Data Management and Accuracy
- Why You Need More Accurate Data
- How Can You Create and Maintain Accuracy?
- What is Data Accuracy Methodology?
- Critical Data Must Be Accurate
- Five Major Steps to Data Accuracy
- What Are the Key Benefits of Data Accuracy Methodology?
1. Why You Need More Accurate Data
Effective Integrated Manufacturing Systems (ERP, IPD, CAD) systems must be fed by accurate input data. Inaccurate data on inventory, bills of material and routings are the major causes of failure in manufacturing systems. Systems will not perform if their data diet is incorrect
2. How Can You Create and Maintain Accuracy?
The best approach to eliminating inaccuracy in business processes is to use the knowledge of the people who do the work. They are the best qualified to identify root causes of problems and to develop and implement solutions.
Involvement of the front-line people in the entire process of “accuracy improvement” increases awareness, improves job satisfaction, and helps ensure that the improvement sticks.
AMGI can help you form Process Improvement Teams to focus on key problem areas. We help coach and train team leaders and members using our approach to team based organizational development to resolve problems by providing them with a process improvement methodology that they can use successfully by themselves.
3. What is Data Accuracy Methodology?
Data Accuracy Methodology is a methodology developed by AMGI. It guides small teams of your supervisors and employees in the analysis and resolution of accuracy problems. It is more than a problem-solving methodology. It covers measurement systems and some statistical analysis tools. It also provides Steering Committee guidelines.
Data Accuracy Methodology provides guidelines for how to set up cycle counting and control group counting — and when to use each. Special-purpose software can be provided to assist in the analysis of how much to count and how frequently.
Data Accuracy Methodology provides answers to most of the questions about establishing accuracy measurements and controlling measurement system error. Sample procedures are included for a team’s use.
4. Critical Data Must Be Accurate
Try some tests on your organization. Inaccurate data may be crippling your ability to run an effective operation. It only takes about 5% inaccuracy to ruin the effectiveness of otherwise good systems.
Inventory accuracy. If your system says you have 75 pieces of an item in inventory, how often are there actually 75? Our experience is that only 40% – 70% of the time will you actually find 75. To run an effective operation, inventory accuracy has to be at least 98%.
Bill of material/formulation accuracy. Does the structure reflect the way a product is made, properly reflect quantities, scrap, part numbers, and documentation references? This information must be 98% accurate.
Routing/processing accuracy. How accurate are the process steps, process times, and other manufacturing data? This information must be 98% accurate.
Reporting accuracy. If your system says that a production order or run is currently 70% complete or located in a specific work centre, what percentage of the time will you actually find it there, and in the right quantity? Again, it should be greater than 98%.
Data errors can come from many sources
5. Five Major Steps to Data Accuracy
Identify major areas of Inaccuracy. This allows management to understand the problem and focus the efforts of accuracy teams on the most important areas.
Measure accuracy and set up ongoing measurement. The first step of an accuracy improvement team is to get an initial measure of accuracy and establish ongoing data collection.
Understand the processes, problems and root causes. Often the informal systems (real processes) are not understood or documented. This is the second major step for an accuracy improvement team. Then they identify the current processes affecting accuracy, and where the problems lie.
Develop solutions. Our Data Accuracy Methodology ensures that causes are considered in order of importance, and that all teamwork is documented at every step.
Implement solutions. Solutions are implemented with management support. Performance measures are used to make sure that the solution and resulting accuracy improvement is sustained and to act as a window on the process from that point on.
We know from experience that the involvement of employees helps identify the right problems, and leads to longer-lasting solutions.
6. What Are the Key Benefits of Data Accuracy Methodology?
- This methodology builds credibility and participation throughout the workforce.
- It delivers visible results and defines process performance measures to monitor whether or not the processes are improving.
- It is a proven approach built on successes in different industries.
- It includes a structured team methodology designed specifically for accuracy improvement.
- This methodology uses consultants to transfer skills and facilitate the change to an “accuracy culture” — a quality orientation.
If you require improvement of the accuracy of your data, whether in engineering, manufacturing or finance, contact AMGI to assist you with the approach. Remember, your PDM or ERP systems cannot function effectively without accurate data.