Article | December 10, 2021
IoT in the manufacturing industry introduces a superior technology that is coming up as a blessing for the industry. Manufacturers are enjoying one-of-a-kind benefits and returns on their reinvestments in IoT. Benefits such as enhanced productivity, work safety, reduced downtime, cost-effective operations, and more such benefits of IoT in manufacturing make it more and more popular with each passing day.
The global IoT market is estimated to reach a value of USD 1,386.06 billion by 2026 from USD 761.4 billion in 2020 at a CAGR of 10.53 percent over the forecast period of 2021-2026. So the whole worldwide market of IoT has a bright future in the following years.
“As technology takes over and enhances many of the processes we used to handle with manual labor, we are freed up to use our minds creatively, which leads to bigger and better leaps in innovation and productivity.”
– Matt Mong, VP Market Innovation and Project Business Evangelist at Adeaca
Let’s check out below some exciting facts about IoT in manufacturing and see how IoT makes a difference in the manufacturing industry.
IoT in Manufacturing: Some Interesting Facts
According to PwC, 91% of industrial/manufacturing enterprises in Germany invest in "digital factories" that use IoT solutions.
According to the International Federation of Robotics (IFR), China employs more industrial robots than any other country (many of which are connected to the internet in some way).
According to IoT Analytics, the industrial sector spent more than $64 billion on IoT in 2018 and expects investment in Industry 4.0 to reach $310 billion by 2023.
According to the Eclipse Foundation, most IoT developers are focused on developing smart agriculture systems (26%), while industrial automation is another big focus area (26%). However, home automation is dwindling in popularity, accounting for just 19% of projects.
How Does IoT Work for the Manufacturing Industry?
The Internet of Things (IoT) is a network of interconnected devices that communicate with one another and with other networks. While IoT-enabled devices are capable of various tasks, they are primarily employed to collect data and carry out specific tasks. The implementation of the Internet of Things in manufacturing is often referred to as the IIoT, or Industrial Internet of Things.
IoT makes use of 'smart' devices to collect, process, and act on data. These intelligent devices are equipped with sensors and other software that enable them to communicate and exchange data inside the network.
IoT-enabled equipment gives crucial real-time data that enables manufacturers or machine operators to make informed decisions. So, how does it function in practice?
Sensors capture data from the system and transfer it to the cloud, where it can be analyzed.
The data is transferred to the quality assurance system.
The data that has been analyzed is forwarded to the end-user.
How the IoT is Improving Manufacturing Business Operations
The Internet of Things (IoT) has numerous benefits for the manufacturing industry. We'll go over some of the significant benefits that the Internet of Things brings to the manufacturing business.
Energy Efficiency Solutions
Energy is a high cost in manufacturing. Unfortunately, the current industrial energy infrastructure can only track excessive energy consumption.
The utility bills include the factory's energy consumption records. But, unfortunately, nobody can break down energy consumption to the device level and find out the underperforming pieces. Some energy usage monitoring tools exist, but they only provide partial data, making system analysis difficult.
IoT can help by giving device-level energy data. The sensors will detect any underperforming devices in the network and alert you so you can take action. As a result, the technology can help you reduce energy waste and find other ways to save it.
Data is required to determine trends and quality of production at a manufacturing facility. It also helps manufacturers plan and anticipates changes. These forecasts can help with inventory management, employment, cost control, and other operational procedures. Thus, IoT technology makes it easier to foresee and optimize customer requirements.
The Internet of Things (IoT) uses sensors to gather data about assets' health and productivity. In addition, it uses advanced analytics to give actionable information. These are presented on an appealing dashboard connected to your smart device. This allows for predictive maintenance to be used in the manufacturing industry.
Superior Product Quality
Every manufacturer is determined to produce a high-quality product at a low cost. Therefore, a minor quality modification can have a significant influence on the manufacturing firm.
Customer happiness, waste reduction, sales, and profit can all benefit from high-quality products. But making high-quality products isn't easy.
