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The Internet of Things (IoT) is one way to achieve digital transformation. The Internet of Things manufacturing uses a network of sensors to collect production data critical for the industry. Cloud software transforms this data into valuable insights into manufacturing efficiency.
The Internet of Things has evolved into more than just a trendy term. It's now a major force, particularly in manufacturing. Without the use of human middlemen, IoT aims to connect machines, gadgets, and things to a network. It's possible in the future that almost every manufactured item--whether infrastructure or consumables--will have sensors embedded that will allow businesses to track the performance of the object and eliminate operations that don't add value to manufacturing or the buyer's experience.
ERP software makes it possible for all manufacturers to be IoT businesses. ERP turns the data that your company generates into actionable, digestible insights. What is manufacture IoT and its functions doing to manufacturing?
What Is The Internet Of Things?
The manufacturing process is the production of many different goods using human labor. The industry, in recent decades, has implemented various digital technologies which have reduced human involvement in production. Smart manufacturing is a branch of industry based on automation, intelligent and empowering innovative solutions.
IoT for smart manufacturing is a subset of IoT technologies. The Industrial IoT system is made up of interconnected assets in the industrial sector (machinery and equipment, vehicles, shops, warehouses, inventories, etc.) with embedded sensors and software for data collection and exchange. Manufacturers can control these smart assets via an IoT platform, and valuable insights are extracted.
Why Is The Internet Of Things Increasing In Popularity?
IoT allows the integration of the digital and physical worlds. It was impossible to imagine this kind of integration only a few decades ago. But it has permeated all areas of our lives. Businesses are increasingly using physical objects that have embedded software and connect to a network due to its many benefits. Industrial IoT technology, for example, can increase productivity, reduce downtime, and improve working conditions for employees. This gives companies a competitive advantage.
Iot In Manufacturing Industry: Importance
By 2024, the total number of IoT connections will be 83 billion. More than 70% of the IoT connection will come from industrial sectors, which includes the Iot manufacturing. The Internet of Things in manufacturing is gaining popularity for a few reasons:
- IoT platforms can collect and analyze a large volume of data without affecting performance or negatively impacting the system.
- IoT is a data-intensive technology that drives IoT apps and Big Data Analytics. It is predicted that companies will invest $15 trillion by 2025 in IoT modernization. There is a huge demand for IoT.
- IoT can reduce major business expenses, including the costs of operating an office. It reduces downtime and maintenance costs.
- IoT devices facilitate global communication. It is easier to exchange information and collaborate, no matter where the individual or business may be located.
- IoT can be used by any organization, regardless of their business sector, to improve customer service and meet constantly changing demands.
Iot In Manufacturing: Benefits
Industrial IoT is a major factor in the transformation of many manufacturers. They see clear benefits to implementing IoT. Digital transformation is sweeping the globe. The businesses create and provide services, and they strive to satisfy the needs of their customers. It is aimed at achieving a flexible manufacturing system that includes industrial automation. IoT should ultimately deliver results in the manufacturing industry. "Industry 4.0" is the name of this transition.
The next revolution in manufacturing will be warehouses, factories, and IoT. Protected wireless connectivity is essential to factory automation as more industries automate their operations. Intelligent machines can access more data. This improves performance and productivity.
Intelligent machines, for example, facilitate the production of flexible goods in manufacturing. The lines of excess production are rapidly changed to decrease lead times. The global industrial revolution is now possible on a much larger scale with this type of technology. IoT adoption in manufacturing is driven by the following:
Reduction In Costs
Inventory and Asset Management will be optimized (better agility, less downtime and better inventory management), resulting in lower operational costs, reduced energy consumption, a reduction of operating expenses and the creation of new revenue sources. Connected products, for example, facilitate the shift from selling products to providing experiences. This includes product usage and after-sales services.
Energy, materials, and downtime losses are the most expensive expenses in manufacturing. IoT is characterized by process automation, which reduces operational costs. Savings are made possible by combining predictive maintenance with optimal asset management.
