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Improving MRO Material Identities Makes All MRO Business Processes Run Better, Faster, and Improves Asset Reliability

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Content Description
Original date: 
Sunday, April 11, 2021

In a long career implementing and improving SAP SCM business processes in Oil & Gas, Pipelines, Utilities and Transportation companies, the number one consistently observed problem is poorly identified MRO material masters. Material master identity consists of the item descriptions, the manufacturer and manufacturer part number fields and classification data that support material identification. This presentation is meant to raise the profile of the topic and the value lost by not addressing the problem without going into detailed solutions. It is aimed at a general level to all practitioners that make use of maintenance or SCM business processes that use materials.

The presentation is software agnostic. These challenges are found in shops running SAP, Oracle, JDE, Maximo or any other business software. It is of value to all businesses that have MRO business processes in their value chain. The concepts presented are original thinking of the presenter and address a business problem that software vendors and business consultancies have given marginal attention to date. Hence, the MaintTrain audience will be introduced to value saving concepts. Topics: • Introduction (discussion applies to asset intensive industry and the MRO materials records used in their supporting business processes) 3 min • Generalized view of the current state and how we arrived here. 7 min • Structured identification taxonomy – standards and why coherence in the structure is important. 10 min • Material master lifecycles are often not considered- beginning, middle, end. 8 min • Conclusions: This is not an insolvable problem or one that necessarily demands another $$$ system implementation. It exists only because it has been invisible. 3 min • Questions? 14 min  

 Originally presented at MainTrian 2021

BoK Content Source: 
MainTrain 2021
BoK Content Type: 
Presentation Slides
Presentation Paper
Asset Management Framework Subject: 
03 Lifecycle Delivery, 3.05 Maintenance Delivery
Maintenance Management Framework Subject: 
08 Material Resource Mgmt, 8.1 Materials Management, 09 Information Management, 9.2 Standards & Specification, 9.3 Master Data Management
Author Title: 
Author Employer: 
SPC Results Inc
Author Bio: 

Conrad is in the third act of his professional career, a master data focused consulting business for asset intensive companies that want to make their business-critical MRO material masters more useful. Standardized descriptions that are consistent and meaningful to the people that use them is the core of the business. Appropriate data governance and data administrative processes will support gaining enduring value for clients.
What about acts one and two?
• Act one was a twenty-year career as a Canadian Naval Officer. More precisely, a Marine Systems Engineering Officer with experience at sea in naval operations and training. Primary ashore duties were in ship refit maintenance (turnaround maintenance) with shipyard, local Headquarters and National Headquarters jobs. He also had shore duties in shipboard fire fighting and damage control training. Conrad’s career took him to both Canadian coasts, National Headquarters in the capital region, as well as overseas duties in the United Kingdom and the United States. Highlights of his career were a tour as the Marine Systems Engineering Officer of a destroyer, an exchange tour with the United States Navy working in the Production Department at the Philadelphia Naval Shipyard on aircraft carrier mid life conversion refits, and a job in the Canadian National Defence Headquarters as the Steam Warship refit project officer overseeing five major refit projects. He voluntarily concluded his Naval career with the personnel reductions that came with the cold war peace dividend.
• Act two was a twenty-year career as an SAP Materials Management functional consultant. Starting in Ottawa gaining certification and experience in SAP implementations working for Canadian Government departments. Conrad then moved west to Calgary Alberta where he has worked in the Oil & Gas, Pipeline and Utility sectors implementing, optimizing, and supporting SAP enabled business process. His energy industry work has been focused in Calgary and Fort McMurray Alberta, but has taken him to Houston Texas, Aberdeen Scotland, Denver Colorado, the US Marcellus Shale and Morocco. Prior to starting SPC Results Inc. providing independent consulting work, Conrad worked eight years for OmniLogic, PwC Consulting and IBM Business Consulting Services. As a keen observer with an analytical bent, Conrad has seen that poorly identified material and service master data was the most common root cause of new business processes failing to deliver the full value clients anticipated.