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Posts Tagged ‘automotive’

Predictive Analytics Helps Change the Face of Recalls

AutoRecallsThere are few events more costly to a business than a recall. The costs in terms of lost time, lost money, and lost public trust can be staggering.

And, of course, nobody wants to put consumers in danger.

Fortunately, predictive analytics has changed all that. According to Automotive News, data mining has just helped GM limit a recall to just 4 cars.

That’s right, four cars.

In the past, the auto maker might have recalled the model and inconvenienced tens of thousands of owners, despite thinking just a few cars had the defect. Or it might have let the defect slide, putting a few customers at risk of a crash.

But…[when]…a 2012 Chevrolet Volt was brought in for a warranty repair in Europe, General Motors had a third, better option.

On May 30, the auto maker assigned the engineer to dig into a data base that tracks the parts used in its cars, and it collected manufacturing records from the supplier–in this case, TRW Automotive. Within a month, GM had identified [all 4]…of the cars on US soil with the faulty valve, called the owners and sent a formal notice to the US Government.

…Maureen Foley-Gardner, director of field performance evaluation at GM, said the auto maker had used its database for 20 percent of field actions this year, up from 5 percent in 2012, and watched as the average action has shrunk by 40%.

This development is poised to save the auto industry a staggering $50 billion per year. And, as the article goes on to note, this accomplishment only scratches the surface of the kinds of problems that auto companies are solving every single day when they use data mining the right way.

If you’d like to start seeing big results in your business then it’s time to get the training that you need to use data mining correctly. Start with TMA’s free webinar, then move on to The Modeling Agency’s advanced training courses.

Which problems will you solve today?