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SAS ® HIGH-PERFORMANCE ANALYTICS Adding value along the entire supply chain Key success factor #1: Analytics Predictive inside Manufacturing SAS ® IN MANUFACTURING

SAS Ref_Manufacturing

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Page 1: SAS Ref_Manufacturing

SAS® HIGH-PERFORMANCE ANALYTICS

Adding value along the entire supply chainKey success factor #1: Analytics

Predictive

inside

Manufacturing

SAS® IN MANUFACTURING

Page 2: SAS Ref_Manufacturing

SAS® IN MANUFACTURING

Industrial production is undergoing a transformation to what has become known as

advanced manufacturing. Advanced manufacturing describes the digitization of production

and everything surrounding it. It focuses on the ongoing exchange of data between

machines, logistics systems, production equipment, and control systems.

Thanks to these developments, analytics is taking on a whole new meaning for the industrial

sector. Because you can’t have advanced manufacturing without analytics. Analytics

software is the only way to enhance data from production activities, materials, machinery,

and operations in such a way that communication can focus on the exchange of intelligent

information rather than raw data alone. Only with analytics can meaningless data acquire

significance that goes beyond the current production status to reveal hidden insights that

tell what the future will hold. It’s all about being predictive. Even complex interactions

involving multiple departments such as production and marketing or customer service can

be explored using analytics.

This is no pipe dream. It’s already taking shape in the form of predictive maintenance,

embedded analytics, and quality lifecycle assessment. Not only are these things techni cally

possible, they’re happening as we speak. More and more companies have recognized

the value of their existing troves of data and are using analytics to enhance planning and

management processes, paving the way for the smart factory of tomorrow.

We would like to demonstrate this vast potential on the following pages with several exam­

ples of enterprises that are pioneering the use of analytics in the industrial sector. They use

SAS® Analytics for a diverse range of tasks but still have one thing in common: they all

profit from profound insights that allow them to manage their businesses with an eye to

the future.

I hope you will find valuable and relevant insights in our user stories below.

Gerhard Altmann

Senior Director Industry Unit Manufacturing EMEA /AP

Gerhard AltmannSenior Director Industry Unit Manufacturing EMEA /AP

Analytics — the driving force behind the next Industrial Revolution

Page 3: SAS Ref_Manufacturing

SAS® IN MANUFACTURING

SAS® in Manufacturing

Demand- and Production planning

Preparation

SourcingWarehousing

Provision of material

Production Packaging

Machine maintenance

Quality control andFinished goods release

Warehousing and Shipping

Customer service andmaintenance

Demand-Driven Forecasting & Optimization

SAS Solutions

Supply Chain Intelligence Center & Inventory Optimization

SAS Solutions

Predictive Asset Main tenance & Visual Analytics

SAS Solutions

Quality Lifecycle Analysis & Quality Assurance

SAS Solutions

Demand-Driven Forecasting & Inventory Optimization

SAS Solutions

Service Parts Optimization & Warranty Analysis

SAS Solutions

Overview of

SAS Manufacturing Solutions

Overview of

SAS Manufacturing Solutions

Page 4: SAS Ref_Manufacturing

6

ShellShell drills into big data analytics, extracts tens of millions of dollars

Analytics transform big data at Shell

Exploration and Production into sound

exploration decisions, high­quality wells,

reduced costs and lower environmental

impact. The company uses SAS Predictive

Asset Maintenance software to extend

equipment lifespan and run times which

can account for tens of millions of dollars

in increased gas and oil production.

Touching all aspects of operations, analyt ­

ics helps Shell boost both effi ciency and

effectiveness — keeping the company on

top by bolstering the bottom line.

“SAS eliminates guesswork from our

business processes,” said Tom Moroney,

Manager of Technology Deployment and

Geosciences at Shell Exploration and

Production, Upstream Americas, Deep­

water. “We analyze tremendous volumes

of real­time data to improve process and

asset effi ciency, well performance and

reliability. When our SAS alerts signal a

performance gap, we can quickly diagnose

it, interrogate the system and prevent or

mitigate critical upsets.”

