Proactive Supply Chain Database Maintenance:
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Proactive Supply Chain Database Maintenance: Increasing Accuracy While Reducing Errors
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Proactive Supply Chain Database Maintenance:. Increasing Accuracy While Reducing Errors. How Many of Your Organizations…. Spend too much time resolving price discrepancies, 855 discrepancies, and other data errors? Have centralized all or part of their supply chain data maintenance processes?. - PowerPoint PPT Presentation
Transcript of Proactive Supply Chain Database Maintenance:
Proactive Supply Chain Database Maintenance:
Increasing Accuracy While Reducing Errors
Spend too much time resolving price discrepancies, 855 discrepancies, and other data errors?
Have centralized all or part of their supply chain data maintenance processes?
How Many of Your Organizations…
“Data Warehousing Institute estimates that data quality problems cost U.S. businesses more than $600 billion per year…” which is the GNP of Spain
The GNP for the US is $10 Trillion. That means data quality problems represent a 6% loss in productivity.
Source: Model Documents and Forms for Organizing and Maintaining a Data Quality Program. By Steven Levy, BSME, MBA, CQMgr
Some Statistics…
Inaccurate data is the primary cause of transaction errors in an ERP system
Reactive changes do not address root causesDuplicate Item Master & Vendor Master records
create burdens on everyoneMaintenance requests are not processed in a
timely fashionUsers don’t know when requests are processedDifficult to establish ROI on data cleanup
The Challenge…
Bad data requires countless of hours of manual intervention & money to reconcile errors
End user frustration & non-complianceLoss of confidence in “the system”High volume of special ordersHistorical usage & forecasting not accurate
= = =
The Impact…
Data Integrity
Efficiency Streamlined & timely execution
Assign & hold responsibleAccountability
Clean, accurate data
The Building Blocks of the Solution…
Many organizations have defined item description nomenclature but are non-compliant with the standard
Some organizations are beginning to adopt QA practices that address specific problem areas but does not encompass all supply chain data
Efforts to minimize errors are reactive – they address symptoms not root causes
Duplicate items and vendors are common Increases risk of duplicate orders and payments Historical purchase information inaccurate
Lack of executive buy-in
Data Integrity: Common Industry Observations…
Define & Enforce Standards – Description Nomenclature ANSII/ISO Standards for UOMs
Proactive Synchronization of Data files – Validation of Item Location, Item Master, Vendor Item &
Contract files Maintenance of Pars & Requisition Templates Comparison of Lawson files against OR and Par system
files Perform QA & Cleanup –
Clean up the duplicates! Take action on errors
Data Integrity: Recommendations…
Data changes are made manually with little automation used to expedite changes
Multiple people are maintaining the same files from different locations
Reports do not target specific problemsPoor communication between staff with
overlapping functions
Efficiency: Common Industry Observations…
Create & maintain core data files Limit the number of staff involved in maintenance,
centralize where possible Designate a central location to manage all
Add/Change/Delete requests Use exception based reporting Implement the use of technology :
Web based change request form Excel Add-Ins Re-useable Access Databases & Tools Interfaces
Efficiency: Recommendations…
Few organizations have designated a single point of responsibility for data maintenance
Multiple facilities within an organization utilize varying functionality
No repercussions for deviations from polices & procedures
Add/Change/Delete requests are not completed in a timely manner
End users are typically not notified of request completion
Accountability: Common Industry Observations…
Designate data integrity leadDefine process flows for data updatesEstablish metricsEnforce policiesPerform ongoing quality assurance validation,
track errors, and use the tracking tool to identify and correct weaknesses in DBA processes
Accountability: Recommendations…
Supply Chain Data Org Chart: Current State…
No formal reporting or accountability Each DBA operates primarily
independently but has informal communication with one another
Hospital CHospital A
Point-of-Use DBAPoint-of-Use DBA
IC, RQ DBA
IC, RQ DBA
Hospital B
Point-of-Use DBA
Point-of-Use DBA
IC, RQ DBA
IC, RQ DBA
PO DBAPO DBA
Item Master
Corporate Office
PO DBAPO DBA
PO DBAPO DBAClinical Systems
DBA
Clinical Systems
DBAAP DBAAP DBA
Clinical Systems
DBA
Clinical Systems
DBA
AP DBAAP DBA
AP DBAAP DBAClinical Systems
DBA
Clinical Systems
DBA
Point-of-Use DBA
Point-of-Use DBA
IC, RQ DBA
IC, RQ DBA
Hospital CHospital A
IC12 & IC81 DBA
IC12 & IC81 DBA
Hospital B
Point-of-Use &
Clinical Systems
DBA
Point-of-Use &
Clinical Systems
DBA
IC12 & IC81 DBA
IC12 & IC81 DBA
IC, RQ, PO, AP DBA
Corporate Office
Point-of-Use &
Clinical Systems
DBA
Point-of-Use &
Clinical Systems
DBA
Formal reporting and accountability has been established All DBAs work as a team with formal, routine, documented
communication
IC12 & IC81 DBA
IC12 & IC81 DBA
Point-of-Use &
Clinical Systems
DBA
Point-of-Use &
Clinical Systems
DBA
Supply Chain Data Org Chart: Recommended Future State…
• AP Vendor Master
• Templates• Contract File• PO Vendor Item
• Item Master• Item Loc• Manufacturer Codes• Templates
Hospital A, B, C Materials Management Related Data Requests
• Item Master• Item Loc• Manufacturer Codes• Templates• Par/ Cart Locations
• PO Contract File• PO Vendor Item
Point-of-Use database
change at each hospital
• Par Excellence• Omnicell• Pyxis
SMS/CDM database change
ORMIS
Communication to end user/
originator change has been made
Hospital B PO and RQ
databases
Hospital C PO databases
(START)Request for a
database action
Hospital A,B,C Accounts Payable
Departments
Hospital A DBA Team completes data
request
Hospital C MM changes IC and RQ databases
Hospital B DBA changes IC databases
• Item Master• Item Loc• Manufacturer Codes• Par/ Cart Locations• Templates
Point-of-Use database
change at each hospital
• Pyxis• Omnicell• Par Excellence
End User
Fax Vendor Add Form to Complete
Fax Completed Vendor Add Form
• Par/ Cart Locations• Contract File• PO Vendor Item• P-of-U Item Master
Each hospital is responsible for its own data integrity.
Hospital A,B,C Accounts Payable
Departments
SC Data Process & Communication Flow: Current State…
IC12 & IC81 at Hospital A, B, C
Communication to end user/ originator change has been made
(START)Request for a
database action
Lawson IC, RQ, PO, AP DBA Team
Central Repository Filter and Track Requests to Teams
Point-of-Use & Clinical Systems DBA changes files at Hospital
A, B, C
SC Data Process & Communication Flow: Recommended Future State…
Quantify Costs Time spent on error resolution Contract non-compliance
List Benefits Proactive projects that can be accomplished with
new time Value of end user satisfaction
Create Visibility Metrics
Executive Buy-In…
Streamline & consolidateImplement common master filesEnforce consistent policies & proceduresAutomate!Proactive quality assuranceMetricsException based reportingACCOUNTABILITY
The Solution…
Accurate pricing Contract compliance“Special orders” minimized End user satisfactionBetter customer serviceAccurate historical information & forecastsClean environment enables faster
implementations & upgradesReduced time spent on errors & exceptions frees
up staff to focus on value added tasks
The Pay Off…
Amanda Valcik
Senior Lawson MM Consultant
RPI Consultants
www.rpic.com
(410) 276-6090 - o
(443) 465-1257 - c
Questions/Discussion
