The Internet of Things (IoT) has become a key pillar for digital transformation in the manufacturing industry. According to a McKinsey report, the market value of IoT in industry is expected to reach $1.1 trillion by 2025. This advancement is driving the adoption of smart factories, where 73% of manufacturing companies globally have already implemented initiatives in this area.
In this article, we will explore how IoT is transforming industrial operations, and how the convergence of operational technology (OT) and information technology (IT) is crucial to the success of smart factories. We will also address the security challenges that arise with IoT integration and how factories can protect against cyber threats in this new connected environment.
IoT: Optimizing Industrial Operations
The true value of IoT in a smart factory lies in its ability to optimize operations across the entire value chain. With IoT integration, machines can use advanced sensors and solutions to monitor and reduce the consumption of resources, such as water and energy, or increase their productivity. A Deloitte study reveals that companies that implement IoT solutions achieve operating cost reductions of up to 25%. For example, by incorporating CEnergy, one of 4i Platform’s IoT solutions, companies are able to efficiently manage their energy sources, setting limits to significantly reduce excess operating costs.
In addition, IoT enables manufacturers to integrate data from various systems and devices into their production lines, making it easier to identify and correct inefficiencies in real time. Rapid, data-driven decision making provides a significant competitive advantage, enabling continuous improvements in production processes.
Automation and Preventive Maintenance
Automation, driven by IoT, has become a fundamental pillar for the modernization of the manufacturing industry. This process allows companies to optimize repetitive tasks, minimize human error and improve decision-making accuracy, resulting in greater operational efficiency and the ability to respond more nimbly to market demands.
A significant advance in the industry through the adoption of automation is the implementation of warehouse management systems (WMS). By adopting a WMS, manufacturers can manage and track assets in an automated manner, which not only decreases the likelihood of human error, but also improves efficiency in inventory management. This translates into more agile and accurate management, allowing companies to optimize their operations and maintain tighter control over their resources.
Another application of IoT in manufacturing is preventive maintenance. By using ELT, 4i Platform’s solution for managing preventive maintenance of machines, manufacturers can continuously monitor equipment operating parameters, prevent failures and breakdowns, and reduce downtime. According to consulting firm PwC, companies that use IoT-based preventive maintenance report a 15% reduction in unplanned downtime and a 20% increase in the useful life of their equipment.
Infrastructure and Security in the Smart Factory
For IoT to be effective in manufacturing, it is crucial to have the right infrastructure in place. Historically, operational technology (OT) and information technology (IT) have operated in silos, limiting the ability of factories to take full advantage of the potential of both technologies. Today, the convergence of OT and IT is imperative in enterprises to create an integrated infrastructure and efficiently manage all connected elements.
Security is also a critical challenge in the context of IoT. With the connection of machines to the Internet and exposure to external networks, the attack surface for cybercriminals expands significantly. Therefore, it is imperative that manufacturers implement robust cybersecurity measures that protect both the integrity of their systems and the security of their data.
The Future of the Smart Factory
The impact of IoT on manufacturing is indisputable. Smart factories will not only enable more efficient and cost-effective mass production, but will also facilitate product customization, adapting to the specific needs of their customers and taking advantage of the adaptability that this technology provides. With the ability to collect and analyze large volumes of data, IoT empowers factories to discover trends, identify opportunities for improvement and gain real-time insights that previously could take days. This, in turn, drives continued innovation, positioning smart factories at the heart of the industry of the future.
Conclusion
Implementing IoT in manufacturing is a necessity for any company looking to stay competitive in an increasingly digitized industrial environment. IoT offers myriad benefits that can radically transform the operations of any factory. With the right infrastructure and security, smart factories are becoming a tangible reality that is redefining the future of global manufacturing.
