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Business intelligence (BI) leverages software and services to transform data into actionable insights that inform an organization’s strategic and tactical business decisions. BI tools access and analyze data sets and present analytical findings in reports, summaries, dashboards, graphs, charts and maps to provide users with detailed intelligence about the state of the business.


The term business intelligence often also refers to a range of tools that provide quick, easy-to-digest access to insights about an organization’s current state, based on available data. 

Why BI is critical to business growth

As manufacturing processes become more nuanced, profitability has decreased significantly. Increased government regulations compound the issue, slowing down operations and increasing the potential for costly delays.


Making informed business decisions is more critical than ever. Having the right data at your disposal is the key. After all, if you are looking at yesterday’s news, you’re already behind the eight-ball. Timeliness, accuracy, and quality are the hallmarks of today’s BI.

What is Business Intelligence in Manufacturing?

Manufacturing intelligence and business intelligence can be used interchangeably, but business intelligence in manufacturing is analytics that provides insights into manufacturing processes. It may sound complicated but using data analytics can help manufacturing make informed decisions.

Business intelligence looks slightly different for every manufacturer, but most of the basic concepts are pretty uniform. The ability to assess machine and cell performance, understand uptime and downtime, monitor production performance, and see things like bottlenecks in real-time. These are examples of the types of core ways that manufacturers want to use business intelligence.

Here are some examples of the types of analytics that manufacturers commonly want to see with business intelligence software:

  1. Machine/cell performance (uptime, downtime, reasons for both)
  2. Scrap rates, production performance, quality (actuals)
  3. Throughput (scheduling, production vs. actuals)
  4. Real-time analysis of bottlenecks and shift performance

What can Business Intelligence do for your manufacturing operation?

Having access to real-time business intelligence has many benefits in the manufacturing industry:


It improves operational efficiency
Today’s organizations generate enormous volumes of data, but not all of this data is useful. Today’s BI solutions take all your data, translating it into a form that is immediately understandable and actionable. It allows you to reduce or correct errors on the fly. Moreover, it enables you to project the demand for raw materials and analyze processes throughout the supply chain to assure optimized efficiency.


It provides insight and oversight of financial processes
BI tools provide you with insight into sales, profit and loss, raw materials usage, and can generally help you optimize resources to improve your ROI. Knowing your cost-benefits helps you manage production costs, monitor processes, and enables you to better manage the value chain.


It helps you manage your supply chain
Since you likely work with multiple carriers, the complexity of managing these processes can be a challenge. BI provides insight into deliveries, freight expenditures, and general supply, allowing more precise control over shipments, costs, and carrier performance.


It helps reduce inventory costs and errors
Overstocks and out-of-stocks are among the most significant challenges to profitability. BI can help you track inventory across time and location while highlighting problems like product defects, inventory turnover, and margins based on individual distributors.


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PreXisionet Technology is an IT automation organisation in Malaysia, and part of the Progressive Impact Group of the companies.

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