Master Data Management (MDM)

Master Data Management (MDM)

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Material Master

Material master contains descriptions of all materials that an enterprise procures, produces, and keeps in stock. It is the central repository of information on materials (such as inventory levels). Material master contains descriptions of a variety of data elements including part number, description and stocking codes.

ADVANTAGES

  • Purchasing data is required for ordering purposes
  • Spend Analysis on different segments
  • Inventory management data is needed to post goods movements and carry out physical inventories
  • Accounting data is required for material valuation
  • Materials planning data is needed for material requirements planning

Material master is considered the core functionality for any ERP system using distribution or manufacturing type functions. The integration of all material data in a single materials database eliminates the problem of data redundancy

To maximize return on investment, the asset and inventory data must be accurate and in standardized form. Data cleansing / scrubbing, data analysis and data enrichment services can help improve the quality of inventory data. MMM Services helps companies to build database that ensure the integrity and accuracy of inventory information. With accurate and reliable database information, companies can maintain lower inventory levels and create “data-driven” purchasing.

Data scrubbing also called data cleansing, is the process of amending or removing data in a database that is incorrect, incomplete, improperly formatted, or duplicated and process fixes misspellings, abbreviations, and errors. Data is normalized so that there is a common unit of measure for items in a class, e.g. feet, inches, meters, etc. are all converted to one unit of measure. Data enrichment, also known as data enhancement, allows you to generate or append additional bits of data from other internal or external data sources to information already used in your organization.

Vendor Master

Vendor Master is fast emerging as an integral part of the procurement and related systems for enterprises. It checks and addresses issues pertaining to inefficient processes and erroneous reporting to the management. It also helps in standardizing various naming conventions for vendors.

ADVANTAGES

  • Duplication (rationalization of vendor base by cutting down on multiple suppliers)
  • Payment & taxation errors/frauds
  • Incomplete data (original vendor name, address, hierarchy, etc)
  • Lack of information (source of certifications, W9 forms, insurance certificates, etc)
  • The currency used for ordering from the vendor
  • Terms of payment
  • Names of important contact persons (sales staff)

Data Aggregation

  • Receive data from Business
  • Segregate data according to requirement
  • Convert to standard template
  • Concentrate data according to the compliance report

Data Cleansing

  • This step is essential for identifying duplicate vendors within the vendor data
  • All short forms/ Acronyms of Vendor Name, Vendor Address, Bank address, bank name need to be converted full forms
  • The cleansing team will convert each data field into the pre-decided data format to ensure uniformity
  • Vendor Address needs to be converted to a standard format in terms of sequence of entries
  • Define a standard format for each data column

Data Collection Primary Sources

  • This involves collection and verification of mandatory data by contacting the vendor directly
  • Based on the phone number of the vendor as available in the vendor data, the vendor will be called for requesting the data
  • Once all the mandatory data is collected and verified the status on the vendor will be updated on the template

Data Collection Secondary Sources

  • This involves collecting un-available data from vendor company website
  • Through other third part database search (Example: D&B Website)
  • Update the vendor details in the prescribed format

Vendor Codification

This step provides the unique vendor code to all vendors across the group

The unique vendor code can be xxxx digit, running number

The unique vendor code will be sequentially assigned to each vendor by giving a running number starting from xxx1

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Service Master

Service master is a consolidated list defining various services performed by the contractor in the plant. In case of various business units, it is advantageous to have a uniform structure / definition among various units of an organization to ensure standardization of service description and remove duplicates.

It is a Master file which contains all the information of a particular Service line item material used in the organization depending upon the views selected from the user departments.

  • Spend on service
  • Resource Discovery
  • Product Awareness
  • Standardize records across locations and applications
  • Identify and consolidate significant spend from core suppliers
  • Recognize non-preferred suppliers and wastage of supplies
  • Spot saving opportunities for inventory management
  • Perform extensive and accurate spend analysis
  • Monitor item spend and utilization patterns

Determination of requirements

A requirement for certain external services may arise in a user department of the enterprise. It may involve a particular project (for example, the translation of software documentation) or maintenance work (for example, the outsourcing of electrical work that becomes necessary on company premises).

Creation of service specifications:

When a requirement is established, a document is created in the system as the basis for the procurement process (this may be a purchase requisition, for instance). The document can contain a set of service specifications listing the necessary services in detail. However, in this early phase of the procurement process, you also have the option of doing without service specifications entirely and considering only the unplanned services by setting value limits.

Source determination/vendor selection

To be able to convert a requirement into a purchase order, you must determine a suitable bidder who is prepared to provide the necessary services. There are a number of different ways in which the system can support you in finding potential sources of external services. The source determination function is an instrument for analyzing and evaluating purchasing data that has already been entered in the system (in the form of service conditions or contracts, for example).  If services for which there has been no previous requirement (and thus for which no source is currently recorded in the system) are requested, a bid invitation process must be carried out. You can replicate this bid invitation process using the RFQ/quotation facility for services.

Example of Service Master

Service Description: Repairing sidewalks inside plant

Purpose: Annual maintenance services

The UNSPSC Code

  •  Segment: Building & Construction Maintenance Services – 72000000
  • Family: Heavy construction services – 72140000
  • Class: Infrastructure building and surfacing and paving services – 72141100
  • Commodity: Sidewalk construction and repair service – 72141105
  • Final Code – 721411050000

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