Shell engineers are using these surveil­

lance insights from analytics to improve

performance of the company’s newest

platform, the Perdido spar. Below 10,000

feet of water and another 9,000 feet

of mud, salt and rock, lies an ambitious

target, a swath of seabed the size of

Houston that holds enough oil and natural

gas to produce up to 130,000 barrels a

day.

SAS Predictive Asset Maintenance boosts

oil and gas exploration and production

SAS® PREDICTIVE ANALYTICS

© S

hell

Page 5: SAS Ref_Manufacturing

7

HyundaiTechnology drives decisions at Hyundai

In its 30 years of operation, Hyundai Motor

Company (HMC) has risen to become the

top­ranked automaker among its domestic

competitors, as well as one of the world’s

largest automotive producers. HMC’s

business strategy revolves around a con­

tinuous focus on customer satisfaction,

advanced technology, top quality, human­

ism, and reliability­with the goal of becom­

ing the top auto producer for the 21st

century. With more than 47,000 employ­

ees and capital exceeding US$ 350 million,

Hyundai Motor Company currently has

the largest independent manufacturing

plant in Korea, located in Ulsan, South

Korea.

The company’s Enterprise Information

and Management System (EIMS) is the

fi rst executive information system built

with SAS software in Korea. Created in

three months for the current domestic

automotive market, the EIMS is not just a

corporate­wide business management

system, but also supports and facilitates

executive decision making. For data ex­

traction, Hyundai Motor Company chose

to use SAS/Warehouse Administrator

software, which provides a single point of

control for managing the company’s

data warehouse — a repository of decision

support information.

The system has three main components:

• A warning system allows executives to

view all levels of sales and production

volumes and to locate low levels of

performance by comparing these

fi gures with a previously defi ned warn­

ing point.

• A goal-oriented system keeps execu-

tives informed on the progression

toward long­term goals.

• A decision support system provides

timely access to management­level

information.

Reports produced from the EIMS are deliv­

ered directly to the company’s executives.

The EIMS warehouses information from a

wide range of departments in Hyundai

Motor Company, such as:

• Human Resources, which includes

organizational charts, personnel

records, and staff counts.

• Domestic Sales, including daily and

monthly sales, market share, and

market analysis (according to grade).

• Foreign Sales, consisting of foreign

exports, daily exports, local sales,

inventory, and competitive analysis.

• Production, including production per

factory and per model, target achieve­

ment, and factory operation.

Hyundai has found that the best way to

protect its current capital investments is to

invest further into managing its most valu­

able asset information. The EIMS gives

the company freedom to be proactive and

innovative instead of always reacting to

market movements, helping drive Hyundai

ahead of its competitors.

Freedom to be proactive and innovative instead of always reacting to market movements

SAS® ANALYTICS

SAS Predictive Asset Maintenance boosts

oil and gas exploration and production

Page 6: SAS Ref_Manufacturing

8

A billion units roll off Nestlé production

lines every single day. This number illus­

trates the sheer quantity of goods pro­

duced by the world’s biggest food com­

pany. To deliver on its promise of “Good

Food, Good Life,” Nestlé has brought

to market a whopping 10,000 products

aimed at improving consumers’ lives with

better and healthier foods and beverages.

To ensure the right amounts of those

products make it to the shelves and into

customers’ hands, Nestlé relies on fore­

casting. After all, even the best marketing

promotions can backfi re if the shelves are

empty when the customers show up for

their favorite foods. It comes as no surprise

that Nestlé’s interest in closely managing

the supply chain and keeping inventories

within tight limits is proportionate with the

size of its operations. Its sheer size makes

planning on a global scale highly complex.