The Internet of Things (IoT) can assist you in this endeavor. Poorly set, calibrated, and maintained equipment are some of the main reasons for low-quality products. Worst of all, many small things sometimes go ignored as the final product seems perfect. Quality tests show the product is fine, but your consumers start having problems after a couple of months.
Imagine the resources needed to identify and correct the problem. Sensors in an IoT network detect even minimal tweaks in setup and alert operators. The team might momentarily stop production to address the issue before the production cycle gets complete.
Rapid and Informed Decision-Making
The IoT can dramatically improve organizational decision-making. It unlocks vital data about network equipment performance and delivers it to the right person.
Managers and field operators can use this data to improve plant processes and overall production.
In addition to these significant benefits, IoT in manufacturing can help manufacturers improve their manufacturing operations and construct a unit that meets the vision of the smart factory of 2040. The future beyond IoT would be the icing on the cake for all of us, as technology has always amazed us.
Imagine the day when IoT and AI merge, and the virtual gadgets controlled by IoT are the next major milestone. Then, the ideal combination of robotics, AI, and VR may reduce the manufacturing plant size and cost while increasing the output to a level that is unimaginable and unattainable as of now.
Airbus Improved Production Efficiency with Its Factory of the Future Concept
It's a massive task for a commercial airliner to be assembled. The expense of making a mistake throughout making such a craft can be significant, as there are millions of parts and thousands of assembly phases. Airbus has established a digital manufacturing effort called Factory of the Future to optimize operations and increase production capacity. The company has installed sensors on factory floor tools and machinery and supplied workers with wearable technologies, such as industrial smart glasses, to reduce errors and improve workplace safety. The wearable allowed for a 500% increase in efficiency while eliminating nearly all mistakes in one process named cabin seat marking.
While the benefits of IoT devices have long been a topic of discussion among technology enthusiasts, the incorporation of IoT in manufacturing is creating a new buzz in the industry. The benefits of IoT in manufacturing, such as remote analysis of operations, processes, and products, are assisting manufacturers in establishing a more productive manufacturing unit. As a result of these benefits, IoT use in manufacturing is accelerating. Recognize the IoT's potential and take a step toward incorporating it into your manufacturing operation in 2022.
What is the Industrial Internet of Things (IIoT)?
IIoT stands for Industrial Internet of Things. It uses data to improve industrial efficiency. To enhance industrial performance, it uses embedded sensors, cloud data, and connected devices.
Why is the IoT changing manufacturing?
Real-time monitoring of machines and accurate reporting for better decisions are possible through IoT. This improves business strategies and project control. Thus, the Internet of Things has a significant impact on the profitability of any manufacturing company.
How does the IoT transform the way we do business?
We can use data collected by IoT devices to improve efficiency and help organizations make better decisions. They tell organizations the truth, not what they hope or believe.
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"text": "Real-time monitoring of machines and accurate reporting for better decisions are possible through IoT. This improves business strategies and project control. Thus, the Internet of Things has a significant impact on the profitability of any manufacturing company."
"name": "How does the IoT transform the way we do business?",
"text": "We can use data collected by IoT devices to improve efficiency and help organizations make better decisions. They tell organizations the truth, not what they hope or believe."
Article | December 13, 2021
Lean manufacturing principles enable manufacturing businesses to achieve spectacular results and overhaul their conventional operations. A wide range of industries have adopted lean manufacturing because of its enormous advantages, and they have seen excellent results as a result.
The 2010 Compensation Data Manufacturing survey indicated that 69.7% of manufacturing organizations employ lean manufacturing principles. By consuming this data, we can understand how far organizations have progressed toward incorporating lean principles into their operations.
“Many companies are not willing to change or think they are done once they make a change. But the truth is technology, consumer demands; the way we work, human needs, and much more are constantly changing.”
–Michael Walton, Director, Manufacturing Industry Executive at Microsoft
Let's look at some examples of lean manufacturing from some well-known companies. These leading-edge examples of lean manufacturing will shed light on how lean principles positively affect.
