The Impact of AI and Advanced Analytics in Manufacturing

This article appeared in the Sep/Oct issue of MiMfg Magazine. Read the full issue and find past issues online.

The manufacturing space is growing increasingly dynamic, and with those changes comes a need to apply innovation.

Advanced analytics and AI should now touch every facet of your value chain, from inventory forecasting and procurement to quality control and production. Embracing these technologies holistically can better position your company for success while increasing efficiency and agility across your operations.

When implementing AI and advanced analytics in manufacturing, consider their synergistic relationship across key aspects of your operations, including:

Inventory

Advanced analytics and AI allow you to take a proactive approach to inventory, helping increase customer satisfaction, reduce carrying costs and free up working capital for more strategic investments. These tools leverage historical sales data, external factors and market trends to provide highly accurate demand forecasts. They can also continually refine predictions and identify patterns to help you anticipate demand fluctuations and adjust production.

Procurement

Optimizing procurement is critical to improving cost management and efficiency. AI-driven procurement solutions can streamline operations by automating routine tasks. Manufacturers are also able to make quicker procurement decisions by having real-time analysis of risk factors, market dynamics and supplier performance. Predictive analytics can help you anticipate supply chain disruptions which helps minimize operational risks and ensure business continuity.

Maintenance

AI can help you implement predictive maintenance to maximize asset performance and minimize downtime. Algorithms analyze data from equipment, sensor readings and maintenance records to predict failures before they occur. With these insights, you can optimize maintenance schedules and perform proactive maintenance to extend asset lifestyles. Predictive maintenance enables seamless production operations that help reduce costs and enhance effectiveness.

Quality control

Consistent product quality is vital for maintaining customer satisfaction and brand reputation. AI allows you to analyze real-time production data to quickly detect quality issues or defects and minimize scrap, rework and warranty claims. Integrating AI-powered quality control solutions into your production process helps ensure consistent quality and drives customer loyalty.

Supply chain

Enhancing supply chain visibility and agility can minimize lead times, mitigate risks, reduce costs and facilitate a seamless material flow — all part of meeting customer demands with on-time delivery. But modern supply chains are often complex and interconnected, requiring management that’s equally efficient and agile. AI-powered supply chain optimization solutions help you leverage data to predict demand, streamline transportation routes and optimize inventory.

Production

An efficient production plan and schedule is critical for resource utilization and maximizing throughput. Insights from AI algorithms can be used to dynamically adjust production plans based on changes in demand signals and resource availability. They analyze demand forecasts, resource constraints and historical production data so that you can optimize production schedules in real time, minimize idle time, optimize efficiency and better meet customer delivery requirements.

Sustainability

Corporate social responsibility and sustainability are increasingly important in modern manufacturing. Energy management systems that use AI can analyze your energy usage patterns, identifying opportunities to improve efficiencies and minimize energy waste. With improved energy management, your business can lower operational costs, enhance compliance and align your business goals with better environmental stewardship.

About the Author

Kate Brown is a partner with Wipfli, focused on data and analytics. She may be reached at kbrown@wipfli.com.

Wipfli is an MMA Premium Associate Member and has been an MMA member company since February 2018. Visit online: wipfli.com.

This article was originally published on the Wipfli website.