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CREATING REAL VALUE FROM

MANUFACTURING DATA ANALYTICS

CHRISTOPH HARTMANN, SAS BUSINESS ADVISOR MANUFACTURING

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MANUFACTURING

4.0VALUE IS CREATED BY MAKING SENSE OF DATA

Connected

Devices

Data

Knowledge

Action

Smart Factory

Welding gun with

integrated wifi

Offer capacity to

unfinished work parts

Optimize capacity in

flexible production

Smart CitySmart Home Smart Car

Sensors embedded in

road surfaceConnected lock

Bluetooth dongle reading

vehicle data

Detect weather, predict

traffic, sense 911 vehiclesDetect when I leave

Predict unsafe

conditions & likely

collision

Adjust speed limits and

shift lane directions to

optimize traffic flow

Lock the door, set the

alarm and adjust the

HVAC

Slow the vehicle, alert

the driver

Copyright © 2012, SAS Institute Inc. All rights reserved.

To make the Internet of Things useful, we need an

Analytics of Things. This will mean new

data management and integration approaches, and new ways to analyze streaming data continuously.

Thomas H. DavenportPresident's Distinguished Professor, Babson CollegeCo-founder and Director of Research, International Institute for AnalyticsAuthor of Competing on Analytics and Big Data at Work

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NESTLE CASE STUDY

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NESTLE DIRECT STORE

DELIVERY FORECASTINGTHE CHALLENGE

115,000 Sell To Locations

260 Warehouses

7 Plants & 78 Lines

950 SKUs

Short Shelf Life

-29C Frozen Freight & Storage ($$$)

A Sales Team Who Hates Service Issues

Forecast Accuracy Level = SKU /

Warehouse / Week

45,000 Active Forecasts

10 Demand Planners

Need a demand planning system that is easy to

use, has a wide range of forecasting models and

is able to handle extraneous variables like

promotions/price or social media information on

new products

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THE 2 MISSIONS FOR

NESTLEIMPROVE STATISTICS & PROCESS

…Engage The Right People, Not Just Sales

…Schedule Cycles That Build To Consensus

…Nurture Healthy Brutal Honesty

…Pricing & Promotions - Simple

…Market Penetration / Shelf Space / Social Media

…Other Causals (Weather, Competition)

…Multiple Math Model Types Available

…Robust Causal Factor Functionality

…Forecast At All Intersections (Customer, Product, Geography)

…Fast solve performance for large data sets

…Robust Roll Up Capability

…Time Series at Lowest Level

Find The Best Stats Engine Enhance S&OP & Key events

C o p y r i g h t © 2 0 1 2 , S A S In s t i t u t e In c . A l l r i g h t s r e s e r ve d .

THE KEY METRICS &

RESULTSNESTLE

Target Key Metrics :

% Accuracy (at many levels) / Bias / Forecast Value Add

Results:

Significantly improved forecast accuracy as compared with their

existing system

Exceeded 7% MAPE improvement

Lowered inventory safety stock by more than 12%

Significantly reduced Excel spreadsheets

Able to measure the impact of promotions and price change;

providing improved store-level forecasting during promotional cycles

Ability to measure forecast value add by promo and planning role

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LENOVO CASE STUDY

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LENOVO

• Warranty process was slow

• Integrated data from Amazon, Facebook, Best Buy, Twitter, Lenovo sites, &

dozens more

• Automated analytic early warning process

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LENOVO

X1 Carbon Launch

• Not performing as designed (usability)• e.g., Keyboard

• Not performing as engineered (quality)• e.g., Trackpad

• Driver & software updates• e.g., Windows 8 Updates

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LENOVO

Customer Support

eService

Social Media

Product Reviews Amazon AmazonBestBuyNewEgg

ecommerce: NewEgg, BestBuy, Amazon

Professional Sites & Bloggers

Facebook Twitter Facebook

Google

Twitter

Google Facebook

Weibo

Forums Forums Forums Lenovo Central Lenovo Central

Smart Apps

Call Center Call Center Call Center Chat Chat

Voice-to-Text

NA + IN English Multi-Language

POC Pilot Production500 GB – 1 TB 2 TB – 5 TB +100 TB

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LENOVO

• Benefits

• 50-66% reduction in issue detection time

• 10-15% reduction in warranty cost from out of norm defects

• 30-50% reduction in calls for general information

• Future Direction

• Identifying features that customers desire

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CASE STUDY:

LENOVOLENOVO- PATH TO VALUE

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INNOVATION MANUFACTURING 4.0

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SUMMARY

Opportunity for differentiation with power of analytics is out there – ACT!

Learn more about Use Cases across the Supply Chain from SAS and partners

Big Data Analytics-Platforms are the future of manufacturing

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QUESTIONS & ANSWERS