{"id":57344,"date":"2021-03-05T14:22:00","date_gmt":"2021-03-05T14:22:00","guid":{"rendered":"https:\/\/abl-group.com\/abl\/?post_type=case-study&#038;p=57344"},"modified":"2024-02-29T11:50:48","modified_gmt":"2024-02-29T11:50:48","slug":"saving-74m-over-5-years-through-inventory-data-enrichment","status":"publish","type":"case-study","link":"https:\/\/abl-group.com\/abl\/case-studies\/saving-74m-over-5-years-through-inventory-data-enrichment\/","title":{"rendered":"Saving $74M over 5 years through inventory data enrichment"},"content":{"rendered":"\n<div class=\"wp-block-cover alignfull has-parallax\"><span aria-hidden=\"true\" class=\"wp-block-cover__background has-blue-background-color has-background-dim-80 has-background-dim\"><\/span><div role=\"img\" class=\"wp-block-cover__image-background wp-image-57345 has-parallax\" style=\"background-position:50% 50%;background-image:url(https:\/\/abl-group.com\/abl\/wp-content\/uploads\/2024\/02\/inventory-management-quote.png)\"><\/div><div class=\"wp-block-cover__inner-container is-layout-constrained wp-block-cover-is-layout-constrained\">\n<p><strong>Project Objective:<\/strong> Inventory data optimisation<\/p>\n\n\n\n<p><strong>Client:<\/strong> International Oil and Gas Company<\/p>\n\n\n\n<p><strong>Asset:<\/strong> 27 Onshore and offshore production facilities<\/p>\n\n\n\n<p><strong>Software:<\/strong> <a href=\"https:\/\/addenergy.no\/software\/asset-management-strategy-deployment-and-optimization-software\/effio\">Effio\u2122<\/a><\/p>\n<\/div><\/div>\n\n\n\n<div style=\"height:35px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-the-request\">The request<\/h2>\n\n\n\n<p>To&nbsp;<strong>validate, enrich and build equipment Bill of Materials (BoMs)<\/strong>&nbsp;in line with the client&#8217;s data standards to ensure the maintenance, supply chain and materials team had access to the correct data, to order the correct parts, efficiently and effectively for planned maintenance and common corrective maintenance work orders.<\/p>\n\n\n\n<div style=\"height:35px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-client-challenges\">Client challenges<\/h2>\n\n\n\n<p>During operations the quality, completeness and accuracy of the materials data diminished due to uncontrolled management of change for master data, this resulted in:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The CMMS being overloaded with materials meaning it was difficult and time consuming for the planners to determine the correct materials for maintenance.<\/li>\n\n\n\n<li>Excessive CMMS costs due to the system being clogged with unnecessary datapoints.<\/li>\n\n\n\n<li>Duplicate material masters existing in the system which resulted in poor data governance standards, poor search capability and planners not being able to find the materials that are actually in stock for maintenance, resulting in unscheduled downtime and the inability to share material masters across the organisation.<\/li>\n\n\n\n<li>Equipment BoMs not existing for all maintainable equipment.<\/li>\n\n\n\n<li>Free text order requests being made which caused time wastage, maintenance backlog, downtime, wrong parts being ordered and wasted expenditure.<\/li>\n\n\n\n<li>No foresight of obsolete equipment which incurred excessive costs to expedite last minute orders.<\/li>\n\n\n\n<li>Excessive storage costs for spare parts that were obsolete or did not need to be kept in stock.<\/li>\n\n\n\n<li>Digital tags (functional locations) missing from the CMMS and did not have maintenance or materials assigned.<\/li>\n<\/ul>\n\n\n\n<div style=\"height:34px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-how-we-helped\">How we helped<\/h2>\n\n\n\n<p>ABL\u2019s materials specialists verified, enriched, and developed equipment BoMs through the completion of the following tasks:<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li>Reviewed BoM data and validated the existing BoMs with OEMs and vendors<\/li>\n\n\n\n<li>Developed a list of BoMs which required intervention (enriched, amended and validated) and identified where BoMs required creation for new and existing tags.