OEM pressure for the improved quality of products at faster speeds and lower costs with less waste is intense. But instead of producing predictable demand, unpredicted downtimes, fragmented data, and quality issues, profit is undermined. 

Power BI fully utilizes AI-driven analytics and proves to be the game-changer Manufacturing (OEMs). Instead of just raw data, Power BI promises actionable insights such as demand forecasting, downtime prevention, data silo unification, and broadens the quality scope. In this blog, we take you through the journey of leveraging this capability to optimize production planning, reduce costs, and outperform competitors.

Unpredictable Demand Fluctuations

Problem

Demand unpredictability is one critical issue faced by OEMs across industries:

• Inventory imbalances leading to stock outs or excess inventory (estimated at an average of 25% of inventory value per annum)
• Production scheduling inefficiencies compelling orders to be rushed or causing idle capacity
• Resource misallocation in terms of inefficient labor, material, and equipment utilization
• Cash flow constraints due to production not in sync with actual market demand

Power BI AI Solution

Sophisticated AI in Power BI helps complete OEMs in having tools for approaching and fighting against volatility in markets. Time series forecasting algorithm analyzes historical patterns and simultaneously considers parameters like seasonality, market trends, and external variables to make it possible to generate fairly accurate predictions regarding the demand.

Some important AI features that OEMs use to find work around with demand fluctuation are:

• Advanced Forecasting Models: From the usage of the machine algorithms which improve with time when they use more data, the results reveal forecast accuracy between 85 and 95 % varying according to particular industries.
• Anomaly Detection: It ensures that the overall could sense abnormality in their demands, so when time, it can automatically notify managers about those impending hazards before they hit production.
  
  Read More :- https://megamindstechnologies.com/blog/how-power-bi-ai-capabilities-help-oems-optimize-production-planning/