How to Become A Data-Driven Manufacturing Operation

In today's competitive business environment, adopting a data-driven manufacturing operation is essential.

Making decisions based on data gives your company the best competitive advantage and the chance of success.

This guide, inspired by insights from a webinar hosted by Elevated Signals, will help you transition from manual processes to a robust, data-driven manufacturing operation.

View the full Webinar below:

What Does Data-Driven Mean?

Being data-driven means making decisions based on data analysis and interpretation rather than intuition or personal experience. It involves collecting relevant data, analyzing it to extract actionable insights, and using these insights to guide strategic decisions. This approach enhances accuracy, efficiency, and effectiveness across all aspects of an organization.

Why Are Data-Driven Manufacturing Operations Important to Manufacturers?

The first step is recognizing why data-driven manufacturing operations matter. Leveraging data to enhance business decisions is crucial.

As Michael Chin, the former Chief of Farm Operations at Vertical Harvest, shares, “It really becomes about, how do I collect that data in a single place? Make it really efficient and easy to collect all of that data, organize it in a way that makes sense, and then make it really available to everybody.”

So What?

For manufacturers, a data-driven manufacturing operation is transformative. Here are several specific reasons why this approach is crucial:

Production Efficiency: By analyzing production data, you can identify bottlenecks and optimize workflows. Leading to increased production rates and reduced downtime.

Inventory Management: Accurate data helps you maintain optimal inventory levels, preventing overproduction and stockouts. This balance reduces storage costs and ensures your delivery gets there on time.

Cost Reduction: By identifying inefficiencies and areas of waste, you can implement cost-saving measures. Data insights help pinpoint where resources are being overused or underutilized.

Market Responsiveness: With access to real-time data, you can quickly adapt to market changes, adjust production schedules, and meet changing customer demands more effectively.

What Challenges Might I Face When Digitizing Operations?

Initially, you may rely on spreadsheets and paper-based systems. But as your business scales, these methods become inefficient and error-prone, and the need for a more robust system becomes evident.

Transitioning from manual to digital operations can be challenging, particularly in implementation and gaining internal buy-in.

Despite these challenges, Elevated Signals has facilitated hundreds of successful implementations. Through these experiences, we've developed best practices that lead to smooth transitions and widespread adoption across organizations.

How Do I Implement a Data-Driven Manufacturing Operation?

Process Mapping

Begin by mapping out your existing processes and identifying critical data points. This foundational work is crucial for understanding the current state of your operations and planning the transition to a centralized digital system.

Michael recounts how Elevated Signals helped Vertical Harvest: “The first thing they did was do a process map of the entire thing. They spent the week with the team on the floor of the facility and mapped out that entire process.”

Knowing the key metrics and what the company is striving towards can help you understand what reports you need and what you should be tracking on the shop floor. Start with the things that matter most for your business.

Incremental Approach

Adopt an incremental approach, starting with a Minimal Viable Product (MVP) and gradually expanding your system’s capabilities. This method reduces disruption and allows teams to adapt to new processes more effectively.

Hardeep Shoker, COO of Elevated Signals, explains, “We try to understand, even within inventory, is there a small enough chunk that we can kind of take on that allows us to get a quick win for the organization.”

This allows you to see the value quickly. You can have a department online on a system or a single process and start gaining instant value. At the same time, you don’t overwhelm the team.

How Can I Manage Change and Gain Internal Buy-In?

Communicate Value

Clearly communicate the value of digitization to all stakeholders. Training and support are essential for ensuring that employees understand how to use new tools and appreciate the benefits of accurate, real-time data.

Michael advises, “People have to understand why you're asking them to do the things that they're doing.”

You need to get buy-in from executives and show them what data you can get to help with decision-making. But that’s not enough; you need to get buy-in from the users who will be inputting information as well. Explaining the why to them can help them understand why adopting a new system is crucial, and at the same time, the system should improve the quality of life for the user as well.

Show Tangible Results

Demonstrate tangible results quickly to build trust and support within your organization.

Michael shares, “Once we got the team thinking a certain way and understanding what they could get out of the data, things started falling into place.”

If you can quickly show results from incremental implementation, you will have more internal buy-in and momentum to continue implementing the system across departments and processes.

How Do I Utilize Data for Decision Making?

Identify Key Metrics

Focus on identifying key metrics and ensuring data accuracy. For Vertical Harvest, understanding yield per square foot is critical.

Michael highlights, “The fundamental data point for us that demonstrated success with the operation was yield per square foot per given period of time.”

Once you identify that, you can determine the data points and reports that you need to help you move the needle on that KPI.

Make Data Accessible

Ensure data is accurate, centralized, and accessible in real-time. This way, your team can derive value from the data, enabling them to make informed decisions, optimize operations, reduce costs, and identify new opportunities for growth.

If your data isn't accessible, it's not useful.

Recap

Transforming your organization into a data-driven manufacturing operation involves several steps:

Understanding the importance of data
Mapping existing processes
Adopting an incremental implementation approach
Managing change, and
Utilizing data effectively.

By following these steps, you can make more informed decisions, improve efficiency, and stay competitive in any rapidly evolving market.

How Elevated Signals Can Help

Elevated Signals' approach to digital transformation focuses on incremental implementation and strong change management, offering a practical roadmap for businesses looking to embrace data-driven manufacturing operations.

Take the first step today, get started with Elevated Signals for free, and begin your journey towards a more efficient and data-driven business.

Visit our website to learn more and start your transformation.