Have you ever wondered if there will be a day when consumers choose sustainable products or packaging over low-priced goods? Recent research on consumer behavior indicates a growing interest and readiness among consumers to spend extra on products that are produced in an eco-friendly and sustainable manner. With the manufacturing industry leading the global pollution chart, there is an urgent call among world leaders to tackle the carbon footprint. The integration of IoT is a significant accelerating factor in achieving a socially responsible manufacturing environment. From collecting data through its sensors to monitoring the raw material sources, IoT-enabled devices serve as the primary lever in adherence to sustainability, proving the IoT analytics report on IoT-based connections to be around 29 million by 2027.

With the circular economy gaining momentum for its reuse and recycle concept, IoT connections are likely to support manufacturers in the long run, from tracking resource usage to facilitating timely recycling to monitoring waste bin levels for the correct accumulation of waste. It also lets consumers know about the entire history of the material and how to recycle or return products at the end of their lives. This part of IoT is a small application in the whole manufacturing unit.

This blog post navigates you through the intricacies of IoT architecture layers and their significance in advancing sustainable manufacturing. Delve in to recognize the potential roadblocks to integrating IoT-driven connections and devices. Alongside the challenges, we’ve discussed solutions to pave the way for a smooth transition to smart manufacturing with the guidance of Indium Software, which excels at building an agile and resilient business.

Understanding IoT architecture in sustainable manufacturing

The IoT architecture has multiple layers responsible for various functions, each with significance. Let’s explore the four prominent layers and how they assist each department of manufacturing with a sustainable approach.

Perception layer (Sensing layer) 

Function: The layer that houses IoT devices like sensors, actuators, and other embedded systems is the primary source for data acquisition. From monitoring waste in the production line to detecting defects in the assembly line to tracking the conditions of materials in the supply chain to supervising asset health and optimizing the logistic route, the significance of the perception layer is unmatched.

Network layer (Transport layer) 

Function: Responsible for transmission of data from the sensing layer to the processing unit; this layer embodies communication protocols, gateways, and network infrastructure. Its application is visible in the whole manufacturing sector wherever it senses a deviation or variation; the network layer ensures it carries the data immediately for processing.

Processing layer (Middleware layer) 

Function: The layer that processes the data from the network layer for actionable insights comprises servers, storage solutions, and data processing tools. Its application is carried out at all divisions of the manufacturing unit that generate data related to energy, materials, and assets.

Application layer 

Function: The layer where actionable tasks are performed with the help of user-end applications and interfaces. The application layer immediately acts on the derived insights by giving alerts or signaling the manufacturer with the detected deviation.

The challenges in implementing IoT connectivity 

1.Technological integration

Manufacturers in power since the dawn of Industry 1.0 through their antiquated systems and devices find it challenging to come to terms with Industry 4.0, where machine-to-machine communication is functional. The legacy systems that are in operation today were not built for IoT sensors or any other embedded systems, thus having an entirely different interface and architecture from modern devices. This hinders the manufacturing unit from upscaling its sustainable operations, as IoT connections are imperative in achieving an efficient and optimized manufacturing process.

2. Data overload

Known for their massive data generation, IoT-based devices generate data every second, from sensors on machinery to wearable tech for workers. The data flow is inevitable as its storage, where data needs to be processed and analyzed in real time to gain insights into machine operations, energy consumption, and waste management. For example, if a machine is drawing more power than usual intake, it needs to be rectified immediately, for which data is imperative. Also, storing data helps in historical prediction pattern recognition for machine learning to predict future mishaps if detected. Thus, on the road to sustainability, data plays a major role that must be carefully stored and analyzed for erroneous or half-stored data, leading to wrong decisions.

3. Security concerns:

With the transformative potential for eco-friendly measures, the utilization of IoT devices is welcomed in large numbers. However, lacking robust security features can wreak havoc on the whole manufacturing environment, leading to malware functions or unauthorized access and compromising sustainable goals. As the IoT sensors are sourced from various manufacturers, the security standard imbibed in each differs owing to a potential data breach attack. As data transfers from the edge to the centralized server wirelessly, end-to-end encryption is essential for data to escape from ransomware attacks. Any compromise on the IoT sensors will surely disrupt the manufacturing process, which might not accurately detect mishaps or inefficiencies.