Product categories, sales regions and an

abundance of participating departments

combine to weave a tangled web. But it’s

also the nature of the food and beverage

industry that makes operational planning

a challenge. Seasonal infl uences, being

dependent on the weather to provide

a good harvest, swings in demand, other

retail trends, and the perishable nature

of many products make it diffi cult to plan

production and organize logistics. One

example is ice cream. This product needs

to be made before demand hits. But the

dairy products used as raw ingredients

must be available at affordable prices be­

fore a production run can begin. Storing

frozen goods is also complicated and

expensive, as are the logistics involved. To

make matters worse, it’s diffi cult to predict

when and where the weather will result in

spiking demand for product.

Confl icting KPIs“Supply chain management is a well­es ­

t ab lished, recognized stream and process

at Nestlé,” explains Marcel Baumgartner,

who leads global demand planning perfor­

mance and statistical forecasting at Nestlé’s

corporate headquarters. “Our professionals

take care of transportation networks, run

effi cient warehouses and are the fi rst point

of contact with customers. One area

of focus is planning — or, more precisely,

demand and supply planning.”

According to Baumgartner, this process

tackles two important metrics: customer

service levels and inventory levels. One

can improve customer service levels —

defi ned as the percentage of complete

and on­time deliveries — by expanding

inventories. But that ties up capital, and

it’s often diffi cult to fi nd storage space.

The freshness of the product suffers as

well. Avoiding this way of working is the

principal objective of supply chain man­

agement, says Baumgartner. “At Nestlé,

we don’t work like this. We are an ’and’

company. We have proven that we can

provide simultaneously high service and

optimize our inventory levels.”

The special considerations involved in

producing foodstuffs exacerbate the prob­

lem. In this industry, products are pro­

cessed in very large batches to keep unit

NestléHow to keep fresh products on the shelves

SAS® DEMAND DRIVEN FORECASTING & INVENTORY OPTIMIZATION

Perfect product availability at the

point of sale with SAS® Forecasting

Page 7: SAS Ref_Manufacturing

9

prices low, ensure quality, and take ad­

vantage of raw ingredient availability. This

make­to­stock production strategy con­

trasts with the make­to­order principle

frequently seen in other sectors such as

the automobile industry. “To have the right

quantity of the right products at the right

place and time, we rely heavily on being

able to predict the orders our customers

will place as precisely as possible,” says

Baumgartner.

Other business metrics, such as budgets

and sales targets, are also important fac­

tors in addition to more strategic objec­

tives. The overarching goal, according to

Baumgartner, is to be able to “take proac­

tive measures instead of simply reacting.”

To accomplish this, Nestlé focuses on

strong alignment processes, stronger col­

laboration with customers and the use

of the proper forecasting methodology.

To attain the highest degree of precision

possible in its forecasting, the company

needed to use advanced forecasting

methods; therefore, Nestlé chose SAS.

There are two main options for generating

forecasts. The subjective method is mainly

dependent upon on the estimation and

appraisal of planners based on the expe­

rience they draw upon. The statistical

method approaches the forecasting pro­

blem with data.

Before using SAS, Nestlé was primarily

using SAP APO’s underlying forecasting

techniques, together with models from

the open­source statistical software R,

integrated into APO. Those forecasts were

then revised by the Nestlé demand plan­

ners. SAS enhances this, and thus com­

plements SAP APO perfectly.

Statistical forecasting tends to be more

reliable if sufficient historical data is avail­

able. “But one thing has become clear

to us — you can’t predict the future with

statistics by simply looking at the past. It

doesn’t matter how complex your models

are.”

So it’s not the statistical methodology

that’s the problem for Baumgartner and

his team. The critical factor in this com­

plex environment is being able to assess

the reliability of forecasts. Two elements

have attracted the most attention within

this context: dealing with volatility, and

SAS. “Predictability of demand for a certain

product is highly dependent on that

product’s demand volatility,” says Baum­

gartner. “Especially for products that

display wide fluctuations in demand, the

choice and combination of methods

is very important. SAS Forecast Server

simplifies this task tremendously.”

