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1 C opyr i g ht 2016, SAS Ins titut e Inc. All rights res er ve d. Bienvenue

2 Data Analytics in Manufacturing Bert Seegers Head of Manufacturing industry C opyr i g ht 2016, SAS Ins titut e Inc. All rights res er ve d.

3 NEW REALITY KEY TRENDS FACING MANUFACTURERS Product & Value Chain Complexity Making Sense of Data Connected Everything Product Quality is Top of Mind Sustainability & Compliance Customers Expect Increasing Levels of Service Convergence of IT, OT, and Communications Increased Competition & New Markets Source: IDC Futurescape: Worldwide Product & Service Innovation C opyr i g ht 2016, SAS Ins titut e Inc. All rights res er ve d.

4 ANALYTICS VALUE IN MANUFACTURING Sales & Marketing Supply Chain Planning Quality & Reliability Aftermarket Service Information Technology Marketing Optimization Campaign Management Customer Analytics Demand Management Inventory Optimization Market Simulation Voice of Customer Production Yield Field Quality Service Parts Service Revenue Warranty Fraud Analytics Platform Cyber Security Data Management Establish Omni Channel capability Improve campaign effectiveness Improve return on marketing investments Increase sales Improve LTV of customers Better customer service, lower Inventories, lower supply chain costs Ensure right product at right place at right time in the right quantity Optimize profit margins & grow revenue Reduce cost of poor quality Reduce unplanned downtime Minimize scrap & rework Lower warranty costs experience & CSI Improve SLA compliance Improve service profitability Detect suspicious warranty claim activity Create culture of analytics Enable business value creation satisfaction Detect suspicious cyber activity Internet of Things Copyr i g ht 2015, SAS Ins titut e Inc. All rights res er ve d.

5 ANALYTICS VALUE IN MANUFACTURING Sales & Marketing Supply Chain Planning Quality & Reliability Aftermarket Service Information Technology Marketing Optimization Campaign Management Customer Analytics Demand Management Inventory Optimization Market Simulation Voice of Customer Production Yield Field Quality Service Parts Service Revenue Warranty Fraud Analytics Platform Cyber Security Data Management Establish Omni Channel capability Improve campaign effectiveness Improve return on marketing investments Increase sales Improve LTV of customers Better customer service, lower Inventories, lower supply chain costs Ensure right product at right place at right time in the right quantity Optimize profit margins & grow revenue Reduce cost of poor quality Reduce unplanned downtime Minimize scrap & rework Lower warranty costs experience & CSI Improve SLA compliance Improve service profitability Detect suspicious warranty claim activity Create culture of analytics Enable business value creation satisfaction Detect suspicious cyber activity Internet of Things Copyr i g ht 2015, SAS Ins titut e Inc. All rights res er ve d.

6 I O T THE IOT PROMISE B I G DATA High Velocity Complex Large Analytics Act Value Business Efficiency and Optimization New Business Models Sense Understand Act Copyr i g ht 2015, SAS Ins titut e Inc. All rights res er ve d.

7 INTELLIGENCE FOR THE CONNECTED WORLD Connected Factory Connected Service Connected Car Connected Customer Identifies hidden patterns that predict failures improving production yield and product quality. SAS IoT Analytics leverages equipment sensor and tag data to develop and deploy early warning models. Improving service operations through predictive maintenance. SAS IoT Analytics provides manufacturers with new insights that proactively identify equipment issues, positively impacting customer satisfaction and service profitability. Global Healthcare Manufacturer Predict issues in the fleet before failures occur and provide new value added services. SAS IoT Analytics uses data vehicle sensors and customer information to develop and deploy models that provide proactive information leading to better customer service. Provide your customers with the right content and offers in real time. SAS IoT Analytics leverages data from set box devices to predict customer preferences, in real time. The result is timely suggestions and offers customers are more likely to accept. Global Telecommunications Company C opyr i g ht 2016, SAS Ins titut e Inc. All rights res er ve d.

8 ANALYTICS VALUE IN MANUFACTURING Sales & Marketing Supply Chain Planning Quality & Reliability Aftermarket Service Information Technology Marketing Optimization Campaign Management Customer Analytics Demand Management Inventory Optimization Market Simulation Voice of Customer Production Yield Field Quality Service Parts Service Revenue Warranty Fraud Analytics CoE Cyber Security Data Management Establish Omni Channel capability Improve campaign effectiveness Improve return on marketing investments Increase sales Improve LTV of customers Better customer service, lower Inventories, lower supply chain costs Ensure right product at right place at right time in the right quantity Optimize profit margins & grow revenue Reduce cost of poor quality Reduce unplanned downtime Minimize scrap & rework Lower warranty costs experience & CSI Improve SLA compliance Improve service profitability Detect suspicious warranty claim activity Create culture of analytics Enable business value creation satisfaction Detect suspicious cyber activity Internet of Things Copyr i g ht 2015, SAS Ins titut e Inc. All rights res er ve d.

9 SAS BUSINESS SOLUTIONS DEMAND MANAGEMENT Improve forecast accuracy of new product launches & have product available for sell Use structured judgment process to define the best as like products for new launch forecasting Optimize planning and be more efficient in the collaborative planning process Unite statistical forecast with domain expertise in order to come up with the most accurate consensus plan Higher Availability & Service Levels to lower capital costs Combine statistical forecasting & Inventory Optimization across a multi echelon distribution network Create what if scenarios to lower inventories while increasing service levels Improve Forecast Accuracy; Lower inventory & scrap costs Use historical data & causal factors data to generate highly-accurate forecasts of future demand Sense demand signals Shape future demand Reduce touch points with the forecast / manual planning and become analytic driven Forecast Valued Added Demand intelligence Get a holistic view of all demand & planning related data Track Merchandising activities, competitors information, new product launches and social media feedback from consumers to drive decision making for the supply chain C opyr i g ht 2016, SAS Ins titut e Inc. All rights res er ve d.

