Seven Strategies for Making the Most of Manufacturing Data

Summary

The systems that manufacturing companies rely on have the potential to generate vast amounts of data about the status and health of their operations. Yet, in a recent industry survey commissioned by Dassault Systèmes, 20% of manufacturers reported that they made bad decisions daily because of data they did not have, did not trust or did not have the ability to access. By contrast, the same survey found 15 key areas—ranging from quality control to production efficiencies to sales—where 70% or more respondents reported significant business improvements when manufacturing data was considered reliable and accessible.
 

Putting data in manufacturers’ hands

It's clear that automated systems of data collection, record keeping, reporting, analysis and visualization are becoming essential for manufacturing. The question is: How do you take all this data, extract the right information and put it in the hands of manufacturers when they need it? Increasingly, the answer comes from three solutions that are being used to automate and centralize data collection, reporting and accessibility: enterprise resource planning (ERP), manufacturing execution system (MES) and quality management system (QMS) software.
 
Integrated ERP, MES and QMS systems create company-wide information networks that enable organizations to make data-driven decisions in real time. By replacing traditional seat-of-the-pants decision-making, tedious and error-prone manual record-keeping and disconnected information systems, they are empowering manufacturing firms of all sizes to improve performance across nearly all aspects of their operations.
 
The key is integration. For larger companies, that typically means connecting their existing best-of-breed solutions, which often operate as data silos, using application programming interfaces (APIs) or integration connectors. For small to mid-size companies, such integration work can be daunting and cost-prohibitive. In this case, adopting a comprehensive system where ERP, MES, QMS and other functionality is already built-in and pre-integrated can provide a highly effective and affordable alternative.
 

Seven areas for data-driven improvement

Once their integrated software is in place, manufacturers can access the timely, accurate data needed for effective decision-making. For some real-world examples, let’s look at the top seven areas identified in the survey where manufacturing firms are using data to improve their performance.
 
Quality control (47%): A prime example of data-driven quality control is in-process inspections, which are forced by the quality control module. Here, operators (or automated equipment) record periodic measurements. These are captured in the MES and stored in a database shared with the QMS. If a measurement fails to occur, supervisory personnel are notified. This not only catches defects before they become systemic; it also creates data for later use in statistical process control (SPC) analysis and customer documentation.

Business strategy (43%): A foundational aspect of managing operations with ERP systems is access to actual cost data, which can drive product and customer scorecards. It helps to identify the products that are most profitable, what products require price updates and which customers contribute most to the business’ overall profitability—strategic information for managing a business.

Customer service/support (36%): A frequent customer question is, “When can I get my order?” The capable-to-promise feature of an ERP system looks at raw material, machine and labor availability, process and lead times and competing schedules to give customer service representatives the information they need to provide fact-driven delivery time frames to customers.
 
Operator performance (34%): Not all operators perform the same task at the same rate, nor do all machines. Using MES software to automatically track cycle times for both operators and machines provides management with runs-best information, giving them the insight to assign jobs to the people and work centers that perform them most efficiently.
 
Planning/forecasting (33%): A critical strength of manufacturing ERP systems is the ability to use sales orders to create work orders and schedule those work orders to best meet expected delivery dates. The same benefits are gained from forecasting, since knowing historical demand allows manufactures to plan production in advance and ensure inventory is in stock to fulfill expected sales orders.
 
Project management (32%): In manufacturing, not everything is a production run. Some tasks are projects, such as building tooling or installing a new machine. Project management functionality within an ERP system excels at guiding and tracking these procedures step-by-step to completion. Just as importantly, it identifies projects that have fallen behind schedule or exceeded planned cost.
 
Order management (32%): Multiple orders often compete for inventory and production resources. When integrated with MES functionality, ERP software can automatically sort through the constraints and identify a best path forward. This includes not only optimizing production schedules but also identifying whether resources exist in inventory or if they need to be expedited or expanded to prevent late deliveries.
 

Conclusion

The arguments for data-driven decision-making are compelling. However, data silos and gaps can lead to errors or delayed responses. Through the integration of ERP, MES, QMS and other core functionality, manufacturers can gain ready access to the data they need, and they can trust that this data is accurate. The result is a strong foundation for data-driven improvements in efficiency, productivity, profitability and growth.