Project showcase

Unlocking business efficiencies through inventory data enrichment

Project goal

Enrich, optimize, and validate inventory data

Client:

Oil and Gas Operator

Asset:

2 oil sands facilities

Location:

North America

The request

Add Energy’s materials management team were tasked with enhancing and standardizing material masters and enriching existing Bill of Materials (BoM) data within the clients CMMS and creating new BoMs for critical equipment.

Client challenges

  • A corporate initiative was driving a data transfer from Maximo to SAP and the client needed complete assurance that their materials data was SAP compliant to assure a successful transition
  • Significant duplication of materials existed in the CMMS resulting in overstocking of $19M worth of spare parts that were not required
  • Equipment costs in the CMMS were inaccurate, meaning the budget for spares was dramatically different to reality
  • Historic spares were attached to equipment and clogged up the system, meaning it was difficult to determine which was the correct spare – resulting in valuable engineering time being wasted
  • The maintenance, warehouse and procurement team had an extreme lack of confidence in the CMMS data accuracy and would issue “free text” purchase order requests which were difficult to interoperate and resulted in the wrong spares being ordered
  • Spare parts for decommissioned equipment on the plant had BoMs assigned, which resulted in holding unnecessary spares and tying up money unnecessarily
  • No central repository for inventory data existed meaning time was wasted searching for data and documentation required to order the correct parts


How we helped

  1. Validated every single tag that had a BoM assigned to determine the correct materials
  2. Validated the spares that were in the CMMS with the OEMs and Vendors and where obsolescence existed, a replacement part was recommended
  3. Created individual item materials that did not exist in Maximo
  4. Standardized and enriched material records to be compliant with the International ISO 8000 standard - global standard for data quality and enterprise master data
  5. Set min/max stock level recommendations
  6. Provided ongoing advice on how to sustain inventory data excellence post project delivery, to avoid a costly intervention in the future by putting processes in place to mitigate the same issues reoccurring
  7. Created CMMS load sheets and issued to the client for implementation

Software used

Add Energy’s materials data management software, Effio™, was used by the project team to deliver this inventory data enrichment solution.

Effio™ is capable of replicating our clients CMMS environment and provides a user friendly, secure, collaborative, and accessible platform for analyzing, enriching and assigning materials to equipment tags efficiently, consistently, and accurately.

Effio™ is used as the QA/QC tool by our clients to review and accept master data changes and is proven to save an average of 30% on time and project costs when compared to traditional methodologies.

The deliverables

Bo M Inventory data enrichment Case study deliverables

1900 unique BoMs validated by the OEM/Vendors delivered in SAP load files
Bo M Inventory data enrichment Case study deliverables 4

Standardization and enrichment of existing and new material master
Bo M Inventory data enrichment Case study deliverables 3

Min/max recommendations for the materials within the 1900 BoMs
Bo M Inventory data enrichment Case study deliverables 1

A list of replacement parts and their associated data points where materials were obsolete
Bo M Inventory data enrichment Case study deliverables 2

Consultancy advice for how to sustain inventory data excellence post project delivery

The value we delivered

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Equipment Availability

The correct spares are now identified in the CMMS to minimize risk of downtime and avoid unnecessary maintenance backlog
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Supported Data Transfer Excellence

The inventory data is now SAP compliant and can be “lifted and shifted” from Maximo to SAP successfully, which will reduce costs associated with data preparation and transfer requirements
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Optimized Inventory Spend

Inventory stock levels have been defined to avoid running the risk of overstocking or not having access to critical spare parts
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Time Efficiencies

Enabled part sourcing to be more time and cost effective through access to reliable, accurate and readily available data.
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Avoid Unnecessary Expenditure

Access to the correct BoM data now helps the asset to avoid purchasing the wrong equipment or spare parts causing unnecessary expenditure.
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Effective Planning

Assures the planners have the information they need to source the correct parts in a timely manner without paying premium prices associated with last minute orders or delaying maintenance

Learn more about our Inventory Optimization solutions here

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