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.
3
Aug 2023

Embracing IIoT: The Smart Path for OEMs to Thrive with a Leading IIoT Smart Manufacturing Partner

English
21
Jul 2023

CDAP: $15,000 Grant To Jump Start Canadian Manufacturing Digital Transformation Projects

English
13
Jul 2023

5 Ways Production Monitoring Helps Reduce Turnover and Bridge the Skills Gap

English

Related articles

Back to the blog
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
29
Oct 2021

Your Factory's Digital Manufacturing Roadmap: A 5+ Item Checklist!

Learn how to achieve your digital manufacturing goals by implementing an effective roadmap your team can easily follow.

English
4
Jul 2018

The 3 Central Tasks of Data-Driven Transformation

BCG's cost-effective and evidently successful three-step approach addresses a timeline for digital transformation in companies across sectors. The approach begins with pilot projects of rapid digitization to a final data governance system leading to a full-fledged digital transformation.

English
31
Jul 2018

3 Ways Monitoring & Analytics Maximizes Operations Performance

With a variety of conditions that have led to an increase in the cost of raw materials, in the cost of accessing raw materials and to a decrease in growth, manufacturers are looking for new solutions to maximize operations performance. Enter manufacturing monitoring and analytics

English