Impact of Industrial IoT for Manufacturing Companies

By Internal Eseo - April 23, 2018

There is no doubt that the internet has revolutionized the way we do things now and one has to admit that it has become a very integral part of both the professional and personal world. Thanks to all the pervading internet that we have now become even more connected than ever before leading to the vast use and applications of – Internet-of-Things or IoT.
While the consumer side of IoT applications such as Smart Homes and Entertainment have seen rampant use the industrial side of IoT is not too far behind. In fact, over the last couple of years the industrial adoption of IoT or Industrial IoThas grown by leaps. The manufacturing sector for long has been overlooked in comparison with other sectors when it came to technological adoption. Not so any longer,if statistics are to go by, manufacturing as a sector has picked up on IoT adoption over the last couple of years and will be one leading adopters of IoT by 2020.

‘’Global IoT spending by Discrete Manufacturing companies will touch $40 billion by 2020. This will be on par with the spending by Transportation and Logistics and Utilities sectors.’’
-          BCG & Statista Study

Why Manufacturing companies are embracing IIoT?
For a while manufacturing companies stayed aloof to IoT more so because there were few use cases of adoption and of course, the relatively longer life cycle of the various industrial equipment. But now that has changed and an increasing number of manufacturing companies are moving towards Industrial IoT adoption.
Embracing IIoT helps decrease the downtime in manufacturing process by cutting down on the number of errors and breakdowns. Sensors attached to equipment and machines send live information on their status helping supervisors and floor managers monitor them remotely. Live status on machines and equipment can help managers have a proactive approach towards machine repair and maintenance.
IIoT helps increase the efficiency of the operational process by ensuring lower downtime and better machine utility. Managers will have a comprehensive overview of operations and machines functioning thanks to sensors that relay data, live. Due to this all the machines and equipment can be utilized to the optimum ensuring higher output with minimal input.
Manufacturing companies due to their complex and long production cycles are sometimes burdened on unnecessary costs. Add to that, the regular machine breakdowns and increasing downtimes, all of which only escalate the costs associated with manufacturing and operations on the factory floor. Adoption of IIoT leads to a gradual reduction in the costs since it helps to reduce breakdowns and downtime. It also leads a more stress-free environment on the factory floor, thus boosting the productivity of the employees.

One of the major reasons manufacturing companies are eagerly embracing IIoT is because it gives them that required edge and makes them more competitive. Customers these days look for high quality products at competitive rates and manufactures are forced to cut down heavily on their costs and profits. Embracing IIoT helps manufacturers address cost issues and deliver high quality products. For manufacturing companies, embracing IIoT involves initial costs and training but more than compensates for that in the long-run.

Top applications of IIoT
As we speak, manufacturing companies are fast embracing IIoT in a bid to become more efficient and transform their operational and manufacturing dynamics. IIoT can be used in a host of applications and some of them are listed below –

Connected Factory: With sensors and IoT devices becoming an integral part of equipment and machinery, it is only natural for the factory or manufacturing unit to get connected. Operational heads, supervisors, employees, machines and systems will all be inter-connected leading to digitally connected factory operations. This will in turn bring greater levels of automation and optimization.
Optimizing Production Process: The production process which starts from procurement and ends with packaging can be highly optimized and made efficient thanks to IIoT. IoT devices embedded onto the equipment and machines in the production line provide live status update and ensure real-time monitoring. This in turn helps make recommended adjustments to operations for better outcomes and also helps lower costs. Lags in the production process are highlighted that will help eliminate waste and save on time.
Refined Inventory Management: Inventory management is an integral part of not only supply chain and logistics but also the sales process- a lag in inventory management can adversely affect the sales operations. IIoT applications help track the finished goods across the business value chain from storage in the factory floors to storage in retail shelves. The applications also help track products at the line-item level and respective stakeholders are informed of any changes or deviations immediately.

There is no doubt that manufacturing companies will embrace Industrial IoT in far aggressive manner than they had before. While a few companies are yet to realize the importance of Industrial IoT in manufacturing a large number have already begun investing into these applications with an objective to lower costs, increase efficiency, and remain competitive.

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