MRO Taxonomy – How important is it to be Industry specific?

January 4, 2019 Tags:

Taxonomy is a comprehensive standard set of commodity categories with a clear definition of Noun Modifier(s) along with associated attributes arranged in a sequence to enable effective material cataloging.

Organizations today face increasing procurement costs, and even penalties due to non-compliance of material, that result from ‘MRO Taxonomy’ issues. Let’s take for example, a parallel between the taxonomy for the food industry vs generic taxonomy. Typically, in the food manufacturing industry food grade material or lubricant is vital; because the generic MRO part may contaminate the food during handling or manufacturing.

Here is an example of Taxonomy for Normal vs Food Grade materials.

Generic Taxonomy

Classification Sequence Name Mandatory
VALVE, CHECK 10 VALVE SIZE/CONNECTION Yes
VALVE, CHECK 20 BODY/DISC MATERIAL Yes
VALVE, CHECK 30 PRESSURE RATING/CLASS Yes
VALVE, CHECK 40 FLOW RATE No
VALVE, CHECK 50 TYPE No
VALVE, CHECK 60 TRIM No
VALVE, CHECK 70 SOFTGOODS No
VALVE, CHECK 80 TEMPERATURE RATING No
VALVE, CHECK 90 DIMENSIONS No
VALVE, CHECK 100 APPLICATION No
VALVE, CHECK 110 STANDARDS/COMPLIANCE No

Food Industry Taxonomy

Classification Sequence Name Mandatory
VALVE, CHECK, SANITARY 10 VALVE SIZE/CONNECTION Yes
VALVE, CHECK, SANITARY 20 BODY/DISC MATERIAL Yes
VALVE, CHECK, SANITARY 30 PRESSURE RATING/CLASS Yes
VALVE, CHECK, SANITARY 40 TRIM Yes
VALVE, CHECK, SANITARY 50 SOFTGOODS Yes
VALVE, CHECK, SANITARY 60 APPLICATION Yes
VALVE, CHECK, SANITARY 70 TYPE No
VALVE, CHECK, SANITARY 80 FLOW RATE No
VALVE, CHECK, SANITARY 90 TEMPERATURE RATING No
VALVE, CHECK, SANITARY 100 DIMENSIONS No
VALVE, CHECK, SANITARY 110 STANDARDS/COMPLIANCE No

Based on the different taxonomies, here is an example of how the same item’s description varies in order to meet business needs:

Example of item description based on the Generic Taxonomy
Short description: VALVE,CHECK:1-1/2IN,SS 316,150PSI,1-Way
Long description: VALVE, CHECK: VALVE SIZE/CONNECTION 1-1/2IN, BODY/DISC MATERIAL SS 316, PRESSURE RATING/CLASS 150 PSI, TYPE 1-Way; Spring Loaded, SOFTGOODS PTFE Seal, TEMPERATURE RATING 400 DEG F, DIMENSIONS 2 OD x 3-3/4IN L Flange, APPLICATION Food and Beverage
Example of item description based on the Food Industry Taxonomy
Short description: VALVE, CHECK, SANITARY:1-1/2IN,SS 316,150P
Long description: VALVE, CHECK, SANITARY: VALVE SIZE/CONNECTION 1-1/2IN, BODY/DISC MATERIAL SS 316, PRESSURE RATING/CLASS 150 PSI, SOFTGOODS PTFE Seal, APPLICATION Food and Beverage, TYPE 1-Way; Spring Loaded, TEMPERATURE RATING 400 DEG F, DIMENSIONS 2 OD x 3-3/4IN L Flange

It is imperative for all food processing businesses to manage their taxonomy so as to indicate the food grade specific Noun Modifier(s) with detailed attributes. This also helps in segregating food grade and non-food grade MRO parts in the inventory. A generic taxonomy cannot be used for all food grade MRO parts, since the required/mandatory attributes may be different for a non-food grade spare part. Since the short description of a spare part is generated based on the noun modifiers and top mandatory attributes, the sequencing of such attributes is also critical.

Additionally, food grade specific noun modifiers in the taxonomy make it easier to identify & standardize such MRO parts to leverage its impact on an overall Inventory Management System, Spend Analytics, optimized sourcing capabilities, and operational efficiencies.

At Enventure, we design industry specific taxonomy and develop cataloging for clients across the globe, cutting across different industries such as pharma, life sciences, food and beverage, mining, oil and gas, power and multiple other process industries.

To learn more about best practices in MRO Taxonomy Design, write to us at info@enventure.com or talk to one of our Taxonomy Experts.

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