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2012 JULY 29th




         Business Intelligence
         in Manufacturing
         A White Paper
         With increasing competition and ever more demanding customers,
         manufacturing is never easy. Use of BI can significantly improve both
         the performance and power of manufacturing reporting.




                                                         MAIA Intelligence
                                                                 July 2012
Business Intelligence in Manufacturing



                    Table of Contents




                    INFORMATION NEEDS OF MANUFACTURING ARE UNIQUE      3

                    BUSINESS INTELLIGENCE IN MANUFACTURING             4

                    APPLYING OLAP TO THE NEEDS OF MANUFACTURERS        7

                    COMPONENTS OF A TYPICAL BI FOR MANUFACTURING      11

                    APPLYING BI TO THE NEEDS OF MANUFACTURERS         13

                    BI IN OTHER AREAS OF MANUFACTURING                15

                    IS THERE A WAY OUT?                               16

                    TYPICAL ARCHITECTURE OF A BI                      17
    2 Page




MAIA Intelligence White Paper                                   July 2012
Business                     staggering amount of data.
Intelligence
in                           IT departments have taken advantage of hardware
Manufacturin                 improvements to economically store the increased data,
g                            however there never seems to be enough time or resources to
                             meet the needs of factory managers who face the “fact gap”
                             that exists between the data and the usable information
               1.
                             required to make real business decisions.
               INFOR
               MATI
                             Agile enterprise is always one step ahead of the competition,
               ON            which cultivates a responsive environment and delivers major
               NEED          improvements in lead time, product quality, and lower
               S OF          production costs.
               MANU
               FACT          Optimizing performance requires managers to have an in depth
               URIN          understanding of how products and customers consume
               G ARE         resources and this is why manufacturers adopt more
               UNIQ          sophisticated cost and profitability analytics - solutions that go
               UE            beyond production and include the supply chain, support
                             functions and infrastructure.
               With
               increasi      With a robust and reliable understanding of costs and
               ng            profitability and their sensitivity to changes in demand,
               compet        managers are able to make informed and incisive decisions
               ition         about strategy and tactics.
               and
               ever
               more          For certain manufacturers, where the product or the delivery
               deman         method is tailored for the individual customer, it may be
               ding          appropriate to use Transactional ABC, calculating cost and
               custom        profitability analytics at the micro-level by individual customer or
               ers,          individual transaction.
               manufa
               cturing       Manufacturing MIS
               is
               never          Material requirements planning (MRP)
               easy.                Determine when finished products are needed
                                    Determine deadlines accordingly
               While          Manufacturing resource planning (MRPII)
               factory              Network scheduling
               floor                Improve customer service and productivity
               automat        Just in time (JIT) inventory system
               ion has              Inventory and materials delivered right before usage
               significa
               ntly          They adopt Business Intelligence (BI) Reporting & Analytics
               improve       software as part of their strategic approach for attaining their
               d       all   goals. They are streamlining the information flow both across
               areas of      the organization and through the tiers of the supply chain to
               processi      reduce cycle and manufacturing times and adapt quickly to
               ng     for    market changes.
               manufa
               cturing
               compani
               es,      it
               has also
               created
               a
3 Page




MAIA Intelligence White Paper   July 2012
Business                   aggregating records together with common characteristics.
Intelligence               Problem with this technique includes inherent inflexibility and
in                         inability to cope with the constantly changing information needs
Manufacturin               of manufacturing.
g
                           BI helps companies in the manufacturing industry:
               2.             Increase the value of customer relationships
               BUSI           Respond quickly to changing markets and company sensitivities
               NESS           Accelerate new product time-to-market
                              Reduce inventory investment
               INTEL          Improve planning, scheduling, and the procurement schedule
               LIGE           Maintain and develop quality assurance
               NCE            Select and apply world-class technologies
               IN
                           BI can be used to increase the flexibility and speed of operational
               MAN         reporting.
               UFAC
               TURI           Quickly generate established reports
               NG             Easily create ad-hoc reports
                              Isolate specific problems
                              Analyze data across multiple systems
               Report         Integrate new data sources
               s
               generat     BI helps manufacturers give them better visibility of their
               ed     in   financial performance and the insight and understanding to
               high        improve it. These include solutions for cost and profitability
               data        analytics and solutions for operational planning and budgeting.
               volume      Being able to quickly assess the impact of internal and external
               environ     changes, BI helps such companies become more agile and
               ments       better able to keep the bottom line on track.
               normall
               y take      Manufacturing Scheduling and Production Planning
               a long
               time to     Manufacturing planning encompasses the hourly / daily / weekly /
               run. To
                           monthly production and machine schedules across multiple plants
               speed
                           or production lines to meet orders or forecasted demand. Success
               up
                           hinges on accurate materials planning. Manufacturing managers,
               report
                           product managers and purchasing analysts review metrics such as
               generat
                           production capacity and current inventories to plan appropriate
               ion,
                           production schedules, ensure raw material availability and make
               many
                           plant reallocation decisions when appropriate. Basic analysis
               system
               s use       includes real-time status of plant utilization and trends in market
               tools       demand versus planned production runs. Advanced analysis
               that        includes hedging analysis on commodities used in production,
               employ      forecasting of machine output and linear programming to optimize
               a           production resources.
               summa
               rization
               techniq
               ue     to
               reduce
               the
               amount
               of
               records
               by
4 Page




MAIA Intelligence White Paper   July 2012
Business                          or issue resolution) through analysis of historical
Intelligence                      statistics, expected lead time, and inventory levels
in                               Analysis of current usage of products to go for new range
                                  of products.
Manufacturin                     Tracking service, to better predict and prepare inventory
g                                 and production levels.
                                 Benchmark distributors, regions, and individual locations
                                  against each other in an attempt to foster increased
               Followi            attention to goals and metrics, as well as reward high
                                  performers and aid underachievers.
               ng
               busines
               s area     To overcome they need to maintain optimum level of inventory
               are        so as to avoid overstock / short-supply and bring innovative and
               prime      profitable schemes at marketing level. Business Intelligence is
               areas      the right tool that will helps in achieving this.
               of
               concer     BI helps in keeping managers updated / equipped with state-of-
               n for      the art and exact information that helps in taking critical
               manufa     business decisions rather than going on assumptions.
               cturers:
                          BI helps improve visibility and communication across
                         increasingly complex manufacturing supply chains, while
                          satisfying customer demands for new products and product
                          enhancements.

                          Using above one can assess cash-management and monitor
                          operational effectiveness of the payables department to ensure lowest
                          transaction costs. Identify most profitable customers, products, and
                          channels, and understand profitability drivers across regions,
                          divisions, and profit centers. Improve inventory management for those
                          products that consistently fall into backlog due to a lack of appropriate
                          stock levels. Gain visibility into inventory activities to minimize
                          unnecessary expenditures and optimize inventory to conserve
                         working capital. Gain detailed visibility into direct and indirect
                          spending, and identify opportunities for consolidation and reduction of
                          costs. Monitor price, delivery, and product quality to determine best -
                          and worst-performing suppliers.

                          Business Intelligence tools mainly are being accessed by top
                          Management who need to obtain strategic information that can
               
                          help them decide the future course of action, help in taking
                          strategic decisions. Business Intelligence is still being more
                          equipped for decision making, predicting trends, analysis,
                          delivering information.




