Monitoring equipment utilizationĪs ITIF research reports, IoT applications for monitoring machine utilization can increase manufacturing productivity by 10 to 25% and produce up to $1.8 trillion in global economic value by 2025. IoT applications for manufacturing deal with such operations as monitoring and optimizing equipment performance, production quality control, and human-to-machine interaction. Applications facilitating industrial asset management.Īccording to an a McKinsey research, by 2025, the improvements in operations driven by IoT applications could be worth more than $470 billion per year.Applications supporting manufacturing operations.The IoT applications that allow manufacturers to gain a higher level of vertical visibility fall into two groups: IBM reports that using IIoT insights for manufacturing process optimization can lead up to 20% higher product count from the same production line. IIoT technologies fill the gaps that lead systems like ERP and MES to come to their limits: the reliance on manual data input and the inability to work with detailed information (real-time equipment status records, inventory items’ location, etc.)īy providing manufacturers with second-by-second shop floor data, IIoT allows businesses to considerably increase manufacturing process productivity. The Industrial IoT offers the revolutionary level of visibility into the shop floor and field operations, as well as the possibility of handy control over enterprise resources. Visibility into the shop floor and field operations from the top floor In the subsequent sections, we’ll have a closer look at each of the digital transformation dimensions and explore them from the IIoT applications perspective. Visibility into remote and outsourced operations. Visibility into the manufacturing supply chain Visibility into shop floor and field operations. IoT technologies are transforming the way production systems are built and run, driving improvements across three main dimensions of the digital transformation: McKinsey estimates that IoT applications in manufacturing are expected to generate $1.2 to $3.7 trillion of economic value annually by 2025. For instance, in oil and gas industry, IIoT is applied to monitor gas leakages as it travels through the pipe network.ĬGI’s study reports that 62% of surveyed manufacturing enterprises are already executing digital transformation pilots and programs.īsquare annual IIoT maturity survey reports that 86% of manufacturers have already adopted IIoT solutions, and 84% of them find IIoT extremely effective. Along with ensuring workers’ safety, IIoT addresses safety problems in potentially hazardous environments. Paired with wearable devices, IIoT allows monitoring workers’ health state and risky activities that can lead to injuries. IIoT facilitates mass customization by becoming a source of real-time data required for thoughtful forecasting, shop floor scheduling and routing. Tracking the inventory and the manufacturing operations becomes burdensome and, in some cases, not feasible. Manufacturing operations get more complex as well – the production of 20 items of SKU X can be immediately followed by the production of 10 items of SKU Y. The mass customization process requires a dramatic increase in the variety of produced SKUs, which causes inventory to go up and become more diverse. Harley-Davidson, for instance, leveraged IoT to reconfigure its York, PA manufacturing facility and managed to reduce the time it takes to produce a motorbike from 21 days to 6 hours. Faster and more efficient manufacturing and supply chain operations allow reducing product cycle time. For instance, smart, connected products allow to shift from selling products to selling experience – product usage and post-sale services. Due to optimized asset and inventory management (hence, lower inventory carrying costs and search times), reduced machine downtime, more agile operations, and more efficient energy use, companies reduce operational costs and create new sources of revenue. The main adoption drivers for the Industrial IoT solutions include: Industrial IoT employs a network of sensors to collect critical production data and uses cloud software to turn this data into valuable insights about the efficiency of the manufacturing operations. Industrial Internet of Things (IIoT) is a way to digital transformation in manufacturing. In an attempt to gain productivity improvements and uncover new ways of enhancing manufacturing and supply chain operations, businesses resort to digital transformation. Stronger demand for customization, increasing customer expectations, the complexity of the global supply chain – these and many other challenges encourage manufacturers to find new, more innovative ways to remain competitive.
0 Comments
Leave a Reply. |