4 Steps to Implementing Predictive Quality

Analytics in Manufacturing
 “
Advanced analytics is becoming a vital tool in the quest for
improved quality. It can help decrease total costs by identifying
and addressing the root causes of defects more swiftly, as well
as defining more efficient methods to maintain quality. The
results of deploying advanced analytics in quality management
can be measured in improved customer satisfaction and
retention, as well as increased cash flow. This matters because
the total cost of quality has a major impact on economics—
costing up to 20% of revenue for a business.”
Bain & Company

2 ETQ, part of Hexagon Manufacturing Intelligence

Picture a factory where manufacturing equipment
can identify when conditions are likely to produce
defects and alert workers before production is
affected. In this factory, workers proactively
intervene to prevent quality issues instead of just
reacting to them as they happen.

This isn’t some hypothetical factory of the future

— it’s reality, made possible by predictive quality
analytics. By using real-time data to anticipate
problems, manufacturers can switch from a reactive
approach to a proactive one, preventing costly
defects and maximizing efficiency on the factory
floor.

Are you ready to stop reacting to quality issues and

start predicting them? This guide will show you how
to turn manufacturing data into actionable insights
using predictive analytics.

ETQ, part of Hexagon Manufacturing Intelligence 3

Understanding Predictive Quality Analytics
Predictive quality analytics refers to the process of collecting and analyzing data to predict future outcomes
based on past patterns and trends. Digital transformation is the hallmark of Industry 4.0, and leveraging predictive
quality analytics has become a critical component of quality management in manufacturing. It is also a key way for
manufacturers to gain and maintain a competitive edge.

From Reactive to Proactive Quality Management

In the past, manufacturers had no choice but to address quality problems after they occurred. They simply didn’t
have access to the real-time data and analytics tools to support any form of advanced predictive modeling.

Now, in the age of artificial intelligence and machine learning, predictive models are accessible and automated,
programmed to deliver insights based on a constant stream of real-time data. This allows manufacturers to detect
potential issues before they escalate, optimize production processes and minimize costly disruptions — all based
on real data, not guesswork.

The Role of Data in Predictive Quality

Many manufacturers already collect large amounts of data on the factory floor, including:

• Machine performance metrics like uptime, downtime and speed

• Cycle times

• Defect rates

• Environmental conditions like temperature and humidity

• Production output rates

• Energy consumption

• Tool wear and tear

• Material usage and waste

Predictive analytics is not about investing in entirely new systems and installing a million new sensors.
It’s about gleaning valuable insights from existing data. Even when companies already have plenty
of data, it often remains underutilized. By applying predictive analytics and advanced algorithms,
manufacturers can get the most out of the data they’re already collecting and strategically implement
new sensors and solutions to gain new insights.

4 ETQ, part of Hexagon Manufacturing Intelligence

 Step 1: Collecting and Preparing Quality Data
Successful predictive analytics starts with the right data. Data-driven manufacturing needs a foundation of high-quality,
relevant and organized data to feed into predictive models.

Identifying Key Data Sources

Primary data sources manufacturers

should focus on for predictive
analytics include:

Machine and equipment

sensors
Data on performance metrics like
pressure, vibration and energy usage.

Production logs
Data on production volume, cycle times and
machine utilization.

Identifying Quality inspection reports

Historical data from inspections and audits,

key data including defect rates and compliance with

quality standards. Leveraging this data helps

sources
identify recurring quality issues and improve
overall product consistency.

Maintenance logs
Offer insight into the frequency of repairs, preventive
maintenance schedules and downtime events. This
data helps manufacturers predict future maintenance
needs and prevent unplanned downtime.

Connected worker devices

Data collected from connected worker technology, such
as RFID scanners, shop floor tablets, connected tools
and wearables.