               
5 Page




My White Paper – Aditi Tarafdar , Tapas Kr Paul   July 2012
Business                  In the current environment delivering the key information to the
Intelligence              key people has gained extra importance that can help plan for
in                        production, reduce hidden costs, keep optimum level of
Manufacturin              inventory, and maximize profits.
g
                          Changing Customer and Distributor requirements, Internal Operations
                          demand an optimal way of decision making by the manufacturer.
               Manufa
                          Each manufacturer has its own processes, own tacking system, order
               cturing
                          processing and its own challenges. All this add up to the need of
               Industr
                          having effective BI system in place and providing results out of it.
               y need
                          Again there has been long debate on the quality of data that is
               to look
                          available with manufacturing industry as for most of them they have to
               out for
                          depend on external parties like retailers, distributors, contractors,
               a
                          suppliers , its own customers, others. If a proper feed is given to
               solution
                          Supply Chain and Order management that will definitely ensure deep
               that
                          customer insight and inventory data for better and effective decision
               can
               help       making.
               them
               lower      One of the challenges that manufacturing industry face is due
               lead       to changes in demand. If managers have a proper
               time,      understanding of costs and demand, they can make better
               help in    decisions. Some of the manufacturer’s also have a customer
               reducin    specific costing. Improved Visibility in Procure to Pay is helpful
               g          to optimize the supply side performance.
               product
               ion        Manufacturing Companies product portfolios are larger to
               costs,     manage, has large number of suppliers to negotiate on cost
               improv     and quality, maintain huge inventories which need to be tracked
               e          and moved to meet customer demands. Along with this there is
               product    always a need to analyze / identify customer need, maintain
               quality,   and improve customer delight, add customers so as to remain
               better     in business and be profitable. BI definitely helps in making right
               trackin    decisions to overcome these pressures and helps to manage
               g and      and sustain in business in this complex environments.
               improv
               e          “A manufacturing company like ours requires key performance indicators from
               custom     scattered data.
                          Also rolling out BI to the bottom of the pyramid and not restricting it to the few
               er
                          users helps achieve quick & important business gains in short time in
               satisfac   reasonable costs. Forward visibility and data analysis gives right tools to
               tion.      middle and senior managers to proactively look at business directions and
               Manufa     take corrective actions before the problem hits. 1KEY BI saves lot of time in
               cturing    analysis over traditional method of reporting. With BI, decisions are taken at
                          right time which improves business performance.”
               Industr                                                                                - Zoeb Adenwala, CIO,
               y                                                                                      Essel Propack
               needs
               to         About Essel Propack Limited: Essel Propack, part of the USD 2.4 billion Essel Group with
                          turnover of over USD 300 million, is the largest specialty packaging company – manufacturing
               respon     laminated and seamless or extruded plastic tubes, and medical devices. With over 2700 people
               d          representing 20 different nationalities, Essel Propack functions through 25 state of the art facilities in
                          thirteen countries, selling 4.5 billion tubes and continuing to grow every year. Holding a market
               quickly    share of 32% in the laminated tubes domain, Essel Propack leads as the world’s largest
               to         manufacturer with units operating across countries such as USA, Mexico, Colombia, United
                          Kingdom, Poland, Germany, Egypt, Russia, China, Philippines, Singapore, Indonesia and India.
               changi     These facilities cater to diverse packaging needs of consumers and include oral care, cosmetics,
                          personal care, pharmaceutical, food and industrial sectors, by offering customized solutions. Visit
               ng         www.esselpropack.com for more information.
               market
               environ
               ments.
6 Page




My Intelligence White Paper – Aditi Tarafdar , Tapas Kr Paul   July 2009
Business                   dimension and measure elements are combined into an OLAP
Intelligence               “cube” for analysis. The OLAP cube is powerful enough and
in                         specifically designed to do this without costly modifications to
Manufacturin               system architecture.
g
                           The tools available for OLAP analysis allow manufacturers to
                           examine data spanning multiple systems and to compare data
               3.          across a wide range of subsets including:
               APPL
               YING           Date/Time
               OLAP           Shift/Crew/Employee
               TO             Supervisor
                              Product (Category/Sub-category)
               THE            Lot/Batch
               NEED           Quality code
               S OF           Customer
               MANU           Machine/Class
                              Area/Plant
               FACT
               URER        BI is designed to provide meaningful answers to analytical
               S           business questions. Cube building consists of processing
                           measures saved in the BI system to pre-summarize or aggregate
               Perfor      data based on the dimensional slicing configured for the reporting
               mance       system. Measures can be of many formats:
               is
               improv         Length/Width/Thickness measurements
               ed by          Temperature and Pressure
               applyin        Laboratory values Color/Hardness/Uniformity
               g              Weight/Quantity
                              Time to build/process
               essenti
               ally the    Computed values allow for more advanced analysis:
               same
               summa          Average/Range
               rization       Ranking (top 10 worst quality)
               techniq        Standard Deviation
               ue, but        Tolerance variance
               the
               commo       The OLAP server performs aggregations with the level and
               n           number of aggregations determined by the size and desired
               charact     performance of the OLAP system. For example, total quantities
               eristics    can be summarized by machine, by shift, and by day to give the
               and         best performance for the given server resources. To achieve
               indicato    optimum performance, the OLAP server automatically uses the
               r           best aggregation when querying the data set.
               parame
               ters
               can be
               quickly
               change
               d      to
               answer
               new
               questio
               ns as
               they
               arise.
               The
7 Page




My Intelligence White Paper – Aditi Tarafdar , Tapas Kr Paul   July 2012
Business Intelligence in Manufacturing


                    Quickly generate established reports

                    Without cube processing that performs summarization or the use of
                    complex, custom applications that summarize data, reports can take
                    hours to generate, to the point of becoming unusable.

                    Report performance – Real world example #1

                    A tire manufacturer used BI to better predict when to replace grinder
                    stones used during a manufacturing process. Whenever tires are ground
                    to correct non uniformity, the grit on the stones wears down, eventually
                    reducing effectiveness and increasing cycle time. A preventative
                    maintenance (PM) crew checks the condition of each stone on a periodic
                    basis, but since each stone’s wearing characteristics vary according to
                    the product mix ground and the amount of utilization, the use of calendar
                    scheduling to check stone wear resulted in many stones that were either
                    changed unnecessarily or not changed when they should have been.

                    The attempted solution was to simply accumulate the grind time by machine
                    and report this information to maintenance. The initial PM report—extremely
                    slow, taking more than a half-hour to generate—was unacceptable.

                    In a subsequent OLAP solution, the grind stones were identified in a
                    dimension, with a simple dimensional property that clipped out old grind
                    stones as they were replaced by maintenance. Because the OLAP
                    environment aggregates the grind time, the reporting was instantaneous.
                    Maintenance received timely information that allowed them to concentrate
                    their effort on the stones most likely requiring replacement (decreasing
                    machine downtime), with the added benefit of extended grind stone life.
                    This solution was implemented at a low cost since only a minor OLAP
                    change was necessary to keep track of grind stone changes.

                    Easily create ad hoc reports

                    BI systems are not only designed differently than traditional On-Line
                    Transactional Processing OLTP database designs, they are
                    fundamentally easier to use.

                    OLAP displays “drag and drop” report selections that allow the end user
                    to make advanced queries without any programming knowledge. After
                    just a few reports the break even (B/E) point for OLAP reporting can
                    result in significant cost savings.
    8 Page
My Intelligence White Paper – Aditi Tarafdar , Tapas Kr Paul   July 2012
Business                  ing decisions, and generate other labor related reports. This
Intelligence              was a high cost operation, not only because of the intense
in                        manual effort required but also the cost of lost opportunity—
Manufacturin              reporting that could have been done but was not due to the
g                         difficulty of assembly or the painful wait for an IT programmer to
                          become available to implement any necessary changes.
               Ad hoc
               reporti    OLAP installation eliminated the requirement for Excel as a
               ng         reporting tool and significantly reduced reliance on IT for
               made       additional, specialized programming. Excel could still be utilized
               easy –     for some forms of analysis, albeit significantly improved by
               Real       ProClarity’s ability to move data directly from the OLAP
               world      environment to an Excel sheet.
               exampl
               e #2       Isolate specific problems

               For one    The dimensional organization of BI systems allows for easy “drill
               supervi    down” analysis, where data can be sliced and diced to examine
               sor, an    different data sets. In many cases manufacturers are looking to
               end of     compare operations between set standards—machine to machine,
               month      shift vs. shift, etc. Using a graphical visualization tool for analysis
               task       can help to quickly identify production outliers.
               was to
               export
               producti
                          Striking a balance – Real world issue #3
               on labor
               reports    Downstream systems seemed to be starved for components again
               into a     and again. Maintenance and production personal could not agree on
               CSV        where the problems originated. BI analysis of machine downtime and
               (Comm      maintenance, production output by area, and other key metrics led to
               a          several discoveries, including:
               Separat
               ed            Maintenance staff imbalance. Some areas received too much
               Value)         coverage while other areas received too little, creating
               file and       downtime ripples.
               import        Production bottlenecks. Production found that some of their
               the data       mid-stream machines were not able to produce as
                              expected, requiring expenditure for specific equipment.
               into an
               Excel      Implementation of changes that focused on these discoveries
               spread     resulted in factory output that increased by an astounding 40%
               sheet.     over the next year.
               From
               there it   BI systems allow end users to uncover facts that were previously
               was the    unknown.
               supervi
               sor’s      Because it gives the end user the ability to drill down into fact
               task to    tables and to examine, compare, and analyze data, BI is the
               manipu     effective bridge that overcomes the “fact gap.”
               late the
               data for
               monthl
               y
               perform
               ance
               reports,
               make
               schedul
9 Page
My Intelligence White Paper – Aditi Tarafdar , Tapas Kr Paul   July 2012
Business Intelligence in Manufacturing


                    Examine issues across multiple systems

                    Often the data systems within an organization have such limited interaction that
                    creating a report that interacts with two or more systems is complex at best. A
                    major obstacle is that the data is still organized in an OLTP / transactional format.
                    BI technology overcomes these types of problems by design.

                    QA clues – Real world issue #4

                    Intermittent quality problems were found during final assembly of a
                    product. The problem did not appear to be associated with a machine or a
                    raw material lot.

