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Coded Data

ECCMA Conference: eOTD Cataloguing. Integrated Systems. Spend Analytics. Maturity. Electronic Transactions. Coded Data. Time. Anglo Procurement and Supply Chain Systems Linda Wedderburn and Maurice Mason October 2006. “The Long Road” An Industry Perspective of eOTD Cataloguing

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Coded Data

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  1. ECCMA Conference: eOTD Cataloguing IntegratedSystems SpendAnalytics Maturity Electronic Transactions Coded Data Time Anglo Procurement and Supply Chain SystemsLinda Wedderburn and Maurice Mason October 2006

  2. “The Long Road” An Industry Perspective of eOTD Cataloguing For Products ECCMA Conference: eOTD Cataloguing

  3. Anglo American ACW – What is it The Process The Challenges The Value Topics

  4. Cataloguing of Materials: Current: Various including BRISCH in South Africa Standards moving to: UNSPSC for classification (v.11.2) Considering moving to v 13.2 due to significant enhancements to services section ECCMA eOTD for cataloguing / codification Still Under Investigation: Coding of services & repairs Vendor standard Have implemented a “methodology” with a common naming standard and supplier hierarchy. Manually mapping ERP supplier names to a common name Multiple standards: D&B; country specific used. Anglo American: Coding Standards

  5. Anglo American ACW – What is it The Process The Challenges The Value Topics

  6. A standardised, structured coding system that will uniquely identify items by their specific properties What is ACW Anglo Content Warehouse

  7. Institutionalise a common Anglo classification and coding protocol for purchased materials and services across all of Anglo American Maintain a repository in which to access and store the common coded materials and services In a timely manner, with a focus on the needs of cross-BU category / commodity teams, populate ACW with “fit-for-purpose” quality data based on the ECCMA eOTD coding standard and the UNSPSC classification standard. Enable business value to be delivered by BUs through the use of ACW and the availability of Anglo common codes. ACW Objectives

  8. What is ACW Model Manage Use Meta Model Rules Workflow Classify Value Extract Enrich Search Subscribe Export Syndicate Aggregate Content Managers End- Users

  9. Anglo American ACW – What is it The Process The Challenges The Value Topics

  10. The Process • Current Catalogues consist of a list of numbers (stock code) and descriptions • Converting the existing catalogue into an ACW format (database) involves 5 Steps: • Classification • Template Commercialization (Identification Guide) • Value Extraction • Content Enrichment • Template Finalization • For new items, will select the appropriate Commercialised template which will guide the cataloguer through the allowed properties / attributes and valid values / reply codes.

  11. Step 1 - Classification What is the item in question? ECCMA identifies items based on the principle of a noun and a modifier (a class) In this case: Tire: Pneumatic; Vehicular ECCMA Concept Identifier: 0161-1-01-005403

  12. Step 2 – Template Commercialisation What do I need to know about this Tire in order to commercially acquire it and manage it in my supply chain? • Tire: Pneumatic; Vehicular • Type • Rim Diameter • Width • Aspect Ratio • Ply Arrangement • Ply Rating • TRA • Tread Material • Air Retention Method • Load Index and Speed Symbol • Tread Pattern • TKPH Rating Commercialized Template

  13. Step 2 – Template Commercialisation From: A “wish list” of all attributes / properties we would like to be reflected in our code To: A defined ECCMA class with associated properties standard across the industry • Tyre • Type • Rim Diameter • Width • Aspect Ratio • Ply Arrangement • Ply Rating • TRA • Tread Material • Air Retention Method • Load Index and Speed Symbol • Tread Pattern • TKPH Rating

  14. Tread Pattern Aspect Ratio Brand Rim Diameter Ply Arrangement Star Rating Step 3 – Value Extraction What do I already know about this item from my current catalogue/code? Current Description TYRE BRIDGESTONE 445/95R25 E3 RADIAL 2* SP VHB 445/95R25 (16.00R25) VHB 2* E3 4N

  15. Step 3 – Value Extraction What do I already know about this item from my current catalogue/code? Partially Populated Commercialised Template Missing Properties

  16. Step 4 – Content Enrichment Populating the missing properties to complete the coding process.

  17. Sequencing Affects the automatic description of an item Numbers Units of Measure (Imperial, Metric, mm, cm etc) Number Format Text is a little more challenging What text will we permit (Valid Values / Reply Codes)? Do we require abbreviations? What are the translations (Spanish, Portuguese) – ECCMA Step 5– Template Finalisation How Exactly are we going to capture the relevant information about this item into the template we have approved in ACW?

