October 29, 2024

Driving Efficiency Gains: The Value of IIOT & Connected Applications

Real-time data collection and analysis are at the heart of IIoT. By continuously monitoring equipment and production processes, manufacturers can detect anomalies, predict equipment failures, and take corrective actions before issues escalate.
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Avatar Louis Columbus

In today’s dynamic manufacturing landscape, efficiency is the cornerstone of competitiveness. The Industrial Internet of Things (IIoT) and connected applications offer transformative solutions to streamline shop floor operations, enhance productivity, and achieve significant cost savings. By leveraging real-time data and advanced analytics, manufacturers can optimize processes and make informed decisions that drive operational excellence. 

Understanding IIoT in Manufacturing

The Industrial Internet of Things (IIoT) involves connecting physical industrial assets—such as machinery and equipment—to the Internet, allowing for real-time data exchange and analytics. According to Gartner, this integration provides manufacturers with unprecedented visibility into their operations, enabling predictive maintenance, quality control, and enhanced operational efficiency specifically tailored to industrial environments.

Real-Time Data: The Heart of IIoT

Real-time data collection and analysis are at the heart of IIoT. By continuously monitoring equipment and production processes, manufacturers can detect anomalies, predict equipment failures, and take corrective actions before issues escalate. Gartner reports that real-time data insights can lead to significant improvements in visibility and control across shop floors, reducing downtime and extending machinery life.

For instance, a prominent automotive parts manufacturer implemented an IIoT-based predictive maintenance system. This system monitored critical parameters such as vibration, temperature, and pressure, enabling the company to predict and address potential failures before they occurred. According to Gartner, they reduced unplanned downtime by 30% and extended the operational life of their equipment by 15%.

Enhancing Operational Efficiency

IIoT enables the automation of various manufacturing processes, reducing human error and increasing production speed and accuracy. By optimizing resource use through the use of sustainability, IIoT helps manufacturers reduce waste and operational costs. Additionally, improved visibility across the supply chain enhances coordination and efficiency. According to Gartner, this ensures that production schedules are met and customer demands are fulfilled.

A case in point is a consumer electronics manufacturer that integrated IIoT solutions to monitor and optimize its production line. Gartner noted that by analyzing real-time data, the company was able to identify bottlenecks and streamline operations, resulting in a 20% increase in production efficiency and a 10% reduction in material waste according to Gartner’s Hype Cycle for Advanced Technologies for Manufacturers, 2023.

Predictive Maintenance and Asset Management

Traditional maintenance strategies, often based on fixed schedules, can lead to unnecessary downtime or unexpected failures. IIoT facilitates predictive maintenance by continuously monitoring equipment conditions and performance. Sensors detect anomalies such as unusual vibrations or temperature changes, indicating potential issues before they lead to failures. Gartner’s research highlights that this proactive approach not only prolongs machinery life but also reduces maintenance costs and unplanned downtime.

For example, a large-scale food processing company utilized IIoT sensors to monitor the condition of its refrigeration units. By analyzing the data, Gartner reports they were able to predict failures and schedule maintenance activities more effectively, resulting in a 25% reduction in maintenance costs and a 35% decrease in unplanned downtime based on their latest Digital Twins research.

 Quality Control and Improvement

Maintaining high product quality is essential for any manufacturer. IIoT provides tools to enhance quality control by integrating real-time monitoring systems with either with MOM/MES and  Enterprise Resource Planning (ERP) systems. This integration helps track production quality at every stage, identifying defects early in the process and reducing reject rates. For instance, a medical device manufacturer reduced its reject rates from 30% to 2% by implementing a real-time monitoring system integrated with their ERP system, as noted by Gartner in their recent report, Strategic Insights Leveraging IIOT & Connected Applications in Manufacturing.