                    The OLAP system was originally designed only to investigate upstream machine
                    calibration issues which might not show up until final assembly. BI allowed the
                    easy addition to the OLAP database of time card information from a Kronos
                    scheduling system. The additional time card information analyzed against the
                    backdrop of the original OLAP data helped management determine that a float
                    operator followed the quality problems downstream.

                    Integrate new data sources

                    As with most information systems, the only constant is that the systems will be
                    changing. The architecture in a BI system is generally organized to meet the
                    business needs of end users, rather than the technical needs of the computers.

                    The addition of new data collection points, new dimensional information, or even
                    completely new data systems can be handled by applying BI technology.

                    New equipment – Real world issue #5

                    A sophisticated set of reports already existed, so when they learned that a
                    new product would require an additional manufacturing step, the production
                    team worried about acquiring the new process data and changing the
                    operational reports. Fortunately, that system was already an OLAP system,
                    and integration would add only two dimensional records and extend the fact
                    table. Most of the reporting was already in an online format, so after revising
                    a few reports to reflect the new equipment, the systems were ready for
                    production. Careful design of the OLAP database in advance made the
                    ongoing maintenance simple and very cost effective.
    0Page1
My Intelligence White Paper – Aditi Tarafdar , Tapas Kr Paul   July 2012
Business                   that help manufacturers adapt to changing conditions and avoid
Intelligence               alarming scenarios pertaining to payables, receivables,
in                         budgets, sales, and inventory. With alerts functionality in place,
Manufacturin               they can pre-set a wide variety of benchmarks in all of these
g                          areas and protect from missing key time- or date-sensitive
                           events or failing to respond to deviations from acceptable levels
                           enabling intelligent decision making and action
               4.
               COMP        Inquiry: Having an easy-to-use inquiry tool enables manufacturers
               ONEN        to drill down into a specific area and quickly extract data that is
               TS OF       essential to business. For example, if they need to examine sales
               A           trends by region over the last 12 months, identify the top 5
               TYPIC       customers for the quarter, or locate the top 10 best-selling items
               AL BI       for the last month, BI tool will serve well.
               FOR
               MANU         Analysis tool: Manufacturing companies want the ability to
               FACT        bring in data from multiple locations and still be able to see a
               URIN        unified macro view of the entire enterprise. BI helps achieve
               G           this goal-providing a quick snapshot of business and enabling
                           to drill down into sales and purchasing trends, as well as
               Multiple    perform budget analysis. Multi-dimensional analysis tool utilizes
               compo       Excel’s capabilities, including pivot tables and charts.
               nents
               of a BI     Manufacturing Management Analytics
               tool
               help           Production Goals
               manufa              Back Log %
               cturing             Capacity Utilization %
               in                  System Uptime %
               followin
                                   Failure Cost Value
               g way:
                                   QC Reject Rate %
                              Inventory Management
               Alerts:
                                   Inventory Ageing Days %
               Critical
                                   Inventory ABC Analysis Value
               alerts
                                   Inventory Turns Ratio %
               and
                              New Product Life Cycle
               reportin
                                   Product Development Cost Value
               g      of
                                   Product Development Lead Time Days
               quality
               metrics             Product Milestone Plan V/s Variances
               in real
               time        Operational Dashboards:          Dashboards that provide real-time
               provide     visibility into business operations and key risk indicators, allowing
               crucial     users to quickly react to changing market conditions and make timely
               monitor     decisions. Dashboards can be used to acknowledge alerts generated
               ing,        by the activity server or to initiate actions such as generating
               proacti     workflows based on alerts. Each user can personalize his
               ve
               notificat
               ion,
               and
               automa
               tion
               capabili
               ties
Page   11
My Intelligence White Paper – Aditi Tarafdar , Tapas Kr Paul   July 2012
Business                    budgeted financial indicators, and expenses by category, just to name
Intelligence                a few.
in
Manufacturin                Quick KPI’s: Whether analyzing business performance vs. another
g                           company or between divisions within a company, quick access to key
                            performance indicators enables to see how business is measuring up
                            at any moment in time. It has the capability to compare financial
               dashbo
                            models and actual performance vs. budget and forecast numbers for
               ard with
                            different time periods. In addition, it enables to quickly establish
               the
                            benchmarking of results vs. competitors over varying time periods.
               metrics
                            One can export any KPI report or model to Excel or Word.
               and
               alerts
                            Manufacturing Key Performance Indicators
               that are
                               Production Capacity Trends
               relevant
                                   Projected Inventory Surplus
               to     his          Days on Hand
               job                 Production Shortage as percentage (%) of Demand
               function.           Inventory Turns
               Dashbo              Production Cycle
               ard                 Equipment Utilization percentage (%)
               provides
                            Graphical Presentations of data: Viewing data in graphical format
               a
                            makes the process of analyzing performance so much quicker and
               graphic
                            easier. BI solution incorporates customizable graphical views (chart)
               al
                            of the data in grid, pivot table, and interactive chart formats. This
               snapsho
                            should be standard feature, not an accessory.
               t       of
               manufa
                            Flexible reporting capabilities: The ability to create and generate
               cturing
                            reports
               busines
               s’s
                            (including exception reports) that accurately reflect company’s
                            key performance data is crucial as is the ability to customize
               health
                            these reports and display them graphically, if needed. In
               that is
                            addition, export these reports to an Excel worksheet or include
               easy to
                            Excel spreadsheet data in these reports.
               underst
               and.
                            Remote access: Most decision-makers conduct significant portion of
               Some
                            their business while out of office. Thus, it is essential that they have
               commo
                            remote access to wide range of their company’s vital business data
               n
                            any time they want via web. BI enables to access KPI’s such as sales,
               categori
                            product and customer analyses, income and balance sheets and
               es      of
                            inventory reports whenever out of the office.
               data
               (often
               from         Report automation: In order to stay ahead of the competition,
               Excel)       organizations can’t afford to sit back and wait for their IT or
               feeding      accounting departments to provide the information they need to
               the          make informed decisions. They must be proactive in automating
               dashbo       their entire reporting process–from the creation to generation to
               ard are      distribution of reports across the entire enterprise. Armed with
               revenue      streamlined, high-volume reporting, these companies are
               s      by    equipped to respond to ever-changing market conditions and
               period,      make the best possible decisions that impact the health of their
               product      business.
               sales by
               categor
               y, actual
               vs.
12
                  Page




MAIA Intelligence White Paper   July 2009
Business                   monitor their inventories to reduce over-capacity and ensure
Intelligence               sufficient supplies. BI allows manufacturing companies to track
in                         inventory usage across location and time, monitor inventory costs
Manufacturin               and profits through multiple layers of information, and identify
g                          inventory overage or obsolete or slow moving inventory. In
                           addition, users can set up alerts for instant notification of low
                           inventory levels.
               5.
               APPL        Inventory KPI’s
               YING
               BI TO              Average Item Inventory
               THE                Days of Inventory Supply
                                  Finished Goods on Hand
               NEED               Inventory Costs
               S OF               Inventory Turns
               MAN                Lease Expenses
                                  Order Fulfillment Lead Time
               UFAC               Percentage of Backorders
               TURE               Sum of Shipment Lead Times
               RS                 Work in Progress Costs


               Some        Financial management
               of the
               areas       Manufacturers need to focus on both external profit building
               where       and internal cost reductions to improve their profit margins.
               BI          Companies can manage their finances by identifying areas
               Solution    where they can increase profits and improve efficiency. BI
               s can       allows manufacturers to analyze information across multiple
               be          sources to set performance goals and create sophisticated
               applied     profitability and financial models. Manufacturers can develop
               in
                           budgets that incorporate production, operation, sales,
               Manufa
                           fulfillment, and finance figures for optimal forecasting and
               cturing
               are:        planning.

               Invent      BI helps front-line managers improve financial performance with
               ory         complete, up-to-the-minute information on their department's
               optimi      expenses and revenue contributions. KPI’s and reports enable
               zation      financial managers to improve cash flow, lower costs, and increase
                           profitability while maintaining more accurate, timely, and transparent
               Manufa      financial reporting that helps ensure regulatory compliance.
               cturing
               compan      Financial KPIs
               ies             Operating Expense
               have               Total Sales
                                  Planning Costs
               huge
               inventor
               ies    to
               track
               and
               move.
               It’s
               essenti
               al    for
               manufa
               cturers
               to
13Page




My Intelligence White Paper – Aditi Tarafdar , Tapas Kr Paul   July 2012
Business                    nt needs before the order has been booked, quickly identify potential
Intelligence                order backlog issues, and stay on top of critical accounts receivable
in                          (A/R) and daily sales outstanding (DSO) issues. By leveraging
Manufacturin                actionable and fact-based insights, one can transform current Supply
g                           Chain and Order Management processes to improve financial
                            performance and customer satisfaction.
               