4. Infrastructure and connectivity 

For an effective transfer of data and analysis, the IT environment in the manufacturing unit should have high connectivity, for it influences sustainability performance. Imagine a factory operating under solar energy for its operations in a remote location. IoT sensors are essential to monitor the solar panel’s efficiency and streamline its energy distribution  to record the necessary parameters that support optimizing solar operations. What if the sensor fails to monitor the ambiance temperature panel health or other necessary criteria? The whole manufacturing process will halt, disturbing the entire cycle. Thus, a high connectivity infrastructure that supports IoT-based devices with an uninterrupted data flow and processing supply is a challenging requirement.

Bridging the IoT gap: Practical solutions for modern challenges 

Pilot projects: A prior feasibility study on a sustainable approach in the manufacturing unit will assist in ascertaining specific areas where sustainable measures can be implemented, and the result generated can be recorded for further enhancement. Thus, a phased approach allows companies to refine their sustainability initiatives regarding cost, performance, and benefit.

Bosch’s integration of IoT in its production line is the best example of phased implementation, where it started a pilot project that utilized IoT for real-time analysis of machine performance to reduce unplanned downtime. Thus, the IoT-based sensors assisted the company in predictive maintenance that monitored the machinery for an advanced maintenance schedule to cut down on unexpected service charges and disruptions to production. The integration of IoT further improved Bosch’s sustainability goals by supervising energy optimization. The company further developed an IoT suite for other companies to assist them in improving their operational efficiency.

Training and skill development: Investing in curricula programs or collaborative partnerships with academic institutions assists manufacturers in learning new technologies or tools that are a significant add-on toward their sustainability goals. They can invite industry experts to the manufacturing facility to conduct workshops and other programs that serve as a two-way opportunity. Besides organizing workshops, continuous in-house training for employees and certification programs can be conducted to foster their innovation in upskilling sustainability practices that adhere well to breakthrough technologies.

Events like “The Greener Manufacturing Show and Plastic Waste Free World Europe” are excellent examples of international conferences that welcome industry experts from various industries and locations. Citing its two previous edition successes, Mike Robinson, CEO of Trans-Global Events, shared his anticipation for the forthcoming event, saying, “We are thrilled to announce the return of The Greener Manufacturing Show and Plastic Waste Free Europe in 2023. As we progress, we aim  to develop an even more vibrant platform that promotes dialogue, highlights innovative solutions, and catalyzes meaningful change.” The show is expected to be an incredible opportunity where like-minded individuals share their insights, trends, and updates on the circular economy, recycling practices in the manufacturing sector, and other latest trends.

Robust data management: The importance of data and its role in sustainable measures cannot be overstated, as they are the driving force of IoT-based devices. Data collected from various sensors for analysis and readability assists in energy optimization, performance streamlining, material management, and other efficient alternatives. Thus implying the significance of the data governance framework for a data-driven sustainable manufacturing unit.

General Electric shines brightly with its manufacturing facility, recognizing the importance of IoT connectivity. The company collected data from its manufacturing unit’s production line, assembly line, and environmental factors through IoT sensors that assisted in optimizing its gas production and distribution processes. This helped them save 10% of gas consumption and $70 million annually.

Partnering with IoT vendors: Collaboration with the experts offers the manufacturers tailored solutions that address their needs directly, helping them tightly adhere to their sustainable goals. Harnessing practical methodologies related to IoT-connected devices is easy and effective for implementation and integration with various departments of the manufacturing sector. Directly dealing with IoT-based vendors fosters rigid energy, material, asset, and logistics management planning.

