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7 Best Practices for a Parts Classification Project

Posted by Convergence Data Team on Nov 19, 2020 11:35:07 AM

When we talk to companies who are just starting their classification journey, we provide them with the best practice framework focused on obtaining the most value from their classification project. All too often this work is done in only one division or it becomes an “engineering searchability” project which limits the value of the project.

When making an investment in classification, the budget for this program should come from these sources:

  • Person responsible for direct material spend – VP of Operations, CFO, or CPO
  • ERP or PLM Deployment budget

7 Best Practices for a Parts Classification Project

    1. Target high value parts for classification – high spend, proliferation, too many vendors, shared across programs, etc. Start with the 10 top categories using this criterion.
    2. Pull all the parts from each organization for each category – this is the biggest bang for the buck approach.
    3. Assign one (1) Engineering SME and one (1) Purchasing Category owner for each commodity – they will approve structure and data. You don’t want too many cooks in the kitchen.
    4. For each part – provide part number, part description,
      MFG Part Number and MFG Name, drawing or specification.
    5. Obtain the commercial data for each part – provide pricing,
      supplier names, buying org and volumes.
    6. Clustering – once each category is complete, look for clustering opportunities – this will expose cost savings for procurement spend rationalization. Clustering will expose parts with higher prices compared to other similar parts with lower pricing. 
    7. Load classification data to PLM - make sure to validate the data against the PLM systems rules. This saves time dealing with load issues.
The advantage of taking this approach is that you only go into each category once. You don’t want to have to go into each category multiple times. This will allow you to have a much better chance of finding cost savings. Lastly you will be in a better position to prepare the data for your global PLM system. You don’t want to have to keep updating your PLM system with changes. The video below describes the process to prepare your classification data for cost savings and sourcing cost savings.

Here are some useful links and videos:

     • 15 min PLM Classification Process video:

     • 5 min Clustering video
 
     • 1 min Explainer video

     • DVA Case Studies
  
     • CDS Brochure

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Topics: Classification, Product Analytics, PLM, Part cost, convergence data, Part Preparation, DFR, Cost Reduction, Spend Analysis, Loading Data, Cost Savings, Part Standardization, Duplicate Analysis, data normalization, categories, classification structure, reclassify, smartclass

DFR PLM Integration Options

Posted by Convergence Data Team on Aug 19, 2020 3:25:12 PM

There are different options for integrating DFR with your PLM system when supporting the new part creation process. There are different variables to consider when considering the best option including:

  • Do you have more than one PLM system?
  • Does your PLM system support classification data and structure?
  • Do you need to see commercial data (e.g. Pricing) and technical data together?
  • Do you still have legacy parts to classify e.g. new acquistions?
  • Does your classification structure support all your parts?

  • 3 Options for Integration Process 

Click here to read more ...

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Topics: PLM, Integration, DFR PLM Integration

PTC LiveWorx June 2016 -  PTC and the internet of things make a big splash at the Boston Convention center

Posted by Richard Turner on Jun 14, 2016 10:15:44 AM

I had the opportunity to participate in PTC’s LiveWorx annual conference in Boston this past week at the Boston convention center located in the up and coming Seaport district (June 6-8).  It was an exciting event highlighted by PTC’s rebranding – new logo, green color scheme and focus on IoT (Internet of Things).  IoT was clearly the theme of the conference for PTC, including its partners and customers.  Even as a novice in IoT I can see why PTC is focusing on this evolving technology –The Gartner Group says that by 2020 there will be over 26 billion connected devices. 

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Topics: PTC LiveWorx, PLM, IoT (Internet of Things)

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