                            With extensive supply chains, manufacturing companies must
                            manage vast amounts of information to optimize the value of each
                           supplier individually and across the entire network. Business
                            Intelligence software allows manufacturers to evaluate supplier
                           performance on a daily basis to better negotiate prices, ensure
                            timely deliveries, and maintain high standards of quality. In
                           addition, BI helps manufacturers identify changes in supply and
                            demand and monitor freight costs. BI provides manufacturers with
                           the tools to increase the efficiency and effectiveness of their
                           supply chains.
               
                            Procurement and Spend

               Supply       BI enables to optimize supply side performance by integrating data
               Chain        from across the enterprise value chain-enabling executives, managers
               and          & frontline employees to make more informed decisions. It increases
               Order        visibility into the complete procure-to-pay process, including
               Manage       comprehensive spend & procurement analysis, supplier performance
               ment:        analysis, supplier payables analysis & employee expense analysis.
               BI can       Through complete end-to-end insight into the factors that impact
               help         company performance, one can significantly reduce costs, enhance
               deliver      profitability, increase customer satisfaction, and gain competitive
               deep         advantage.
               custome
               r insight    Cost management
               into
               order        Manufacturers are always looking to increase their profit
               and          margins by reducing costs. BI allows in-depth cost analysis
               inventor     across multiple sources so that companies can track material,
               y data       manufacturing and production costs through multiple layers of
               to make      information. Companies can also reduce overhead costs by
               better       analyzing and monitoring operational efficiency and identifying
               decision     areas where they can streamline processes and procedures.
               s       in
               each
               stage of
               the
               order
               lifecycle
               .       BI
               enables
               assess
               inventor
               y levels,
               determi
               ne likely
               product
               fulfillme
14Page




My Intelligence White Paper – Aditi Tarafdar , Tapas Kr Paul   July 2012
Business                   allows companies to gain insight into budget variances and make
Intelligence               better placement decisions for products.
in
Manufacturin               Installed base tracking
g
                           For many manufacturers, keeping track of where their products are
                           installed gives them tremendous opportunities for post-sales services
               6. BI       and additional sales. Having adequate and accurate installed base
               IN          data is essential if manufacturers want to maximize their profits from
               OTHE        this revenue source. BI’s comprehensive reporting and monitoring
               R           capabilities enable manufacturers to track installed products, as well
               AREA        as the costs and revenues associated with after-sales services to
               S OF        determine the most cost-effective offerings. In addition, users can set
               MAN         up real-time alerts for notification of maintenance schedule
               UFAC        requirements to take advantage of additional marketing opportunities.
               TURI
                           Warranty analysis
               NG
                           Warranties are one area where manufacturers can greatly reduce
               Price
                           costs by ensuring original quality. By analyzing warranty costs,
               volume
               mix         companies can identify possible faulty manufacturing and detect
               analysi     emerging problem areas. Through analysis of warranty claims and
               s           call center data, manufacturers can reduce and forecast warranty
                           costs and also identify fraudulent claims.
               Manufa
                           “BFL, world’s largest forging conglomerate was collecting a massive amount of
               cturing
                           manufacturing, customer & business data through a variety of channels & we needed a
               compani     way to aggregate understand & analyze that information. BI enables us to assemble all
               es must     the relevant data for the business users logically & in a structured, aesthetically
               process     pleasing & presentable reporting format. BI enables rich analysis, handling large data
               an          volumes, single consolidated interface for SAP & non-SAP data. Business users in
                           functional areas are able to better manage demand, product lifecycle and supply chain
               immens
                           performance, access & analyze data over the Web as well, enabling them to better
               e           manage their business. BI enables us to better manage our manufacturing, sales and
               amount      Business. It consolidates process and analyzes data from multiple data sources
               of          including SAP & EXCEL, and presents the Sales & Cost Control data in more intuitive
               informat    format. Through analysis of costing profit & loss account, the organizational managers
                           are empowered to not only report the variances, but also help the management &
               ion         process heads to monitor the activities as they happen, with the use of Dashboards and
               regardin    KPI’s beyond other analytical reports. 1KEY BI reduces time to decision as data
               g     the   collation & presentation time is getting reduced.”
               pricing                                                 Yogesh Zope, Vice President, IT Services, Bharat
                                                                       Forge Limited.
               and
               volume      About Bharat Forge Limited: Bharat Forge Ltd., the flagship company of the US $ 2.4 billion Kalyani
               of          Group, is a leading global ‘Full Service Supplier’ of forged and machined - engine & chassis components. It
                           is the largest exporter of auto components from India and leading chassis component manufacturer in the
               product     world. With manufacturing facilities spread across 12 locations and 6 countries - four in India, three in
               s.     By   Germany, one each in Sweden, Scotland, USA and two in China, the company manufactures a wide range
                           of safety and critical components for passenger cars, SUV’s, light, medium & heavy commercial vehicles,
               integrati   tractors and diesel engines. The company also manufactures specialized components for the aerospace,
                           power, energy, oil & gas, rail & marine, mining & construction equipment, and other industries. It is capable
               ng this     of producing complex large volume parts in both steel and aluminum. Visit www.bharatforge.com for more
               massive     details.

               amount
               of
               informat
               ion
               through
               in-depth
               analysis
               ,      BI
Page   15
My Intelligence White Paper – Aditi Tarafdar , Tapas Kr Paul   July 2012
Business Intelligence in Manufacturing


                    7. IS THERE A WAY OUT?

                    BI is very effective for all types of manufacturing be it process, discrete, or
                    automotive. BI can close the “fact gap” by improving the availability and
                    delivery of actionable data with minimal IT involvement.

                    Manufacturers should carefully consider using BI as a cost effective way
                    to improve operations.

                    BI for manufacturing industry leverages all the sources of data available
                    throughout the manufacturing process to deliver a holistic view. Smart
                    decisions must be based on data that accurately reflects the true state of
                    the entire manufacturing process.

                    “Given the fiercely competitive nature of automotive industry working to balance demand in new
                    markets with overcapacity in others, effective use of information is vital to success. Companies
                    in our industry have to give access to that actionable piece of information in forms that support
                    the long term goals and needs of such companies. Successful automotive manufacturing
                    demands that a continuous stream of real-time customer, supplier and competitive information
                    be available throughout the supply chain. Sales and quality management, product
                    development, and production decision making are particularly dependent on timely and
                    accurate information. Capturing and sharing actionable business intelligence is critical to
                    achieving desired automotive business outcomes, specifically improved product innovation,
                    quality, and overall customer experiences. 1KEY BI makes this possible.”
                                                                                    Umesh Mehta, CIO, Asia Motor Works Limited

                    About Asia Motor Works (AMW): Established in the year 2002, Asia Motor Works Ltd. with 788 employees and around 788
                    crores turnover is a leading company in highly competitive Heavy Commercial Vehicles industry. AMW specializes in design
                    and manufacture of high tonnage vehicles on a hybrid platform. AMW having its manufacturing facility in Bhuj with a
                    manufacturing capacity of 24000 fully built vehicles is in the process of rolling out a vast and dependable, nationwide sales
                    service and spares network, comprising 30 Main Dealers and 450 sub dealers. Visit www.amwasia.com for more details.




                    “With constant growth, multi product and multi-location, there was a challenge to cater to information
                    needs of middle level managers. In a manufacturing business like this there is lot of need to review,
                    analyze and take action at both macro and micro level. And hence we need to organize data in a
                    manner where you can quickly see the trend; we can quickly see the exceptions and take the
                    necessary action. 1KEY BI allowed us to roll ad-hoc MIS reporting out across the entire organization
                    to various people at all the levels. We find 1KEY more useful for day-to-day dynamic reporting, which
                    is required to be done across the organization, by most of the users.
                    1KEY BI quickly addresses the information needs of company’s operations like sales
                    finance and accounts. We could resolve complex analysis of multiple products within a
                    division at product level, SKU level, and location level with 1KEY BI.”
                                                                 Apurva Parekh, Director, Pidilite Industries Limited


                    About Pidilite Industries Limited: Pidilite is the market leader in construction chemicals segment with a turnover
                    of US $ 350 million. Brand name Fevicol has become synonymous with adhesives for millions of consumers and
                    industrial users. The company’s products range includes adhesives, sealants, construction & paint chemicals,
                    automotive chemicals and art material. Visit www.pidilite.com for more details.
    6Page1
MAIA Intelligence White Paper   July 2009
Business Intelligence in Manufacturing




    17Page
MAIA Intelligence White Paper   July 2009
Business Intelligence in Manufacturing



                       masses. Commenced in the year 2006, MAIA Intelligence, has always strived to meet the
                       needs of corporate implementations, application service providers and value-added resellers.
                       MAIA’s innovation has revolutionized the way BI can be deployed. With installation & database
                       connectivity happening in 2 working days, organizations are ready to deploy BI from the 3rd
                       day with instant dynamic reports. For further information on MAIA Intelligence and its offerings,
                       visit www.maia-intelligence.com.