<\/li>\n\n\n\n<li>Conducted a risk cost analysis to determine the high value equipment to focus BoMs improvement efforts that would unlock the biggest efficiency gains first (safety, production, and profitability ranking).<\/li>\n\n\n\n<li>Cleansed, enriched, amended, and validated existing BoMs with OEMs\/vendors.<\/li>\n\n\n\n<li>Built BoMs for equipment that did not have existing BoMs and validated them with OEMs\/vendors.<\/li>\n\n\n\n<li>Identified obsolete equipment and provided obsolescence management recommendations (list of replacement parts recommended by the OEM or vendor).<\/li>\n\n\n\n<li>Identified and documented duplicate material masters and issued to client for implementation of the changes required in the CMMS.<\/li>\n\n\n\n<li>Populated CMMS load templates for direct loading of&nbsp;<strong>167,000<\/strong>&nbsp;enriched and fully validated BoMs into the system.<\/li>\n\n\n\n<li>Provided on-going training to the regional asset teams on how to input and sustain good quality materials data.<\/li>\n<\/ol>\n\n\n\n<div style=\"height:35px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<div class=\"wp-block-columns is-layout-flex wp-container-core-columns-is-layout-9d6595d7 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\">\n<h2 class=\"wp-block-heading\">The results<\/h2>\n\n\n\n<p>The work completed by ABL saved this client over&nbsp;<strong>$16M<\/strong>&nbsp;per year on:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Maintenance work planning and execution efficiency gains<\/li>\n\n\n\n<li>Supply chain costs<\/li>\n<\/ul>\n\n\n\n<p><strong>After project and operational costs were deducted, this unlocked a Return on Investment (ROI) over&nbsp;5 years of $74M<\/strong><\/p>\n<\/div>\n\n\n\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\"><div class=\"wp-block-image\">\n<figure class=\"alignright size-large is-resized\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"667\" src=\"https:\/\/abl-group.com\/abl\/wp-content\/uploads\/2024\/02\/ROI_74M_casestudy_graphic-1024x667.jpg\" alt=\"\" class=\"wp-image-57346\" style=\"width:551px;height:auto\" srcset=\"https:\/\/abl-group.com\/abl\/wp-content\/uploads\/2024\/02\/ROI_74M_casestudy_graphic-1024x667.jpg 1024w, https:\/\/abl-group.com\/abl\/wp-content\/uploads\/2024\/02\/ROI_74M_casestudy_graphic-300x196.jpg 300w, https:\/\/abl-group.com\/abl\/wp-content\/uploads\/2024\/02\/ROI_74M_casestudy_graphic-768x501.jpg 768w, https:\/\/abl-group.com\/abl\/wp-content\/uploads\/2024\/02\/ROI_74M_casestudy_graphic.jpg 1080w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n<\/div><\/div>\n<\/div>\n\n\n\n<div style=\"height:36px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<div class=\"wp-block-columns is-layout-flex wp-container-core-columns-is-layout-9d6595d7 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\">\n<h2 class=\"wp-block-heading\">Software used<\/h2>\n\n\n\n<p>ABL&#8217;s materials data management software,&nbsp;<strong>Effio\u2122<\/strong>, was used by the project team to deliver this inventory management optimisation solution.<\/p>\n\n\n\n<p><strong>Effio\u2122<\/strong>&nbsp;is capable of replicating our clients CMMS environment and provides a user friendly, secure, collaborative, and accessible platform for analysing, enriching and assigning materials to equipment tags efficiently, consistently, and accurately.<\/p>\n\n\n\n<p><strong>Effio\u2122<\/strong>&nbsp;is proven to save an average of&nbsp;<strong>30%<\/strong>&nbsp;on time and project costs when compared to traditional methodologies.