Understanding Master Data for ERP Systems

What is Master Data and how it works in an ERP system.

1. Master Data Process Description

2. What is Master Data? Data in ERP software is usually classified as either; Master Data or Transactional Data There are other classifications as well however, one can usually group them as sub-classes of these major categories Master Data relates to a Object in the ERP. In relation to other data, they are fairly static (i.e. do not change often) Examples are; Customer Information (Name, Address, Phone Number, etc.) Supplier Information (Name, Address, Phone Number, etc.) Products (Item Number, Unit of Measure, Weight, etc.) BOMs (Ingredient Item Numbers, Ingredient Amounts, etc.)

3. What is Master Data? Transactional Data relate to actions carried out using the Objects. Examples are; Sales Orders Purchase Orders Work Orders Production Tracking

4. Why is Master Data Important? Since all actions within an ERP are performed on the objects, Master Data associated with these objects is critically important The integrity of the information is fundamentally dependant on Master Data That is not to imply that the transactional data is not important, but all Transactional Data is built upon Master Data. If the foundation isn’t sound then the transactions will never be accurate

5. Historical Information At Select, most of the initial Master Data in X3 was loaded from information provided by PFW The information in PFW was not necessarily sound. It contained; Redundant or Duplicate entries Obsolete items Errors Inconsistent naming conventions Some Master Data needed to be developed from scratch (Routings, Standard Costing, Work Centers)

6. Clean Up During initial testing prior to “Go-Live” much of the data was reviewed and corrected, however there are still errors and inconsistencies As errors occur during day to day operations, corrections are made as required New Product and Product Change guidelines have been developed to make sure that they are conducted so as to maintain the data integrity A BOM review process is being/has been developed to correct the duplications, redundancies and errors

7. Master Data Control Process A Master Data Control process should be implemented so that net new as well as changes to Master Data are handled in a controlled manner This involves providing and entering the data from various departments A survey was conducted to look at key Master Data Fields and determine; (see appendix) Who uses it Who provides it Who enters it

8. Master Data Control Process Moving forward, net new or changes to existing Master Data should follow a controlled process so that it is; Initiated and provided by the appropriate person/department Entered consistently Reviewed and Approved

9. Master Data Control Process The following diagrams used in conjunction with the data in the Appendix provide a guideline to help achieve the integrity and consistency of Master Data Note that most new Master Data records, can be copied and edited from existing records as long as the person conducting this process understands the significance of the fields that they are entering and follows through to enter/modify all other dependent records and fields. New Product and Product Change guidelines have been developed (in another document) to make sure that they are conducted so as to maintain the data integrity and consistency across all fields

10. Customers Sales/CSR provides and enters most data Finance enters Credit & Payment Terms Review and Approval?? See Appendix for references to the (major) fields required

11. Suppliers Purchasing provides Data Purchasing & Eric enters Data Review and Approval?? See Appendix for references to the (major) fields required

12. Products – Finished Goods Sales/CSR provides and enters most data Finance enters Accounting Data Review and Approval?? Sales/CSR provides; Upali Enters Data Production provides; Upali Enters Data Quality provides and enters data (future) See Appendix for references to the (major) fields required

13. Products – Intermediaries Finance enters Accounting Data Review and Approval?? Production provides; Upali provides & Enters Data Quality provides and enters data (future) See Appendix for references to the (major) fields required

14. Products – Ingredients & Packaging Purchasing provides and enters most data Finance enters Accounting Data Review and Approval?? Production provides; Upali provides & Enters Data Quality provides and enters data (future) See Appendix for references to the (major) fields required

15. BOMs Product Development provides: Upali Enters Data Production provides; Upali Enters Data Review and Approval?? See Appendix for references to the (major) fields required

16. Routings Scheduling provides: Upali Enters Data Review and Approval?? See Appendix for references to the (major) fields required

17. Appendix Master Data Fields The attached spreadsheet can be used to understand who provides the information and who enters the information (Note that it also shows who uses it)