The Critical Role Of It And Ai In Manufacturing
- By Wesley Chapman, Eva-Last Technical Director
Effective information systems and processes have always been important in aligning an organisation’s activities with its strategic objectives. However, according to global management consultancy McKinsey1, digitisation, analytics and automation have disrupted, and accelerated, the rate of change in manufacturing and logistics (amongst others) faster than labour and management have been able to upskill and adapt.
Several sophisticated software programmes such as ERP (Enterprise Resource Planning) and/or MES (Manufacturing Execution Systems) have evolved to optimise capacity and streamline business activities to minimise waste. But often the interface with control systems on an operational level falls short. This is where previously inconceivable new technologies and software are coming into their own.
Like it or not, current international business jargon is peppered with trendy acronyms including 4IR, AI, ML or DI. And ready or not, you’d better be on board and buckled up if you hope to future-proof your organisation and ensure its sustainability, particularly on a global scale.
Forbes indicates a 95% correlation between decision effectiveness and financial performance. McKinsey estimates that bad decisions cost S&P 500 companies over $250 million! These historical datasets can guide product pricing or management decisions based on various macro-economic variables from raw material costs to energy prices, demand forecasts and even weather or shipping challenges.
So how exactly does a global manufacturer measure – or anticipate – and then adapt or ‘pivot’ – in modern parlance – to maximise the very opportunities and mitigate the risks identified by ‘’Artificial Intelligence” (AI) and/or ‘’Machine Learning” (ML) using “Decision Intelligence”(DI)?
At Eva-Last, a leading international composite building supplies manufacturer, we are helping lead the way.
We employ the very latest IT systems and material technologies to position ourselves at the forefront of the advanced composite building materials market in over 30 countries. Our company’s extensive portfolio of sustainable building products is continuously customised and adapted in line with regional demands and material improvements.
Our extensive range of bamboo composite decking, cladding, architectural beams, railing and balusters are currently custom manufactured to the strict specifications of each different territory.
Eva-Last’s cloud-based international operation connects over 500 sites virtually representing the epitome of Decision Intelligence (DI). Our decentralised demand forecasting and production planning programme measures the productivity and profitability of product lines per location. This is used to optimise supply chain management and inventory control.
Not only can we manage our orders, operations and customer relations effectively but these systems are critical for quality control and directing product development.
Advanced data analytics measure early indicators of behavioural, fashion and even colour preferences per region to drive insightful pattern or trend recognition software. These provide a birds-eye view of their operations and forecasts and can test various outcomes using machine learning and automation.
Demand planning software processes early-buy incentives, rebates and attractive volume discounts to direct seasonal production schedules, stockholding and warehousing. Lastly, our product development is geared to incorporate up-to-the-minute improvements in composite building material technology including renewables, recycled plastic inputs, fire retardants, colour stabilisers, lightweight materials and more.
As a progressive and proudly innovative organisation, we see a future that may also explore integration with emerging Building Information Modelling (BIM) or Digital Information Modelling systems on connected construction sites. Technology is ever-evolving and it’s important to stay in touch with future developments.
With the imminent rollout of the EU’s Digital Product Passports, lifecycle assessments and the focus on sustainable development, coupled with Digital Twins in construction and BIM, these IT systems and AI processes are becoming increasingly important. Fortunately, Eva-Last is primed to capitalise on these regulatory requirements.
Reference: 1 – https://www.mckinsey.com
