It is manufacturing and supply that is moving with IoT
When an aviation fuel supplier was looking at the huge logistical challenge of fueling airplanes at international airports (moving oil from refinery to airplanes) from a different perspective, they looked at what the latest information technologies can do. do to help. A highly sophisticated system, as well as reliable communication to the refueling vehicle, was the need of the moment. They opted for a Fuel Handling System (FHS) that modeled and integrated all processes from the refinery to fueling. All vehicles that transported fuel were equipped with an on-board computer, a touch screen, a printer, a programmable logic controller (PLC) and a measurement system. Thats not all. The FHS then connected with the ERP system of the airlines and the oil company, as well as the flight display systems of the airports. The result: precision, efficiency and cost savings.
Welcome to Industry 4.0
We are witnessing, around the world, an entirely new revolution in manufacturing and supply, which we have now come to call The Fourth Industrial Revolution or Industry 4.0. (We can’t get out of the software lingo, can we?). The essence of this revolution is the use of advances in communication and information to improve almost any activity on the planet. The main drivers remain ingrained in the business: the demand for more variety, lower cost and better quality. The answer the industry found was in fully automated production cells and connected manufacturing or smart manufacturing.
According to a study by the Aberdeen Group, 74% of the best-in-class organizations cite operational performance visibility as the leading capability in Industry 4.0.
And what Industry 4.0 is doing is introducing the combination of robotics, teleoperation, and cloud technologies to transform business operations, industrial processes, and consumer services across verticals. Supporting technologies include service robots, ubiquitous connectivity and communication technology, building automation and management systems, sensor-equipped power management system, edge and cloud-enabled infrastructure, mobile device management, portable networks and smart software application. If that sounds like a lot to you, let us make it simple for you. Whether it’s a factory environment, an office environment, or a business operation, IoT (or call it Industrial IOT) and assistive technologies can enable a smarter workplace.
Drivers of change
International Data Corporation (IDC) in its research article, Transforming Manufacturing with the Internet of Things, identified the following factors that will influence why and how manufacturers invest in IoT.
Complex and dynamic value chains – Manufacturers participate and manage complex and overlapping value chains, with frequent changes, as they seek new opportunities around the world.
Emerging markets growth – Manufacturers continue to reshape supply chains and product strategies to support the growth of emerging markets sourced and manufactured in emerging regions and local markets.
Traceability, transparency, brand and reputation – Manufacturers will use greater traceability and transparency to strengthen their ability to offer quality products and protect their reputation.
Demanding customers – Manufacturers are compressing economic cycles to meet increasing customer needs for customized products and higher levels of service.
Converging technologies for manufacturing – Technologies, operational technology (OT) and information technology (IT), including the IoT, are mandatory for manufacturers to design, manufacture and deliver their products.
Ubiquitous connectivity – Connectivity is ubiquitous, across devices, interfaces and processes, and stretches to the edge, and manufacturers assume that the communications infrastructure will stay up-to-date.
Truth in the data – Manufacturers seek the truth in data as they seek more valuable analysis of greater volumes and variety of data and information that will bring them closer to digital execution.
So what is ‘connected manufacturing’ or ‘smart manufacturing’? The Internet of Things, as we all know, is a network of uniquely identifiable endpoints (or “things”) that communicate without human interaction using IP connectivity. In the industrial environment, manufacturers are adding software, sensors, and wireless connectivity to their products, laying the foundation for a new era of operational efficiency through the application of 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 each other.
Information transparency – the systems create a virtual copy of the physical world through sensor data to contextualize the information.
Technical assistance – both the ability of systems to assist humans in decision making and problem solving and the ability to 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 on their own and become as autonomous as possible.
The impact of this on manufacturing
Improved service delivery – Field service based on manufacturers of actual product performance data and the service channel to improve customer satisfaction and repair time metrics. Remote diagnosis, monitoring, and even repair of connected products enables more loyal customer relationships, increases value, and enables manufacturers to maintain product quality standards.
Efficiency – As shown in the aviation fuel supply example, the ability to deliver a continuous supply of material to OEMs or large industries, based on production schedules and plant inventory status in real time.
Quality – Document actual product performance, create early warning and detection signals, and enable closed-loop feedback to drive quality improvements in future products.
Speed - Manage inventory positions through an increasingly complex logistics network, with greater visibility of actual inventory. Reduced order execution time. Greater capacity for compliance, including the use of smaller, more localized warehouses located closer to customers.