<\/p>\n<\/div>\n\n\n\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\"><div class=\"wp-block-image\">\n<figure class=\"alignright size-large is-resized\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"667\" src=\"https:\/\/abl-group.com\/abl\/wp-content\/uploads\/2024\/02\/effio_web_image_Casestudy-3-1024x667.jpg\" alt=\"\" class=\"wp-image-57347\" style=\"width:551px;height:auto\" srcset=\"https:\/\/abl-group.com\/abl\/wp-content\/uploads\/2024\/02\/effio_web_image_Casestudy-3-1024x667.jpg 1024w, https:\/\/abl-group.com\/abl\/wp-content\/uploads\/2024\/02\/effio_web_image_Casestudy-3-300x196.jpg 300w, https:\/\/abl-group.com\/abl\/wp-content\/uploads\/2024\/02\/effio_web_image_Casestudy-3-768x501.jpg 768w, https:\/\/abl-group.com\/abl\/wp-content\/uploads\/2024\/02\/effio_web_image_Casestudy-3.jpg 1080w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n<\/div><\/div>\n<\/div>\n\n\n\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link has-blue-background-color has-background wp-element-button\" href=\"https:\/\/abl-group.com\/abl\/effio\/\" target=\"_blank\" rel=\"noreferrer noopener\">Learn more about effio<\/a><\/div>\n<\/div>\n\n\n\n<div style=\"height:36px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-the-value-we-delivered\">The value we delivered<\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>167,000 OEM\/Vendor Validated BoMs: <\/strong>Delivered in CMMS load templates for direct loading of 167,000 enriched and fully validated BoMs into the system.<\/li>\n\n\n\n<li><strong>Time Efficiencies: <\/strong>Enabled part sourcing to be more time and cost effective through access to reliable, accurate and readily available data.<\/li>\n\n\n\n<li><strong>Avoid Unnecessary Expenditure: <\/strong>Access to the correct BoM data now helps the asset to avoid purchasing the wrong equipment or spare parts causing unnecessary expenditure.<\/li>\n\n\n\n<li><strong>Mitigate Downtime: <\/strong>Helps to avoid asset or equipment unscheduled downtime through immediate access to the data you need to order the correct critical parts.<\/li>\n\n\n\n<li><strong>Effective Planning: <\/strong>Assures the planners have the information they need to source the correct parts in a timely manner without paying premium prices associated with last minute orders or delaying maintenance.<\/li>\n\n\n\n<li><strong>Optimised Spare Part Management: <\/strong>By ensuring compliance with the company\u2019s data standards, it enabled the planners and supply chain stakeholders to share parts data across their organisation, reducing financial waste incurred through material master duplication and ensuring that all existing inventory is efficiently and effectively consumed.<\/li>\n<\/ul>\n\n\n\n<div style=\"height:35px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<div class=\"wp-block-buttons is-content-justification-center is-layout-flex wp-container-core-buttons-is-layout-16018d1d wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button has-custom-font-size has-medium-font-size\"><a class=\"wp-block-button__link has-blue-background-color has-background wp-element-button\" href=\"https:\/\/addenergy.no\/service\/asset-and-integrity-management\/inventory-procurement-and-logistics-optimization\">LEARN MORE ABOUT OUR INVENTORY OPTIMISATION SOLUTIONS HERE<\/a><\/div>\n<\/div>\n\n\n\n<div style=\"height:35px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n","protected":false},"author":25,"featured_media":57345,"template":"","sector":[959,960],"service":[955,957],"company":[724],"class_list":["post-57344","case-study","type-case-study","status-publish","has-post-thumbnail","hentry","sector-asset-integrity-management","sector-software","service-asset-and-integrity-management","service-software","company-abl"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v23.6 (Yoast SEO v27.4) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Saving $74M over 5 years through inventory data enrichment - ABL<\/title>\n<meta name=\"description\" content=\"A case study with the objective to optimise inventory data.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/abl-group.com\/abl\/case-studies\/saving-74m-over-5-years-through-inventory-data-enrichment\/\" 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