2024 is almost over. And if your industrial manufacturing factory is still not smart, it’s high time it adopts the change.
Factories must become smart factories to stay competitive and thrive in today’s fast-paced world. Many factories are becoming smart, and this is why the global IIoT market is expected to grow at a CAGR of 21.3% by 2028.
How does this work?
Smart factories use cutting-edge technology, such as the Internet of Things (IoT), to connect and streamline every part of the manufacturing process.
This means machines can talk to each other, track, monitor, and share data, and make real-time adjustments.
When everything is connected to the internet and sensors are automated and monitored continuously in a factory, it can lead to fewer errors, less downtime, and higher efficiency.
According to the American Society of Quality, manufacturers who have adopted IoT in their factories have seen an 82% increase in efficiency, a 45% increase in customer satisfaction, and 49% fewer product defects.
So smart factories, as their name suggests, are smart and can catch potential problems before they cause major issues. This blog explains the benefits of a factory IoT solution.
Benefits of IoT in Manufacturing with examples
1. Predictive maintenance
We know that downtime in a factory is expensive because it not only causes costly repairs but also halts production, leading to loss. As per the International Society of Automation, on average, a manufacturing plant loses around 5% of its annual productivity due to unplanned downtime.
When IoT sensors are connected to each machine, they can collect data regularly, monitor its performance, and predict when equipment is likely to fail.
This helps you schedule maintenance before a breakdown occurs, reducing downtime and unwanted repair costs.
One oil producer faced recurring compressor issues, and when compressors were broken, it halted production, costing $1 to $2 million daily. By adopting IoT and analyzing data from hundreds of sensors monitoring thousands of parameters, they predicted the failure priorily.
Though they couldn’t prevent the breakdowns, this prediction reduced downtime from 14 to 6 days, saving millions.
2. Enhanced efficiency
IoT devices can monitor machinery and processes in real time with the help of sensors. So, when sensors track everything from machine performance to production output, manufacturers can easily identify and eliminate bottlenecks.
This way, your factory can have smoother workflows. The World Economic Forum (WEF) has awarded Siemens Industrial Automation Products Chengdu Production and R&D base with the “Sustainability Lighthouse ” award in 2023. Since 2019, this factory has reduced energy consumption by 24% per unit of product while increasing
production by 92% via a digital energy system.
This is made possible by applying cutting-edge technologies such as digital twins and industrial artificial intelligence, among other advanced IoT solutions.
3. Quality control
Quality control is crucial for any factory. Because if the end product doesn’t tick the quality, it ends in a loss. Here, we can ensure that products meet quality standards using IoT systems. How? The production processes in a factory are continuously monitored, and if any issue pops up, the concerned person is alerted. This way, quick action can be taken.
Bosch, an engineering company, is developing smart factories with the help of IoT. This company has incorporated sensors in every manufacturing facility. These sensors collect data on all parts of the manufacturing process. This data is used to optimize the production process and increase effectiveness, quality, and safety.
4. Supply chain optimization
A study conducted on the supply chain found that increased work costs are one of the most significant causes of supply chain disruptions at 84.6%.
This is the reason 78% of supply chain leaders are looking for technology solutions to enhance operational efficiency so that they can improve their production and ensure timely delivery of goods.
With IoT, you can get a clearer view of how your supply chain is working. It can track materials and products from suppliers to customers. With clear reports, you can optimize your supply chain, boost logistics, cut delays, and make it more efficient.
5. Cost savings
With the implementation of IIoT, you can save a ton on operational costs as well as boost your manufacturing process efficiency.
For instance, automation can cut down on the need for human intervention in repetitive or mundane daily tasks. This not only reduces labor costs but also allows the laborers to focus on valuable activities in the manufacturing unit.
Let’s take a quick example: if you install sensors to identify inefficiencies instead of manually checking the data, imagine how much you can save on labor costs.
Since industrial equipment maintenance contributes to nearly 70 percent of the overall cost, we can easily control the cost with operational efficiency and predictive maintenance.
6. Flexibility and scalability
When a factory’s machines are connected to IoT and automated, scaling them is easy. Because with time, if your factory evolves, the machines can easily adapt to the changing demands and customization options.
So, IoT enables manufacturers to be more flexible with their production processes so they can quickly adapt to changes in demand or customization requirements.
7. Improved safety
The risk of accidents and injuries is high in any manufacturing unit, especially those that involve labor and hazardous tasks.
However, these risks are reduced to a greater extent with smart factories. Because automated systems adhere to strict safety standards and regulations that help handle potential human error and ensure compliance with industry guidelines and protocols.
IIoT sensors can track and monitor real-time environmental factors such as temperature, pressure, air quality and humidity. This way, they ensure the machines work in good condition and remain safe and compliant with health standards. Thus, it ensures the employees working in smart factories are protected from long-term health issues.
In some factories, IIoT systems automatically shut down equipment if they detect unsafe conditions.
For instance, if a sensor picks up a gas leak, it shuts down automatically, reducing the risk of an explosion.
What are the different technologies used in a smart factory?
With the adoption of digitalization, your factories can easily grow and expand, adjusting to new needs and opportunities. Here, the technologies make factory iot solutions to be flexible . They include:
- Cloud connectivity, where the cloud connects all data and systems and ensures that information flows across a smart factory.
- Artificial intelligence with integrated AI systems helps in analyzing data and providing real-time insights and recommendations in smart factories.
- Big data plays a big role in predictive analytics and optimization in smart factories. They also drive innovation and efficiency.
- Machine learning helps in predictive maintenance, sends alerts and automates repairs before unexpected failures ruin the production work.
- Digital twins are virtual replicas of machines or systems, which paves the way for risk-free testing and innovation.
- Industrial Internet of Things (IIoT) networks are IIoT networks that connect and automate machines by allowing them to send and receive digital data.
- Smart factories also allow for the incorporation of other technologies such as additive printing, virtual reality (VR), augmented reality (AR), modern database and blockchain.
IIoT applications
Track and Trace program by Bosch
Bosch launched a program in 2015 where the company aimed to reduce employee working time by adding sensors to their tools. This helped save time and improve efficiency.
Zero-downtime system by Fanuc
Fanuc designed this system to predict maintenance needs by using sensors in robots that work with cloud-based analytics. This system has helped the company quickly and effectively predict when certain equipment might fail.
Factory planning by Electolux
Electrolux is a global manufacturer of household and commercial kitchen appliances. This company has planned to create 11 digital manufacturing sites around the world. They have planned to create a digital twin for all manufacturing sites. This way, they can monitor the material flow and optimize capacity and efficiency. Their pilot projects have already saved $2 million by optimizing flows.
Final Notes
So, adopting a factory automation solution with IoT in manufacturing can be revolutionary. By creating a network of sensors and devices throughout a manufacturing unit, you save cost, effort and time. Plus, transitioning from a normal factor to a smart one opens the doors for multiple advantages, such as the ability to spot trends, predict issues and keep everything in check. So, with sensors and data analytics, running factories has become fruitful.
If you are looking for a reliable factory IoT solution in India, contact Sterison IIoT Services. Sterison’s industrial IoT aims to make your factory a super smart one by collecting and analyzing sensor-generated data to support equipment monitoring and maintenance, lower operating costs, improve production quality, etc. Get in touch for more details.