2. 2
Purpose
To highlight different providers of Commodity Codes
To highlight some issues with use of UNSPSC commodity codes
To highlight a cleansing exercise carried out by a consultant
company
To aim to ascertain the level of usage in asset management
4. 4
Classification Providers
There are a number of material classification organisations,
such as:
UNSPSC
ecl@ss
Nato Codification System
EAN (European Article Number)
This document highlights the UNSPSC codification system
6. 6
UNSPSC Coding System
The standard UNSPSC system is made up of 4 hierarchical
levels (but actually with a slight modification 5 levels can be
displayed)
The standard 4 levels are:
AA AABB AABBCC
Class (6 characters)
Family (4 characters)
Segment (2 characters)
AABBCCDD
Commodity (8 characters)
7. 7
UNSPSC Coding System - Bearings
UNSPSC coding system for a Ball Bearing (Level 4) is shown
below:
31 3110 311700
Bearings, Bushings, Wheels and Gears
Castings and Casting Assemblies
Manufacturing Components and Supplies
31171504
Ball Bearing
Class L3 Material Type L4
8. 8
Standard Structure 4 levels
Level 4 show the type of bearing, although code 31171500
represents all types of bearings, i.e. the Noun
If you make the Bearing code, a Group,
then you can show the list as 5 levels as
shown from a another report in our MS
Access based tool
Class L3
Item L4
9. 9
Modified Structure
Here is modified structure, where we show the bearing group and
the bearing types,
New Group L4
Standard
Material Type
Code, now L5
Class L3
10. 10
Audit Inconsistent Use of UNSPSC Codes
This is an example from the data cleansing by consultant company for
a major bottling company
For the same item type; 4 different codes have been assigned and a
mix of levels L4 (Noun) and levels L5 (Noun & Qualifiers).
We assume, when they didn’t know the qualifier, they assigned the
higher level code, the Noun L4
2
1
3
4
L5 Bush TypeL4 Bushing
11. 11
Another Example UNSPSC Codes
Item 50295111 is shown as a Bush and coded as a Sleeve Bearing
(which is also a BUSH)
Incorrect
The problem with some materials, is that different
manufacturers will use different names
in our training courses, we strongly recommend the
development of TYPE GUIDES to ensure
consistency of naming
Incorrect
12. 12
Bushing Type Guide
This is one of our TYPE
GUIDES, that are prepared
to ensure consistency
13. 13
UNSPSC Codes
In some case the UNSPSC does not go to the level of the Qualifier,
consider the noun CIRCLIP
The 8 digit code is 31163226
Our type guide for circlips indicates
the following types
14. 14
Assigning UNSPSC Codes
The UNSPSC Codes provide a description in the format of Qualifier +
Noun, e.g. Ball Bearing
If we add an extra field for the Noun & Qualifier, as shown, then it
becomes very easy to map this code to your inventory list very quickly
Modified UNSPSC Table to
include Noun + Qualifier
Mapped UNSPSC code to
inventory download,
15. 15
Application
Many companies involved in asset management have populated
their CMMS with these type of codes
We would interested to hear from anyone IF they use these
commodity codes to support replenishment, spend analysis and
for rationalisation of suppliers?
In addition, which level is the most useful e.g. at the Bearing level
or the level of the Type of Bearing
16. 16
Summary
The UNSPSC codes or similar can be easily included into your
MRO master data
To select the right code consistently you need good cataloguing
data and to understand the naming conventions
We cover this topic in both of our unique training workshops
MRO Spare Parts Optimisation and Inventory Reduction (for
inventory, maintenance & purchasing personnel
MRO Spare Parts Master Data Auditing and Cleansing
For consultancy or training contact David Thompson, Ramsoft
(UK) on dave@ramsoftuk.com or www.ramsoftuk.com
David Thompson
http://uk.linkedin.com/in/davidthompsonreliability
Manager Linkedin Group: MRO Spare Parts Optimisation & Inventory Reduction