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About ERP Systems

Ready to convert your legacy data?

Michael Roman - Tuesday, July 08, 2014

Ok.  You educated the company about what an ERP System is and is not.  Everyone now knows the difference between a Master Schedule and a Master Production Schedule.  They have reviewed and addressed the non-value added activities in their processes.  They used those processes to define a set of vendor scripts and the company found the best fit for those new processes from a list of potential ERP vendors.  The contracts are signed the kick-off meeting is over and user training is finished.  Now you can convert your legacy data.  Is that correct?  Well, maybe not.

Have you cleaned up that legacy data?  How many part numbers do you have for a 12” by ½” Standard Thread Bolt?  You hope that there is only one per material type.  Nevertheless, there is also Part 11205 - 12” by 0.5” Standard Thread Bolt.  There is also Part 1205 - 12” x 0.5” Bolt with Standard Threads and also Part 112005 -  twelve inch x ½ inch standard thread steel bolt.  You also looked at your vendor list and you see Jones Plumbing and Supply, Jones Plumbing, Jones Plumbing Supplies, and Jones Supplies.  Strangely, they all have very similar addresses like 1225 Oak, 1225 Oak Street, and 1225 Oak St.  You find some of the same problems in your vendors.  You check the AP Terms and see a Net 10, a Net 10%.  Do you still think it is time to convert your data?  Where else should you look?

You can ignore those problems and choose the one Part, Vendor, or Customer most often used, but what happens if there are balances for some of those abandoned items?  Say Part 1205 has 12000 on hand, Part 11205 has 400 on hand, and Part 112005 has 400000 on hand.  You must not forget you are you are using last cost, and each of those Parts has a different inventory value.  What if there is an AR balance for a customer with three names but the same entity?  Alternatively, what if there are open balances for the same Supplier with three different names?  Do you still think it is time to convert data?  How will you be able to compare inventory values after the conversion to insure data integrity?

That is not an easy question to address and if you ask an accountant they will likely say compare the inventory value between the old and new systems.  So are you going to bring those problems into the new ERP System?  That may be ill advised.  What do you do?  Currently there are not a lot of tools available to remove data duplication for these types of problems.  Often times, companies accomplish control through a set of manual standards. 

We had this problem at a company and quickly addressed the problem for the parts file by creating a description definition template.  The client had 30 Engineers in the company and each was responsible for product development.  Our implementation time line did not allow time to spend attempting to reach consensus in that effort, so the VP of Manufacturing made a command decision.  He defined by material type for our source materials (steel, titanium, aluminum, etc.) and by function, bolt, screw, washer, nuts, etc.

We also created a set of database rules that looked at how we defined supplier and vendor addresses and applied processing rules to not allow ST, St, ST, St., Ave, AVE, etc, etc., ETC, ETC.  We spent a good portion of the conversion effort creating those database rules and new screens.  Continuity moving forward was our goal and besides, we had a huge number of Bills-of-Material that needed changing to remove the old parts and use only one version of those parts moving forward.  This whole effort required much more time on the schedule than the original implementation plan had.  Nevertheless, the company management felt that it was time well spent.

How has your organization addressed this issue?  What have you done to clean-up legacy data during the conversion process?

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