At times, any manufacturing enterprise can feel like a web of mysteries and riddles. Just keeping track of all the moving parts—from supplier relationships to compliance requirements, from inventory control to shipping—poses a major professional challenge for manufacturing professionals.
A study of California executives by Corvinus University of Budapest demonstrated that even the most rational leaders make up to 80 percent of their decisions based on intuition. By using data analytics to break down the complexities of manufacturing processes and extract intelligence across the enterprise, management and stakeholders can make decisions based on hard facts for timely risk assessment and business improvement.
CEOs may look first to auditors to ensure compliance, but the greatest value may come in the areas of operational effectiveness and efficiency. For example, most organizations require a working fire suppression system that passes regular inspections. But an operational audit may reveal issues such as frequent false alarms, pressure leaks that require costly service calls, and even anomalies such as frequent motherboard failure on equipment in rooms where the leaks occur. In reality, how much is that “compliant” system costing?
Data analytics can help identify potential areas where manufacturers can reduce costs, eliminate inefficiencies, and make better decisions. The possibilities are almost endless, but here are five top areas where Audimation and our flagship data analytics software CaseWare IDEA® software can be used to provide critical information for planning, forecasting and action.
IDEA can be used to set up dozens of tests to monitor critical data fields. For the process of creating a purchase order from a requisition there are some areas where IDEA can help you examine the data in different ways:
Are company sales skyrocketing? This may be an area to investigate further to ensure the numbers are valid. For example:
Dubious return practices can make profit margins unreliable.
Fraud and waste in the supply chain can be a major Achilles heel for any manufacturer. Labor violations, shoddy workmanship requiring product recalls, and intellectual property infringement are just a few of the costly issues that have recently splashed across the headlines to embarrass major manufacturers.
While this complex issue cannot be resolved behind a desk, data analytics can help.
You can set up almost as many tests for this vital area as your imagination can generate.
In addition to these five, there are many more areas in which using data analytics to the fullest can make a significant contribution to the bottom line, including pricing, cash management, and payroll. IDEA is helping manufacturers implement smarter and more efficient processes, increase predictability, and get on top of costly exceptions and fraud early.
Audimation Services is a data analytics company that combines deep industry experience and proven technology solutions to transform raw data into vital information. We are your single source for powerful data analytics technology like CaseWare IDEA®, purpose-built solutions to tackle pressing challenges and rapid-adoption resources for long-term success. Visit us at audimation.com.