Part Numbering Best Practices for MAX Software – ERP Item Numbering

Part Numbering Best Practices for MAX Software

Introduction

What is a part or item number?

“A number that serves to uniquely identify an item. Syn: part number, product number, stock code, stock number. “ *APICS Dictionary

In MAX and most all production and inventory control systems part numbers are assigned to anything you’d like to plan, control or will be part of the end item. Thus MAX has a Part Type Code and multiple fields to assign significance in the database called the Part Master. MAX also allows for expansion of these column of the Part Master using extended fields.

Some examples of types of parts are:

· Finished Goods

· Assemblies

· Purchase Parts

· Bulk Parts

· Reorder Point Parts

· Phantoms and Pseudo

· Resource

· Tool

Keep in mind that the word number is in there too. It is not a Part Description or Part Dimension etc. but a Part Number. In the past companies built the significance into the part number producing long and creative numbering schemes. The whole idea is to try to place all the significance into a single identifier i.e. Revisions, Vendors, Design and Dimension data. This quickly becomes impractical in the computer age where data can be filed and retrieving system in a relational model – fast and expandable. In fact the significant numbering system dates back to the use of paper filing systems.

“Oliver Wight states in MRP II Unlocking Americas Productivity Potential 1981.

“The whole idea of a significant part numbering system loses its validity with the availability of the modern computer systems.”

“In manual systems, it seemed to make sense to have the part number represent the way the product was made, the material it was made from etc. With computer systems, there is no longer any need to do this, and part numbers now can assume their rightful function of being “unique identifiers” rather than “descriptors”.

Oliver presents some key concepts at the forefront of the computerization age and really at the same time the PC and computerization and database was coming of age.

These concepts even the were not particularly new in the database word due to the fact the database normalization concept had been borne in 1970 by Edgar Code in San Jose, Ca. in his article A Relational Model of Data for Large Shared Data Banks.

The concept of keys and data type and uniqueness is an absolute requirement in databases. The idea of “data independence” (the idea of the data being independent of the application) holds true and can be associated to part numbering in the MAX application and it ability to have interoperability across other systems and the supply chain.

The significant Part Number is really an oxymoron because it is not a number at all. A number is a number and should be a unique identifier and there is no reason in today’s age when the significance of an entity can be clearly delineated within a database to do otherwise – columns to retain and relate uniquely significant characteristics is virtually unlimited.

The significant part numbering system dates back to Library of Congress Classification system LCC which in and of itself has been criticized for not have a strong theoretical back ground.

Pro’s and Con’s

There are limitations to any numbering system that produces significant item numbers. The development of a new product line, acquiring/merging two plants or product lines, general business growth, or implementation of a formal manufacturing system will always challenge the validity of using significant/intelligent item numbers.

· Fear that the differentiation we now expect will be lost.

· Perception that conversion will be disturbing to the organization and expensive.

· General back-off and resistance from personnel

You have an opportunity when implementing computerization and software systems to eliminate an old antiquated method of doing something and get in step with the technological advances that computers have provided. The “paper and pencil”, manual filing, card catalog system of doing things is just not how things are done these days. Databases, Programming Languages and high-speed computer allow for Speed of Communication and speed and the ability to communicate are paramount to success. So clear communication requires that the significance does not require translation systems but IS the entity described. This is a key concept in normalization, programming and so on. When you create a significant part number you require a translator which is an additional step. You don’t need it and adds time and money in the long run. It adds hidden cost to your production and personnel support and training.

New ways of doing things are often “push back on”. People like their way of doing things and are prone to enjoying the autonomy of fixed patterns. So people in manufacturing environments that have mastered an old way of doing something do not want to change. You can see this in the way engineers design things in BOMs and use part types in odd and wonderful ways. But lack of guidance and knowledge of impact and an inability to see consequence can kill efficiency though having the apparentcy of “organization”. Do not fall into the trap but take a long hard look at how pervasive the part/item numbering system interplays and you’ll see it effects everything and everyone.

You need to think like a computer. Garbage In – Garbage Out

“Computers are high speed idiots.” Oliver Wight. So whatever pattern or method you lay in is going to run 1000 times faster once implemented and thus behooves one to pay careful attention to how they proceed. And to that extent – that much more incomprehensible.

Main Principles

1) Each item to be scheduled needs a part number

2) A part numbering system should be simple

3) Part numbers should be short

4) A part number MUST be a unique identifier – NOT a descriptor

The Key benefits are:

1) It is not effected when the product changes. Your revisions are tracked in the Revision column not the part ID and all other pertinent data about the part is stored in the many columns available in the row for the specific part in the database. And it is a unique row with unique distinct values associated with it as in database normal form.

2) Errors in data entry are more easily corrected.

3) Data mining, reporting and searching is optimized due to adherence to normality. The main headache with an inability to view data is because the basic concepts of computerization and database design and maintenance are not adhered to ruthlessly.

4) Reduces cost of training since no translation is required or look up by any of the many personnel in the company.

5) Difference companies can be merged and collated much easier.

6) Inventory management and storage schemes are easier to use and things can be found much easier. Traceability is improved.

Key problems with significant part numbers:

1) Violates Product Lifecycle Management (PLM) The implementation of PLM, significant part numbers are generally replaced by sequential part numbers.

2) Parts can have nearly identical names making them hard to identify.

3) Hard to fix. The part number is generally a Primary Key in the database. If you make a mistake and the part makes its way through the processes of the system it is very hard to change.

4) Labeling and Printing problems because of length and characters.

5) Doesn’t allow for simple data mining – you always have to parse and translate the characters of the string and you loss visibility to your materials, cost and all the other aspects of the part you may require to see. You can’t easily create dimensional tables and cross-tabs thus limiting your ability to evaluate.

6) Security significant part number can be reversed engineered to reveal the coding sequence of the part and how it is made up and when the internal keys to data in your system are just from the part.

Migration

Migrating to a new numbering system in a production environment need to be minimally disruptive to the organization. Generally speaking there are 3 normal approaches one would take.

All at Once (not a likely approach)

The normal file cleansing and elimination of obsolete and redundant must be performed

· Parse the significant values of the items.

· Map them to the new columns.

· Serially assign new item numbers based on the non-significant part numbering scheme

· Build the cross-reference, old number to new number.

· Copy the old number as a reference to an auxillary column for reference

· Apply the cross-reference to all involved tables in the database where part number is used

· Update all collateral, Catalogs, Web-sites everything that had the old numbers on them and redo all.

· Communicate changes to those concerned i.e. Vendors, Customer, Internally

Gradual Phase-In/Out: (Best for a going concern)

· Do the above but apply it to sets of parts and new parts.

New only: (Best under certain conditions)

· In this case you set the rules and only new parts through the NPI New Product Introduction process would be established

Discussion and evaluation of the best method concerns managers and executives that wish to establish smooth running patterns and policies for their organization. Every organization is its own unique living breathing entity thus great care should be taken when evaluating how part numbers are designed and/or changed. Cost and impact demand evaluation and a view of the future so that all those concerned in the production process are singing the same tune and are working together.

Vincent Stefanetti

Senior Consultant

Exact MAX ERP North America

References: MRPII Oliver Wight, Handbook of MRP II and JIT, written by John N. Petroff, published by Prentice-Hall 1993 and the APICS online dictionary. Articles by Michael Baudin, APICS, MAX Documentation

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