ILMA Compoundings June 2017 - 28

"Capturing data as close to the
transaction as possible with
devices that eliminate human
error is the first strategy your
company should implement."
Two things that can be done to
stop incorrect data from being entered
into your database are capturing data
as close to the transaction as possible
and using error checking within your
company's software.
Capturing data as close to the transaction as possible with devices that
eliminate human error is the first strategy your company should implement.
The use of bar code scanners and
radio frequency identification (RFID)
readers greatly reduces data collection
errors. The use of mobile devices, such
as tablets and smartphones, is also very
helpful in capturing data at the source
and reducing errors.
The second strategy you should
employ is error checking within your
software. Well-written software will
notify the person entering data if that
data is significantly different than
the norm. For example, if a customer usually orders 10 drums but 100
drums are entered, the software will

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JUNE 2017

| COMPOUNDINGS | ILMA.ORG

show an error message stating, "This is
outside the normal order pattern - is
this correct?" This gives the operator a
chance to fix a mistake.
If incorrect data does get entered, then
you want to catch it as quickly as possible. Daily reconciliation reports are the
best method to catch incorrect data.
Once you identify a mistake, it is
critical that it gets fixed immediately, because the bad data can ripple
through the system and make it very
difficult to remedy the situation. For
example, if a raw material on a purchase order is received at an incorrect
cost, it can affect the cost of the finished goods in production, which can
ultimately affect the gross margin on a
sale. In this case, a mistake in purchasing will distort not only the analysis of
purchasing, but also production and
sales. That is why it is so important
that the data is corrected as quickly
as possible. Once mistakes are in the
system, it becomes very difficult to get
them out.

ERP systems have been around for
many years, and a lot of companies
have had the same system for a long
time. Year after year data has been
added. This data ages, and some of it
is no longer valid.
There are two types of data concerns
- old data (Do you really need to
keep data and records older than the
seven years that the IRS requires?) and
data that is no longer accurate or valid.
Data changes, and if your business
has been around for a while and still
using the same system, it is likely that
you have some bad or useless data. A
few of the outdated data elements that
might occupy space and make your
database cumbersome to use include:
* Customers get acquired by other
businesses, or other circumstances
occur which causes their names to
change
* Customers and plants close or go
out of business
* Certain formulas stop being used
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ILMA Compoundings June 2017

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