Supply Chain Optimization

IIoT extends beyond the shop floor to the entire supply chain, providing end-to-end visibility. This visibility helps in tracking raw materials, work-in-progress, and finished goods in real time, reducing the need for buffer stock and improving order fulfillment accuracy. Combining IIoT with technologies like blockchain can further enhance supply chain transparency. According to Gartner, this ensures product authenticity and reduces the risk of counterfeiting.

For example, a global pharmaceutical company used IIoT to track the movement of raw materials and finished products throughout its supply chain. Gartner reports that by integrating blockchain technology, they ensured the authenticity of their products and reduced the risk of counterfeiting, thereby increasing customer trust and regulatory compliance.

Driving Efficiency Gains with Manufacturing Operations Management (MOM) and Manufacturing Execution Systems (MES)

Manufacturing Operations Management (MOM) and Manufacturing Execution Systems (MES) are pivotal in driving efficiency gains in modern manufacturing. MOM encompasses all activities related to managing manufacturing operations, while MES specifically focuses on the execution and real-time monitoring of production processes.

Manufacturing Execution Systems (MES) focuses on the execution of manufacturing processes on the shop floor. MES provides real-time visibility into production activities, helping manufacturers track work-in-progress, monitor equipment status, and ensure compliance with production schedules. By capturing real-time data on production performance, MES enables manufacturers to identify and address bottlenecks, optimize production schedules, and improve product quality.

Manufacturing Operations Management (MOM) provides a comprehensive approach to managing all aspects of manufacturing operations. MOM encompasses MES functions but also is extended to control quality control, maintenance, and inventory management ensuring seamless communication and coordination across all areas of the manufacturing process.

For example, a leading metal forming company integrated MES into their existing MOM system to enhance shop floor operations. DELMIAWorks reports that the MES solution provided real-time monitoring of machine performance, allowing the company to track production cycles, identify deviations from standard operating parameters, and take corrective actions promptly, resulting in a 20% increase in throughput, and a 15% reduction in scrap rates.

The integration of MES and MOM systems also facilitates predictive maintenance. By continuously monitoring equipment conditions and performance, manufacturers can predict when maintenance is needed and schedule it accordingly, minimizing unplanned downtime and extending equipment life. DELMIA emphasizes that this integration provides a comprehensive view of the entire manufacturing process, enabling manufacturers to make data-driven decisions that enhance efficiency and productivity.

Overcoming Challenges in IIoT Implementation

Implementing IIoT systems comes with challenges, such as integration with existing infrastructure, data management, and cybersecurity concerns. Manufacturers should adopt scalable IIoT platforms that support diverse protocols and standards. Edge computing can help manage and analyze data locally, reducing latency and bandwidth usage. Ensuring robust cybersecurity measures and technologies, such as strong authentication and encryption, is critical to protect sensitive data. Gartner highlights these considerations in their report on the benefits of IIoT for small to midsize manufacturers.

A successful implementation strategy involves starting small with pilot projects and scaling up as the organization gains more experience and confidence. Gartner suggests it’s also essential to ensure that all stakeholders are on board and understand the benefits and challenges of IIoT.

The future of IIoT in manufacturing will be shaped by advancements in artificial intelligence (AI) and digital twins. Digital twins, which are digital replicas of physical assets, enable real-time monitoring, simulation, and optimization of manufacturing processes. Integrating AI with IIoT systems will provide deeper insights and predictive capabilities, further enhancing efficiency and productivity. According to Gartner, the market for simulation digital twins is expected to reach $379 billion by 2034, highlighting their growing importance in the industrial sector.

Conclusion

The integration of IIoT and connected applications is revolutionizing the manufacturing industry. By leveraging real-time data, predictive analytics, and advanced automation, manufacturers can optimize their operations, improve product quality, and enhance supply chain visibility. As the industry continues to evolve, those who embrace IIoT will be well positioned to lead in the era of smart manufacturing, driving innovation and excellence in their operations.

The future of manufacturing is connected, intelligent, and remarkably efficient. Embracing IIoT is not just a technological advancement; it’s a strategic imperative for achieving long-term competitiveness and success.

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