IHS White Paper:  Unleashing the Power of EAM Systems by Optimizing MRO Catalog Data

Implementation of an Enterprise Asset Management (EAM) system improves functionality, though many companies fail to optimize their business due to the daunting task. One of the most important and critical factors in successful EAM implementation is data quality, especially item master catalog information for maintenance, repair and operations (MRO) items. Fully unlocking the power of EAM systems requires item master data that is accurate, consistent, in a structured format free of duplicate parts.

Resolution of data issues, such as item duplication, is significant to relieving negative financial impact. This paper provides companies with insight on how to optimize and manage MRO parts information, as a standardized MRO catalog can reduce inventory from 5 percent to 20 percent, simply by eliminating duplicate items and obsolete materials. The steps needed to complete this task are provided via a proven methodology needed to facilitate each step of the process.

Proper catalog management software should provide the following capabilities:

• Advanced search capabilities
• Database management functionality
• Global value standardization
• Web-based, remote access
• Ability for users to maintain catalog to predefined schema/templates
• List-making capabilities
• Reporting
• Storage and display of attachments such as graphics, documents and hyperlinks

This paper outlines the phases to optimizing MRO catalog data, such as:

• Phase 1, software tools developed based on the schema are utilized to automatically classify items. The first phase can establish the groundwork for a parametric MRO catalog.
• Phase 2, is standardization, in which this phase draws on specialists to validate data and extract additional information from source descriptions. This phase classifies remaining source descriptions using the schema of nouns, modifiers and characteristics through a manual process.
• Phase 3 provides all-encompassing enrichment of MRO parts data.

A chart in this paper illustrates the level of financial benefit that is possible when using a proven methodology, tools and services to optimize MRO item data. In addition to maximizing the capabilities of your EAM systems, the benefits of optimized MRO dare are significant:

• Eliminate duplicate items
• Reduce inventory carrying costs
• Standardized purchasing
• Improve procurement leverage for volume buys and reduce spot buys
• Eliminate false stock outs
• Increase plant and equipment availability
• Advanced catalog management capabilities
• EAM integration
• Improved employee productivity

A standardized MRO catalog delivers significant benefits across the organization. Optimizing the MRO catalog can reduce inventory from 8 percent to over 20 percent.

Selecting an appropriate MRO optimization partner is key in the successful implementation of EAM, as successful MRO optimization delivers a myriad of benefits across the organization.

Related topics:

• Ineffective EAM systems
• MRO-centric
• UNSPSC code
• Gate Valve
• SOL VALVE
• Solenoid Valve
• Parametric searching
• eClass code
• Database management functionality
• Global value standardization