MAIA
Intelligence is a
software
product
company           in
Business
Intelligence (BI)
MIS reporting          1KEY Business Intelligence Software, helps companies take informed and better decisions at
and       analysis     all levels.
space.       MAIA
Intelligence, a        1KEY BI is developed on Microsoft .NET Framework 3.5. It has been specifically designed to
young          and     cater to high levels of simultaneous access to huge data reporting on various platforms of
innovative             Windows and databases. 1KEY BI can accommodate thousands of users, connect multiple
company           is   applications, integrate disparate data sources and deliver visually stunning, multi-formatted
committed        to    and flexible cross functional reports and analytics.
developing
powerful        yet    The solution connects and communicates to all type of applications, irrespective of the
affordable and         database used at the backend. It helps the organizations to analyze and derive more
scalable         BI    meaningful and accurate information that will facilitate faster and, consequently profitable
solutions, has         business decisions. 1KEY BI provides visual reporting and guided analysis for business users.
emerged as a           1KEY BI software product is geared toward business users with needs not met within their
growing entity         existing BI tools. It provides a very intuitive, interactive and highly visual interface that lets
in the market          users see problems, both summary and details, in a very understandable way.
place.       MAIA
Intelligence’s         1KEY BI caters to any industry vertical including Manufacturing, Banking, Financial
flagship offering      Services and Insurance (BFSI), Healthcare & Pharmaceutical, Services, Construction
1KEY BI caters         & Allied, Public Sector, Information Technology Enabled Services (ITES), Retail,
to       strategic,    Logistics, and Hospitality. The solution caters to the reporting and analysis demands
tactical       and     of business users across the organization in all horizontals like Purchase &
operational            Procurement, Manufacturing & Distribution, Sales & Marketing, HR, and Finance &
user’s                 Accounts.
requirements
across          the    1KEY consists of wide range of components, with a variety of features to suit different
organization           business requirements.
with     a self-
serve BI tool for
dynamic MIS,
ad-hoc
reporting      and
complex
analysis. With
its mission to
democratize BI,
MAIA has made
BI available to
8 Page1




MAIA Intelligence White Paper   July 2009
18
                  Page




MAIA Intelligence White Paper   July 2009

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White paper bharat forge by aditi & tapas july2012