Ensuring Data Accuracy and Consistency

Once primary data sources are identified, manufacturers Use a quality management system (QMS) to consolidate
should ensure data is accurate and in a format suitable data from various sources and gain a comprehensive view
for analysis. Then, establish uniform formats and of quality activities. Keeping your data in a centralized,
protocols for data collection across all departments and secure repository like a QMS makes it more organized and
automate data collection whenever possible to reduce accessible for use in predictive models.
manual entry errors.

ETQ, part of Hexagon Manufacturing Intelligence 5

Step 2: Setting Up Predictive Alerts
With your data collected and prepared for analysis, you can begin to set up predictive alerts. This involves configuring your
analytics tools to monitor specific data patterns and thresholds that may indicate potential quality issues or equipment
failures. Predictive alerts enable you to address potential issues before they escalate into costly problems.

Defining the Right Alerts for Your Customizing Alerts for Different Teams
Processes
As you set up predictive alerts for different processes,
Predictive alerts may vary according to each production you can test, adjust and assign notifications to different
process and even each piece of equipment. You’ll need to teams. Your maintenance team needs timely alerts
determine which metrics are vital for each process and about equipment wear and tear and notifications about
then define acceptable ranges for each metric based on abnormal operating conditions. Still, they likely don’t need
industry standards and historical data. to know about inventory levels or material shortages —
those alerts should go to the production team.
For example, if a certain machine has a normal operating
temperature of 80 degrees Celsius, you could set an alert An alert about rising defect rates should go to your quality
for temperatures exceeding 85 degrees. You can then control team, but if defects stem from an equipment
further define your alert by establishing who receives a issue, your maintenance team should be involved as well.
notification when the alert is triggered. With automated With predictive analytics tools, you can customize alerts
sensors and alerts, manufacturers can ensure timely to stay ahead of potential issues while keeping workflows
interventions and maintain high-quality standards. streamlined.

6 ETQ, part of Hexagon Manufacturing Intelligence

Step 3: Implementing Real-Time Monitoring
Data collection and alerts make predictive quality analytics possible, but you need real-time monitoring to make it
actionable. Real-time monitoring continuously feeds predictive models with the data required for accurate forecasting.
Manufacturers can use real-time dashboards and analytics to keep an eye on operations, keep things running smoothly
and foster a more data-driven manufacturing environment.:compliance and internal audits. It also includes feedback
mechanisms designed to collect and analyze customer feedback to identify and rectify potential issues.

Choosing the Right

Monitoring Tools
There are many tools available for monitoring quality data in real-time:

• IoT platforms: Often, connected • ERP systems: Many ERP

devices and sensors on the platforms have quality modules
factory floor are controlled via that allow companies to track and
a centralized IoT platform and monitor quality metrics alongside
those platforms often offer real- other operational data.
time dashboards that display
sensor data. • Manufacturing Execution
Systems (MES): An MES
• Quality Management Systems provides visibility into various
(QMS): A QMS integrates quality production processes and
data from across the organization enables manufacturing process
and provides real-time monitoring optimization.
and data dashboards.

Integrating Monitoring Systems with Existing Infrastructure

Your organization likely has some monitoring tools in place, but you may not be using them to their full potential. Investigate
the features of your current enterprise system(s) and consult with quality experts to see what they can offer in terms of
new predictive quality analytics applications and modules. You don’t necessarily need to overhaul your current technology
stack if you can integrate new monitoring tools with existing infrastructure.

ETQ, part of Hexagon Manufacturing Intelligence 7

 Step 4: Calculating ROI Predictive Quality
Analytics
Digital transformation is a significant investment, and implementing predictive quality analytics is no
exception. There are costs associated with upgrading your infrastructure and adopting new tools but
consider the financial and operational benefits of such an investment.

Reducing Downtime and Scrap Rates

With predictive alerts and real-time monitoring, workers can detect potential issues and implement
corrective actions quickly, preventing breakdowns and defects. This proactive approach leads to a
measurable reduction in downtime and scrap rates.