Leading Companies Using Lean Manufacturing Effectively
Successful manufacturing businesses like Toyota, Nike, and Caterpillar are currently employing lean manufacturing ideas in their production processes. In addition, Intel, Parker Hannifin, and John Deere embrace these techniques. From them, we've described three different organizations in various sectors that are successfully adopting lean manufacturing.
John Deere has also implemented a lean manufacturing strategy. As a result, many of their quality control procedures are automated, which means that more components can be checked for flaws in less time. This means that more supply can be released each day, and the product can be supplied at a lower price to the consumer.
Additionally, these controls monitor the manufacturing process for each component of their products, ensuring that they never manufacture more than is required and waste essential materials in the process.
Intel, known for its computer processors, has used lean manufacturing techniques to provide a higher quality product for an industry that requires zero defects. In the past, it took more than three months to get a microprocessor to the manufacturer, but this principle has helped shorten that time to less than ten days.
Intel rapidly learned that creating more but worse quality was not the way to raise revenues and increase consumer satisfaction with its products, which were extremely precise and technical. Instead, both parties gain from quality control and waste reduction initiatives. This is even true in the tech industry, where goods are constantly changed and upgraded.
Toyota, the world's largest automaker, was the first to implement lean manufacturing in its manufacturing operations. But, even more importantly, they've learned how to limit products that don't match customer expectations by eliminating waste. To achieve these goals, Toyota employs two essential procedures.
The first is a method known as Jidoka, which loosely translates as "automation with the assistance of humans." This implies that, although some of the work is automated, humans always ensure that the result is of the highest quality.
When something goes wrong, the machines have built-in programs that allow them to shut themselves down. Known as the Just In Time (JIT) model, this is the second stage. Once the last part of a process has been finished, the next phase can begin. No unnecessary work will be done if there is a problem with the assembly line. This lean manufacturing technique has inspired thousands of other businesses.
Lean manufacturing principles and their execution require discipline and patience to get the results out of them. When we see the successful lean manufacturing examples, it is not a fraction of a second success. They have devoted their time, energy, and efforts to modifying every single operational process in order to become a part of lean manufacturing. Lean manufacturing is not a method; it is a way of life that transforms your business practices and takes your firm to a new level of operations. Gain insights from renowned organizations' lean manufacturing success stories to help you become a part of the lean companies of 2022.
What is the effect of lean manufacturing?
Lean is a performance-based, continuous-improvement strategy that removes waste and unnecessary processes from organizational operations. As a result, your company becomes more focused on the results.
Is it possible for lean manufacturing to fail?
It is conceivable in some circumstances, such as failing to focus on a single system implementation or implementing too many system changes at once and failing to have a sound follow-up system to check that everything is working effectively.
Why do certain businesses struggle with lean manufacturing?
Most businesses fail to see that lean is a management philosophy, not a set of tools. As a result, most corporate leaders either don't understand or lack the patience and control to implement lean manufacturing.
"name": "What is the effect of lean manufacturing?",
"text": "Lean is a performance-based, continuous-improvement strategy that removes waste and unnecessary processes from organizational operations. As a result, your company becomes more focused on the results."
"name": "Is it possible for lean manufacturing to fail?",
"text": "It is conceivable in some circumstances, such as failing to focus on a single system implementation or implementing too many system changes at once and failing to have a sound follow-up system to check that everything is working effectively."
"name": "Why do certain businesses struggle with lean manufacturing?",
"text": "Most businesses fail to see that lean is a management philosophy, not a set of tools. As a result, most corporate leaders either don't understand or lack the patience and control to implement lean manufacturing."
Article | January 3, 2022
Production planning and control are critical components of any manufacturing organization. It helps organizations with the regular and timely delivery of their goods. Furthermore, it allows manufacturing businesses to increase their plant’s efficiency and reduce production costs.
Numerous software and tools for production scheduling and planning are available on the market, including Visual Planning, MaxScheduler, and MRPeasy, which assist manufacturing organizations in planning, scheduling, and controlling their production.
