10 Aug
2018

Three Ways Smart Manufacturing Creates Value

What exactly does a smart manufacturing facility look like? If you walked into a smart factory that leverages data collection and analytics, performance, machine and downtime monitoring, OEE and giveaway, you may not be able to note anything extraordinarily different before your eyes.

Analytics
Food Manufacturing IIoT
Industry 4.0
Smart Factory
Smart Meat Processing
IIoT
Three Ways Smart Manufacturing Creates Value

What exactly does a smart manufacturing facility look like? If you walked into a smart factory—one uses IIoT; that leverages data collection and analytics, performance, machine and downtime monitoring, overall equipment effectiveness and giveaway, and other related technologies—you  may not be able to note anything extraordinarily different before your eyes.  

 
But, in a paper for Hitachi Consulting, authors Greg Kinsey (Vice President, Industrial Solutions & Innovation, Hitachi Vantara) and Mark Nott (Vice President Global Solutions & Innovation, Hitachi Consulting,) they note, "once you started talking to people, you would understand the dramatic contrast between a digital manufacturing environment and a traditional one. In the smart factory, people would feel they have more knowledge at their disposal about operations. They’d be in better control of their processes, and they’d know what’s coming—predicting what might happen based on data and analytics.”  

 

three-ways-smart-manufacturing-creates-value

Image: Hitachi Consulting

 

And how does this really effect the bottom line or quality?  “If you looked at the key performance indicators (KPIs) for the smart factory, you’d notice it has a higher quality level, more efficiency, increased throughput, fewer bottlenecks and more flexibility. It responds more easily to smaller lot sizes, variable customer requirements and changing conditions. Hot weather coming in? The smart factory has a weather forecast built into its algorithms, and it knows when to readjust processes to compensate for the heat.” 

 

Kinsey and Nott write, “A smart factory with these capabilities is the goal of every manufacturing executive on the planet.” The question, they ask is, how can you get there

 

 

Here are three ways smart manufacturing creates business value

 
1. Predicting and preventing downtime: Reducing the number of products that are out of sync with Takt time, increasing capacity and throughput, and reducing maintenance costs.  
 
2. Predicting and preventing bottlenecks
: Having materials arrive at the right time with each station working at full capacity, increasing throughput.  
 
3. Predicting and preventing defects: Reducing cost of poor quality (CoPQ) and enabling better product mix. 

Source + read the complete report.

 

Want to learn more?
Download the ebook
Related blog articles

Related articles

Back to the blog
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
7
Jan 2019

Artificial Intelligence in the Food Industry: Six areas of application

English
8
Oct 2019

Types de gaspillages dans le lean manufacturing - le gaspillage dû au sur-traitement

French
27
Mar 2020

Ce que vous devez savoir sur le monitoring de la production en 2020

French

Related articles

Back to the blog
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
24
Oct 2018

L'intelligence artificielle: un virage nécessaire

On vous propose un article provenant de La Presse soulignant le succès de l'implémentation de cette technologie émergente au sein de certaines entre entreprises d'ici.

French
31
May 2018

The Power of Artificial Intelligence in Manufacturing

The Manufacturer’s Annual Manufacturing Report 2018 found that 92% of senior manufacturing executives believe that ‘Smart Factory’ digital technologies – including Artificial Intelligence – will enable them to increase their productivity levels and empower staff to work smarter.

English
5
Jun 2018

Visualize the uses of AI and analytics with this interactive tool

McKinsey's interactive data visualization shows the potential value created by artificial intelligence and other analytics techniques for 19 industries and nine business functions.

English