Improving Production Efficiency

Predictive quality analytics can further reduce production costs through manufacturing process
optimization and the elimination of inefficiencies. When monitoring workflows in real-time, quality
professionals can easily identify bottlenecks and spot underutilized or underperforming equipment.
Then, they can quickly make adjustments to improve resource allocation and optimize production.

Key Considerations for Quality Managers

Implementing Predictive Analytics
Aligning Quality Metrics with Business Goals

With so much data at our fingertips, it’s easy to get lost in the weeds. Quality managers should make
sure quality metrics and resources are supporting broader business objectives like cost savings and
operational efficiency. Predictive analytics can support these goals by providing deeper insights into
production quality.

Collaborating with IT and Operations

Implementing predictive analytics is a collaborative effort involving several departments. Quality
managers need to work closely with IT and operations teams to integrate new monitoring tools with
existing systems successfully. Define roles, establish clear communication channels, and create
opportunities for feedback.

Ensuring Data Integrity and Usability

Data integrity and formatting issues can wreak havoc with predictive model performance. Quality
managers are responsible for maintaining data accuracy and consistency. This means standardizing data
formats and processes, enforcing those standards across the organization, and setting up a system for
routine data validation checks.

Making Data-Driven Decisions for Continuous Improvement

Predictive analytics is not a set-it-and-forget-it solution. Quality managers need to use insights from
predictive models to make data-driven decisions that lead to continuous improvements in production
processes. They should identify emerging quality issues and refine predictive models to make them
more accurate and efficient over time.

8 ETQ, part of Hexagon Manufacturing Intelligence

Overcoming Common Implementation
Challenges
Integrating predictive quality analytics isn’t without its challenges, but these hurdles can be overcome with
proper planning and execution.

Data Silos and Integration Issues Employee Training and Change

Management
It can be challenging to break down existing data
silos and successfully integrate various data sources Another potential hurdle is employee training and
into a single platform. These solutions can help ease change management. Predictive tools may be unfamiliar
integration issues: to some of your team members, and there can be a
learning curve. To get everyone on the same page and
foster a culture of data-driven decision-making, offer
• Use a centralized data platform. If data is structured, hands-on training sessions tailored for
consolidated, it’s easier to feed into a predictive specific departments. Help your team understand the
analytics program. importance of predictive analytics and how these tools
benefit their specific efforts.
• Ensure your predictive quality analytics solution
understands manufacturing data and has already
integrated data feeds and signals.

• Use API integrations to ensure smooth data sharing.

• Leverage QMS and ERP platforms to get a holistic

view of production and quality metrics.

• Establish strong data governance policies to bolster

security and accessibility.

ETQ, part of Hexagon Manufacturing Intelligence 9

Harnessing the Power of Predictive ETQ Reliance and Predictive Quality
Quality Analytics Analytics

By leveraging predictive quality analytics, manufacturers Find out how your quality management processes can
can shift from a reactive to a proactive approach to benefit from integrating predictive quality analytics with
quality management. When workers have the tools to ETQ Reliance® to create better products faster. Learn
address quality issues before they escalate, the entire more by visiting the Advanced Analytics page on our Web
operation becomes more efficient, with less time and site. www.etq.com.
money spent on costly defects and downtime.

Predictive analytics offers the key to becoming a more

data-driven manufacturing operation and achieving long-
term excellence.

If you’d like to learn more about

ETQ Reliance, contact ETQ today
or call: +1 (844) 293-3001

10 ETQ, part of Hexagon Manufacturing Intelligence

ETQ, part of Hexagon, is a global leader in integrated
quality management, health, safety, and environmental
solutions for manufacturers. Learn more at etq.com.

Hexagon is a global leader in digital reality solutions.

Learn more about Hexagon (Nasdaq Stockholm: HEXA B)
at hexagon.com and follow us @HexagonAB.

© 2024 Hexagon AB and/or its subsidiaries and affiliates. All rights reserved.