Audi’s partnership with Cisco showcased the power of IoT in manufacturing, as the company witnessed resilient and scalable production. Audi developed the Edge Cloud for Production (EC4P) platform, which aims to virtualize production assets to manage and optimize its production assets, leading to more efficient and sustainable manufacturing processes.

IoT’s role in driving sustainability in manufacturing

Energy efficiency: As a primary application, IoT devices are significant in real-time monitoring and assist manufacturers with alerts for spikes in voltage or more energy consumption. It also helps regulate the power of equipment based on its performance. For example, the IoT device automatically sets to low-power mode if the machine is idle, contributing to a greener environment.

Predictive maintenance: The unplanned downtime is reduced significantly with the utilization of IoT-based connections, which specialize in predictive maintenance. Continuous monitoring of assets’ health provides a comprehensive view for future analysis. Incorporating advanced algorithms helps analyze the data from sensors, historical data, and other patterns to predict the repair in advance, thereby optimizing resource allocation and enhancing safety measures.

Supply chain optimization: The disruption from sourcing to delivery is combated with IoT sensors that help track inventory management levels and optimize logistics routes. A visible approach in the supply chain is mandatory in the manufacturing unit to avoid last-minute delays in stocks, energy, or other deviations. Blockchain technology integration and IoT devices provide a tamper-proof record of every transaction and movement in the supply chain, ensuring product transparency, trust, and authenticity.

Water management: The integral part of the manufacturing unit needs meticulous attention in allocating and utilizing water; low availability will halt the entire production process. IoT deployment is successful as it detects water usage in real-time, ranging from quality to any production or assembly line leakage. It is also believed that IoT-based water meters are accurate in measuring water consumption, assisting manufacturers with monthly bills. The sensors can track wastewater management’s final destination, preventing penalties and other environmental harm.

Harness IoT solutions with Indium Software’s expertise

Partner with Indium Software for a strategic transformation encompassing the seamless integration of IoT connections and sensors. The diverse team of seasoned professionals at Indium Software is dedicated to transforming your manufacturing facility into a data-centric powerhouse, underpinning the shift toward sustainable manufacturing. With their deep domain knowledge, the experts craft innovative solutions, ensuring optimal utilization of technology. Step forward into the era of Industry 4.0 and intelligent manufacturing, promising increased revenue, augmented productivity, refined resource management, and amplified operational efficiency.

Conclusion 

Adopting agile solutions through IoT-based devices proves to be an imperative and innovative factor for manufacturing sectors whose main concern is sustainability. From optimizing energy efficiency to waste reduction to streamlining operations, the manufacturing industry can reap amazing benefits that add value to the business and help focus the company towards an environmentally friendly landscape. Furthermore, as technology continues to evolve, the synergy between IoT and other emerging technologies, such as blockchain and artificial intelligence, will further amplify the benefits, driving innovation, transparency, and sustainability in manufacturing operations. Thus, IoT is a transformative tool bridging the gap between traditional manufacturing practices and the future’s sustainable, efficient, and responsive manufacturing processes. Start your sustainable evolution with Indium Software, which designs tech solutions aligned with your business’s long-term vision.

The post Challenges and Solutions in Scaling Sustainable Manufacturing with IoT appeared first on Indium.

What’s a smart factory?

A smart factory represents a modernized manufacturing facility that employs digital manufacturing techniques, equipment, and systems to gather and exchange data continuously. This data is the foundation for making informed choices to enhance operations and tackle manufacturing issues. The smart factory embodies an innovative phase in the industrial revolution, emphasizing the utilization of real-time data, connectivity, automation, and machine learning. It seamlessly integrates the digital and physical worlds to oversee the complete production cycle, from supply chain management to the operation of manufacturing equipment.

Why should you embrace smart factories?

According to the Marketsandmarkets report, the smart manufacturing market is expected to grow to USD 241.0 billion by 2028. Across various industries and sectors, most enterprises view smart factories as immensely advantageous and indispensable. Here are a few advantages:

Measure KPIs: Smart factories offer managers precise and automated data, empowering them to assess key performance indicators efficiently.

