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Manufacturing Technology Insights | Tuesday, March 03, 2020
Business intelligence enables companies to optimize their efficiency, supply chain management, inventory management, and quality control.
FREMONT, CA: Business intelligence (BI) is a collection of technologies and processes that enable a business to conduct a more in-depth analysis of its data. The objective is to glean insights from that data to allow manufacturers to make more informed business decisions.
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BI data is typically stored in a central data warehouse and may include historical and real-time data. BI employs a variety of sophisticated tools to analyze this data, including online analytical processing (OLAP) and data mining. Global businesses generate 7.5 septillion gigabytes of data per day. Manufacturing is a data-intensive industry, generating reams of data about production capabilities, scheduling, delivery dates, and supply chain management, among other things. According to experts, only 45 percent of this data is used, creating an opportunity to gain additional insight into business operations and processes.
BI enables manufacturers to make better day-to-day and long-term operational decisions by analyzing all of the data generated by their manufacturing business. There are numerous reasons to implement BI in their manufacturing operation; here are ten of the most compelling.
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Enhances Productivity: According to MicroStrategy's 2020 Global State of Enterprise Analytics Report, the top benefit of BI is increased efficiency and productivity, which 64 percent of businesses cite. Because BI enables manufacturers to track uptime and downtime by department, machine, and even employee, they can determine precisely where and how changes should be made. Additionally, BI's predictive analysis enables manufacturers to identify potential production bottlenecks and take appropriate action to maintain continuous operations.
Enables more accurate forecasting of demand: While forecasting demand accurately is difficult, it is necessary for planning purchasing, production capabilities, and inventory requirements. BI can significantly assist with this task, as it can be built on a combination of historical data and actionable real-time metrics.
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Contributes to the improvement of supply chain management: BI can assist manufacturers in gaining greater control over their entire supply chain. Real-time analytics inform manufacturers of the raw materials they require and when they need them, ensuring that they have enough materials on hand to meet projected production requirements. Additionally, BI provides insight into costs of transportation, costs of supply, utilization of materials, and the performance of suppliers.
The objective is to avoid excessive raw material purchases while avoiding out-of-stock situations, which may necessitate switching between multiple suppliers. BI can assist manufacturers in making those choices.
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