Master Data Management: A Practical Guide for Field Service

Introduction

Do you feel overwhelmed by all the data in your field service company? Are you dealing with too many Excel spreadsheets, databases, and emails? Inaccurate billing, job costing and project delays are common symptoms.

The problem often boils down to one thing: poorly managed master data. Master data includes billable items, price books, employee and equipment records, customer details and more. But without a good system for managing it, it easily becomes a source of frustration and inefficiency.

This guide offers a simple, step-by-step way to manage your master data and help you improve your field service operations.

What is Master Data Management (MDM)?

Master Data Management (MDM) focuses on creating one reliable source for your most important business information. This includes labour, equipment, material and customer profiles to name a few.

Master data has everything you need to keep your field operations running well. Everyone in your organization should use the same accurate information. The goal is to avoid wasting time searching for data in different spreadsheets.

The impact of effective MDM is significant, especially in the field service industry. Recent studies show that companies using MDM see a significant boost in customer satisfaction. This increase is between 15% and 20%, according to Forrester. When your data is accurate and easy to access, it leads to better service and happier clients.

Why Master Data Management is Important

Think of your company’s master data as the blueprint for your operations. Without a clear, accurate blueprint, building a successful business is tough. Effective data management is fundamental to success, including:

• Accurate Billing: Billable items consist of any labour, equipment, material and services that you charge for. Managing your master data is key to having accurate billable items. This is essential for running a profitable business. We will discuss later in the article in more details the components of master data.
• Accurate Costing: Master data includes employee pay rates, equipment cost, service costs etc. To track your job costing and calculate your gross margin, it is important to manage your master data well. Accurate master data is essential for proper job costing.
• Proper Resource Management. Keep an up-to-date list of your equipment, materials, and employees. Updating the location, status, and availability of equipment will help you plan for these resources in your estimates. It also allow you to dispatch resources more effectively.
• Keeping your customers happy is important. Keeping updated customer records in your master data helps you find the right contact. It also helps you get approval faster and invoice correctly. This practice builds trust with your customers.

In short, good data management saves you time, money, and headaches. It helps your whole team work better together.

How to Master Your Master Data Management

Step 1: Organize Your Data

The first step to mastering your master data is effective organization. Focus on key types of master data, including:

• Employees: Keep tabs on their skills, roles, pay rates and location to name a few (see more details in steps 2 below). This helps you make the best staffing choices and manage payroll efficiently.
• Equipment: Keep track of everything from usage to maintenance schedules. This way, you will know when each piece of equipment is available and when it needs a check-up.
• Materials: Monitor consumables to keep your inventory levels just right.
• Vendors: Your 3rd party contractors who perform services for you. Keep an updated records of these vendors for better PO management and 3rd party charges (mark ups).
• Customers: Accurate and personalized service begins with up-to-date customer data.
• Billable Items: These are the services you provide, so make sure to manage them efficiently for clear invoicing.
• Price Books: Different jobs, different prices. Keep them organized to give you flexibility and maximize profits.

Step 2: Implement Efficient Tracking Methods

Now that you’ve organized your data, it’s time to keep tabs on it effectively. Efficient tracking is crucial for minimizing losses and boosting operational efficiency. Here are some best practices:

1. Employee Tracking: More Than Just Names and Numbers

Maintaining a comprehensive employee list is more than just having names and contact details. Having all the information you need to manage your workforce effectively is essential. This includes:

General Information:

1. Employee ID number: a unique identifier. – Full name.
2. Current employment type: full-time, part-time, or contract.
3. Employee status can be active, on leave, or terminated.
4. Job title or role
5. Contact information consists of a phone number, email address, and emergency contact. Address (for payroll and tax purposes) and any relevant certifications or licenses.

Payroll Information:

1. Hire date, re-hire date, pay rate (hourly, daily, weekly, or salary),
2. Holiday eligibility, vacation, and sick leave accrual.
3. Termination date
4. Default union
5. Certification
6. Skill

2. Company Tracking: Distinguishing Clients, Vendors, and Subcontractors

Tracking different types of companies is essential for managing various aspects of your business. Here’s how to keep them organized:

1. Company type: Vendor, customer, subcontractor
2. Customer: Maintain a detailed record of each customer, including contact information, project history, payment terms, and any special requirements. This is vital for accurate invoicing and maintaining client relationships.
3. Vendors: Track vendor information, including contact details, payment terms, performance history, and any contracts or agreements. This helps manage purchasing and ensures you’re working with reliable suppliers. Consider rating vendors based on factors like reliability, price, and quality of service.
4. Subcontractors: Keep a record of subcontractors, including their contact information, specialty, insurance details, and any agreements or contracts. This ensures compliance and facilitates smooth collaboration. Track the specific equipment or employees they provide for each project.

