12 use cases of AI in manufacturing (Part 3)

There are many different methods to harness the potential of artificial intelligence in the manufacturing process and each method can bring a certain benefit to managers. Here are some examples:

Making use of data

This sounds very general but in reality, there’s a whole variety of ways to use big data in manufacturing. Manufacturers collect vast amounts of data related to operations, processes, and other matters – and this data combined with advanced analytics can provide valuable insights to improve the business. Supply chain management, risk management, predictions on sales volume, product quality maintenance, prediction of recall issues – these are just some of the examples of how big data can be used to the benefit of manufacturers. This type of AI application can unlock insights that were previously unreachable.

Price forecasts

To manufacture products, you first need to purchase the necessary resources, and sometimes the prices can get a little crazy. For example, if you buy stainless steel, its price is affected by a variety of factors, including the listings of Metal Exchange or the prices of other elements, some of them not listed on the metal exchange. With the rapid changes in prices, sometimes it may be hard to assess when it’s the best time to buy resources. Knowing the prices of resources is also necessary for companies to estimate the price of their product when it’s ready to leave the factory. Let’s stick to the example of stainless steel: the prices can vary, depending on the current listings of e.g. nickel or the price of ferrochrome. The system is able to provide accurate price recommendations just like in the case of dynamic pricing that’s used by e-commerce businesses like Amazon where machine learning algorithms analyze historical and competitive data to always offer competitive prices and make even more profit.

Robotics

It’s not surprising that a large share of the manufacturing jobs is performed by robots. However, conventional industrial robots require being specifically programmed to carry out the tasks they were created for. The conventional robots now need to be provided with a fixed procedure of assembling parts but AI-powered robots can interpret CAD models, which eliminates the need to program their movements and processes. In 2017, Siemens developed a two-armed robot that can manufacture products without being programmed.

Customer service

When you think about customer service, what industries come to your mind? Hospitality, retail, banking? They deal with customers directly, so customer service is a huge part of their business. In manufacturing, however, the importance of customer service is often overlooked – which is a mistake as lost customers can mean millions of dollars in lost sales. AI solutions can analyze the behaviors of customers to identify patterns and predict future outcomes. Observing actual customers’ behaviors allows companies to better answer their needs. In 2018, Nokia unveiled the latest version of its Cognitive Analytics for Customer Insight software, providing powerful new capabilities so service provider business, IT and engineering organizations can consistently deliver a superior real-time and personalized customer experience. The software allows service providers to quickly identify issues and prioritize improvements. There’s a variety of ways artificial intelligence can improve customer service – read more about this topic here.

Is AI the future of manufacturing?

Artificial intelligence is a game-changing technology for any industry. As the technology matures and costs drop, AI is becoming more accessible for companies. In manufacturing, it can be effective at making things, as well as making them better and cheaper. The manufacturing industry has always been eager to embrace new technologies – and doing so successfully. Now, with AI adoption, they are able to make rapid, data-driven decisions, optimize manufacturing processes, minimize operational costs, and improve the way they serve their customers. This doesn’t mean that manufacturing will be taken over by the machines – AI is now an augmentation to human work and nothing can be a substitute of human intelligence and the ability to adapt to unexpected changes.

Source: Neoteric