creating real value from manufacturing data...
TRANSCRIPT
Copyr i g ht © SAS Ins t i tu t e Inc . A l l r ights reser ved .
CREATING REAL VALUE FROM
MANUFACTURING DATA ANALYTICS
CHRISTOPH HARTMANN, SAS BUSINESS ADVISOR MANUFACTURING
Copyr i g ht © 2012, SAS Ins t i tu t e Inc . A l l r ights reser ve d .
MANUFACTURING
4.0VALUE IS CREATED BY MAKING SENSE OF DATA
Connected
Devices
Data
Knowledge
Action
Smart Factory
Welding gun with
integrated wifi
Offer capacity to
unfinished work parts
Optimize capacity in
flexible production
Smart CitySmart Home Smart Car
Sensors embedded in
road surfaceConnected lock
Bluetooth dongle reading
vehicle data
Detect weather, predict
traffic, sense 911 vehiclesDetect when I leave
Predict unsafe
conditions & likely
collision
Adjust speed limits and
shift lane directions to
optimize traffic flow
Lock the door, set the
alarm and adjust the
HVAC
Slow the vehicle, alert
the driver
Copyright © 2012, SAS Institute Inc. All rights reserved.
To make the Internet of Things useful, we need an
Analytics of Things. This will mean new
data management and integration approaches, and new ways to analyze streaming data continuously.
Thomas H. DavenportPresident's Distinguished Professor, Babson CollegeCo-founder and Director of Research, International Institute for AnalyticsAuthor of Competing on Analytics and Big Data at Work
Company Confidential - For Internal Use Only
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NESTLE CASE STUDY
C o p y r i g h t © 2 0 1 2 , S A S In s t i t u t e In c . A l l r i g h t s r e s e r ve d .
NESTLE DIRECT STORE
DELIVERY FORECASTINGTHE CHALLENGE
115,000 Sell To Locations
260 Warehouses
7 Plants & 78 Lines
950 SKUs
Short Shelf Life
-29C Frozen Freight & Storage ($$$)
A Sales Team Who Hates Service Issues
Forecast Accuracy Level = SKU /
Warehouse / Week
45,000 Active Forecasts
10 Demand Planners
Need a demand planning system that is easy to
use, has a wide range of forecasting models and
is able to handle extraneous variables like
promotions/price or social media information on
new products
C o p y r i g h t © 2 0 1 2 , S A S In s t i t u t e In c . A l l r i g h t s r e s e r ve d .
THE 2 MISSIONS FOR
NESTLEIMPROVE STATISTICS & PROCESS
…Engage The Right People, Not Just Sales
…Schedule Cycles That Build To Consensus
…Nurture Healthy Brutal Honesty
…Pricing & Promotions - Simple
…Market Penetration / Shelf Space / Social Media
…Other Causals (Weather, Competition)
…Multiple Math Model Types Available
…Robust Causal Factor Functionality
…Forecast At All Intersections (Customer, Product, Geography)
…Fast solve performance for large data sets
…Robust Roll Up Capability
…Time Series at Lowest Level
Find The Best Stats Engine Enhance S&OP & Key events
C o p y r i g h t © 2 0 1 2 , S A S In s t i t u t e In c . A l l r i g h t s r e s e r ve d .
THE KEY METRICS &
RESULTSNESTLE
Target Key Metrics :
% Accuracy (at many levels) / Bias / Forecast Value Add
Results:
Significantly improved forecast accuracy as compared with their
existing system
Exceeded 7% MAPE improvement
Lowered inventory safety stock by more than 12%
Significantly reduced Excel spreadsheets
Able to measure the impact of promotions and price change;
providing improved store-level forecasting during promotional cycles
Ability to measure forecast value add by promo and planning role
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LENOVO CASE STUDY
Company Confidential - For Internal Use Only
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LENOVO
• Warranty process was slow
• Integrated data from Amazon, Facebook, Best Buy, Twitter, Lenovo sites, &
dozens more
• Automated analytic early warning process
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LENOVO
X1 Carbon Launch
• Not performing as designed (usability)• e.g., Keyboard
• Not performing as engineered (quality)• e.g., Trackpad
• Driver & software updates• e.g., Windows 8 Updates
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LENOVO
Customer Support
eService
Social Media
Product Reviews Amazon AmazonBestBuyNewEgg
ecommerce: NewEgg, BestBuy, Amazon
Professional Sites & Bloggers
Facebook Twitter Facebook
Google Facebook
Forums Forums Forums Lenovo Central Lenovo Central
Smart Apps
Call Center Call Center Call Center Chat Chat
Voice-to-Text
NA + IN English Multi-Language
POC Pilot Production500 GB – 1 TB 2 TB – 5 TB +100 TB
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LENOVO
• Benefits
• 50-66% reduction in issue detection time
• 10-15% reduction in warranty cost from out of norm defects
• 30-50% reduction in calls for general information
• Future Direction
• Identifying features that customers desire
Copyr i g ht © 2012, SAS Ins t i tu t e Inc . A l l r ights reser ve d .
CASE STUDY:
LENOVOLENOVO- PATH TO VALUE
Copyr i g ht © 2012, SAS Ins t i tu t e Inc . A l l r ights reser ve d .
INNOVATION MANUFACTURING 4.0
Copyr i g ht © 2015, SAS Ins t i tu t e Inc . A l l r ights reser ve d .
SUMMARY
Opportunity for differentiation with power of analytics is out there – ACT!
Learn more about Use Cases across the Supply Chain from SAS and partners
Big Data Analytics-Platforms are the future of manufacturing
Copyr i g ht © 2012, SAS Ins t i tu t e Inc . A l l r ights reser ve d . www.SAS.com
QUESTIONS & ANSWERS