The manufacturing industry is currently facing huge transitions. Some companies have moved forward by using Industry 4.0 across their production networks. As a result, leading manufacturers now realize the value of data analytics and AI. This would then give way to building analytics software which many companies would want to tap into.
With that said. Let’s explore how building analytics software transforms operations. We’ll get to see how this technological marvel can elevate industrial performance.
The Power of Advanced Analytics in Manufacturing
Advanced analytics is emerging as a huge game-changer as it can deliver huge returns. To give you an idea, McKinsey & Company’s reports show around 30-50% reductions in machine downtime. Aside from that, there’s also a 10-30% increase in throughput. There’s an improvement of 15-30% in labor productivity. Also, advanced analytics provides 85% more accurate forecasting.
Aside from its proven potential, advanced analytics can help you in detecting unseen issues. The two issues in particular are hidden bottlenecks and unprofitable processes. Advanced analytics can also be applied on the following:
- Predictive Maintenance: Forecasting machine failures by analyzing historical performance data. This reduces downtime and extends machine life.
- Yield-Energy-Throughput (YET) Analytics: Ensuring machine efficiency and optimizing production by scrutinizing parameters.
- Profit-Per-Hour (PPH) Maximization Analytics: Assessing total profitability by evaluating all factors affecting hourly profits.
It’s undeniable that advanced analytics brings a lot of benefits. However, these advantages will require you to overcome some hurdles. As manufacturers found out, the journey to implementing it can be arduous.
Real-world Impact of Advanced Analytics
Success stories show the transformative potential of advanced analytics. For instance, a global industrial company implemented it at one of their factories. The result is that their overall equipment effectiveness (OEE) went up by 10%. At the same time, product costs lowered by around 30%.
The organization also invested in sensors and connectivity across this factory. The intent is to gather vast amounts of data. The data is then synthesized through advanced analytic techniques such as AI. The insights would then reveal bottlenecks in production which are then eliminated.
Advanced analytics also enabled predictive maintenance. This will lower the downtime of factories by around 20%. Also, through digitizing workflows, labor productivity went up by 18%. This project showed notable results. This factory is then admitted into the World Economic Forum’s Global Lighthouse Network.
Challenges in Adopting Advanced Analytics
In every success story, there are bound to be numerous challenges for a manufacturer to face during implementation. The path to digital transformation for manufacturing involves the following:
- Acquiring the right talent and skill sets
- Building a data-driven culture across the organization
- Integrating disparate data systems
- Ensuring cybersecurity and data governance
- Demonstrating ROI for analytics investments
- Scaling pilots into enterprise-wide deployments
Here is an analysis explaining the frequent occurrence of implementation challenges.
|Integration with legacy systems
|Lack of talent/skills
|Concerns about data security
Source: 2022 MESA Global Survey Results
The journey towards advanced analytics is an ongoing one with many obstacles to overcome. However, the potential benefits make it well worth the effort for manufacturers looking to leverage data and technology for a competitive advantage.
The Continuous Transformation with Data-Driven Manufacturing
1. Real-time Performance Visualization and Advanced Analytics
Real-time performance visualization and advanced analytics are crucial for data-driven marketing. Data needs to be compiled from different sources in the production environment. They are then analyzed rapidly to provide insights that the manufacturer can act on.
2. The Human Element
Human skills and expertise remain vital when used in conjunction with analytics. Workers require continuous training to leverage analytics tools. Aside from that, they can also integrate data-driven insights into making decisions.
3. Fostering a Data-Driven Culture
Executives must cultivate a culture of experimentation and data sharing for effective adoption. They will also need to re-evaluate traditional processes. That way, they can respond effectively to analytics-generated recommendations.
4. Managing Change at All Levels
For a successful implementation, everyone must be trained in analytics software. From the executives to frontline workers, everyone needs to learn how to use this technology. That way, everyone in the company becomes motivated to work. And at the same time, open to embracing data-driven manufacturing.
5. Sustaining the Transformation
The transformation also needs sustainability. This can be done through updates in analytics systems, retraining, and building up new capabilities. Through continuous evolution, organizations can reap the benefits of advanced analytics.
Implementing Advanced Analytics: A Holistic Approach
Having understood the potential and challenges of advanced analytics, the logical next step is a holistic approach to implementation.
The next step for you to take is to conduct a holistic approach to implementation. Do this when you’ve managed to understand the potential and challenges of advanced analytics. This will involve the following:
- Mastering Data Management: Achieving structured and seamless data retrieval.
- Merging Domain Expertise with Analytics: Effective application necessitates collaborating with experts.
- Piloting and Analytics Labs: Test initiatives in controlled environments to foster success.
- Process Reengineering: Rethink business processes to integrate analytic insights.
- Change Management: Ensure employee buy-in through training and clear communication.
Advanced analytics presents many opportunities for better efficiency and profitability. However, it also needs enterprise-wise transformation. Success will depend on changes done on all levels – from workers to leaders. Through a holistic approach, companies can use data and analytics to enhance performance.
Frequently Asked Questions
1. How does predictive maintenance differ from traditional methods?
Predictive maintenance analyzes data to forecast potential failures and prevent downtime. Traditional methods rely on scheduled repairs, being reactive rather than proactive.
2. What are the top challenges in implementing advanced analytics?
Key challenges include the following:
- Managing data
- Combining analytic skills with domain expertise
- Rethinking business processes
- Driving employee adoption through change management.
3. How can companies sustain the benefits of advanced analytics?
This requires an ongoing transformation, starting with changes in mindsets. After that, you will need to tweak the processes across the organization. You will also need to continuously integrate analytics insights across operations.
Train and Transform Your Organization’s Operations
The road to transforming your operations through analytics software can be a rough one. However, the reward for doing so is huge that it ensures the future of your company. Through advanced analytics, you can be more proactive in ensuring that operations are going smoothly. At the same time, you prevent problems from rising while yielding better results.
You will need to train everyone in this technology; from workers to the leadership. That way, everyone will be on the same page and will embrace advanced analytics. However, you’ll need to take steps to sustain this transformation. Do these and your company will continue to operate in the years to come.