master Data Management, MRO Data Services, Component Engineering, Environmental Compliance Support and Product Design.

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�ۿ۴�ý to set up a dedicated team of engineers for a global leader in maintenance and repair services for industrial, refining, chemical, and offshore applications

�ۿ۴�ý — Thu, 20 Jun 2019 09:11:03 +0000

Portsmouth, NH June 20, 2019 – �ۿ۴�ý has signed the contract to set up a dedicated team of engineers for a global leader in for industrial, refining, chemical, and offshore applications. The project covers P&ID creation, As-Built drawings, generating Isometric standard blocks, and digitizing hand sketched drawings.

The client is involved in the maintenance and repair of various plants such as refineries, chemical plants, compressor stations, cryogenic gas facilities, and storage tank terminals. The client is also known for their capabilities in the inspection of piping, process vessels, drilling units, etc., to the offshore oil and gas industry.

�ۿ۴�ý will deploy a team of dedicated engineers led by a senior project manager with prior experience in oil & gas domain. The client will provide the required training through video conferencing for the engineers to understand the standards adopted in plant design.

With this engagement, �ۿ۴�ý will transform engineering offshoring for the client by delivering superior quality AutoCAD drafting, piping drawings, and isometric standard blocks. The scope of this engagement includes:

As-built drawings of the existing plant and AutoCAD drafting of hand sketched drawings with inputs from the client
Piping and Instrumentation drawing (P&ID) of existing plant design for corrosion monitoring, temperature monitoring and restoration purposes
Generating Isometric Standard blocks as per ASME standards
Isometric drawings generated will be the base material for 3D modelling of the plant

“In the past 20 years, we have with transformed plant design engineering for Oil & Gas clients across the globe. �ۿ۴�ý is deeply committed to delivering quality in engineering projects such as As-built drawings and P&ID services at a large scale through offshoring. We will follow the same successfull model and support our client in their strategic vision,” says Girish Shetty, Head – Engineering Services, �ۿ۴�ý.

About �ۿ۴�ý:

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How Accurate Product Classification can save Big Dollars in MRO Procurement?

�ۿ۴�ý — Thu, 29 Nov 2018 06:41:04 +0000

Globally, all Organizations work steadily towards making their businesses more profitable. Every new market, competition, and technology adds up to more and more business challenges.

One of the most important factors driving higher profitability is efficient cost management. How far is it practical for all organizations to reduce costs?

The majority of costs incurred by most organizations is on procuring direct and indirect materials. Many organizations fail to manage their MRO materials because of improper and inaccurate product classification. In addition, huge investments in tools do not yield desired results or the tools are significantly underutilized. And both these problems usually stem from the same issue – poor quality of data.

Supply chain transactions with poor quality data produce incorrect reporting and poor spend analytics capabilities. This in turn multiplies the risk of higher costs of sourcing, increases carrying cost and reduce visibility into sourcing inefficiencies.

Here are some of the most common scenarios we have seen firsthand of increased MRO spend arising from a poor data backbone.

Scenario 1: Buying at a Higher price
A company buying the materials like ‘bearing’ from a Non-preferred vendor, could result in higher costs i.e. Item purchased from Preferred vendor at $14 and Non-Preferred vendor at $20
Scenario 2: Duplicate materials & vendors
In several instances the same materials with unstructured description are purchased from different vendors at different prices ($8, $9, $11), which can vary between 25 to 60%
Scenario 3: OEM vs Generic MRO materials
In several instances, OEM materials are being purchased instead of generic MRO equivalents for 40-50% higher price i.e. OEM materials purchased at $110 while generic MRO equivalent was purchased at $60

These problems can be easily overcome by establishing a detailed product classification system, sanitized material data, proper descriptions / product meta data and a clean vendor master. This enables purchase price parity, volume rebates, and inventory optimization, among other cost savings and efficiency improvements.

At a recent supply chain forum, the Head of for a large Oil and Gas Company said “MRO Product Classification became a critical element in our overall spend analysis and helped in cost reduction initiatives. This enabled us to identify and establish preferred vendor agreements while converting costly OEM items to generic equivalents. Based on the newly established vendor relationships and reinforced buyer compliance, we are able to reduce annual MRO, direct & Indirect spend by over 12% in the first year, while significantly improving purchasing and procurement efficiencies”.

The most commonly used Product Classifications are,

UNSPSC – United Nations Standard Products and Services Code
eCl@ss
eOTD – ECCMA Open Technical Dictionary
ETIM – European Technical Information Model
CPV – Common Procurement Vocabulary
NAICS – North American Industry Classification System

At �ۿ۴�ý, we serve clients leveraging any of the above systems or in some cases provide a customized data schema based on client requirements. Here is an example of accurate product information for a typical MRO item.

Noun	BEARING
Modifier	BALL
Short Description	BEARING,BALL,1 ROW,12MM ID,28MM OD,8MM
Long Description	BEARING,BALL,TYPE:RADIAL/DEEP GROOVE,ROW:1 ROW,INSIDE DIAMETER:12MM ID,OUTSIDE DIAMETER:28MM OD,WIDTH:8MM W,SERIES:60,STYLE:DOUBLE SHIELDED,RADIAL CLEARANCE:C0,CAGE MATERIAL: STEEL,ADDITIONAL DETAILS:DYNAMIC LOAD CAPACITY:5.4KN,STATIC LOAD CAPACITY:2.36KN,MAXIMUM SPEED:60000RPM,MANUFACTURER: SKF,P/N:6001-2Z
Manufacturer	SKF
Manufacturer Part Number	6001-2Z
UNSPSC Code & Description	31171502 – RADIAL BEARINGS
eCl@ss Code & Description	23050801 – DEEP GROOVE BALL BEARING

Are you looking to reduce your costs? Talk to one of our experts for a free consultation.

Reduce MRO Procurement costs, sign up for a free consultation

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