Of particular importance for demand plan­

ning are the so­called “mad bulls”, a term

Nestlé uses to characterize highly volatile

products with high volume. A mad bull

can be a product like Nescafé, which nor­

mally sells quite regularly throughout the

year, but whose volumes are pushed

through trade promotions. A simple statis­

tical calculation is no more useful in gen­

erating a demand forecast than the expe­

rience of a demand planner for these less

predictable items. The only way out is to

explain the volatility in the past by annotat ­

ing the history. Baumgartner and his team

rely on the forecast value added (FVA)

methodology as their indicator. The FVA

describes the degree to which a step in

the forecasting process increases precision

or, in other words, reduces the degree of

error.

More knowledge, less guessingAccording to Baumgartner, SAS Forecast

Server is the ideal tool for this scenario.

“Statisticians like me just love it,” he says.

The solution’s scalability allows a handful

of specialists to cover large geographical

regions. Manual input is kept to a mini­

mum — selecting the appropriate statisti­

cal models becomes a largely automated

process, which is seen as one of the

strongest features of SAS Forecast Server.

“At the same time, we’re now able to drill

down through customer hierarchies and

do things such as integrate the impact of

promotions and special offers into the

statistical models.”

The results paint a clear picture. In a

comparison between the conventional

forecas ting method and SAS Forecast

Server underlying procedures — for the

most part using default settings — the

results showed that Nestlé often matches

and improves its current performance for

the predictable part of the portfolio and

thus frees up valuable time for demand

planners to focus on mad bulls.

Last but not least, Nestlé emphasizes that

even a system as sophisticated as SAS

Forecast Server cannot replace professional

demand planners. “Particularly for mad

bulls, being connected in the business,

with high credibility, experience and knowl ­

edge is key.” With more time available to

tackle the complicated products, planners

are able to make more successful pro­

duction decisions. And that means really

having enough Nestlé ice cream at the

beach when those hot summer days

finally arrive.

Page 8: SAS Ref_Manufacturing

10

Meyer Werft in Papenburg, Germany, is

one of Europe’s most modern shipyards.

Thanks to fl exibility and innovative readi­

ness, the company has been able to secure

one of the top positions in the highly com­

petitive cruise ship market. This tradition­

bound shipbuilding company, founded in

1795, relies on SAS solutions to coordinate

their complex planning and production

processes.

Construction of a ship from the initial plan­

ning stage to fi nal launch seldom takes

less than 24 months; and depending upon

the size of the order, more than 10,000

employees from the shipyard and partner

companies are directly or indirectly involved

in the preparation process and their efforts

must be coordinated. In order for Meyer

Werft to keep a constant eye on all of

these complex interactions, the company

uses a self­generated software solution

called “InfoYard” which is based on SAS.

InfoYard is used to analyze operational

projects and capacities. It also functions

as an integrated information system

through which ongoing processes can

be observed. InfoYard thus creates trans­

parency in an environment that could

not be monitored or managed holistically

without the support of technology.

With approximately 300 users, InfoYard is

currently running productively as a key

component of the ERP environment. The

solution assists numerous departments

in designing their planning workfl ow much

more effi ciently. Classic planning tasks,

such as the timely and optimal dispatching

of processes, recognition of interdepen­

dencies, and goal­oriented control of

pending tasks related to the production

stage, can be completed with the same

number of personnel, despite the increas­

ing quantitative and qualitative require­

ments.

The production processes mapped in

InfoYard are also extremely diverse, and

pertain to workfl ows in steelworking,

as well as to the placement of electrical

cables or paint work, while also taking

into account the design/engineering and

production aspects.

Cleverly thought­out reporting functions

within an integrated information system

support users in the departments and

company management in project control

by means of stoplight functions and drill­

down functionalities, for example. With

balanced scorecard methods and early

warning routines, erroneous trends can

also be detected at an early stage and

provide the end user with a well­founded

basis for making decisions about project

work. These software tools help keep a

contract on course and actively controlled

through every phase of the project.

