Little brings value to industry like the use of analytics. In manufacturing, every second saved can translate to revenue earned. Data is how you get there.
Among the money aspects of data implementation in business, predictive analytics is improving industry standards to offer greater potential and efficiency. Predictive analytics uses big data to explore probabilities for future trends and output. This gives manufacturers tools to better manage inventory, supply chains, and heavy equipment for ultimately improved products and practices. It is estimated that integrating predictive analytics will save manufacturers $630 billion by 2031. So what improvements does predictive analytics offer manufacturing to bring in that value? We explore this question and more to address the benefits of predictive analytics in manufacturing.
Predictive Analytics allows trained data experts to generate useful insights out of vast quantities of data. Most technological strategies involve elements of artificial intelligence such as machine learning to mine for data and create statistical models that explore a potential future.
The scope and potential of this modeling are virtually limitless. In every industry, its application means enhanced value. In healthcare, for example, predictive analytics has proven to be especially important and valuable, expected to grow at a compound annual rate of 14.56% into 2025.
For marketing and sales, the processes made possible by big data are transforming the industry. B2B marketers and sales teams can now effectively analyze markets, create targeted sales models, produce more effective content, and much more.
In manufacturing, improvements range from predictive maintenance to waste reduction that has undeniable potential for increasing sustainability measures while increasing economic viability. Like any new technological integration, there are pros and cons to predictive analytics in manufacturing. However, the benefits seem to outweigh the potential negatives.
Here are just a few of the improvements that predicted analytics is bringing to manufacturing:
- Enhanced productivity. Predictive Analytics brings incredible power to production line efficiency. Through data generated by sensors and monitors, every aspect of time and motion can be examined on the factory floor to see where processes can be improved. Additionally, data models can effectively create a virtual copy of machinery through a process known as digital twinning.
By having access to this kind of information, predictive analytics algorithms can carry data models into the future to explore how process changes can bring up overall production values. This means a factory that can produce more inventory or manage inventory as needed by supply and demand predictions.
- More effective quality control. Predictive analytics is not just for production processes. It works for managing product quality as well. Sensors in production machinery can analyze when faulty products are produced, and provide recommendations for the future. This can take the form of predictive maintenance which will generate insights based on when machinery needs to be fixed or replaced in order to maintain the quality and efficiency of your production line.
With greater quality control manufacturers can save millions as well as reduce waste from faulty products and practices.
- Invaluable insights. Supply chain challenges in the wake of the COVID-19 pandemic proved to manufacturers how essential it is to have predictive modeling systems for managing inventory and supply. While no one could have predicted the demand fluctuations that occurred as a result of the pandemic, having analytic systems in place that generate supply chain routes, as well as potential needs for a range of buyers, can ensure that manufacturers are better prepared for the next inevitable crisis.
These improvements to manufacturing brought by predictive analytics are making their way across global trade. Any B2B company stands to benefit from the integration of predictive analytics into their manufacturing process. The waste reduction and efficiency brought about by these data tools also offer benefits for the environment and can help economize sustainable products like electric vehicles.
Predictive Analytics and the Electric Vehicle
Through predictive analytics, electric vehicle production is taking a sharp turn into a valuable and growing market sector. Currently, the Chinese production of electric vehicles makes up nearly half of this industry. By integrating predictive analytics, manufacturers in America and other parts of the world can take advantage of this burgeoning market to build their revenues and help the economy.
While the current costs to manufacture an electric car is beyond that of a traditional vehicle, predictive analytics offers the tools to reduce the production cost and increase the manufacturing levels of electric vehicles. Predictive modeling can show manufacturers where time or resource-saving measures can be implemented.
Additionally, modeling new production strategies such as 3D printing or other additive processes can help manufacturers explore new methods of creating electric vehicles that are consumer and environmentally friendly. In turn, this could bolster the economy through the creation of jobs while increasing environmental sustainability through pollution reduction.
This is just one example of a product that can be transformed through predictive analytics. Advancements in this technology and data use mean a cleaner, more efficient world. But first, we must eliminate the barriers to progress.
Eliminating the Barriers to Progress
The implementation of predictive analytics can shore up revenue-growing procedures while reducing the threats faced by any mid-market manufacturer. By using data analysis to analyze current processes and model future results, companies can build more efficient, safer, and higher-quality products and practices that serve the larger goal of a thriving economy and environment.
As more companies begin to use predictive analytics techniques in manufacturing, more innovations will emerge that will continue growth in this sector. In the meantime, businesses should make use of these tools to create efficient practices that carry them through the pandemic economy and beyond.
This is a guest post. We welcome guest posts about helping manufacturers increase sales and/or advance their marketing function. Email in your idea and you too could be a guest blogger on MMG.
Guest blogger - Beau Peters is professional with a lifetime of experience in service and care. As a manager, he has learned a slew of tricks in the business world and enjoys sharing them with others who carry the same passion and dedication that he brings to his work. When he is not writing, he enjoys reading and trying new things.
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