Manufacturing is a multifaceted process that includes raw material procurement, quality production, storage, record keeping, supply chain management, etc. Due to the complex nature of the manufacturing process, data analysis has become a difficult and time-consuming task.
The manufacturing industry faces a lot of challenges, including:
- Data is gathered from various sources, processes and formats. So, data is generally inconsistent, which makes it difficult to generate relevant insights.
- Integrating manufacturing analytics can be difficult because ERPs, production systems, and project management tools are diverse, traditional and large.
- In general, only executive leaders are aware of the rapidly changing manufacturing analytics tools and ecosystems, so it is difficult to establish a data-driven culture.
The industry accumulates huge amounts of data every day and analyzing it to gain useful insights is a challenging task. Manufacturers, however, can gain valuable insights by leveraging Power BI in the manufacturing industry through graphs, charts, reports, and new AI capabilities.
The industry requires big data and business intelligence tools to improve its operations and automate processes. Business intelligence helps manufacturers minimize redundancy and the time spent on inspections. Leveraging data analytics helps the industry to improve decision-making and performance. Hence, it has become imperative to implement Power BI in the manufacturing industry.
Industry 4.0 provides manufacturers with the ability to gather, accumulate, visualize, and extract data from day-to-day factory operations. It must, however, be integrated with the latest technological advancements in AI, advanced visualization, advanced analytics, robotics, and IoT-based devices. We will discuss the advantages of Power BI implementation in the manufacturing industry in this blog in detail.
Let’s look at how Power BI data analytics implementation can transform the manufacturing industry
Industry 4.0 is about integrating multiple technologies into several manufacturing processes. The Industry 4.0 concept is centered around data and insights, which is powered by smart technologies such as IoT, AR/VR, etc. The manufacturing industry can use Power BI analytics to develop sustainable business models, improve production and quality, visualize supply chains and inventory and customize products.
Let’s explore a few areas that can be targeted with Power BI manufacturing analytics
Demand estimation – Customers change their preferences frequently, which affects manufacturers. Manufacturers can figure out what product lines consumers will prefer in the future or which products will be most profitable with the help of demand forecasting.
Vendor analysis – Manufacturers suffer significant losses because of difficulties with raw material vendors. Power BI can help manufacturers to analyze vendor risks for raw material supply. This can in turn allow them to visualize and manage vendors efficiently.
Stock forecasting – Inventory management plays a crucial role in meeting customer demands and ensuring profits for manufacturers. Power BI makes it simple to forecast stock levels for the future and maintain threshold levels to meet customer demands.
Just-in-time – Just in time refers to ‘at the last minute’ management. This concept became popular in manufacturing and supply chain competencies became crucial for maintaining the complete value chain. Last-mile delivery relies on transportation and logistics analysis. You can gain all the integrated insights for each process by leveraging Power BI in your manufacturing processes.
Leveraging Power BI in different operations of the manufacturing industry
Power BI can analyze data in real-time and generate insights using its machine learning capabilities. You can gain actionable intelligence about your shop floor, supply chain, sales and marketing, and financial aspects by implementing Power BI into your manufacturing operations. Consider the following areas where Power BI implementation will improve performance and efficiency:
Optimizing operations– The manufacturing process is complex and involves many interrelated processes, so it is crucial to assemble data from each of them to ensure effective operations. Planning workforce for the manufacturing floor, exploiting production volumes and performing sales and marketing functions are all separate functions. However, data flow between these functions is also important.
Power BI enables real-time manufacturing analytics for proactive analysis of target vs. actual production, raw material, plant competencies and remote monitoring. The manufacturing industry uses Power BI for data connectivity throughout suppliers, manufacturing plants and worldwide locations, as well as for revealing useful insights.
Supply chain efficiencies – Fluctuating business requirements and rising customer expectations have made timely product distribution and shipping costs crucial. Power BI reports help manufacturers visualize their optimum route planning data, transportation expenses, shipment costs and vendor agreements.
Furthermore, insights into each consignment enable manufacturers to negotiate agreements and analyze shipment performance. Power BI provides insights from historical and real-time data to help you address supply chain issues perceptively.
Inventory management – When you maintain the ideal inventory level without distorting manufacturing operations, it minimizes costs and guarantees product margins. Power BI helps you generate remarkable automated reports on inventory status and thresholds. You can share these reports with different teams for analysis and decision-making based on the sales pipeline.
Manufacturers can reduce inventory expenses by monitoring inventory status and visualizing the data using Power Bi in:
- A single view
- Defective inventory
- Stock in and stock out
- Raw material contracts
You can be sure that high-quality products and materials are always available at all locations. Forecasting inventory accurately predicts production requirements, provides a real-time view of stock and allows in-time procurement of raw materials.
Predictive analytics – Predictive analytics offers significant value to manufacturers. This is because data is growing at an exponential rate in every business function and process. The most valuable insights can be gained by disrupting this data completely. One simple application is predicting the future using historical data.
Predictive analytics provides clarity in production cycles, planning inventory, resource planning and future forecasting, demand prediction, etc. Users can leverage advanced AI and ML capabilities, data visualizations, built-in integrations, etc. to gain useful insights through Power BI.
Quality assessment and equipment effectiveness – Predicting a machine’s maintenance requirement and downtime probability helps to take proactive measures and improves equipment utilization. Power BI can help you analyze live feeds from installed sensors and the extensive integration of IoT in manufacturing facilities. It helps stakeholders gain insights into potential maintenance issues and equipment utilization.
It is imperative to maintain product quality to gain customer trust and satisfaction. Hence, manufacturers can use Power BI to effectively analyze critical factors and data patterns. It enables them to deliver insights about fluctuations from standard product features and data.
Financial management – ROI analysis is important for making informed business decisions. Manufacturers can use Power BI for cost-benefit analysis throughout a product’s development process. They can use the AI and ML capabilities of Power BI to visualize and plan a budget for production, enable sales and marketing, and manage inventory and operations. It also allows manufacturers to concentrate on crucial business processes with a detailed analysis of sales enhancement, expenses and revenue factors.
Benefits of Power BI data analytics in manufacturing:
Despite the long list, let’s summarize the benefits in a few points. Power BI helps the manufacturing sector to:
1. Create deeper and more useful insights
2. Access real-time information
3. Turn insights into action
4. Connect with multiple data sources
5. Optimize operations
6. Enhance supply chain competency
7. Efficient inventory management
8. Adept financial management
9. Predictive analytics
10. Assess equipment effectiveness
11. Demand forecasting
12. Minimize operation costs
13. Maintain human resources and automation
14. Enhance decision making
15. Increase ROIs
How Softweb Solutions helps in reforming the manufacturing industry
We assist manufacturing companies in adopting analytical tools to stay ahead of the market by leveraging the core competencies of Power BI. Power BI’s advanced analytics capabilities help a manufacturer to make more informed and profitable decisions.
Our Power BI development services provide intuitive, real-time dashboards, data visualization and analytics capabilities. This boosts productivity and flexibility throughout all manufacturing processes.
We have assisted several manufacturing companies in ensuring smooth and efficient operations of their manufacturing facilities with Power BI. We help sales, marketing, and finance departments to create Power BI dashboards and reports. This helps them to get insightful responses to their queries and results in maximum sales effectiveness and business productivity.
To know more about how the integration of Power BI in manufacturing production will help in the growth of your business, get in touch with our experts.