Reduced Marketing Time
The product cycle is reduced when the production process and the supply chain are efficient. IoT enables direct communication between network components and employees, thereby enhancing productivity. Real-time access to data enables quicker decisions and improves the ability to respond to changes in the market. This is the reason why it takes less time to move new products from conception to market.
Mass Personalization
The process of mass personalization requires a massive increase in production. This increases the stock, increasing its diversity. The Internet of Things in Manufacturing facilitates mass customization by providing the best source of data to plan, schedule and optimize shop floors.
IoT Ensures Better Safety
IoT is used in manufacturing to create a safer and more efficient workplace. Combined with the latest wearables, monitoring workers' health status, accidents, and risky activity leads to accidents. IoT manufacturing also addresses a wide range of safety concerns in dangerous environments. IoT sensors, which monitor the working conditions of factories and plants (for example, harmful emission levels), and wearable devices to monitor workers' health help eliminate accidents and create a safe working environment.
Better Decision Making
Data is essential for resource management, asset optimization and human-machine interaction. IoT sensors collect valuable data in real time and transmit it via robust networks. The creation of dashboard metrics is made possible by the fast information flow within the facility. This allows for the broadcasting and facilitation of decisions. IoT provides managers with the ability to make better decisions faster.
Increased Customer Satisfaction
The quality of the product is what determines whether a potential customer will become a loyal client. The Internet of Things provides statistical analysis and predictive maintenance tools that can help improve product quality. The connected devices also eliminate human error, and they prevent the distribution of defective products, thereby increasing customer satisfaction.
Three Dimensions Of The Impact Of IoT On The Manufacturing Industry
IoT can improve the development and operation of production units in three ways:
- Shop floor and field operations.
- The view of the manufacturing supply chain.
- Remote/outsourced Operations.
View/Visibility Of Operations
IoT for the manufacturing industry offers a revolutionary level of visibility in different fields, including on the field and the shop floor. It also improves the control of resources in enterprises. They bridge gaps when systems like ERP reach their limit due to the reliance on manual data input and the inability to handle comprehensive data, such as location and status of equipment, real-time data, etc.
IoT allows manufacturers to improve their manufacturing processes by providing them with minute-to-minute data from the shop floor. Companies reported that using IoT to optimize the manufacturing process can lead to an increase of 20% in production.
Research indicates that, by 2025, the value of operation improvements driven by IoT-enabled applications will be over $470 Billion annually. IoT applications for the manufacturing industry are equipment monitoring, optimization and quality control. Research shows that IoT is widely used for monitoring machine usage. The IoT is expected to increase manufacturing productivity by up to 25 per cent and produce $1.8 trillion in 2025. These solutions provide equipment utilization metrics in real-time.
Condition monitoring can also be used for safety monitoring, tracking industrial assets, inventory management and predictive maintenance. Sensors integrated into equipment and machinery collect data in real-time on the operational condition and state of spare parts. These data are then transmitted to a cloud platform and analyzed. The results of this analysis are then displayed on a user-friendly application that provides shop floor managers with a comprehensive overview.
Before the introduction of IIoT, such visibility was not possible. It's now possible to monitor the production process continuously and take instant, data-driven decisions to improve quality and maintain equipment. Wearable IoT gadgets can also be used to track and monitor the safety of workers in industrial environments.
View Of Manufacturing Across The Supply Chain
Visibility of the end-to-end supply chain is still an unattainable dream for managers working in this area. The optimistic predictions of IoT supply chain solutions for manufacturing are still a welcome development.
Intelligent solutions in supply chain management can provide manufacturers with real-time insight into the status, location and condition of items (whether they are individual inventories, truck supplies, or shelf stock supplies at warehouses) across different supply chains.
IoT sensors provide end-to-end management of manufacturing supply chains. Manufacturers can, for example, monitor trucks that deliver supplies or goods, view detailed information about items stored in warehouses or control conditions (temperature and humidity) when products are transported or stored. Transparency in the supply chain is a great help for those managers that want to support and develop seamless processes within enterprises.