Meyer WerftMeyer Werft continues on course

On-time planning —

24 months in advance

SAS® PERFORMANCE MANAGEMENT

Page 9: SAS Ref_Manufacturing

11

POSCOHow this giant is light on its feet

POSCO is the world’s largest steel manu­

facturer, which has two large production

plants with around 19,000 employees

working to produce 28.5 million tons of

steel annually. POSCO has reported a net

profi t of more than US$3.6 billion on reve­

nues of nearly $19 billion. On this enor­

mous scale, a performance management

strategy — such as Six Sigma — can

have a tremendous impact on profi tability.

Six Sigma indicates the performance of a

process according to a given metric and

it leads to almost zero defects — actually,

3.4 defects in 1 million opportunities.

A process innovation (PI) program to

update 30­year­old business practices

has been essential to improving effi ciency

and competitiveness at POSCO over

recent years. Both the fi rst and second

PI programs have been built with SAS

software. First, POSCO used SAS to

extract, transfer and transform its enter­

prise resource planning and legacy data

into a SAS data warehouse, allowing data

to be compared on a like­for­like basis

and quality checked.

In the second PI program POSCO imple­

mented SAS Analytics as a basic com­

ponent for a Six Sigma Project Tracking

system. “Now, to fi nd out what’s going on

with a particular project, all we have to

do is enter the Six Sigma portal and select

the project title and CTQ name. Data is

gathered automatically by SAS, enabling

daily and monthly monitoring, also done

with SAS software,” says Ill­Chul Shin,

Manager and “Master Black Belt” at

POSCO’s Six Sigma Academy.

The fi rst PI phase achieved a more than

50 percent reduction in lead times for

standard hot coil production (from 30 to

14 days), and a 60 percent reduction in

inventory (from 1 million to 400,000 tons).

As an example of a Six Sigma project,

Shin explains how POSCO addressed the

issue of unacceptable scrap losses on

hot coil. “Traditional statistical analysis

could not really help us. Only SAS and

its analytical power empowered us to

discover fundamentally new insights into

our physical processes. The end result

was that we could decrease the scrap

ratio from 15 percent to 1.5 percent, giving

us a $150,000 return on the investment

on this part of the process alone.”

Another project, this time in cold roll steel,

identifi ed the reasons for large variations

in profi tability by plant, item and specifi ­

cation. By using SAS to identify the

reasons for these variations and isolating

the factors critical to high profi tability,

POSCO was able to improve its strategy,

delivering an annual return on investment

for the project of $1.2 million.

SAS has directly contributed an ROI

of $ 14 million on Six Sigma projects

and an additional $ 1.5 million on other

projects — in less than two years

On-time planning —

24 months in advance

SAS® QUALITY LIFECYCLE ANALYSIS

Page 10: SAS Ref_Manufacturing

12

Dow ChemicalNew solutions for a new world

As an organization of engineers and

scientists, Dow Chemical has always

valued data, but several years ago Dow

Chief Information Offi cer Dave Kepler

recognized that the company’s analytical

efforts were too internally focused.

“We started out collecting data from our

process systems or our research and

we still use basic analytical tools to solve

problems,” says Kepler. “But we needed

to apply advanced analytics to information

from both inside and outside the company

to detect complex patterns and trends

that would help us fi nd and capitalize on

new markets and opportunities.”

To support this approach Kepler built the

Business Services Group; one of its attri­

butes is a centralized group of analytic

experts who are a resource for all of Dow.

Every project Dow has applied analytics

to has shown signifi cant improvement.

Those projects include:

• Enhanced sales forecasts. One

hundred percent of the projects done

using advanced analytics have signif­

icantly reduced forecasting error.

• Aggressive energy consumption

reduction. The company has saved

$9 billion in energy costs since 1994.

• Early insight for business units. By

day 12 of every month, units know if

they will make targets and can adjust

strategy accordingly.

• Quick response to deteriorating

economic conditions. The Business

Services Group pushes critical

information to business units daily.

• Deep insight into the role exchange

rates play in margin. Dow developed

regional exchange rate risk models

to help make decisions about where

raw materials are purchased and

pricing for fi nished goods.

