Manufacturing units are becoming more and more automated, generating a huge amount of data. In this ever-growing industrial market, data plays a big role in creating incredible value for businesses. It gives companies the insight to eliminate expensive breakdowns in production processes for greater productivity in all areas.
The increase in the Internet of Things (IoT) has propelled the era of smart factories. The entire factory system is connected to a network of sensors, switches, motors, and other gadgets, designed to increase productivity and product design innovation. Allowing a factory to have a continuous flow of information to be used by other machines and systems to make optimal decisions and appropriate actions.
In the next five years, smart factories may contribute as much as $500 billion in added value to the global economy, according to Capgemini’s Digital Transformation Institute. The reason: Smart factories can produce more at lower costs, according to a recent report. In fact, manufacturers expect smart technologies to drive a sevenfold increase in annual efficiency gains by 2022. Some industries can expect to nearly double their operating profit and margin with smart technologies.
3 Benefits to Smart Factories
Significant Cost Reductions:
When operations are connected, manufacturers can identify waste and increase forecast accuracy, having better insight on inventory levels. With this information, they can reduce costs related to excessive inventory. Smart factories can also operate 24/7, without much need for human intervention creating a decrease in the risk of accidents and injuries on the job.
Enhanced Productivity:
Self-correction is what distinguishes a smart factory from traditional automation, which overall creates an increase in asset productivity. Smart manufacturing processes provide greater access to data across an entire supply chain network. Real-time data outlines what the manufacturer needs and when, making things more efficient when suppliers need to adjust orders. They supply what’s needed, not more or less, reducing waste and any downtime associated with missing parts.
Innovation and Higher Quality Products:
When productivity is improved, it saves money, which can then be invested in product development. Once analyzed, smart manufacturing data shows where customer needs are and managers can find opportunities for new products or re-imagined products of a higher quality.
How NRX Can Help
We help our customers plan where and how to implement IIoT and condition monitoring for maintenance and operations. Our NRX AssetHub solution helps customers manage their asset and maintenance data required to successfully implement IIoT across all of their key systems including manufacturing, production, DCS, EAM, CMMS, reliability and other systems. If you want to learn more about how we can help you prepare for your IIoT initiatives read more here or contact our team to book a demo.
Sources
“Benefits of Being a Smart Factory.” Mechatronic Solutions, Oracle, 31 Aug. 2017, www.mechatronic.co.uk/2017/08/31/smart-factory-benefits/.
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