Data collection and analysis are an integral part of our society, and are important activities we use to inform our decisions. Big data is no exception. Made up of extremely large sets of data that can be analyzed for trends and other information, big data is extremely useful and relevant when determining strategies and plans for communities and companies. In fact, its changing the face of many different industriesincluding manufacturing. Lets take a look at how big data is revolutionizing the manufacturing industry.
Big Datas Role in the Manufacturing Industry
Made in the USA is a proud label attached to goods manufactured on U.S. soil. While this label doesnt necessarily assure good quality, most U.S. manufacturers are dedicated to producing well-made goods and paying workers fair wages. A recent report from Ohio University found that the manufacturing industry represents 12% of the countrys gross domestic product (GDP), and that these goods raked in $1.2 trillion from exports in 2013. American manufacturing is becoming stronger again, with a 30% increase in output since the end of the recession, and 54% of manufacturers considering bringing their production back from overseas.
Why is manufacturing experiencing such a positive surge in the United States? Part of it has to do with the impact of big data on the manufacturing process. There are several ways that big data is improving manufacturing in a variety of industries, including:
1. Improved Demand Forecasting
Using big data sets, analysts can better predict the demand for products, a process which was improved by 46% with big data, according to a LNS Research and MESA International survey. This prevents companies from wasting time and resources on inventory that is unlikely to move quickly.
2. Productivity Gains
By analyzing large data sets, manufacturers have been able to boost their productivity by 30%. Understanding plant performance (which was increased by 45% in the LNS/MESA survey), and being able to measure the operating data at an individual machine and operator level are key factors in increased productivity.
3. Better Accuracy, Output, and Quality
There are hundreds of factors that go into making a complex biopharmaceutical product such as a vaccine, that tiny variations in the ingredients and environment can reduce overall yield. Before big data was introduced to the manufacturing industry, this product would just be a loss. Now, with the ability to pinpoint different metrics, accuracy, quality and yield of vaccines has improved dramatically. As an example, manufacturer Merck conducted 15 billion calculations and 5.5 batch comparisons to improve one of its vaccine productsmaking a more efficient and accurate product.
Big data use in manufacturing can reduce product and assembly costs by 50%, and 7%–compelling statistics for manufacturers. With such large success in cutting cost, many companies are now starting to favor big data and predictive analytics to increase return on investment over typical six sigma practices.
Big Datas Impact on Automation
Automation is defined as using science and technology to increase efficiency and output with reduced human operation. We have been implementing various types of automation throughout human history, and today we are creating new solutions for automation at lightning speed. For example, today we use robots in many different industries, like the automotive industry, to help improve production while requiring less manpower. Robots like IBMs Watson, who are able to analyze large amounts of data and understand context in order to provide solutions to complex problems, are also revolutionizing automation.
Automation services are a big business in the United States. The revenue of the industrial control and factory automation market will likely reach $202.42 billion by 2020 which is a compound annual growth rate of 6.7%. 98,900 robots were installed in the automotive industry in 2014 alone, 43% more installations than the year prior.
How Big Data and Automation Benefits the Manufacturing
As time goes on, well see even more uses of big data and automation in the manufacturing industry, with more data and robot-assisted functions becoming more and more efficient. Some benefits will include:
- Proactive maintenanceembedded sensors in products offering maintenance services, providing opportunities for both the customer and manufacturer.
- Identification of new niches or micro marketsfinding unserved markets using data and creating specialized products.
- Connect with customersidentifying customers specific needs and pain points and coming up with solutions to meet those needs, fostering customer intimacy and trust.
- Offer efficient customer service enhancementsusing data to improve services for customers (yet another source of revenue), such as consulting and installation.
Big data is an opportunity for manufacturers and customers alike to reduce waste, focus on better products, and more efficient production.
