Manufacturing has emerged as one of the growing sectors in the world. Manufacturing is an industry with multiple aspects: investments, raw materials, production equipment, coordination, planning, organizing, human resources and the most important changing customer needs. Here, data is created at every point. Understanding and analyzing the massive amount of manufacturing data is important to increase the efficiency of the manufacturer.
Analytics is the process of discovering and communicating the meaningful patterns which can be found in data. Analytics turns data into insight for making better decisions.
Manufacturing Industries generate an enormous volume of data, but many have failed to make proper use of this mountain of potential intelligence.
Use of analytics in manufacturing sector provides actionable insights that help company’s most important business decision: which products are yielding lower margins? How to increase profitability by understanding customer needs and category performance? How to improve product scheduling and sales forecasting? how to reduce costs and increase efficiency? How to improve production, plant performance, and product? Since products are at the core of a manufacturing business, the initial focus of analytics is aimed at improvising product development. Other common focus areas include optimizing the supply chain, managing sales and marketing spend, reducing warranty spend, and improving overall fiscal management. Breakthrough observations in these fields can have a good impact on business performance and give an impressive turn to the company. Manufacturers can combine existing data with historical data using analytics to build a projection of what purchasing trends will be in the mere future. Also, the use of analytics helps manufacturers solve previously impossible problems and reveal interesting information that they never knew about. These predictive insights are based not just on historical data, but on processes and how well lines are operating, leading to smarter risk management and less production waste.
To conclude, manufacturers must implement analytics in chunks that will deliver incremental value to the organization in a timely manner. This helps build a positive drive and generates benefits. Manufacturers need to create a closed-loop analytics strategy, in which existing business objectives and analytics projects and capabilities are discussed resulting in a phased strategy that aligns with the organization’s priorities in the upcoming years. Evaluate the results obtained and then adjust the strategy on what you learn.
Analytics has the potential to supercharge the manufacturing business and give a competitive edge in the marketplace.
About the Author
Siddhi Sachin Pise has completed her Bachelors in Engineering (Computer Science) from MIT Pune and then her Masters in Information Systems from University of Maryland, Baltimore County, USA. Currently, she is the Managing Partner of Micro Precision; Manufacturers of Oil Lubrication Systems, Pune. She is currently focusing on the techniques to merge IT in the manufacturing world. Before stepping into the business, she worked as a developer in Cognizant Technology Solutions.
Analytics: A trend for the future of Manufacturing
