Manufacturing | Cost & Energy Management

Identify Root Causes of Production Line Wastage and Reduce the Cost
of Goods Sold

Objective

Manufacturing companies face significant financial losses due to high wastage/shrinkage and substitutions, which lead to lossy yield. The industry is in dire need of a solution to minimize wastage through maximizing substitutions and controlled planning, resulting in maximum yield.

Challenges

  • Low margins due to high wastage.
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  • Lack of insights into the root cause of the wastage.
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  • Lack of a centralized recommendation system across SKUs and manufacturing plants.
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  • Highly fragmented operations lead to delayed decision-making.

Solution Proposed

  • Azure Open AI-powered solution accelerator for automated root cause identification & business health monitoring processes.
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  • Centralized natural language-based recommendation system to reduce wastage, hence production cost.

Outcome

  • ~85% time reduction in analysis for each SKU, saving ~100 man-hours per week in effort.
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  • Centralized decision-making across manufacturing plants through real-time insights & recommendation system.
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  • AI-powered substitutions identifying ingredient replacements.

Design & Thinking Wins

  • Scalable design facilitating easy onboarding of more production lines and product categories.
    •  
  • Developed auto-refresh capabilities for rules and enabled 50% automation.
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Disclaimer: The outline showcases the typical challenges, solutions, designs, and outcomes for industries and functions, in general, based on Affine’s prowess in the Industry. The outcomes would be much higher for specific clients as they would be based on their data and specific problems to be solved.