Manufacturing includes multiple processes that are required in production and incorporation of a product’s components. Due to the complex nature of these processes, analyzing business intelligence for manufacturing becomes a tedious task.
Thus, manufacturing companies constantly keep finding ways to make their operations more efficient. They are leveraging big data and business intelligence (BI) to improve their operations rapidly. Data and analytics help at large in increasing their operational efficiencies and business processes. BI helps manufacturing companies in minimizing the time that they used to spend to examine a process before.
Manufacturers need to access and monitor live data to optimize operational processes. Power BI enables manufacturers to analyze performance metrics in real-time with machine learning. Implementing Power BI for manufacturing gives you detailed actionable insights to enhance your production line continuously.
Let’s look at a few transformational benefits of business intelligence for manufacturing operations
1. Efficient management of your supply chain
You can evaluate supply chain logistics and analyze data regularly to ensure timely deliveries and superior service with the help of BI. This helps you to keep a track of consignment costs. With better insights about each shipment, you can evaluate shipment performances and negotiate contracts.
You can measure transportation costs, repair costs, several KPIs and more with the help of BI for an effective supply chain management. It gives you useful insights and analysis based on historical and real-time data to make better business decisions. BI also helps you to realize equipment issues and enables you to address them proactively.
2. Predictive analytics makes you proactive
Business intelligence tools also provide the power of predictive analytics which helps you to discover patterns and behaviors. This enables you to take the necessary actions for improving manufacturing operations. For example, you can schedule the service of equipment before its condition deteriorates and leads to downtime.
3. Assess equipment effectiveness
There are so many factors that may lead to inefficient production. For example, issues arising in equipment due to poor installation, misuse, poor maintenance, frequent downtime, etc., affect production adversely. So, to maintain proper functioning of manufacturing operations, you need to keep a check on these factors. The incorporation of data analytics and business intelligence in manufacturing keeps you informed about your machines’ health. It gives you real-time insights into the operational status of your manufacturing lines. All in all, BI helps to streamline workflows in your production unit.
An update to the Worldwide Semi-annual Big Data and Analytics (BDA) Spending Guide from International Data Corporation (IDC) also shows that BDA revenues will maintain this pace of growth throughout the 2018-2022 forecast with a five-year compound annual growth rate (CAGR) of 13.2%. By 2022, IDC expects worldwide BDA revenue will be $274.3 billion.
4. Demand forecasting
Demand forecasting is extremely important for every business to plan their production, inventory and supply chain. Companies use historical data for forecasting, but the incorporation of data analytics gives the real image of their actionable data. This requires proper alignment of your operations and results in smarter risk management and minimum production waste.
5. Optimize financial management
You can use BI in manufacturing for analyzing several departments like P&L, sales, inventory, assets, etc. This gives you an idea about the exact ROI from each section. BI provides you an in-depth cost-benefit analysis, with the help of which you can find new ways to generate revenue and save costs. For example, a Power BI dashboard for manufacturing operations helps in monitoring inventory and supply chain. You can also view real-time data from multiple sources on a single dashboard from any device and have a detailed analysis of accounts, sales, purchases, asset management as well.
Importance of analytics for manufacturing
Analytics for manufacturing helps your management teams to optimize resources and attain maximum output with minimum outlay. BI helps manufacturers in:
- Innovative planning for better business growth
- Streamlining operations
- Optimizing resource allocation
- Perpetuating material inventory
BI adds value to manufacturing
BI gives a clear business picture to users with valuable insights into business processes. It helps you to resolve issues faster. BI also helps to forecast and predict demands for resources and inventory requirements.
The final say
The manufacturing industry is progressively implementing BI in all its operations. Companies are looking for solutions to optimize their complex processes and at the same time, capitalizing on their turnover. The incorporation of BI in manufacturing is generating new ways of unearthing manufacturing intelligence and making it more accessible. The greatest benefit of integrating business intelligence is that it enables you to grow your business by making the most of what you have on hand. Are you looking to strengthen your manufacturing cycle and modernize the entire process? To know more about the implementation of power BI in manufacturing operations, get in touch with us.
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