01 Jul Internet of Things (IoT) in Manufacturing and the Supply Chain: Creating Value and Receiving the Benefits
Technology transforms the world on a daily basis. Today there is a new revolution taking shape: The Internet of Things (IoT)
Stefan Ferber, Director for business development of the IoT at Bosch Software Innovations, said “Industry 1.0 was the invention of mechanical help, Industry 2.0 was mass production, pioneered by Henry Ford, Industry 3.0 brought electronics and control systems to the shop floor, and Industry 4.0 is peer-to-peer communication between products, systems and machines.”*
A few years back, Wharton named the internet as the most important innovation of the past 30 years. The internet revolutionized the way we exchange information. Now, our movement forward is changing the way we do business. Through the Internet of Things (IoT) the advancements begin to place us in a world where machines are able to predict failure and trigger maintenance processes without relying on personnel.
IoT is all about the value created by connection:
Data – Big Data is a current term we see on a regular basis. Using the IoT we can actually take all of this data and transform it into relevant and valuable information to lead to a business solution. Manufacturers will see that mobility and the IoT is driving the change in the type of data received as it now connects physical items such as sensors, actuators, video cameras and RFID readers – to the Internet and to each other.
People – Connecting people using software-ready mobile devices to data and information on equipment will streamline efficiency and increase mobility throughout factory operations.
Processes – Greater responsiveness to information will be achieved with IoT. Not only will a greater amount of communication be provided from machine to machine (M2M), there will be visibility into areas of low productivity that organizations can correct just by having the flow of information at their fingertips and in real-time.
Network: We have all been using the internet for decades, wanting the latest information easily and as fast as possible. Testing network capabilities including wireless connectivity for speed, reliability, and signal coverage will save a lot of frustration down the road. Identifying pain points early on and planning for a scalable solution to grow will be the best route for success.
Security: Determine the needs of your organization early-on. Consider compliance standards, sensitive material, guest networks with access-controls and management, and the custom levels of security your organization will need. There are tools out there to keep all types of information seen only by those who are supposed to.
Software Systems: Evaluating current systems by performance and understanding the use of systems can be a great way to justify what they lack. It also provides further insight into how systems will need to be integrated to successfully increase efficiency and productivity overall. Ask the question of who will run the projects moving forward and will they have sufficient knowledge, skills, and training to substantially support the changes in the future.
Summing up the benefits:
1.) Factory Visibility – Understanding where your resources are with real-time information, when they need maintenance, repair, or overall performance metrics.
2.) Automation – Trigged changes that happen automatically based on alerts when production deviates.
3.) Energy Management – Save time, money, and resources by having the transparency of when energy is used the most for a better validation for assessment of overall efficiency of processes.
5.) Connected Supply Chain – Systems, machines, people, and processes can flow at the optimal level of performance.
IoT makes it possible for the Supply Chain to remain flexible by reacting to unexpected changes in production, such as materials shortages and bottlenecks. Manufacturers will use technology to deliver dynamic, efficient, and automated manufacturing processes with IoT.
Have questions? Speak to an AB&R IoT information specialist 800-281-3056