Manufacturing operations currently function as a part of a highly dynamic and volatile supply chain. Manufacturers are challenged with a wide range of risks and uncertainties like changing customer behaviour and demand, competitive pressures, supply chain disruptions, raw material shortages and environmental and regulatory requirements, among others. These have a significant impact on their operations, affecting their production schedules, inventory levels and overall profitability.
With an increasing complexity of managing production with such uncertainties, manufacturers need to have a deep understanding of their operations and the broader supply chain ecosystem. Moreover, decision agility for quick response to rapidly changing scenarios pose a daunting challenge when dealt with paper-based processes or old-school spreadsheets.
Fortunately, connectivity and digitization across the chain has enabled manufacturers to collect and analyse vast amounts of data from their production facilities, suppliers, logistics providers and customers. This is where business intelligence (BI) comes into play.
By leveraging advanced analytics tools and techniques, BI enables manufacturers to gain real-time visibility into their operations and supply chains, identifying potential risks before they cause significant disruptions and leveraging opportunities. With this information at their fingertips, manufacturers can make data-driven decisions, optimise their production processes, improve their overall efficiency and profitability and stay nimble. The areas within manufacturing where BI is making a significant impact are:
Production schedule management: BI helps in making production scheduling more responsive, efficient and effective. By integrating data from various sources, including production lines, inventory systems and sales forecasts among others, BI can provide valuable insights into production capacity, lead times and demand fluctuations.
BI can analyse this data to identify patterns and trends, creating a more accurate day-to-day production schedule, as well as the corresponding dispatch schedule, QC/QA inspection plan, quality management and recording, inventory management, supply management and maximising line utilisation. This results in less downtime, avoids overproduction and reduces the risk of stockouts or delays. It enables manufacturers to make data-driven decisions, optimise resources, and improve customer satisfaction by delivering products on time and as promised.
Financial Management: BI reports provide manufacturers with real-time visibility and insights into financial data, enabling them to make quick decisions that improve financial performance. These insights facilitate understanding the impact of different production schedules, inventory levels and sales trends on the bottom line. BI tools can also identify the opportunities of cost reduction by optimising resources, or developing comprehensive budgets that facilitate optimal planning. BI reports also reveal patterns and trends in financial data, enabling more accurate forecasts that result in better financial strategies.
Machine utilisation and shift management:
BI tools can integrate data sources in real-time from sources such as equipment sensors and IoT devices. This enables manufacturers to analyse data on a real-time basis, allowing them to make informed decisions quickly, identifying areas of operational inefficiencies and taking corrective action to avoid delays across the manufacturing line. Using machine learning algorithms, BI tools can predict equipment issues and prevent production downtime before it occurs.
Furthermore, BI can help manufacturers to optimise machine utilisation by analysing data on machine performance, maintenance and repair, resulting in opportunities to increase line and production efficiency and reduced operating costs.
Gain and align with a customer 360 view:
Companies gain valuable insights into customer behaviour, preferences and trends using BI tools and dashboards, leveraging data from purchase interactions, sales history and marketing campaigns. They are able to spot and recognize unique customer needs, preferences and overall purchasing patterns. This information can be used to offer them customised recommendations, personalised promotions, and targeted content, leading to increased customer engagement, loyalty, and increased revenue.
Another area where BI has been effective is in using AI to predict site and field equipment failure by analysing historical and real-time sensor data and scheduling service proactively. This approach to service not only saves costs associated with downtime and repairs, but also prolongs the lifespan of the supplied equipment, vital for creating customer delight and earning their positive referrals.
Human resource management: BI can be a powerful tool for human resource scheduling, especially in automated warehouses and production lines that require specialised skills. Matching employee competencies with business needs leads to optimised productivity. Based on the analysis of performance data, attendance records and throughput metrics, the most efficient and effective scheduling practices can be identified.
Additionally, factoring in employee skill sets and availability, companies can ensure that their staffing needs are met while minimising overtime expenses. Using a data-driven approach to scheduling businesses improves employee morale by providing consistent and predictable work schedules, thus reducing turnover rates, increased job satisfaction and ultimately improving the bottom line.
Conclusion: By adopting a data-driven approach to managing their operations, manufacturers can gain a competitive edge in today’s fast-paced business environment. The ability to analyse and act on real-time data insights gleaned from BI applications provides them the flexibility and agility needed to respond to market changes quickly, optimise their production runs and ultimately drive growth and profitability.
As the manufacturing industry continues to evolve, it is becoming increasingly clear that BI will play a vital role in shaping its future. With new advancements and applications being developed every day, manufacturers who invest in BI now will be well-positioned to thrive in the coming years.