It’s Manufacturing & supply that are rocking with IoT. When a aviation fuel supplier looked at the enormous logistical challenge of fueling aircraft in international airports – moving oil from the refinery to the plane – from a different lens, they looked at what the latest IT can do to help. A highly sophisticated system and reliable communication up to the fueling vehicle was the need of the hour.
They went for a fuel handling system (FHS) that modeled and integrated all processes from the refinery to fueling. All fuel-carrying vehicles had an onboard computer, touch screen, printer, Programmable Logic Controller (PLC), and measuring system. That’s not all. The FHS was then connected with the ERP system of airlines and the oil company and flight display board systems of airports. The result – accuracy, efficiency, and cost savings.
Welcome to Industry 4.0
We are witnessing, across the world, a whole new revolution in Manufacturing and supply, which we have now come to call The Fourth Industrial Revolution or Industry 4.0. (We cannot get out of software lingo, do we?). The essence of this revolution is communication and information advances to improve almost any activity on the planet.
The primary drivers remain in business – demand for greater variety, lower cost, and improved quality. Industry found the answer in fully automated production cells and connected Manufacturing or Smart Manufacturing. According to a study by the Aberdeen Group, 74% of best-in-class organizations cite visibility into operations performance as the leading capability of Industry 4.0.
And what Industry 4.0 is doing is ushering in the combination of robotics, teleoperation, and cloud technologies to transform enterprise operations, industrial processes, and consumer services across verticals. The supporting technologies include service robots, ubiquitous connectivity, communication technology, building automation and management systems, sensor-equipped energy management systems, cloud and edge-enabled infrastructure, mobile device management, wearable networks, and intelligent software application.
If that sounds like a lot, let us simplify it. Whether you are talking about a factory setting, office environment, or enterprise operation, IoT (or Industrial IOT) and supporting technologies can enable a more innovative workplace.
The change drivers
International Data Corporation (IDC), in its research paper – Transforming Manufacturing with the Internet of Things – identified the following drivers which will influence why and how manufacturers invest in IoT. Complex, dynamic value chains – Manufacturers participate in and manage complex, overlapping value chains with frequent change as they seek new global opportunities.
Emerging market growth – Manufacturers continue to reshape supply chains and product strategies to support emerging market growth sourced from and manufactured in emerging regions and local markets. Traceability, transparency, brand, and reputation – Manufacturers will use increased traceability and transparency to strengthen their ability to deliver product quality and protect their reputations.
Demanding customers – Manufacturers are compressing business cycles to meet customers’ increasing requirements for personalized products and higher service levels. Converging technologies for Manufacturing – operational technology (OT) and information technology (IT), including IoT – are mandatory for manufacturers to design, manufacture, and deliver their products.
Ubiquitous connectivity – Connectivity is universal – in devices, interfaces, and processes – and extends to the edge, with manufacturers assuming that the communication infrastructure will keep up. Truth in data – Manufacturers seek the truth in data as they seek more valuable analysis of more significant volumes and variety of data and the information that will bring them closer to digital execution.
What is ‘connected manufacturing’ or ‘smart manufacturing?’ As well all know, the Internet of Things is a network of uniquely identifiable endpoints (or “things”) that communicate without human interaction using IP connectivity. In the industrial setting, manufacturers are adding software, sensors, and wireless connectivity to their products, providing the foundation for a new age of operational efficiency through IoT.
Can you call your organization in tune with Industry 4.0?
According to Bernard Marr (What Everyone Must Know About Industry 4.0 – Forbes, June 20, 2016), for a factory or system to be considered Industry 4.0, it must include: Interoperability – machines, devices, sensors, and people that connect and communicate with one another.
Information transparency – the systems create a virtual copy of the physical world through sensor data to contextualize information. Technical assistance – both the ability of the methods to support humans in making decisions and solving problems and assist humans with tasks that are too difficult or unsafe for humans. Decentralized decision-making – the ability of cyber-physical systems to make simple decisions independently and become as autonomous as possible.
The impact of this on Manufacturing
Enhancing service delivery – Field service based on product performance data allows manufacturers and the service channel to improve customer satisfaction and time-to-repair metrics. Remote diagnostics, monitoring, and even fixing of connected products enable more loyal customer relationships, increase value, and allow manufacturers to uphold product quality standards.
Efficiency – The aviation fuel supply example shows the ability to supply material continuously to OEMs or big industries based on production schedules and real-time plant inventory status.
Quality – Documenting product performance, creating early warning and detection signals, and enabling closed-loop feedback to drive quality improvements in future products.
Speed – Managing inventory positions throughout an increasingly complex logistics network with greater visibility into actual inventory. Reduced order lead time. Increased fulfillment capabilities, including the use of smaller, more localized warehouses located closer to customers.
It is not about whether Industry 4.0 has hit us or not. (Because it has and is reshaping Manufacturing & supply). It is about how quickly we can get equipped to take advantage of this opportunity and turn it into a competitive advantage. Early adopters will be rewarded for embracing this new technology. If you want to leverage IoT in Manufacturing and supply, drop in a message. We will ‘connect’ with you.
