07 Mar Who uses Business Analytics?
With constant uncertainty and battles faced by the economy, competition and rising costs of manufacturing, it is essential for finance units to have tools that would enable them to make fast and accurate decisions. It is also important for them to have tools that would assist them in the development, management and measurement of strategies that will drive growth
Some of the business issues that are addressed by Business Analytics:
Planning and Budgeting.
Sell only profitable items.
How production impacts financial performance with visibility to machine level.
Costs and Recoveries.
Overtime cost and management.
Profitability and Contribution.
The supply chain unit is a great place to use analytic tools to look for a competitive advantage, because of its complexity and also because of the prominent role supply chain plays in a company’s cost structure and profitability.
The Supply Chain unit would use Business Analytics for:
Better forecast of demand and production.
The understanding of plant performance across multiple metrics.
Provision of faster service to customers.
The understanding of capacity availability.
Providing an accurate procurement plan that aid supply chain in improving cash flow.
Assisting planning with the creation of optimal production plans.
Sales and Marketing
Traditionally Sales and Marketing doesn’t “get along” with Production and Supply Chain; simply because of how these functions operate and are measured.
The type of Business Analytics offered by NCoded Solutions would answer questions such as:
Who are our customers and where are they?
What business service and/or offering should we be concentrating on?
What is the size of the market and what is our demand portion on the pie?
What is the value of our demand and what is the production progress for this demand?
Accurate visibility and reporting of what the expected date of delivery looks like.
What is our customer service performance like?
What is our Supply Chain lead time?
The complexity and dynamics with production is the main reason for the use of Business Analytics. Dynamics around ‘how am I doing against the planned targets’, or ‘am I using my equipment effectively’, or ‘how much have I produced so far?’ etc. make Business Analytics a sweet spot for the production unit.
Some of the information available for production is:
Equipment Efficiency (OEE).
Scrap and Rework.
Downtime and Maintenance Management.
Manufacturing Lead Time and Work-in-progress levels control.
Employee motivation and training.
Product sequencing and scheduling.
Production planning and control.