Anticipate future events and plan: Smart predictive maintenance in smart factories enables managers to forecast and address maintenance issues more efficiently and rapidly.

Optimized demand handling: Through more precise forecasting, it minimizes waste, facilitating efficient demand management.

Enhanced productivity: Managers can improve productivity by accessing seamless data regarding machine maintenance and identifying potential bottlenecks.

Smart factories—real-life use cases

John Deere’s 5G network and digital twin innovations: Revolutionizing manufacturing in the Midwest

John Deere, a farm equipment manufacturer, established its private 5G network by acquiring 50 MHz bandwidth rights. This network is specifically designed to enhance operations in its Midwestern factories, facilitating the analysis of production line data for assembly process improvement. John Deere has plans to introduce collaborative robots working alongside human employees within these facilities. Furthermore, the company is creating 3D models, often called digital twins, for its production machinery. These models serve multiple purposes: performance monitoring, technician training, and equipment servicing. They are conveniently accessible on tablets and smartphones, ensuring always easy availability.

Ford’s 5G-enabled production and AI-powered welding: Transforming electric vehicle manufacturing

In Ford’s Dearborn, Michigan factory, which manufactures the electric F-150 lightning pickup truck, workers on the production line use tablets connected to the factory’s 5G network. This connectivity enables them to access critical material supplies and equipment status data. Meanwhile, in Ford’s electric vehicle factory in the UK, sensors play a pivotal role in capturing images of the welding process. It is of utmost importance in producing electric vehicle motors and batteries, as it involves thousands of welds. Subsequently, artificial intelligence (AI) systems determine the quality of these welds. If a weld fails to meet the specified standards, it is rectified before the part proceeds to the subsequent production stage. This innovative approach saves time and minimizes waste by recovering parts that might otherwise be unusable.

Manufacturing landscape transformation and its potential impact on our work processes

A smart factory harnesses the capabilities of sophisticated data analytics and artificial intelligence, allowing it to fine-tune production parameters for optimal efficiency and profitability dynamically. It maintains seamless connectivity with suppliers, partners, customers, and its workforce through a unified communication system. Furthermore, the smart factory is equipped with sensors and software that systematically gathers data about its operational environment and internal processes. This data is then leveraged to identify issues and initiate corrective measures as necessary.

Smart factories are particularly well-suited for enterprises leveraging robotics and other advanced technologies to create their products. Such companies require seamless and reliable communication channels connecting their robotic systems with central command centers. These advancements are poised to enhance manufacturing organizations’ efficiency and profitability significantly. The transition to smarter and more productive factories will be driven by improved data utilization and artificial intelligence integration. As manufacturing evolves into a data-centric and intelligent industry, manufacturers will be better prepared to stay competitive.

“Each customer’s decision while designing their product leads to modifications in our manufacturing workflow. Addressing this within the process layout becomes highly sophisticated to manage. We recognized that overcoming this complex logistics challenge requires implementing autonomous mobile robots.”

Kurt Oberparleiter, Vice President—Operations, Sunview Patio Doors

Smart factories are reshaping the manufacturing landscape in five key areas

1. Inventory management

Effective inventory management is critical for manufacturers, as it requires locating materials, determining their quantities, and monitoring their consumption. By integrating a comprehensive tracking system, businesses gain insights into the precise whereabouts, quantities, and conditions of materials throughout various production stages. This level of visibility empowers companies to optimize their inventory management by anticipating demand, reducing instances of stockouts, and mitigating overproduction, all of which contribute to improved customer satisfaction. This tracking system can encompass tools like barcode scanners, RFID tags, or other inventory management software to strengthen supply chain and warehouse operations. In smart factories, sensors are pivotal in continuously monitoring and analyzing inventory levels and product consumption. For instance, sensors fixed to conveyor belts can efficiently track products. This approach offers several advantages, most notably eliminating manual data entry and monitoring by workers while ensuring real-time inventory tracking.

