Dr. Salomon de Jager, CEO: PiLog Group, presented a tutorial at the ICIQ 2016 Conference , June 21 – 24, 2016, UCLM, Ciudad Real, Spain
“The importance of the ‘New IT Paradigm of Big Data’ is a major game changer in the IT world. Most of the 24 research papers presented during ICIQ 2016 hint towards the need of an Ontology and Data Governance. Traditional warehousing and IT technologies is based on data being manipulated into data bases and applications. Big data technology is based on distributed and parallel processing and allows for software applications (more…)
How basic governance procedures can save companies millions of dollars each year
When I visit a company, I’m always asked “What does data governance cost?” I usually say “It doesn’t cost anything. It is an investment that pays for itself rather quickly.” Of course, then I’m met with sneers and scoffs. In my experience, however, instilling proper data governance, especially as it applies to Master Data, pays for itself over and over. Here are how some basic Data Governance procedures that can save your company millions. (more…)
How to fix common problems within an MRO function
Risk is inherent to many elements within a business. When you are in an asset-heavy industry, that risk can expand exponentially. The functions of MRO (Maintenance, Repair, and Operations or Overhaul) are often the ones that generate the most risk—physical risk, production risk, cost risk, and more. A number of the issues that create the risk can either be avoided or mitigated. Below are just a few ways to minimize the risk caused by (more…)
How problems that are high visibility are actually caused by data
A Safety Record is key to most industries. Some, such as Oilfield Services and Drilling, bet their overall reputation on their safety records. They are touted on websites and on every job site. Job sites with the best safety records are praised and rewarded. Companies with the highest safety records benefit from (more…)
How data is sick and getting sicker and how to begin to cure it
I became an advocate for Data Quality, pushing for good data in every aspect of an organization. Many places, I find poor data, and I have a hard time getting the message across that the poor data is causing your losses, your breakdowns, and your safety issues. When talking off the cuff about Quality Master Data recently, I finally found an analogy that helps people understand. Data is a patient and you must care for him. But Data is sick and you have to find (more…)
How my role as a cost accountant at a cannery made me a believer in data quality
I’m a practitioner. I’m not this pie-in-the-sky guy that can talk philosophy about this and that—go sit and ask and talk about the potential of air for six hours.
I was a cost accountant for 15 years. Management accounting, factoring standard costs, variable costs, yields and such. My job was between engineering and production in a cannery, dealing with all the raw materials in this huge operation. With all my attention—all my cost accounting, all my calculations for standards and over and under recovery and yields and is this the right recipe for this and that—I’ve done a lot of negotiating. I could not get production and engineering and warehouse or procurement guys to work together. It wasn’t the people. It wasn’t the systems. I could not (more…)
There is a problem deep below the surface in the Gulf of Mexico. And Australia. And West Africa. Ted Mann of the Wall Street Journal reported on Gulf of Mexico (GOM) bolt failures [http://www.wsj.com/articles/new-worries-over-subsea-oil-well-gear-1467970202,] but the reports suggest the problem stretches far beyond GOM.
A Sign of More Crumbling Assets?
This problem is a larger version of one that affects many industries when it comes to maintenance of key assets (though this critical subsea equipment should be subject to much more stringent scrutiny.) When maintenance tasks are defined, they are built from the manufacturer’s specification. In some circles, these task lists are seen more as “suggestions” rather than hard and fast instructions to be followed to the letter. As seen in GE’s assessment of the bolt problem, the torque measurement is crucial to avoid over-stressing the subsea bolts.
The mention of the same issues affecting National Oilwell Varco and Cameron (now a division of Schlumberger) indicates that the problem is more widespread. Is this it extent of the problem? Probably not. FMC Technologies, Weatherford, and others also make a significant amount of subsea gear that will come under increased scrutiny. We can expect that maintenance records will be traced back to installation and inspection at the plant to find the root cause. We can only hope there is good data in those records and not just a notation of “Miscellaneous Services.”
The issue is put very well by Allyson Anderson Book, associate director of the Bureau of Safety and Environmental Enforcement within the US Department of the Interior. “This is what we view as a very critical safety issue. If your smallest component fails, you can’t expect a sophisticated many-million-dollar piece of equipment” to hold fast and prevent a leak.
We’ve spoken before about the importance of Data Quality on many parts of the business. Often, however, it may not be abundantly clear that you have a data issue. Part of solving the problem is identifying what the real problem is. For instance, if a company wants to improve their working capital and “inventory reduction effort” comes up as an idea for discussion, formulating the project around how you’re actually going to reduce the inventory becomes a challenge. That is the real problem—the company doesn’t know how to (more…)
Data quality is essential across the entire business footprint. Between the quality of the material data and the accuracy and confidence of the inventory data, most companies can either find or spend a small fortune. Since much of what I have done my past relates to procurement and master data, I’d like to share some insight into improving the data quality of your material data. (more…)
Poor data quality causes problems throughout the systems that use the data. But there are a number of specific hazards to the data quality problem depending on which data domain you are looking in. I was closely aligned to the procurement organization, so many of the hazards I’ve seen directly related to materials, services, and suppliers. The hazards, though, are not shown easily in the data itself but the problems it causes. (more…)
Data is data, right? Actually, that’s wrong. There are many different kinds of data, depending on where you are in the “data chain of command.” For instance, those in the data warehouse tend to see Facts and Dimensions—transactional or grouped measures and the elements to break them down respectively. There are different kinds (more…)
Over the coming weeks, we’ll be talking a lot about data quality. We’ll also find out how it impacts the various functional areas of your business. We’ll talk about Finance, Procurement, Supply Chain, and Operations and Maintenance and how data quality can effect each of these areas drastically.
To be completely honest with you, I personally do not focus on looking for data quality problems. Instead, I look for the challenges and opportunities that affect my stakeholders and their customers everyday due to operational inefficiencies. What challenges exist? Why have they not been solved? Is there a solution?
My first real exposure to data and data quality started when I worked in Procurement. During this time, I drove a variety of business process changes by managing many new and continuous improvement initiatives. It seemed that no matter what the area—Procurement, Finance, Supply Chain, Operations, Maintenance, or other areas of the business—there was a strong reliance (more…)
Tornadoes were a way of life growing up in the state of Oklahoma (U.S.), which makes up part of what is termed as “Tornado Alley”. Some nearby towns were completely wiped out not once, but multiple times. Seeing the devastation on television was incomprehensible until last week when my 90-year-old grandmother had her 200-foot-long barn ripped fromits concrete slab and deposited 200 feet away into her front yard. (By-the-way, grandma is OK and rode out the storm in her shelter. Her house wasn’t even touched. Tornadoes are funny in that way.) (more…)