  • 1. 2012 JULY 29th Business Intelligence in Manufacturing A White Paper With increasing competition and ever more demanding customers, manufacturing is never easy. Use of BI can significantly improve both the performance and power of manufacturing reporting. MAIA Intelligence July 2012
  • 2. Business Intelligence in Manufacturing Table of Contents INFORMATION NEEDS OF MANUFACTURING ARE UNIQUE 3 BUSINESS INTELLIGENCE IN MANUFACTURING 4 APPLYING OLAP TO THE NEEDS OF MANUFACTURERS 7 COMPONENTS OF A TYPICAL BI FOR MANUFACTURING 11 APPLYING BI TO THE NEEDS OF MANUFACTURERS 13 BI IN OTHER AREAS OF MANUFACTURING 15 IS THERE A WAY OUT? 16 TYPICAL ARCHITECTURE OF A BI 17 2 Page MAIA Intelligence White Paper July 2012
  • 3. Business staggering amount of data. Intelligence in IT departments have taken advantage of hardware Manufacturin improvements to economically store the increased data, g however there never seems to be enough time or resources to meet the needs of factory managers who face the “fact gap” that exists between the data and the usable information 1. required to make real business decisions. INFOR MATI Agile enterprise is always one step ahead of the competition, ON which cultivates a responsive environment and delivers major NEED improvements in lead time, product quality, and lower S OF production costs. MANU FACT Optimizing performance requires managers to have an in depth URIN understanding of how products and customers consume G ARE resources and this is why manufacturers adopt more UNIQ sophisticated cost and profitability analytics - solutions that go UE beyond production and include the supply chain, support functions and infrastructure. With increasi With a robust and reliable understanding of costs and ng profitability and their sensitivity to changes in demand, compet managers are able to make informed and incisive decisions ition about strategy and tactics. and ever more For certain manufacturers, where the product or the delivery deman method is tailored for the individual customer, it may be ding appropriate to use Transactional ABC, calculating cost and custom profitability analytics at the micro-level by individual customer or ers, individual transaction. manufa cturing Manufacturing MIS is never  Material requirements planning (MRP) easy.  Determine when finished products are needed  Determine deadlines accordingly While  Manufacturing resource planning (MRPII) factory  Network scheduling floor  Improve customer service and productivity automat  Just in time (JIT) inventory system ion has  Inventory and materials delivered right before usage significa ntly They adopt Business Intelligence (BI) Reporting & Analytics improve software as part of their strategic approach for attaining their d all goals. They are streamlining the information flow both across areas of the organization and through the tiers of the supply chain to processi reduce cycle and manufacturing times and adapt quickly to ng for market changes. manufa cturing compani es, it has also created a
  • 4. 3 Page MAIA Intelligence White Paper July 2012
  • 5. Business aggregating records together with common characteristics. Intelligence Problem with this technique includes inherent inflexibility and in inability to cope with the constantly changing information needs Manufacturin of manufacturing. g BI helps companies in the manufacturing industry: 2.  Increase the value of customer relationships BUSI  Respond quickly to changing markets and company sensitivities NESS  Accelerate new product time-to-market  Reduce inventory investment INTEL  Improve planning, scheduling, and the procurement schedule LIGE  Maintain and develop quality assurance NCE  Select and apply world-class technologies IN BI can be used to increase the flexibility and speed of operational MAN reporting. UFAC TURI  Quickly generate established reports NG  Easily create ad-hoc reports  Isolate specific problems  Analyze data across multiple systems Report  Integrate new data sources s generat BI helps manufacturers give them better visibility of their ed in financial performance and the insight and understanding to high improve it. These include solutions for cost and profitability data analytics and solutions for operational planning and budgeting. volume Being able to quickly assess the impact of internal and external environ changes, BI helps such companies become more agile and ments better able to keep the bottom line on track. normall y take Manufacturing Scheduling and Production Planning a long time to Manufacturing planning encompasses the hourly / daily / weekly / run. To monthly production and machine schedules across multiple plants speed or production lines to meet orders or forecasted demand. Success up hinges on accurate materials planning. Manufacturing managers, report product managers and purchasing analysts review metrics such as generat production capacity and current inventories to plan appropriate ion, production schedules, ensure raw material availability and make many plant reallocation decisions when appropriate. Basic analysis system s use includes real-time status of plant utilization and trends in market tools demand versus planned production runs. Advanced analysis that includes hedging analysis on commodities used in production, employ forecasting of machine output and linear programming to optimize a production resources. summa rization techniq ue to reduce the amount of records by
  • 6. 4 Page MAIA Intelligence White Paper July 2012
  • 7. Business or issue resolution) through analysis of historical Intelligence statistics, expected lead time, and inventory levels in  Analysis of current usage of products to go for new range of products. Manufacturin  Tracking service, to better predict and prepare inventory g and production levels.  Benchmark distributors, regions, and individual locations against each other in an attempt to foster increased Followi attention to goals and metrics, as well as reward high performers and aid underachievers. ng busines s area To overcome they need to maintain optimum level of inventory are so as to avoid overstock / short-supply and bring innovative and prime profitable schemes at marketing level. Business Intelligence is areas the right tool that will helps in achieving this. of concer BI helps in keeping managers updated / equipped with state-of- n for the art and exact information that helps in taking critical manufa business decisions rather than going on assumptions. cturers: BI helps improve visibility and communication across  increasingly complex manufacturing supply chains, while satisfying customer demands for new products and product enhancements. Using above one can assess cash-management and monitor operational effectiveness of the payables department to ensure lowest transaction costs. Identify most profitable customers, products, and channels, and understand profitability drivers across regions, divisions, and profit centers. Improve inventory management for those products that consistently fall into backlog due to a lack of appropriate stock levels. Gain visibility into inventory activities to minimize unnecessary expenditures and optimize inventory to conserve  working capital. Gain detailed visibility into direct and indirect spending, and identify opportunities for consolidation and reduction of costs. Monitor price, delivery, and product quality to determine best - and worst-performing suppliers. Business Intelligence tools mainly are being accessed by top Management who need to obtain strategic information that can  help them decide the future course of action, help in taking strategic decisions. Business Intelligence is still being more equipped for decision making, predicting trends, analysis, delivering information. 
  • 8. 5 Page My White Paper – Aditi Tarafdar , Tapas Kr Paul July 2012
  • 9. Business In the current environment delivering the key information to the Intelligence key people has gained extra importance that can help plan for in production, reduce hidden costs, keep optimum level of Manufacturin inventory, and maximize profits. g Changing Customer and Distributor requirements, Internal Operations demand an optimal way of decision making by the manufacturer. Manufa Each manufacturer has its own processes, own tacking system, order cturing processing and its own challenges. All this add up to the need of Industr having effective BI system in place and providing results out of it. y need Again there has been long debate on the quality of data that is to look available with manufacturing industry as for most of them they have to out for depend on external parties like retailers, distributors, contractors, a suppliers , its own customers, others. If a proper feed is given to solution Supply Chain and Order management that will definitely ensure deep that customer insight and inventory data for better and effective decision can help making. them lower One of the challenges that manufacturing industry face is due lead to changes in demand. If managers have a proper time, understanding of costs and demand, they can make better help in decisions. Some of the manufacturer’s also have a customer reducin specific costing. Improved Visibility in Procure to Pay is helpful g to optimize the supply side performance. product ion Manufacturing Companies product portfolios are larger to costs, manage, has large number of suppliers to negotiate on cost improv and quality, maintain huge inventories which need to be tracked e and moved to meet customer demands. Along with this there is product always a need to analyze / identify customer need, maintain quality, and improve customer delight, add customers so as to remain better in business and be profitable. BI definitely helps in making right trackin decisions to overcome these pressures and helps to manage g and and sustain in business in this complex environments. improv e “A manufacturing company like ours requires key performance indicators from custom scattered data. Also rolling out BI to the bottom of the pyramid and not restricting it to the few er users helps achieve quick & important business gains in short time in satisfac reasonable costs. Forward visibility and data analysis gives right tools to tion. middle and senior managers to proactively look at business directions and Manufa take corrective actions before the problem hits. 1KEY BI saves lot of time in cturing analysis over traditional method of reporting. With BI, decisions are taken at right time which improves business performance.” Industr - Zoeb Adenwala, CIO, y Essel Propack needs to About Essel Propack Limited: Essel Propack, part of the USD 2.4 billion Essel Group with turnover of over USD 300 million, is the largest specialty packaging company – manufacturing respon laminated and seamless or extruded plastic tubes, and medical devices. With over 2700 people d representing 20 different nationalities, Essel Propack functions through 25 state of the art facilities in thirteen countries, selling 4.5 billion tubes and continuing to grow every year. Holding a market quickly share of 32% in the laminated tubes domain, Essel Propack leads as the world’s largest to manufacturer with units operating across countries such as USA, Mexico, Colombia, United Kingdom, Poland, Germany, Egypt, Russia, China, Philippines, Singapore, Indonesia and India. changi These facilities cater to diverse packaging needs of consumers and include oral care, cosmetics, personal care, pharmaceutical, food and industrial sectors, by offering customized solutions. Visit ng www.esselpropack.com for more information. market environ ments.
  • 10. 6 Page My Intelligence White Paper – Aditi Tarafdar , Tapas Kr Paul July 2009
  • 11. Business dimension and measure elements are combined into an OLAP Intelligence “cube” for analysis. The OLAP cube is powerful enough and in specifically designed to do this without costly modifications to Manufacturin system architecture. g The tools available for OLAP analysis allow manufacturers to examine data spanning multiple systems and to compare data 3. across a wide range of subsets including: APPL YING  Date/Time OLAP  Shift/Crew/Employee TO  Supervisor  Product (Category/Sub-category) THE  Lot/Batch NEED  Quality code S OF  Customer MANU  Machine/Class  Area/Plant FACT URER BI is designed to provide meaningful answers to analytical S business questions. Cube building consists of processing measures saved in the BI system to pre-summarize or aggregate Perfor data based on the dimensional slicing configured for the reporting mance system. Measures can be of many formats: is improv  Length/Width/Thickness measurements ed by  Temperature and Pressure applyin  Laboratory values Color/Hardness/Uniformity g  Weight/Quantity  Time to build/process essenti ally the Computed values allow for more advanced analysis: same summa  Average/Range rization  Ranking (top 10 worst quality) techniq  Standard Deviation ue, but  Tolerance variance the commo The OLAP server performs aggregations with the level and n number of aggregations determined by the size and desired charact performance of the OLAP system. For example, total quantities eristics can be summarized by machine, by shift, and by day to give the and best performance for the given server resources. To achieve indicato optimum performance, the OLAP server automatically uses the r best aggregation when querying the data set. parame ters can be quickly change d to answer new questio ns as they arise. The
  • 12. 7 Page My Intelligence White Paper – Aditi Tarafdar , Tapas Kr Paul July 2012