2. Robotics

The integration of robots in manufacturing is on the rise, propelled by the continuous development of advanced technologies and the declining costs associated with robotics. Progress in fields like vision systems, artificial intelligence, and others will further enhance the role of robots within smart factories. When manufacturing companies are engaged in products suitable for automation, they can leverage robots and automated machinery to streamline their production processes. These robots can be programmed to execute tasks more efficiently and reliably than their human counterparts without requiring rest periods. Automation systems enable manufacturers to boost their production output with fewer human resources and within reduced spatial requirements, consequently decreasing operational expenses and boosting profitability.

Various technologies, including sensors, cameras, and other monitoring tools, are employed within a smart factory environment to assess and analyze the performance of robots and automated equipment. This proactive approach enables identifying and preventing issues before they occur, allowing manufacturers to address equipment concerns remotely.

3. Data analysis

Data gathered by sensors within a smart factory can be transmitted to a centralized data platform, where it is stored, analyzed, and visualized. This data catalyzes productivity, efficiency, and customer satisfaction, as it aids in monitoring product defects and the status of shipments. Automated data collection and analytical dashboards enable manufacturers to identify operational inefficiencies, including machinery breakdowns and production bottlenecks. For instance, a manufacturing facility can analyze the time required for material reception and producing and delivering finished goods. The factory can identify the root causes of bottlenecks in the production process through data analysis and initiate corrective measures.

4. Quality control

Ensuring product quality is pivotal for enhancing customer satisfaction. Within manufacturing operations, the application of sensors for real-time production monitoring, material tracking, and on-the-fly product testing is an effective strategy to mitigate the risk of defects. To illustrate, sensors can be fixed to machinery to identify abnormal readings promptly and prevent potential defects. Automated quality assessments are executed through sensors, cameras, and other technologies to collect data, identify issues, and initiate corrective measures.

The data analysis derived from this process reveals discernible patterns in product quality. Manufacturers can leverage this information to instigate necessary alterations in their production processes. Automated quality control systems offer the advantage of inspecting a higher volume of products per hour than manual inspections, ultimately translating into elevated product quality and increased customer satisfaction.

5. Remote manufacturing

Effective communication and collaboration among employees and various departments are pivotal factors for a company’s success. Adopting collaboration tools and software, such as team communication applications, video conferencing platforms, and team task management systems, empower companies to enhance communication and nurture collaborative efforts. In today’s technologically advanced manufacturing settings, workers wield the power of their smartphones to engage with the production process and access real-time data. They can traverse the production line using tablets to visually inspect products and input data. Furthermore, integrating robots allows workers to remotely supervise and address issues with the production floor through their mobile devices. This remote troubleshooting capability saves employees time and financial resources, as they are not required to physically visit the equipment on-site to resolve problems.

Final words

The future of the manufacturing industry is exceptionally promising. Advancements in technology have steered the era of smart factories, where manufacturers operate within a networked, data-centric, and highly automated ecosystem. These forward-looking enterprises employ a combination of sensors, robotic systems, and collaborative software to gather data, inspect operations, and enhance productivity and efficiency.

Smart factories are replacing conventional, static manufacturing facilities, evolving into digital entities capable of tracking, managing, and optimizing industrial assets. Through continuous monitoring of automated resources, optimized resource allocation, and automation applications, manufacturers can significantly enhance production efficiency and expedite introducing new products to the market. Smart factories benefit the environment and the workforce and increase productivity, cost reduction, and customer satisfaction.

Manufacturers now have a wealth of data at their disposal, with the ability to conduct real-time data analysis and detect trends. To fully harness the potential of this data-rich landscape, manufacturers must develop tailored applications and systems for data utilization and analysis, effectively leveraging the advantages of smart manufacturing. Maximizing the potential of smart manufacturing practices can increase profits and optimize operational performance for companies.

