How manufacturers can use big data to improve profitability

Leveraging big data in manufacturing

There is one thing that manufacturers, indeed many businesses, all have in common. That is that they all have more facts and figures about what they do than they know how to deal with it all. With so much data available it can lead to challenges for them and in the worst case hold the company back by making the wrong decisions. All too often the information they have is trapped in data silos. Because of this they cannot leverage it and use it to its full potential.

The data that manufacturers collect from spreadsheets, databases and software applications are often so large or complex that normal conventional methods for handling it will not work. Being so complex the data is often referred to as big data. Manufacturing big data can present them with challenges when it comes to analysing it to extract value. Meeting that challenge is important. Being able to analyse and understand such data mean the difference between manufacturers becoming confident in the decisions they make or falling behind to their competitors. If manufacturers are to correctly interpret and use the information they could find themselves achieving greater efficiencies in their operations as well as cost reduction and reduced risk.

Efficiency improvements in real time

One of the ways in which the small and medium business can leverage the data they collect and take control is by using a production control software package such as ProgressPlus. Using such a package businesses can bring together the information they collect on the different stages of the manufacturing process and use it to make strategic decisions. At the same time, it can also help them with stock control. Being able to analyse the data using the package they can leverage the information so that they:

• Deliver orders on time;
• Can see supplier costs; and
• Can see what customers and parts are making them a profit or the opposite, not making them a profit.

To make it a full ERP system ProgressPlus links with popular accountancy software such as Sage and Pegasus. The use of such a system can lead to the small and medium business being able to leverage the data so that they save time and increase their productivity. They can also use the information to show bosses how efficient their staff are by illustrating for example:

• How long staff are working on a particular task;
• When they began and ended work; and
• How long and how often staff take breaks.

Some of the main benefits CM Precision Components are experiencing is having readily available better information that can be easily accessed and acted on. Kieran said: “We can see if there are three or four jobs we are not making money on and then work out what do we need to fine tune. ProgressPlus helps you make better business decisions.”

Data anytime, anywhere

Using ProgressPlus it becomes possible for those who need to have access to the information to have it shown to them on a mobile or tablet device. For the manufacturer, this gives them an advantage. It means that using the information they can take action far quicker than they might have otherwise done. It means that they make the most out of being able to leverage the value of the information they have available.

Big data and strategy – The benefits

For the manufacturer making use of big data in their day to day, operations have benefits. It can lead to benefits such as:

• Spotting patterns in what they do;
• Provide information on where they should target their effort;
• Identify likely new markets; and
• Unlock the hidden information that is available to them.

Making the decisions and using big data can give the manufacturer the advantage of being able to take a more strategic and long-term decision about its future direction. By moving away from the position of just storing the data created by the manufacturing processes, they need to take advantage of it. They need to look at manufacturing big data as being another asset to use for their benefit and get the most value from it so they can stay ahead in the market.