  • 13. Business Intelligence in Manufacturing Quickly generate established reports Without cube processing that performs summarization or the use of complex, custom applications that summarize data, reports can take hours to generate, to the point of becoming unusable. Report performance – Real world example #1 A tire manufacturer used BI to better predict when to replace grinder stones used during a manufacturing process. Whenever tires are ground to correct non uniformity, the grit on the stones wears down, eventually reducing effectiveness and increasing cycle time. A preventative maintenance (PM) crew checks the condition of each stone on a periodic basis, but since each stone’s wearing characteristics vary according to the product mix ground and the amount of utilization, the use of calendar scheduling to check stone wear resulted in many stones that were either changed unnecessarily or not changed when they should have been. The attempted solution was to simply accumulate the grind time by machine and report this information to maintenance. The initial PM report—extremely slow, taking more than a half-hour to generate—was unacceptable. In a subsequent OLAP solution, the grind stones were identified in a dimension, with a simple dimensional property that clipped out old grind stones as they were replaced by maintenance. Because the OLAP environment aggregates the grind time, the reporting was instantaneous. Maintenance received timely information that allowed them to concentrate their effort on the stones most likely requiring replacement (decreasing machine downtime), with the added benefit of extended grind stone life. This solution was implemented at a low cost since only a minor OLAP change was necessary to keep track of grind stone changes. Easily create ad hoc reports BI systems are not only designed differently than traditional On-Line Transactional Processing OLTP database designs, they are fundamentally easier to use. OLAP displays “drag and drop” report selections that allow the end user to make advanced queries without any programming knowledge. After just a few reports the break even (B/E) point for OLAP reporting can result in significant cost savings. 8 Page
  • 14. My Intelligence White Paper – Aditi Tarafdar , Tapas Kr Paul July 2012
  • 15. Business ing decisions, and generate other labor related reports. This Intelligence was a high cost operation, not only because of the intense in manual effort required but also the cost of lost opportunity— Manufacturin reporting that could have been done but was not due to the g difficulty of assembly or the painful wait for an IT programmer to become available to implement any necessary changes. Ad hoc reporti OLAP installation eliminated the requirement for Excel as a ng reporting tool and significantly reduced reliance on IT for made additional, specialized programming. Excel could still be utilized easy – for some forms of analysis, albeit significantly improved by Real ProClarity’s ability to move data directly from the OLAP world environment to an Excel sheet. exampl e #2 Isolate specific problems For one The dimensional organization of BI systems allows for easy “drill supervi down” analysis, where data can be sliced and diced to examine sor, an different data sets. In many cases manufacturers are looking to end of compare operations between set standards—machine to machine, month shift vs. shift, etc. Using a graphical visualization tool for analysis task can help to quickly identify production outliers. was to export producti Striking a balance – Real world issue #3 on labor reports Downstream systems seemed to be starved for components again into a and again. Maintenance and production personal could not agree on CSV where the problems originated. BI analysis of machine downtime and (Comm maintenance, production output by area, and other key metrics led to a several discoveries, including: Separat ed  Maintenance staff imbalance. Some areas received too much Value) coverage while other areas received too little, creating file and downtime ripples. import  Production bottlenecks. Production found that some of their the data mid-stream machines were not able to produce as expected, requiring expenditure for specific equipment. into an Excel Implementation of changes that focused on these discoveries spread resulted in factory output that increased by an astounding 40% sheet. over the next year. From there it BI systems allow end users to uncover facts that were previously was the unknown. supervi sor’s Because it gives the end user the ability to drill down into fact task to tables and to examine, compare, and analyze data, BI is the manipu effective bridge that overcomes the “fact gap.” late the data for monthl y perform ance reports, make schedul
  • 17. My Intelligence White Paper – Aditi Tarafdar , Tapas Kr Paul July 2012
  • 18. Business Intelligence in Manufacturing Examine issues across multiple systems Often the data systems within an organization have such limited interaction that creating a report that interacts with two or more systems is complex at best. A major obstacle is that the data is still organized in an OLTP / transactional format. BI technology overcomes these types of problems by design. QA clues – Real world issue #4 Intermittent quality problems were found during final assembly of a product. The problem did not appear to be associated with a machine or a raw material lot. The OLAP system was originally designed only to investigate upstream machine calibration issues which might not show up until final assembly. BI allowed the easy addition to the OLAP database of time card information from a Kronos scheduling system. The additional time card information analyzed against the backdrop of the original OLAP data helped management determine that a float operator followed the quality problems downstream. Integrate new data sources As with most information systems, the only constant is that the systems will be changing. The architecture in a BI system is generally organized to meet the business needs of end users, rather than the technical needs of the computers. The addition of new data collection points, new dimensional information, or even completely new data systems can be handled by applying BI technology. New equipment – Real world issue #5 A sophisticated set of reports already existed, so when they learned that a new product would require an additional manufacturing step, the production team worried about acquiring the new process data and changing the operational reports. Fortunately, that system was already an OLAP system, and integration would add only two dimensional records and extend the fact table. Most of the reporting was already in an online format, so after revising a few reports to reflect the new equipment, the systems were ready for production. Careful design of the OLAP database in advance made the ongoing maintenance simple and very cost effective. 0Page1
  • 19. My Intelligence White Paper – Aditi Tarafdar , Tapas Kr Paul July 2012
  • 20. Business that help manufacturers adapt to changing conditions and avoid Intelligence alarming scenarios pertaining to payables, receivables, in budgets, sales, and inventory. With alerts functionality in place, Manufacturin they can pre-set a wide variety of benchmarks in all of these g areas and protect from missing key time- or date-sensitive events or failing to respond to deviations from acceptable levels enabling intelligent decision making and action 4. COMP Inquiry: Having an easy-to-use inquiry tool enables manufacturers ONEN to drill down into a specific area and quickly extract data that is TS OF essential to business. For example, if they need to examine sales A trends by region over the last 12 months, identify the top 5 TYPIC customers for the quarter, or locate the top 10 best-selling items AL BI for the last month, BI tool will serve well. FOR MANU Analysis tool: Manufacturing companies want the ability to FACT bring in data from multiple locations and still be able to see a URIN unified macro view of the entire enterprise. BI helps achieve G this goal-providing a quick snapshot of business and enabling to drill down into sales and purchasing trends, as well as Multiple perform budget analysis. Multi-dimensional analysis tool utilizes compo Excel’s capabilities, including pivot tables and charts. nents of a BI Manufacturing Management Analytics tool help  Production Goals manufa  Back Log % cturing  Capacity Utilization % in  System Uptime % followin  Failure Cost Value g way:  QC Reject Rate %  Inventory Management Alerts:  Inventory Ageing Days % Critical  Inventory ABC Analysis Value alerts  Inventory Turns Ratio % and  New Product Life Cycle reportin  Product Development Cost Value g of  Product Development Lead Time Days quality metrics  Product Milestone Plan V/s Variances in real time Operational Dashboards: Dashboards that provide real-time provide visibility into business operations and key risk indicators, allowing crucial users to quickly react to changing market conditions and make timely monitor decisions. Dashboards can be used to acknowledge alerts generated ing, by the activity server or to initiate actions such as generating proacti workflows based on alerts. Each user can personalize his ve notificat ion, and automa tion capabili ties
  • 21. Page 11
  • 22. My Intelligence White Paper – Aditi Tarafdar , Tapas Kr Paul July 2012
  • 23. Business budgeted financial indicators, and expenses by category, just to name Intelligence a few. in Manufacturin Quick KPI’s: Whether analyzing business performance vs. another g company or between divisions within a company, quick access to key performance indicators enables to see how business is measuring up at any moment in time. It has the capability to compare financial dashbo models and actual performance vs. budget and forecast numbers for ard with different time periods. In addition, it enables to quickly establish the benchmarking of results vs. competitors over varying time periods. metrics One can export any KPI report or model to Excel or Word. and alerts Manufacturing Key Performance Indicators that are  Production Capacity Trends relevant  Projected Inventory Surplus to his  Days on Hand job  Production Shortage as percentage (%) of Demand function.  Inventory Turns Dashbo  Production Cycle ard  Equipment Utilization percentage (%) provides Graphical Presentations of data: Viewing data in graphical format a makes the process of analyzing performance so much quicker and graphic easier. BI solution incorporates customizable graphical views (chart) al of the data in grid, pivot table, and interactive chart formats. This snapsho should be standard feature, not an accessory. t of manufa Flexible reporting capabilities: The ability to create and generate cturing reports busines s’s (including exception reports) that accurately reflect company’s key performance data is crucial as is the ability to customize health these reports and display them graphically, if needed. In that is addition, export these reports to an Excel worksheet or include easy to Excel spreadsheet data in these reports. underst and. Remote access: Most decision-makers conduct significant portion of Some their business while out of office. Thus, it is essential that they have commo remote access to wide range of their company’s vital business data n any time they want via web. BI enables to access KPI’s such as sales, categori product and customer analyses, income and balance sheets and es of inventory reports whenever out of the office. data (often from Report automation: In order to stay ahead of the competition, Excel) organizations can’t afford to sit back and wait for their IT or feeding accounting departments to provide the information they need to the make informed decisions. They must be proactive in automating dashbo their entire reporting process–from the creation to generation to ard are distribution of reports across the entire enterprise. Armed with revenue streamlined, high-volume reporting, these companies are s by equipped to respond to ever-changing market conditions and period, make the best possible decisions that impact the health of their product business. sales by categor y, actual vs.
  • 24. 12 Page MAIA Intelligence White Paper July 2009
  • 25. Business monitor their inventories to reduce over-capacity and ensure Intelligence sufficient supplies. BI allows manufacturing companies to track in inventory usage across location and time, monitor inventory costs Manufacturin and profits through multiple layers of information, and identify g inventory overage or obsolete or slow moving inventory. In addition, users can set up alerts for instant notification of low inventory levels. 5. APPL Inventory KPI’s YING BI TO  Average Item Inventory THE  Days of Inventory Supply  Finished Goods on Hand NEED  Inventory Costs S OF  Inventory Turns MAN  Lease Expenses  Order Fulfillment Lead Time UFAC  Percentage of Backorders TURE  Sum of Shipment Lead Times RS  Work in Progress Costs Some Financial management of the areas Manufacturers need to focus on both external profit building where and internal cost reductions to improve their profit margins. BI Companies can manage their finances by identifying areas Solution where they can increase profits and improve efficiency. BI s can allows manufacturers to analyze information across multiple be sources to set performance goals and create sophisticated applied profitability and financial models. Manufacturers can develop in budgets that incorporate production, operation, sales, Manufa fulfillment, and finance figures for optimal forecasting and cturing are: planning. Invent BI helps front-line managers improve financial performance with ory complete, up-to-the-minute information on their department's optimi expenses and revenue contributions. KPI’s and reports enable zation financial managers to improve cash flow, lower costs, and increase profitability while maintaining more accurate, timely, and transparent Manufa financial reporting that helps ensure regulatory compliance. cturing compan Financial KPIs ies  Operating Expense have  Total Sales  Planning Costs huge inventor ies to track and move. It’s essenti al for manufa cturers to