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In advanced industrial settings, two primary components are prevalent: automated communication systems and physical assets. These components span several layers—from the factory floor to the cloud—connecting devices, equipment, controllers, monitors, networks, and systems. IT/OT integration is often emphasized in the context of industry 4.0, and for a good reason. IT/OT convergence is the foundation for modern businesses, facilitating transformation and growth while enabling automation and innovation across various business domains. Although IT and OT are two independent, robust systems, their convergence drives transformation in every aspect of business.

IT/OT integration signifies merging information technology (IT) and operational technologies (OT). IT/OT convergence is not merely about organizational structural changes or an excessive focus on technology; it encapsulates a comprehensive change often called “digital transformation.”

While IT systems primarily deal with communication and data management, OT systems encompass physical devices responsible for executing tasks on the shop floor. The subsequent layer in OT systems incorporates real-time monitoring software, ensuring optimal performance of physical devices and identifying deviations from the desired operational conditions.

Perspectives in IT/OT integration: Beginners, veterans, and leaders in industry transformation

IT/OT convergence represents a significant paradigm shift that introduces various challenges, affecting newcomers and established players. The planning phase may daunt beginners, while those already involved in the IoT/IIoT space grapple with integrating new devices, technologies, and specifications into existing processes. Conversely, leaders face continuous pressure to deliver intelligent innovations with rapidly evolving technologies to remain competitive.

Converging IT-OT systems may seem easy, but there are significant differences in how various organizational departments perceive them. For instance, shop-floor personnel prioritize efficiently functioning and maintaining devices or equipment, while the IT crew aims to connect assets with respective software and networks. Operations teams assess the business benefits of IT/OT collaboration.

Common challenges associated with IT/OT integration

Different department perspectives: Individuals or teams—are often focused on their routine tasks, making collaboration efforts appear as intrusions from other departments, impacting their primary objectives.

Ambiguity and lack of clarity: Although industry 4.0 offers significant potential, decision-makers may need a more precise understanding, hindering confident decision-making.

Legacy products inventory: Many industrial sites use devices from diverse vendors to meet evolving business requirements. When the personnel who initially deployed these devices are no longer available, transitioning legacy devices can be complex.

Absence of expert guidance: IIoT implementation demands significant efforts in terms of both business and technology. Additionally, investments in new infrastructure, tools, and processes can take time and effort.

Other operational challenges—such as interoperability, scalability, remote operations, network security, and cloud compatibility—can slow the adoption of IT/OT integration. Overcoming these challenges often involves training, collaborations, practical experiments, gradual technology adoption, and partnership models facilitating a seamless transition toward industry 4.0 goals.

Steps for a successful IT/OT integration strategy and key technologies:

Companies employ various IT/OT integration approaches based on their unique priorities, resources, and budgets. However, there are a few steps to implement an effective IT/OT strategy:

1. 1.Identify the need: Understanding the need for IT/OT convergence is the first step for newcomers embarking on the industry 4.0 journey. Large manufacturers may focus on self-corrective processes and automation driven by interconnected device’s real-time data.
2. 2. Set priorities: As companies grow, their preferences align with short and long-term business objectives. A clear vision regarding tools, technologies, and processes is crucial for IT/OT maturity.
3. 3. Identify the right partner: Given the extensive IIoT landscape, organizations often seek industry partners who can serve as advisors and business consultants, guiding them through their Industry 4.0 journey.
4. 4. Plan risk mitigation: Given the substantial investments and long implementation cycles, contingency plans are only sometimes ideal for IT/OT strategies. However, staying informed about market trends and making well-informed decisions can minimize the impact of unforeseen circumstances.

Amidst the hype surrounding IT/OT technology, scalability is one critical factor for the present and the future. The ability to scale IT/OT communication architecture in industrial manufacturing hinges on three pivotal factors: field assessment, requirement analysis, and plant design and infrastructure.

Field assessment

• Field assessment comprehensively evaluates the existing physical infrastructure and conditions within the industrial environment. It includes examining the shop floor, manufacturing facilities, and the various devices and equipment.

• This assessment aims to understand the manufacturing setup’s current operational technologies (OT). It looks at how devices and machinery are connected, the types of sensors and control systems in place, and these assets’ overall condition and reliability.