• Keen understanding of staffi ng levels.

A human resources supply/demand

model helps the company hire just the

right talent at the right time.

“We can go back and show billions of

dollars of savings,” Kepler says. “And it

helps with margin expansion. It’s all about

how we can be in the market with the

right product at the right time and get

focused on that, and then go back and

measure our success, model future

success and predict what we need to

do next.”

As for next steps? Kepler affi rms that

Dow needs analytics to stay ahead. “The

competitive advantage that companies

are going to have going forward is making

better decisions than other companies,”

says Kepler. “How you collect data and

how you make decisions off that data is

what’s going to differentiate you from your

competition. In the next 10 to 20 years,

businesses that know how to harvest

and use that information will be in the

forefront. And we want to be at the fore­

front.”

Billion-dollar savings

in energy consumption

SAS® PREDICTIVE ANALYTICS

Page 11: SAS Ref_Manufacturing

13

Euramax Coated ProductsEnvisioning the future with data visualization

Euramax Coated Products is a premium

coil coater, serving the European, Middle

East and Asian markets. Its three coil­

coating lines manufacture pre­coated

aluminum and steel for applications in

architectural products, transportation and

corporate identity design. Euramax’s pre­

coated metals cover all kinds of products,

from building facades to household appli­

ances, working with some of the most

prominent brands in the world.

Euramax uses SAS Visual Analytics. The

company’s objectives in employing the

SAS solution were to gain more dynamic

reporting and data exploration capabilities,

to provide for more probing research and

to enhance mobility, including the ability

to carry data out into the fi eld and share it

with customers.

“We wanted to have our data available at

any time, to gain quicker insights and

make better decisions, anywhere,” Wijers

says, and to be able to present data in a

variety of easy­to­grasp formats.

The most common problem with static

reporting, Wijers says, is that you can see

deviations in the end result but still don’t

know the causes. Requests to analysts

for detailed information take time and,

generally, the more detailed the results,

the more questions that are raised.

“Often an analyst’s gut feeling is right, but

he doesn’t have the means to easily verify

it,” he says. “SAS Visual Analytics reporting

tools allow users to quickly and easily

add fi lters or drill down to a more detailed

level of information.” But sometimes those

gut feelings are wrong — and here, as

well, SAS Visual Analytics comes in handy.

“Sticking to those gut feelings can hinder

employees in their search for improve­

ment,” Wijers says. “While identifying

outliers, visual analytics allows you to see

correlations that weren’t expected, and

the focus can be put on the real causes.”

Wijers sees visual analytics as opening

up the opportunity to explore new areas

of effi ciency and innovation — to answer

questions that haven’t previously been

posed.

“It’s a common fact that when analysts

take a lot of time in offering fi ndings,

management’s motivation to request dif­

ferent approaches to the analysis wanes,”

Wijers says. “But with SAS Visual Analytics,

once the data is loaded, analysts are

off and running, without the need for any

specialized support. With that level of

freedom and fl exibility of analysis, answers

can be found much faster, and with a

higher degree of quality.”

Focus on the real

causes

SAS® VISUAL ANALYTICS

Page 12: SAS Ref_Manufacturing

14

Intelligent production processes

thanks to analytics

Page 13: SAS Ref_Manufacturing

15

Machines now exchange more data among themselves than human beings communicate

to one another. The fourth industrial revolution is advancing full steam ahead straight into

an avalanche of data. As this development progresses, new questions are coming to light.

How, for instance, will we obtain meaningful insights from these massive amounts of

raw data? And what will it take to establish intelligent control of machine­to­machine

communications? The majority of the industrial sector is aware of the significance these

issues hold according to a survey of a representative sample of German industrial firms

conducted by the German market research institute Forsa.

Nevertheless, most companies are still nowhere close to taking full advantage of the data

currently available to them. In the real world, analytics solutions that go beyond the

obvious to seek hidden correlations among production and operations data remain few

and far between. Anywhere reporting systems are being used to merely summarize

historical data that are buried in the past, what is actually needed are analytics systems

capable of anticipating future developments and delivering accurate forecasts.

