Data matters. In some ways, your business likely relies on a certain amount of data to perform basic functions. If the wrong parameters are in place, or if something’s missing, everything, from development to delivery and the processes in between, can face delays at best, and complete shut-downs at worst.
But, data might be more important than what’s easily seen at the surface level. Data might be essential for not only growth, but savings as well.
Savings and growth go hand in hand, so, it’s logical that saving in one area would be beneficial in another. But, how do they work together? How exactly can data – and the effective management of that data – save money?
A few things you may not have considered are outlined below.
Data Can Lead to Process Improvements
Sometimes, savings at the fundamental level can be accomplished just by examining processes.
According to US News & World Report, Beaufort Memorial Hospital found that it could save approximately $435,000 a year by discharging patients a half day earlier. While this was outside of the manufacturing industry, it’s something interesting to consider. Something as simple as a few hours saved hundreds of thousands of dollars over the course of a single year.
What processes do you have in place that could use improvement? It might feel as though you’ve done all you can to go “lean,” however, when the right data is collected and analyzed through enhanced, automated processes, the results may be surprising.
Smart Data Can Reduce Waste and Abuse of Resources
Every resource that goes into manufacturing has a cost associated with it. It likely has a certain amount of waste associated with it.
What if that waste could be reduced? In some industries, a recent study by Villanova found that the potential savings in this area – made possible by smarter data – could save billions of dollars. Billions.
When the right fields are collected and analyzed, areas of waste could be reduced through process improvements. The potential for cost savings is great.
Data Can Lead to Stronger Forecasting for Better Decision Making
Sometimes, guesses are necessary in business, especially in manufacturing. Those guesses are educated, based on the information that’s available at the time, however, there’s a certain number of unknowns that go along with most decisions.
But, when analytics are used along with customized data fields to track trends over time, the outcome can save money while removing a certain amount of guess work. In fact, one European car manufacturer used data to track the trends in steel pricing over certain periods of time. By tracking the cost of raw materials, and how those costs fluctuated over time, the company was able to save $16 million over the course of two years.
Data doesn’t have to be stagnant. It can track trends that manufacturers dreamed of being able to track not all that long ago. When those trends are analyzed, better decision making – and the cost savings that come with it – can be a result.
Automated Data Systems Can Reduce Manpower Hours
In manufacturing, it’s a given – data collection has to happen. Once it’s gathered, that data must be examined, analyzed and studied. Only then, can what’s learned be put into practice. It’s time consuming and the hours required cost money and take away from other processes.
When engineering teams are equipped with the right tools – as far as data systems are concerned – this time (and therefore money) can be invested elsewhere.
Automated data collection apps and management systems can cut hours exponentially. When data gathering and reporting is both simple and customized for specific purposes, excess data is reduced and the data that is collected can be harnessed to its full power. It can track trends in real time, expose faults in existing systems and allow labor hours to be used more efficiently.
In what ways could data save your business money? Have you been searching for a mobile data collection application for the manufacturing industry? If so, we have your solution. Schedule a demo today to learn more!