Hartford Business Journal

31 HARTFORDBUSINESS.COM | SEPTEMBER 6, 2021 EXPERTS CORNER Challenges and rewards of predictive analytics for modern manufacturing By Gregory Chambers As data becomes an increasingly important asset of modern manufacturing businesses, manufacturers are relying more on predictive analytics to better achieve their goals and deliver for customers. Simply put, predictive analytics is a form of machine learning that uses historical data to make predictions about future outcomes. Think for a moment about the sheer volume of data a manufacturing business manages — from specific measurements to power and water consumption to maintenance requirements and delivery schedules. Through predictive analytics, calculations can be made to help organizations achieve a positive outcome, and to understand more about operational data so they can learn and improve. Predictive analytics can be particularly valuable in the area of predictive maintenance, which uses compiled sensor data to determine when certain machines need repairs. Few things are more disruptive to a manufacturing business than unexpected delays caused by problems with machinery. With predictive maintenance, this might be avoided — data is compiled and can be used to determine when certain machines need to be taken offline for repairs or upgrades. When it comes to meeting tight deadlines and customer delivery demands, this is a much-preferred system to simply hoping a machine doesn't break down before its usual maintenance date. A major reward of the predictive analytics process, particularly in the manufacturing sector when timely and uninterrupted production and delivery is so essential, is that it can create a better understanding of your data. Predictive models can shorten the time between taking a custom product order and customer delivery. The predictive analytics model allows the manufacturer to plug in parameters and receive a prediction of the likely outcome — and results can be seen in minutes rather than hours. While predictive analytics is increasingly beneficial, it does come with its challenges. If the right kind of data is not collected, it makes creating a model difficult. This can be addressed with a more robust data collection and quality assurance process, which could offer a better glimpse as to why a product is or isn't working. Predictive analytics depends on all relevant data being accessible and brought together into one place to train a predictive model. In some instances, equipment upgrades — especially machines with sensors more conducive to a predictive analytics setting — could also help. One consideration that's not always apparent: the granularity of data being measured affects what kinds of predictions are possible. For example, what if a manufacturer has orders for a custom product that only come in once or twice a month? Taking a daily look at something that happens much less frequently can be inefficient and oftentimes misleading. In this example, changing the level of granularity for predictions to a monthly view will reduce some of the unnecessarily "noisy" ambiguity around whether an order might come in on a Friday at the beginning of the month versus a Tuesday in the middle. The key to making predictive analytics work is the quality and quantity of the existing historical data. With enough precise data that identify how inputs to a process are related to the outputs, a predictive model can be used to an organization's advantage. If these criteria are met, the investment of time and resources can help decrease downtime, reduce costs and waste, and identify necessary interventions before they become a problem. Predictive analytics is an increasingly important part of the manufacturing toolkit for companies that want to make strategic decisions with real-time data. Gregory Chambers works as a senior for CLA Digital in West Hartford. Opinion & Commentary EDITOR'S TAKE Spotlighting CT's potential green rush C onnecticut, in recent years, hasn't been known for attracting out-of-state companies, especially when state incentives aren't involved. Sure, we've scored a few wins in 2021 with several companies announcing moves or expansions to Fairfield County, but that's more of an aberration than the norm. But if you read our cover story this issue, you'll see that out-of-states companies (in addition to Connecticut-based players) will be rushing to enter Connecticut's recreational cannabis industry. Many companies, from large national players like Massachusetts-based Curaleaf and Green Thumb Industries in Chicago, to small purveyors like Bay State-based Green Meadows, are working on business plans to get in on what they see as a coming green rush. Industry experts and state officials are projecting Connecticut's adult-use cannabis market will start off strong and grow significantly. Trade publication MJBizDaily in February predicted $250 million in adult-use sales in year one, and $750 million by year seven. The state Office of Fiscal Analysis projects the cannabis industry will generate $55 million in tax revenue by fiscal 2026. It's not often that Connecticut can be on the forefront of a relatively new industry, so the recreational cannabis market offers a rare opportunity for the state. The industry's growth, however, faces potential hurdles. Already a number of Connecticut towns have instituted moratoriums or bans on new cannabis businesses. And state regulators are only in the early stages of coming up with industry regulations. They have many tough decisions ahead, including how to make sure smaller operators, like individuals from communities hit hard by the war on drugs, aren't drowned out by large multistate operators. Not to mention there is still a stigma around cannabis use. The bottom line: There are a lot of unknowns as we are still likely a year away from the recreational cannabis market coming online. As the sector progresses to its eventual debut, Hartford Business Journal and our sister publication, New Haven BIZ, will be at the forefront of covering the latest news and information about the industry. That effort has already been underway, with some of our in-depth reporting in the last few months on the emerging sector. We also held our first cannabis event in July, which drew over 200 attendees who were either interested in entering or serving the marketplace. We've got another event scheduled for Nov. 3, at Farmington Gardens in Farmington. This week we are doubling down on our industry coverage. First, in this issue, we've introduced the start of our Cannabis series, which will publish in two consecutive September issues, and then appear occasionally throughout the rest of this year and into 2022. We will explore topics ranging from in- state and out-of-state operators planning to enter the market to the industry's workforce development efforts and how recreational cannabis will impact commercial real estate. We will also give readers an inside look at how a grow facility operates. You'll notice the series has a "CTCannabis Insider" logo. In addition to the series launch, on Sept. 9, HBJ and New Haven BIZ will jointly debut a weekly CTCannabis Insider email newsletter, which will include the latest news and information about the industry. The newsletter will hit email subscribers' inboxes every Thursday at 10 a.m. Spearheading most of the coverage will be HBJ Senior Staff Writer Sean Teehan. You can reach him with story ideas at steehan@hartfordbusiness. com. As always we want to know what you think about our coverage, so don't hesitate to reach out with feedback. Greg Bordonaro Gregory Chambers

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