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Few technologies have transformed the manufacturing industry like ERP software. The next transformative technologyartificial intelligence (AI) and machine learning (ML)is taking manufacturing to a new level with unprecedented predictive data tracking and analysis capabilities.

AI can be programmed to learn from large amounts of data to make deeper and more accurate predictions regarding customers, buying habits, inventory levels, markets, material purchasing and more. In turn, AI programs machines to learn from experience so they can perform tasks that have always been conducted by humans.

AI software uses progressive learning algorithms to automate repetitive learning and achieve incredible accuracy so the data can do the programming. It can even assist manufacturers with decision-making when the relevant data, parameters, and variables exceed human understanding.

Integrating AI and ERP software can do what ERP has been doing all alongsimplifying manufacturing, improving operational efficiency and increasing profitability while growing the company. Here are 10 ways AI can make your manufacturing better.

AI-integrated ERP software helps optimize inventory management by predicting demand, identifying slow-moving products, and automating order fulfillment. AI-based inventory planning provides increased visibility of inventory KPIs, improved product, channel and location forecasting, and automatic SKU classifying to meet material demands. A recent McKinsey study reported that companies utilizing AI to optimize inventory can reduce inventory levels from 20% to 50%.

AI-based inspection systems can identify production defects and anomalies in real time, reducing the risk of product recalls and improving overall quality. This includes using machine vision to identify defects on the assembly line that may not be visible to the human eye. AI-powered quality control software can create rules to determine the features that define acceptable quality levels.

AI can lead to better-informed pricing decisions by analyzing market trends, competitor pricing and customer behavior. By factoring these into pricing strategies you can predict how different prices will impact sales, and even combine experience and data to increase prices without damaging sales.

AI helps optimize production schedules, reduce lead times and avoid stockouts by predicting product demand based on historical data and trends. In addition to predicting consumer demand for your SKUs, AI can use real-time data to create forecasts based on current supply chain conditions.

AI can predict the types and quantities of products that will be in demand with remarkable accuracy, enabling you to reduce production lead times, lower costs, and increase customer satisfaction. AI algorithms can predict the expected quantities for products in demand, thereby reducing strains on specific links of your supply chain.

AI helps reduce repair costs and extends the life of production machines by predicting equipment failure and scheduling preventative maintenance before breakdowns occur. In addition, AI can improve worker safety by minimizing human errors and accidents while increasing efficiency and productivity.

AI-powered ERP software can assist in reducing labor costs by predicting employee productivity, identifying training needs, and optimizing scheduling. It can also lower insurance rates and medical costs by reducing workplace injuries via streamlining or automating risky processes.

AI-powered ERP software provides key performance indicators on production rates, inventory levels, and quality metrics to facilitate data-driven decisions and identify areas for improvement. AI speeds up the analytics process by preparing, analyzing and assessing data as soon as it is available.

AI can help minimize labor shortages through robotic automation, additive manufacturing, and machine vision. AI applications enable robot arms to safely handle objects on the production line and can even train robots to perform various types of assembly line work done by humans.

AIs ability to automate production processes improves efficiency by reducing the need for human intervention. Machine automation can perform a wide range of production processes from repetitive tasks such as data entry and order processing to complex tasks like spotting anomalies on the production line.

The manufacturing industry has begun to gravitate toward big data in large part due to its ability to produce predictive forecasts regarding sales, pricing, material availability, and other key metrics. Using advanced technology, including AI, big data pieces together very large and diverse datasets that are used in machine learning, predictive modeling, and other advanced analytics to solve business problems and make informed decisions.

The complexity of AI algorithms can be daunting. Yet, their ability to look to the past, present and future will help modernize manufacturing.

Follow this link:
10 Areas Impacted By AI - SME.org