• The assessment helps identify any existing limitations, challenges, or bottlenecks in the OT systems that may hinder the integration of information technology (IT) systems. It provides a baseline understanding of the on-ground infrastructure and its IT/OT convergence readiness.

Requirement analysis

• Requirement analysis carefully examines the specific needs and objectives of the manufacturing operation. It considers what the organization aims to achieve through IT/OT integration.

• This phase typically includes discussions with stakeholders, including operations teams, IT teams, and business leaders, to understand their goals and expectations. It also considers regulatory and compliance requirements that may impact the integration.

• Requirement analysis helps define the functionalities and capabilities the IT/OT communication architecture must support. For instance, it may involve determining the need for real-time data monitoring, predictive maintenance, or remote operations.

• By aligning the IT/OT integration strategy with the operational requirements, an organization can ensure that the technology investments serve the intended business objectives.

Plant design and infrastructure

• Plant design and infrastructure encompass the physical layout and setup of the manufacturing facility. It involves equipment arrangement, network cabling, and power distribution.

• The infrastructure must be designed or adapted to support the IT/OT integration. This includes ensuring that the network can handle the increased data traffic, reliable power sources, and adequate provisions for connecting IT devices to the plant’s machinery.

• Additionally, infrastructure design may need to accommodate the installation of new sensors, controllers, or other IT components to enable the flow of data and control signals between IT and OT systems.

• This factor also considers the scalability of the physical infrastructure and whether it can support future expansion and technology upgrades as the organization’s needs evolve.

Several key activities directly impact the success of future-proof strategies for IT/OT integration:

• Network architecture evaluation and preparation
• Inventory of software/components
• Security and compliance assessment
• Interplant and multi-geography connectivity
• Disaster recovery planning
• Data communication strategies
• Troubleshooting protocols
• Analytics and reporting mechanisms

It is crucial to understand that the success of IT/OT collaboration is not just dependent on technology. Manufacturers should acknowledge that while automation is significant, human intelligence remains vital. The ongoing investment in individuals, policies, and procedures is indispensable for realizing the promising future envisioned through IT/OT integration.

The future of manufacturing and the evolution of IT/OT integration

Intelligent factories are already underway, marked by extensive data consumption from interconnected systems, devices, machines, and applications. These smart factories will exhibit deep interconnectivity empowered by automation, artificial intelligence (AI), machine learning (ML), and remote operation—fostering efficiency, effectiveness, and safety in production.

At the core of this revolution lies digital transformation, where intelligent factories of the future envision human involvement predominantly at the supervisory level. AI-driven collaborative robots will conduct most shop-floor tasks.

The evolution of IT/OT integration in the future will be guided by three fundamental principles of automation: connection, collaboration, and innovation. IT/OT connectivity will adapt to demand, identifying and swiftly adopting the most optimized approach to fulfill specific objectives.

The post The power of industry transformation: Align IT and OT to build a seamless enterprise appeared first on Indium.

The stress on improvement in process and quality led to the development of methodologies such as Lean and Six Sigma to increase throughput but was still driven by humans with the technology used only for metrics and advanced analysis.

Though manufacturing companies did derive much benefit from these methodologies, the advent of Industry 4.0 technologies such as cloud, artificial intelligence, and Industrial Internet of Things (IIoT) devices has magnified the benefits manifold.

IIoT has made it possible for manufacturers to create smart factories and integrate systems. This has provided them with a unified data source that enables advanced analytics to identify patterns and trends and facilitate informed decision making.

End-to-end connection of machines right from production to delivery provides manufacturers with visibility improving the formulation of strategies and policies for accelerating growth.

Fast-Paced Adoption of IIoT

The integration of systems enables manufacturing companies to have better control of their inventory and supply chain as well as improve energy management. This naturally leads to cost reduction, resource optimization, increased profitability and overall enhanced operational efficiency due to industrial automation, centralized monitoring and predictive maintenance of assets.

