How Dirty Data Costs You More
By Israel Rosales on Jun 23, 2014
Every day, we encounter customers who are attempting to manage their large data sets. During my conversations with them, I am always reminded that nothing is more important than ensuring that your master data is properly managed.
Just imagine the number of material codes required to build a massive cruise ship. I would argue that large boats are one of the most complex manufacturing scenarios existing today. There is nearly no other project requiring a larger list of materials than what is required to build a ship.
In most cases, a cruise ship requires over 50,000 unique material codes:
- Structure materials, such as steel (plates, joist, etc.)
- Facilities materials (pipes or cables)
- Cosmetic materials (paintings or varnishes)
- Complex equipment (radar or engines)
- A million screws, rings and small pieces
- Household items (tables, beds, silverware)
Since only a few boats are built exactly the same, most are a clear example of an ETO (Engineer to Order) scenario. This requires many different teams and companies to work together, with complex work orders, to both create the necessary parts and assemble the ships.
There is probably a very high chance that you are not in the boating industry. But, regardless of your industry, you likely deal with the same problems around data management:
You have cost overrun due to more stock than is needed in your warehouse from duplicate components.
Errors in the Material Data
Examples include the different units of measure in purchasing and production, resulting in rework. For instance, imagine if NASA tried to create a satellite and mixed up meters and yards. The number of affected components (boxes, units, etc.) would prevent the satellite from being assembled and working properly. Errors in material data result in delays that affect both production and purchasing.
The list of headaches you could be suffering due to dirty data is endless. Whether your company is producing warfare boats, cars, cookies, phones or medicine, you probably have the materials you need to manage. But, you need your master data to be clean, high-quality and efficient to remove unnecessary costs.
At Winshuttle, we help our customers achieve perfect master data with our non-programming tools. You can achieve this goal with small steps of improvement and without a big-bang implementation project. Check out Winshuttle for Master Data for more information.
About the author
Israel has a degree in Computer Engineering from ETSII in Seville and an Executive Master Degree in SCM (Supply Chain Management) from ICIL Madrid, where he is also a part time lecturer for Lean Manufacturing. After 10 years in the SAP SCM arena, he joined Winshuttle in 2012 and is currently Enterprise Solutions Manager, specialized in Lean, SCM and Master Data. When he's not solving ERP problems, he shares his life with his wife, daughter and two dogs.
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