View Of Remote/Outsourced Operation
Proper shop-floor distribution is required due to the high costs of logistics, the growing need for customization, and the complexity of global supply chains. If a company purchases or constructs a manufacturing facility elsewhere, in another state or country, it should adhere to the same standards for production and manufacturing. This includes material testing, preventive maintenance, automation of industrial processes, etc. This is impossible to monitor using traditional methods. IoT can be used to monitor production standards.
Modern businesses are seldom located in a single location. They have many affiliates and branches spread across different cities, countries and regions. They can also outsource their manufacturing to third-party manufacturers to reduce costs for logistics and infrastructure.
IoT services and solutions enable the integration of distributed processes and outsourcing. It is the most effective way to ensure contractors follow the technology process and that the produced products meet the standards.
Read More: What are some good project ideas in IoT that uses Big-Data?
IoT In Manufacturing Promotes Equal Opportunity
IoT is designed to improve businesses and manufacturing processes. This technology offers equal opportunities for small and medium-sized businesses. A prominent firm might have subsidiaries in America or Mexico. A medium-sized company may be geographically dispersed, with affiliates located in Texas and Arizona. They face similar challenges when it comes to distributed marketing. IoT is often a key factor in enabling SMEs to go through digital transformations, as it relies on cloud and universal computing.
The Top Iot Applications And Use Cases In Manufacturing
In many production processes, the replacement of human workers by devices connected to the internet has transformed the manufacturing industry. Take a look at some of the most popular IoT manufacturing applications.
Remote Production Control
IoT allows remote monitoring of processes and configurations. Employees can collect data remotely on the production manufacturing process and determine if it or its outcomes comply with specific requirements and regulations. They can also tune and configure their devices remotely. This saves time.
The automated equipment allows employees to solve many problems via virtual networks without having to be physically present. This streamlines management and control. Employees can also be informed of the location of devices, such as mobile assets.
Maintenance Predictive
No longer is human intervention required to detect possible anomalies in equipment performance: IoT-embedded sensors can detect operational failures (regarding pressure, temperature, rotation number, voltage etc.). The sensors will alert the responsible personnel to any deterioration in equipment.
The practice of predictive maintenance, or predictive repair, allows technicians to identify problems before they cause serious equipment failure and then fix them. This reduces downtime and, therefore, costs. The integration of IoT devices and advanced analytics software allows predictive maintenance to be performed by predicting when service will be needed.
Industrial Asset Management
Using IIoT, manufacturers can monitor and obtain real-time data on their assets through web applications or mobile apps. Assets that can be tracked include:
- Vehicles delivering goods or raw materials (fleet Management).
- Items in Warehouses.
- Resources during production.
You can optimize your assets from all stages of manufacturing, including the supply chain and the final product. Asset monitoring allows for the quick identification of problems that negatively impact the product's quality or lead time.
Digital Twins
Digital twins are based on the Internet of Things (IoT), AI, ML, and cloud computing. Digital twins can be used to create virtual replicas of real objects. Engineers and managers can simulate many processes and conduct experiments with virtual equipment and spare parts. They can also discover problems and get the results they need without damaging or risking physical assets.
Top Trends In IoT
M2M Automation
Today, smart sensors are embedded into nearly all devices and products. This allows for communication among the various devices. IoT will use sensors to automate and communicate decisions such as forecasting demand, buying materials, and distributing products without the need for human intervention.
Imagine the following scenario: You supply your products to a big box retailer. Sensors built into shelves will link the unique product identifier to an IP address of a buyer's smart device. This will create an opportunity. Executives can use software and BI to identify the problem if opportunity numbers do not match forecasts.
Integration of M2M data into enterprise software is the only way to capitalize on automation fully. ERP can communicate with products and machines to allow users to monitor production manufacturing performance.