10 SAS BUSINESS SOLUTIONS SAS DEMAND-DRIVEN PLANNING AND OPTIMIZATION (DDPO) C opyr i g ht 2016, SAS Ins titut e Inc. All rights res er ve d.

11 ANALYTICS VALUE IN MANUFACTURING Sales & Marketing Supply Chain Planning Quality & Reliability Aftermarket Service Information Technology Marketing Optimization Campaign Management Customer Analytics Demand Management Inventory Optimization Market Simulation Voice of Customer Production Yield Field Quality Service Parts Service Revenue Warranty Fraud Analytics CoE Cyber Security Data Management Establish Omni Channel capability Improve campaign effectiveness Improve return on marketing investments Increase sales Improve LTV of customers Better customer service, lower Inventories, lower supply chain costs Ensure right product at right place at right time in the right quantity Optimize profit margins & grow revenue Reduce cost of poor quality Reduce unplanned downtime Minimize scrap & rework Lower warranty costs experience & CSI Improve SLA compliance Improve service profitability Detect suspicious warranty claim activity Create culture of analytics Enable business value creation satisfaction Detect suspicious cyber activity Internet of Things Copyr i g ht 2015, SAS Ins titut e Inc. All rights res er ve d.

12 SAS BUSINESS SOLUTIONS SAS CONNECTED QUALITY C opyr i g ht 2016, SAS Ins titut e Inc. All rights res er ve d.

13 SR TECHNICS AEROSPACE & DEFENSE BUSINESS ISSUE Engine Condition Monitoring (ECM) systems were OEM and customer specific with different infrastructure and outputs. The monitoring and diagnostics process were very labor intensive Chosen approach was to leverage the connected data to monitor equipment performance. Use data to model performance to maximize expected life of product/components/parts. Tailor Maintenance to more efficiently balance use and performance with the cost of maintenance SOLUTION SAS APA / Predictive Maintenance Results SR Technics saved about $8 million within 2.5 years on fuel costs and major damage avoidance alone. Saved 3.5 FTE s in development Won the Frost & Sullivan Product Differentiation Innovation Award Copyr i g ht 2013, SAS Ins titut e Inc. All rights res er ve d.

14 ANALYTICS VALUE IN MANUFACTURING Sales & Marketing Supply Chain Planning Quality & Reliability Aftermarket Service Information Technology Marketing Optimization Campaign Management Customer Analytics Demand Management Inventory Optimization Market Simulation Voice of Customer Production Yield Field Quality Service Parts Service Revenue Warranty Fraud Analytics CoE Cyber Security Data Management Establish Omni Channel capability Improve campaign effectiveness Improve return on marketing investments Increase sales Improve LTV of customers Better customer service, lower Inventories, lower supply chain costs Ensure right product at right place at right time in the right quantity Optimize profit margins & grow revenue Reduce cost of poor quality Reduce unplanned downtime Minimize scrap & rework Lower warranty costs experience & CSI Improve SLA compliance Improve service profitability Detect suspicious warranty claim activity Create culture of analytics Enable business value creation satisfaction Detect suspicious cyber activity Internet of Things Copyr i g ht 2015, SAS Ins titut e Inc. All rights res er ve d.

15 C opyr i g ht 2016, SAS Ins titut e Inc. All rights res er ve d.

16 SAS BUSINESS SOLUTIONS SAS CONNECTED SERVICE Right part + Right Place + Right Time = Lower Service Costs Service Parts Inventory Optimization Lifecycle Management Increased Customer Satisfaction Contact Center & Field Service Resource Optimization Resolution Analysis Improved 1 st Call Completes Perceptual Service Quality Higher Availability & Service Levels; Asset Optimization Yields and Efficiency Predictive Maintenance Improve SLA Performance Improve Customer Experience; Lower Warranty Costs Suspect Claims Identification Early Failure Warning Root Cause Analysis SERVICE INTELLIGENCE Grow Revenue Streams; Lower Cost-to-Serve Contract Portfolio Optimization Service Contract Pricing Reserve Forecasting C opyr i g ht 2016, SAS Ins titut e Inc. All rights res er ve d.

17 Copyri ght 2013, S A S Ins ti tute Inc. All ri ghts res erved. KVERNELAND INDUSTRIAL MANUFACTURING BUSINESS ISSUE Unsatisfactory inventory turns, service levels and forecast quality. Needed to optimize inventory levels at its DC s. Require SAP integration with service parts solution. SOLUTION After-Market Service: SAS Service Parts Optimization The SAS solution helped Kverneland improve service parts forecasting, leading to optimized inventory of spare parts and improved customer service targets. RESULTS 60% increase in inventory turns service levels to over 95%

18 SAS IN MANUFACTURING SAS Footprint in Manufacturing Over 2000 Manufacturing Customers in more than 70 countries Automotive, Aerospace, Chemicals, Consumer Products, Hi-Tech, Industrial, Metals, and White Goods 47 of Fortune Top Global 50 Manufacturers 24 of the Gartner Global Supply Chain Top 25 MFG Sector # Customers By Country Aerospace Automotive CPG Hi-Tech Industrial Copyr i g ht 2014, SAS Ins titut e Inc. All rights res er ve d. Process

19 C opyr i g ht 2016, SAS Ins titut e Inc. All rights res er ve d. Merci

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