No wonder then that the market for IoT in manufacturing industries is expected to grow at a CAGR of 10.1%, from USD 33.2 billion in 2020 to USD 53.8 billion by 2025, according to a ResearchAndMarkets.com report.

A PwC survey of around 1,000 industrial manufacturers revealed that 71% were already building or testing IoT-related solutions in both active and in-development projects and 68% intended to increase their investment in the next couple of years.

The surveyed companies were investing in better technology infrastructure, data management, workforce culture and change management to reap the benefits of digital transformation.

Benefits of Smart Factories

A smart factory with interconnected systems can automate workflows across functions and manage complex processes with greater visibility and traceability. Some of the key areas where they can see the advantages of IIoT devices include:

1. Predictive Maintenance: The breakdown of machinery and the resulting disruption to production is one of the biggest challenges manufacturing companies face. This causes unexpected delays in addition to the cost of repair. In smart factories, sensors embedded in the machinery provide data that can help analyze machine performance as well as receive alerts in case of any issues or deviations from preset specifications for preventive maintenance. This improves the longevity of the machinery, effects cost savings as well as enables scheduling maintenance in a more planned manner.

2. Product Quality: A piece of faulty equipment can also affect product quality. Embedded technologies can help manufacturers keep their machines well-calibrated to ensure that the machinery is as per specifications and can produce the desired product.

3. Supply Chain Management: The IoT devices can be connected to the ERP or SCM system to track inventory and draw real-time insights about product movement from raw materials to finished goods for a smooth supply chain management. It enables the different departments to have a view of the production process and also removes the need for manual documentation, thereby reducing manual errors and the resultant costs.

4. Safety and Security: Worker safety and security in the plant are becoming important due to regulatory requirements as well as to reassure employees and improve their engagement with the business. IoT systems can make it easier for safety leaders to be alerted in case of any potential hazards and risks and monitor Key Performance Indicators (KPIs) of health and security to not only improve compliance but also make the shop floor safe.

5. Energy Efficiency: Not only is energy one of the highest areas of expenditure for manufacturing companies, but it is also one of the most important areas where conservation is the most needed. IoT devices can help identify inefficiencies at the device level to enable businesses to address them effectively. This can help reduce waste and also meet regulatory standards more efficiently and effectively.

The integration of systems also ensures access to enterprise-wide data that facilitates better visibility into operations and more informed decisions. This provides a competitive advantage in addressing potential challenges before they become a problem and helps managers take a proactive approach rather than a reactive one.

At Indium Software, serving the manufacturing sector has been one of our key focus areas and, over the last decade, we’ve picked up immense expertise in serving fast-growing manufacturing companies in industrial, energy, automotive, and diversified segments.

The core of Industry 4.0 revolves around data. And, Indium’s experience in data management and data engineering are key assets while serving this segment.

Challenges to IoT

IoT comes with its own challenges too: Cost, Security, and Lack of Standards, to specifically name a few points.

Manufacturing companies with legacy equipment may find that customizing their existing machinery to scale up to become an embedded device comes at a cost. However, this can be more cost-effective than investing in new equipment and provide the flexibility they require.

Therefore, identifying the right partner who understands their business and can develop bespoke solutions that enable digital transformation at a reasonable cost would be a prime requirement.

The second is security. As more and more devices get added, the security environment becomes that much more complex. Ensuring encryption and other protection to safeguard data would be the second criterion that a partner should be able to ensure.

Using open frameworks and modern software development tools to write IoT firmware can help overcome the limitations of the lack of standards.

A partner such as Indium Software, with more than two decades of experience in cutting edge technologies, can help manufacturing companies experience painless digital transformation.

Our team of experts has experience in Industry 4.0 technologies, IoT, open frameworks, data engineering, security and testing, which is combined with cross-domain expertise to deliver best-fit solutions meeting the unique needs of our customers.

If you would like to know how we can help you improve your operational efficiency with IoT on your shop floor, contact us now.

https://www.indiumsoftware.com/inquire-now/

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