  • 26. 13Page My Intelligence White Paper – Aditi Tarafdar , Tapas Kr Paul July 2012
  • 27. Business nt needs before the order has been booked, quickly identify potential Intelligence order backlog issues, and stay on top of critical accounts receivable in (A/R) and daily sales outstanding (DSO) issues. By leveraging Manufacturin actionable and fact-based insights, one can transform current Supply g Chain and Order Management processes to improve financial performance and customer satisfaction.  With extensive supply chains, manufacturing companies must manage vast amounts of information to optimize the value of each  supplier individually and across the entire network. Business Intelligence software allows manufacturers to evaluate supplier  performance on a daily basis to better negotiate prices, ensure timely deliveries, and maintain high standards of quality. In  addition, BI helps manufacturers identify changes in supply and demand and monitor freight costs. BI provides manufacturers with  the tools to increase the efficiency and effectiveness of their  supply chains.  Procurement and Spend Supply BI enables to optimize supply side performance by integrating data Chain from across the enterprise value chain-enabling executives, managers and & frontline employees to make more informed decisions. It increases Order visibility into the complete procure-to-pay process, including Manage comprehensive spend & procurement analysis, supplier performance ment: analysis, supplier payables analysis & employee expense analysis. BI can Through complete end-to-end insight into the factors that impact help company performance, one can significantly reduce costs, enhance deliver profitability, increase customer satisfaction, and gain competitive deep advantage. custome r insight Cost management into order Manufacturers are always looking to increase their profit and margins by reducing costs. BI allows in-depth cost analysis inventor across multiple sources so that companies can track material, y data manufacturing and production costs through multiple layers of to make information. Companies can also reduce overhead costs by better analyzing and monitoring operational efficiency and identifying decision areas where they can streamline processes and procedures. s in each stage of the order lifecycle . BI enables assess inventor y levels, determi ne likely product fulfillme
  • 28. 14Page My Intelligence White Paper – Aditi Tarafdar , Tapas Kr Paul July 2012
  • 29. Business allows companies to gain insight into budget variances and make Intelligence better placement decisions for products. in Manufacturin Installed base tracking g For many manufacturers, keeping track of where their products are installed gives them tremendous opportunities for post-sales services 6. BI and additional sales. Having adequate and accurate installed base IN data is essential if manufacturers want to maximize their profits from OTHE this revenue source. BI’s comprehensive reporting and monitoring R capabilities enable manufacturers to track installed products, as well AREA as the costs and revenues associated with after-sales services to S OF determine the most cost-effective offerings. In addition, users can set MAN up real-time alerts for notification of maintenance schedule UFAC requirements to take advantage of additional marketing opportunities. TURI Warranty analysis NG Warranties are one area where manufacturers can greatly reduce Price costs by ensuring original quality. By analyzing warranty costs, volume mix companies can identify possible faulty manufacturing and detect analysi emerging problem areas. Through analysis of warranty claims and s call center data, manufacturers can reduce and forecast warranty costs and also identify fraudulent claims. Manufa “BFL, world’s largest forging conglomerate was collecting a massive amount of cturing manufacturing, customer & business data through a variety of channels & we needed a compani way to aggregate understand & analyze that information. BI enables us to assemble all es must the relevant data for the business users logically & in a structured, aesthetically process pleasing & presentable reporting format. BI enables rich analysis, handling large data an volumes, single consolidated interface for SAP & non-SAP data. Business users in functional areas are able to better manage demand, product lifecycle and supply chain immens performance, access & analyze data over the Web as well, enabling them to better e manage their business. BI enables us to better manage our manufacturing, sales and amount Business. It consolidates process and analyzes data from multiple data sources of including SAP & EXCEL, and presents the Sales & Cost Control data in more intuitive informat format. Through analysis of costing profit & loss account, the organizational managers are empowered to not only report the variances, but also help the management & ion process heads to monitor the activities as they happen, with the use of Dashboards and regardin KPI’s beyond other analytical reports. 1KEY BI reduces time to decision as data g the collation & presentation time is getting reduced.” pricing Yogesh Zope, Vice President, IT Services, Bharat Forge Limited. and volume About Bharat Forge Limited: Bharat Forge Ltd., the flagship company of the US $ 2.4 billion Kalyani of Group, is a leading global ‘Full Service Supplier’ of forged and machined - engine & chassis components. It is the largest exporter of auto components from India and leading chassis component manufacturer in the product world. With manufacturing facilities spread across 12 locations and 6 countries - four in India, three in s. By Germany, one each in Sweden, Scotland, USA and two in China, the company manufactures a wide range of safety and critical components for passenger cars, SUV’s, light, medium & heavy commercial vehicles, integrati tractors and diesel engines. The company also manufactures specialized components for the aerospace, power, energy, oil & gas, rail & marine, mining & construction equipment, and other industries. It is capable ng this of producing complex large volume parts in both steel and aluminum. Visit www.bharatforge.com for more massive details. amount of informat ion through in-depth analysis , BI
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  • 31. My Intelligence White Paper – Aditi Tarafdar , Tapas Kr Paul July 2012
  • 32. Business Intelligence in Manufacturing 7. IS THERE A WAY OUT? BI is very effective for all types of manufacturing be it process, discrete, or automotive. BI can close the “fact gap” by improving the availability and delivery of actionable data with minimal IT involvement. Manufacturers should carefully consider using BI as a cost effective way to improve operations. BI for manufacturing industry leverages all the sources of data available throughout the manufacturing process to deliver a holistic view. Smart decisions must be based on data that accurately reflects the true state of the entire manufacturing process. “Given the fiercely competitive nature of automotive industry working to balance demand in new markets with overcapacity in others, effective use of information is vital to success. Companies in our industry have to give access to that actionable piece of information in forms that support the long term goals and needs of such companies. Successful automotive manufacturing demands that a continuous stream of real-time customer, supplier and competitive information be available throughout the supply chain. Sales and quality management, product development, and production decision making are particularly dependent on timely and accurate information. Capturing and sharing actionable business intelligence is critical to achieving desired automotive business outcomes, specifically improved product innovation, quality, and overall customer experiences. 1KEY BI makes this possible.” Umesh Mehta, CIO, Asia Motor Works Limited About Asia Motor Works (AMW): Established in the year 2002, Asia Motor Works Ltd. with 788 employees and around 788 crores turnover is a leading company in highly competitive Heavy Commercial Vehicles industry. AMW specializes in design and manufacture of high tonnage vehicles on a hybrid platform. AMW having its manufacturing facility in Bhuj with a manufacturing capacity of 24000 fully built vehicles is in the process of rolling out a vast and dependable, nationwide sales service and spares network, comprising 30 Main Dealers and 450 sub dealers. Visit www.amwasia.com for more details. “With constant growth, multi product and multi-location, there was a challenge to cater to information needs of middle level managers. In a manufacturing business like this there is lot of need to review, analyze and take action at both macro and micro level. And hence we need to organize data in a manner where you can quickly see the trend; we can quickly see the exceptions and take the necessary action. 1KEY BI allowed us to roll ad-hoc MIS reporting out across the entire organization to various people at all the levels. We find 1KEY more useful for day-to-day dynamic reporting, which is required to be done across the organization, by most of the users. 1KEY BI quickly addresses the information needs of company’s operations like sales finance and accounts. We could resolve complex analysis of multiple products within a division at product level, SKU level, and location level with 1KEY BI.” Apurva Parekh, Director, Pidilite Industries Limited About Pidilite Industries Limited: Pidilite is the market leader in construction chemicals segment with a turnover of US $ 350 million. Brand name Fevicol has become synonymous with adhesives for millions of consumers and industrial users. The company’s products range includes adhesives, sealants, construction & paint chemicals, automotive chemicals and art material. Visit www.pidilite.com for more details. 6Page1
  • 33. MAIA Intelligence White Paper July 2009
  • 34. Business Intelligence in Manufacturing 17Page
  • 35. MAIA Intelligence White Paper July 2009
  • 36. Business Intelligence in Manufacturing masses. Commenced in the year 2006, MAIA Intelligence, has always strived to meet the needs of corporate implementations, application service providers and value-added resellers. MAIA’s innovation has revolutionized the way BI can be deployed. With installation & database connectivity happening in 2 working days, organizations are ready to deploy BI from the 3rd day with instant dynamic reports. For further information on MAIA Intelligence and its offerings, visit www.maia-intelligence.com. MAIA Intelligence is a software product company in Business Intelligence (BI) MIS reporting 1KEY Business Intelligence Software, helps companies take informed and better decisions at and analysis all levels. space. MAIA Intelligence, a 1KEY BI is developed on Microsoft .NET Framework 3.5. It has been specifically designed to young and cater to high levels of simultaneous access to huge data reporting on various platforms of innovative Windows and databases. 1KEY BI can accommodate thousands of users, connect multiple company is applications, integrate disparate data sources and deliver visually stunning, multi-formatted committed to and flexible cross functional reports and analytics. developing powerful yet The solution connects and communicates to all type of applications, irrespective of the affordable and database used at the backend. It helps the organizations to analyze and derive more scalable BI meaningful and accurate information that will facilitate faster and, consequently profitable solutions, has business decisions. 1KEY BI provides visual reporting and guided analysis for business users. emerged as a 1KEY BI software product is geared toward business users with needs not met within their growing entity existing BI tools. It provides a very intuitive, interactive and highly visual interface that lets in the market users see problems, both summary and details, in a very understandable way. place. MAIA Intelligence’s 1KEY BI caters to any industry vertical including Manufacturing, Banking, Financial flagship offering Services and Insurance (BFSI), Healthcare & Pharmaceutical, Services, Construction 1KEY BI caters & Allied, Public Sector, Information Technology Enabled Services (ITES), Retail, to strategic, Logistics, and Hospitality. The solution caters to the reporting and analysis demands tactical and of business users across the organization in all horizontals like Purchase & operational Procurement, Manufacturing & Distribution, Sales & Marketing, HR, and Finance & user’s Accounts. requirements across the 1KEY consists of wide range of components, with a variety of features to suit different organization business requirements. with a self- serve BI tool for dynamic MIS, ad-hoc reporting and complex analysis. With its mission to democratize BI, MAIA has made BI available to
  • 37. 8 Page1 MAIA Intelligence White Paper July 2009
  • 38. 18 Page MAIA Intelligence White Paper July 2009