Real-time process controlThere’s a good reason why we have so much catching up to do. Not too long ago, many

analyses were impossible from a technical standpoint. Or they took too long to complete.

But recent technological developments have reshuffled the deck in industry’s favor.

Now, data can be analyzed at volumes and speeds that were impossible as little as a year

ago. Big data — and that is clearly what we’re talking about with M2M communications —

has transformed from a thorny problem into a true competitive advantage for pioneering

enterprises because they now have access to more and better information than the

competition.

Analytics software from SAS, for instance, is able to analyze as many as 1 billion records

in a mere nine seconds. Analyses which could take anywhere from one to two days in the

past can now be completed in just a few minutes. New in­memory technology and rapidly

declining memory prices precipitated this giant leap in performance. In­memory means

that all the required data is loaded into main memory and analyzed there directly. The

resulting speed increase gives us the ability to conduct analyses in real time, which is

particularly important in a production scenario. Modern analytics solutions are able to

continually monitor production processes in order to not only look at the past but also to

predict events that lie in the future. And that’s exactly what’s so special about analytics

for production. The goal is not just to report on individual metrics. Instead, all the different

sources of data are juxtaposed to detect correlations and derive insights for enhancing

production processes.

The more information that is gathered, stored, and analyzed, the more detailed the picture

of how the smallest elements within a production process from individual machine com­

ponents through to QM processes correlate with one another. Suddenly, the origins of

Page 14: SAS Ref_Manufacturing

16

production issues and which variables signal upcoming problems become clearly visible.

A classical application of machine data analysis would be an early warning system that

provides advance notice of impending machine downtime, declining product quality, or

production inefficiencies and tells operators what needs to be done and where, allowing

the process to get back on track — in other words, predictive asset maintenance.

Process optimization plays an important role as well, particularly with regard to workforce

management. Quality lifecycle assessments, in which product quality is assessed over

the course of the entire product lifecycle, also profit considerably from the use of analytics.

These assessments can for instance involve the use of service reports to identify early

indicators of problems so that corrective action can be taken as soon as possible while

minimizing costs.

New business modelsManufacturers who integrate predictive analytics into their machinery enhance the profit­

ability of their customers by boosting uptime to as much as 100 % in ideal situations. Such

a high degree of availability makes customers more satisfied and loyal. Machine data analysis

can also serve as a springboard for developing new business models such as service

packages which can have a positive impact on top line revenues. Existing data can also

help improve processes to increase capacity utilization, for instance. And let’s not forget:

data that describe how customers behave makes it possible to draw conclusions about

customer preferences and optimize accordingly. In this way, valuable differentiators can be

achieved.

The industrial sector needs analyticsTo sum up: if you want set up machine­to­machine communication, you need to ensure

that your data is relevant, meaningful, and comparable. Only analytics is able to prepare

machine data and data generated during production or operations in such a way that it is

actually worth communicating. Analytics ensures this data has significance. It can inform

managers of the status of ongoing production activities as well as foresee future events

whose likelihood lies concealed beneath the data. That’s the reason why the industrial

sector so desperately needs dependable and high­performance analytics solutions. But if

you want to transform the opportunities that advanced manufacturing has to offer into a

true competitive advantage, there’s no time to waste. You need to get started now. And

SAS Manufacturing Solutions have everything you need to hit the ground running.

Page 15: SAS Ref_Manufacturing
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NestléHow to keep fresh products on the shelves

8Meyer WerftMeyer Werft continues on course

10POSCO How this giant is light on its feet

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Analytics The driving force behind the next Industrial Revolution

5Shell Shell drills into big data analytics, extracts tens of millions of dollars

6HyundaiTechnology drives decisions at Hyundai

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Dow Chemical New solutions for a new world

12Euramax Coated Products Envisioning the future with data visualization

13Advanced manufacturing Intelligent production processes thanks to analytics

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