Disciplined approach to data rationalization creates PLM success story

RPM International, Medina, Ohio, is not the first enterprise that wanted all of its units to adopt a single business application. But RPM's approach to that—and its resulting success—could serve as a lesson to others.

RPM—a manufacturer of specialty chemicals, including such well-known brands as Rust-Oleum and BONDO—wanted to cut the time and cost associated with making its products. Adopting a single product life-cycle management (PLM) application for the entire corporation was an obvious solution. Paul Hoogenboom, RPM's CIO and VP of operations, says the application RPM selected, Optiva from Formation Systems, was an obvious choice as well, because it's one of the few PLM packages built specifically for process-oriented manufacturers.

"Optiva was a natural for us because it understands formulas, fluids, and the properties of those materials," Hoogenboom explains. Still, a major hurdle had to be cleared before this application could do everything RPM wanted.

"We have 38 business units using 17 different ERP systems, and each business had a different way of identifying materials," Hoogenboom says. That meant RPM had to rationalize its data—creating a way for Optiva to recognize any material, regardless of how it is labeled—before Optiva could function as a true corporate PLM standard.

RPM used Optiva's product definition standards to create naming conventions for new products, but making existing products conform to those standards was a manual process that took 1.5 years to complete. Hoogenboom says it had to be done that way, because with product-related data from 17 ERP packages uploaded to Optiva, the system could not tell when the same item was being referred to by more than one name. That was something only experienced RPM personnel would know. Consequently, Hoogenboom assembled a series of teams that developed an accurate method of cross-referencing materials. Those procedures were then programmed into Optiva.

Once it had a single, rationalized product database, RPM began using Optiva's workflow engine to drive the approval process for materials used in new products. That ensures that those materials are easily identifiable across the corporation. Hoogenboom says the new system makes it easier for engineers and buyers alike to select appropriate parts for new products. That cuts the time and cost associated with introducing new products.

Buyers also use a sourcing component that is part of Optiva to compare vendors. "Soon after we got this system in place, a buyer discovered we were buying the same drums from 35 different suppliers," says Hoogenboom. "That [presented] an immediate opportunity to cut costs by consolidating those purchases."

With Optiva now linked to all of its ERP systems, and getting uploads on new products deposited to a central database each month, RPM's problems with duplicate materials are history. But Hoogenboom is quick to point out that it wouldn't have happened if RPM had not been rational—and patient—when it came to the need for rationalizing its data.