Data cleansing is an essential process that helps organisations ensure the accuracy, completeness, and consistency of their data. It involves identifying and correcting errors, duplicates, and inconsistencies in large datasets to improve the overall quality of the data. Effective data cleansing can help organisations make better decisions, improve customer satisfaction, and reduce costs.
Benefits of Data Cleansing
Improved accuracy
Clean data is more accurate and reliable, which helps organisations make better decisions and avoid costly errors.
Increased efficiency
Clean data is easier to manage, analyse, and process, which can lead to increased efficiency and productivity.
Reduced costs
Clean data can help organisations avoid unnecessary costs, such as inventory understocking, overstocking or inefficient maintenance processes.
Enhanced customer satisfaction
Clean data can help organisations provide better customer service and improve customer satisfaction by ensuring accurate and timely information.
AICAs Cost Savings Calculator
AICA has developed a cost savings calculator that helps organisations estimate the potential cost savings they could achieve through various data cleansing initiatives. The calculator takes into account several factors, including the number of SKUs, the total annual part purchases, the on-hand inventory, the percentage of OEM items in the item master, and the number of maintenance team members.
The calculator also uses several saving assumptions based on effective data cleansing, such as:
-The percentage of duplicate value available for inventory reduction
-The percentage of annual purchases that would qualify for leverage opportunities.
-The average percentage price reduction through purchase leverage opportunities.
-The average hours that maintenance members would save per day.
-The purchase price savings on OEM to MRO conversion.
Factors Considered in the AICA Cost Savings Calculator
The AICA cost savings calculator takes into account the following factors:
Duplication
The calculator estimates the average cost of item duplication, the duplicate value available for inventory reduction, the WACC reduction per year, and the total annual duplication cost savings.
Procurement
The calculator estimates the value of annual purchases that would qualify for leverage opportunities and the total annual purchase price reduction.
Maintenance
The calculator estimates the total number of maintenance hours saved per day and per year, as well as the total annual maintenance cost savings.
OEM Conversion
The calculator estimates the savings from OEM to MRO interchanging, the purchase price saving on EOM to MRO conversion, and the total annual OEM conversion cost savings.
Maximising ROI through Effective Data Cleansing
By using the AICA cost savings calculator, organisations can identify the most effective data cleansing initiatives to implement and maximise their savings from incorporating data cleansing.
With the AICA cost savings calculator, organisations can estimate the potential cost savings and prioritise which initiatives to implement first.
Conclusion
The AICA cost savings calculator is a useful tool that can help organisations estimate the potential cost savings they could achieve through various data cleansing initiatives. By using the calculator, organisations can identify the most effective initiatives to implement and maximise their ROI through effective data cleansing.