Safety And privacy
Authentication is crucial in all aspects of IoT - whether network, cloud, or software. Cloud networks, contrary to what is commonly believed, are more resistant to data breaches than data exchanges on-premises. As more companies invest in IA services, security for these networks will likely evolve. IA is a process based on awareness, security and corporate culture.
Product Design
Customers are increasingly demanding that products and services be made more accessible. Technology is changing to accommodate this demand for easier access to objects, networks, and people. Sensors can be found in almost everything. We associate applications with smart devices. Sensors allow manufacturers to optimize products to suit consumer demands by analyzing how they are being used.
IoT Data Broker
Company states that 30% of businesses will be able to access big data only from brokers. The data brokers business is big. Data brokers can gather consumer information from various sources and then resell it or give the data to other businesses for many reasons.
These personal details can be linked with one or more IP addresses of the gadgets that consumers are using every day. Businesses will then be able to acquire these attributes of consumers and combine them with other insights to create profitable distribution channels and segments. Manufacturers will need to find a way to capitalize on consumer insights ethically without losing their trustworthiness, given the growing concern of consumers over data use.
IoT Supply Chain Analytics
IoT combined with ERP offers unparalleled visibility in the supply chain. The sensors and devices allow users to know where their goods are at any time. ERP systems like Epicor use IoT to share and analyze data across your organization. Your company can make better decisions together, from quality assurance to stocking.
IoT Adoption Challenges
There are also some challenges that IoT brings. The following are the most significant concerns:
Heavy Investment & Uncertainty
IoT Initiatives Require a Lot of Investment and Uncertainty. Hardware like sensors and gateways, as well as cloud storage, connectivity and technical support, are all required. Businesses need to consider their timeframe for implementing innovative solutions as well as revenue generation.
Data Security Concerns
58% or more of IoT users believe the technology increases cyber-attacks. Half of IoT users claim to have no plans to prevent losses due to these security threats. The researcher predicts that IoT could be involved in up to 25 per cent of all attacks, and IoT-related security costs will reach $547 million. Data transmission between multiple nodes can make connected devices susceptible to security breaches.
Hacking is a major problem in manufacturing today. As traditional factories become digital, they are transformed into IP-based networks where every connected device is susceptible to cybercrime. Manufacturers should put safety and security first by using effective protection measures.
To avoid theft, data loss or intrusions, manufacturers must be able to adapt to sophisticated hacking techniques. Equipment that uses IoT should have defensive tools. When creating a connected environment from scratch, it is important to implement a comprehensive security strategy. Reports state that 72% of businesses do not have employees with IoT expertise at the management level. In addition, 82% of businesses lack the necessary skills for IoT implementation.
Skills Gap
The skills gap between employees and smart factories is increasing. The modern technologies used in manufacturing require data scientists and specialists who can understand and manage new processes. A lack of IoT skills and knowledge can make it difficult for executives in the industry to make decisions. The skills gap may lead to 2.4 million manufacturing positions becoming vacant over the next decade. To address the problem, educational programs on the Internet of Things (IoT) and other technologies must be implemented as quickly as possible.
Seamless Integration
A second challenge is to integrate all the devices seamlessly into an extensive manufacturing infrastructure and then provide appropriate networking capabilities. To solve this issue, companies should implement intelligent solutions, such as artificial Intelligence, Machine Learning, 5G connectivity or digital twins.
Wrapping Up
IoT can increase productivity through cost reduction, waste reduction and maintaining uptime of production. Businesses and manufacturers can better understand the supply and manufacturing processes by leveraging IoT bulk data. They can also improve the demand forecast, accelerate marketing, and increase the customer experience. The complexity of IoT initiatives can make them difficult to adopt.
In the coming years, manufacturers will live or die based on their choice to integrate IoT into their business processes. IoT can be used to streamline valuable processes, increase production manufacturing efficiency and improve customer service. Proper use of IoT can improve business security and prevent loss.