3. Location Tracking: Knowing Where Everything Is

Accurate location tracking is essential for managing equipment and personnel. It’s helpful to use a system that allows you to assign multiple location tags to each item. For instance, a piece of equipment might be stored in Texas but also linked to a specific yard within that state. You might want to consider location tags such as:

1. Rental Yard: For equipment stored at a rental yard.
2. Shop: For equipment undergoing maintenance or repair in a shop.
3. State/Province: For broader geographic location tracking.
4. Warehouse: For equipment stored in a warehouse.
5. Job Site: For equipment currently in use at a specific job site. Include the job site address and project name.

 4. Equipment Tracking: A Detailed Inventory

Detailed equipment tracking is essential for efficient dispatching and accurate reporting. For each piece of equipment, record:

1. General Information: Equipment ID number (unique identifier), manufacturer, model, serial number, description, purchase date, activation date (date put into service), termination date (date taken out of service), current status (in use, maintenance, storage), assigned operator, and current location (using the location tags described above). Consider adding photos or videos of the equipment for easier identification.
2. Equipment Costing: Hourly rate, daily rate, weekly rate, monthly rate, and any other applicable rental or usage rates. This is essential for accurate job costing and invoicing.
3. Maintenance Log: Record all maintenance and repair activities, including dates, descriptions, costs, and the technician who performed the work. This helps track equipment lifespan and predict future maintenance needs.

5. Billable Items: Clear and Concise

Accurate tracking of billable items is crucial for accurate invoicing and revenue capture. Organize your billable items into clear categories:

1. Labor: For each labor task, record the name, description, code (for easy identification in your system), daily rate, hourly rate, and weekly rate. Consider adding a unit of measure (e.g., hours, days).
2. Equipment: For each piece of equipment, record the name, description, code, daily rate, hourly rate, and weekly rate. This should align with the information in your equipment tracking system.
3. Materials: For each material, record the name, description, code, unit of measure (e.g., gallons, feet, pounds), unit cost, and quantity used on each job.

By implementing these detailed tracking methods, you’ll create a robust system that provides accurate, up-to-date information, leading to improved efficiency, reduced errors, and increased profitability. Remember that consistency is key – ensure everyone on your team uses the same system and follows the same procedures for data entry.

Step 3: Leverage the Power of Tools To Manage Your Master Data

At this point, you might be thinking that managing all this data in Excel is a daunting task. But fear not! There are awesome tools out there to simplify your life.

Investing in a field service management tool like Aimsio, can be a game-changer. Some fancy features of these tools include:

• Master data management
• Billable items
• Price Books: Easily manage different job rates and strategies.
• Access Management: Control who can access your precious data.
• Job Management: Track projects from start to finish, with all the documentation in one place. And the best part? It’s mobile-friendly!
• Dispatch & Compliance: Ensure jobs are done efficiently and compliantly with streamlined timelines.
• Ticket Management: A one-stop shop for managing fieldwork, making billing a lot less painful.
• Timesheets: Simplify the whole process with crew and individual timesheet submissions.

If you are curious about best practices on how hundreds of heavy construction and energy services companies manage their master data using Aimsio, get a demo to see it for your self.

Step 4: Continuous Monitoring and Improvement

Master data management isn’t a one-off project; it’s something you need to keep an eye on. Regularly check and tweak your systems to make things better. This helps you spot what needs fixing and adjust your plans as you go.

Additionally, pay attention to how you’re using your labour, equipment, materials and how smoothly things are running overall. Keeping tabs on this helps you find ways to work smarter, not harder, and keep your business running smoothly. Make this a regular part of your routine, and you’ll see your field service operations get better and better.

Conclusion

Master data management is a powerful way to gain efficiency and organization in your field service company. By tackling it head-on and following these steps, you’re setting yourself up for success. Remember, it’s an ongoing journey, but one that will pay dividends in terms of better project outcomes and happier customers.