  18. Example - Tyres Example - Tyres

  19. The Result 56329845 – Tyre BS 435/R25 Standard Purpose E3 2 Star Radial VRLS 85 TKPH ACW • From this: • Largely “free text” based system: • In order to compare 2 items you would have to read the description • To this: • Structured, Disciplined Database with: • Numeric Fields • UOM • Attribute Level Search Capability

  20. Anglo American ACW – What is it The Process The Challenges The Value Topics

  21. Selecting appropriate properties - Coding Detail Abbreviations Translations Units Of Measure – (symbols –> ERP limitations) Defining Valid Values / Reply Codes Colloquial names QTAG Process Metric and Imperial Enrichment Time and costs Challenges on the Journey

  22. Challenges on the Journey – Coding Detail Are two items the same, when do we have a common item? Same Item!

  23. Challenges on the Journey – Coding Detail Are two items the same, when do we have a common item? Different Item! Additional Properties

  24. Challenges on the Journey – Valid Values ?? ?? ?? ?? ??

  25. Data can be categorized in accordance with one of the following quality levels: Level I: The item is identified in terms its source of supply and has a reference sufficient to successfully place an order for the item. (Sufficient for contracting with a specific supplier) Level II: The item is identified and has been assigned a class sufficient to allow the classification of the item for the purposes of spend analysis Level III: The item is identified and partially described, a class has been assigned and some of the properties specified in the Identification Guide for the class have been provided. Level IV: The item is identified and completely described in accordance with the buyer’s Identification Guide (sufficient for competitive bid, identification of duplicates, standardisation analysis, etc). Note: In some instances where the item is considered by the buyer as being a true commodity, that can be obtained from many sources, the level IV description may be sufficient to identify the item and the buyer may refer to the item only by its internal stock number and may not retain the supplier or manufacturer part number. The Coding Continuum

  26. Anglo American ACW – What is it The Process The Challenges The Value Topics

  27. The Value ACW Common Coding One Common Anglo Number 52368965412 – Tyre Bridgestone 435/95 R25 Standardised Long Description: Tire: Pneumatic, Vehicular: Service Type for Which Designed:  Loader Tire Rim Nominal Diameter: 25' Tire Width: 445mm Aspect Ratio: 0.95 Tire Ply Arrangement: Radial Ply Rating:  2* Tire & Rim Association Number: E3 Tread Material: Standard Tire Air Retention Method: Tubeless Tire Load Index and Speed Symbol:  NA Tread Pattern: VHB TKPH Rating: 80  56329845 – Tyre BS 435/R25 Standard Purpose E3 2 Star Radial 125435 – Bridge Stone 25inch 435/95 965123465 – Tyre Bridgestone Part Number 12345 Standardised Short Description: Tire Pneumatic: Loader 25‘ 445mm 0.95 2*

  28. The Value - From this: Stock Code Item Description Imagine a list like this for over 200,000 items!!!

  29. The Value – To This: Pivot Table & Data Base Drill Down Capability

  30. Identifying Items Who else uses the same/similar item? Do I have duplicate items in my stores (between BU’s)? Standardisation/Rationalisation Show me all 51 inch tires in my business/Anglo American Do I need to specify a particular attribute (speed rating on a bearing), do I pay a premium for it? Procurement - the item specification is in the code Reverse Auctions Tenders Collaborative Purchasing Finding the right code to order an item The Value ACW will enable the following questions to be answered:

  31. Do faster & smarter !!! With business value delivered quicker The Road Forward

  32. ECCMA Conference: eOTD Cataloguing IntegratedSystems SpendAnalytics Maturity Electronic Transactions Coded Data Time Anglo Procurement and Supply Chain SystemsLinda Wedderburn and Maurice Mason October 2006

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