According to KBV Research, the manufacturing operations management software market is anticipated to reach $14.6 billion by 2025 globally, expanding at a market growth of 10.2 percent CAGR during the forecast period.
So, what exactly is production planning and control?
Production planning is an administrative process within a manufacturing business. It ensures that sufficient raw materials, personnel, and other necessary items are procured and prepared to produce finished products according to the specified schedule.
Scheduling, dispatch, inspection, quality control, inventory management, supply chain management, and equipment management require production planning. Production control makes sure that the production team meets the required production targets, maximizes resource utilization, manages quality, and saves money.
“Manufacturing is more than just putting parts together. It’s coming up with ideas, testing principles and perfecting the engineering, as well as final assembly.”
– James Dyson
In oversize factories, production planning and control are frequently managed by a production planning department, which comprises production controllers and a production control manager. More significant operations are commonly monitored and controlled from a central location, such as a control room, operations room, or operations control center.
Why Should You Consider Production Planning?
An efficient production process that meets the needs of both customers and the organization can only be achieved through careful planning in the early stages of production. In addition, it streamlines both customer-dependent and customer-independent processes, such as on-time delivery and production cycle time.
A well-designed production plan minimizes lead time, the period between placing an order and its completion and delivery. The definition of lead time varies slightly according to the company and the type of production planning required. For example, in supply chain management, lead time refers to the time required for parts to be shipped from a supplier.
Steps in Production Planning and Control
The first stage of production planning determines the path that raw materials will take from their source to the finished product. You will use this section to determine the equipment, resources, materials, and sequencing used.
It is necessary to determine when operations will occur during the second stage of production planning. In this case, the objectives may be to increase throughput, reduce lead time, or increase profits, among other things. Numerous strategies can be employed to create the most efficient schedule.
The third and final production control stage begins when the manufacturing process is initiated. When the scheduling plan is implemented, materials and work orders are released, and work is flowing down the production line, the production line is considered to be running smoothly.
The fourth stage of manufacturing control ascertains whether the process has any bottlenecks or inefficiencies. You can use this stage to compare the predicted run hours and quantities with the actual values reported to see if any improvements can be made to the processes.
Production Planning Example
Though production planning is classified into several categories, including flow, mass production, process, job, and batch, we will look at a batch production planning example here.
Manufacturing products in batches is known as "batch production planning." This method allows for close monitoring at each stage of the process, and quick correction since an error discovered in one batch can be corrected in the next batch. However, batch manufacturing can lead to bottlenecks or delays if some equipment can handle more than others, so it's critical to consider capacity at every stage.
Consider the following example of batch production planning:
Jackson's Baked Goods is in the process of developing a production plan for their new cinnamon bread. To begin with, the head baker determines the batch production time required by the recipe.
He then adjusts the bakery's weekly ingredient orders to include the necessary supplies and schedules the weekly cinnamon bread bake during staff downtime.
Finally, he creates a list of standards for the bakery staff to check at each production stage, allowing them to quickly identify any substandard materials or other batch errors without wasting processing time on subpar cinnamon bread.
Running a smooth and problem-free manufacturing operation relies heavily on a precise production planner. Many large manufacturing companies already have a strong focus on streamlining their processes and making the most of every manufacturing operation, but small manufacturing companies still have work to do in this area. As a result, plan, schedule, and control a production that will enable you to run your business in order to meet its objectives.
What is the difference between planning and scheduling in production?
Production planning and scheduling are remarkably similar. But, it is critical to note that planning determines what operations need to be done and scheduling determines when and who will do the operations.
What is a production plan?
A product or service's production planning is the process of creating a guide for the design and manufacture of a given product or service. Production planning aims to help organizations make their manufacturing processes as productive as possible.
Article | December 23, 2021
Every manufacturing company aims to be as efficient as possible to maximize profit. However, it's difficult to determine where you stand and what targets to establish unless you can precisely measure your efficiency. Manufacturing KPIsplay an important role in this process.
Keeping track of many indicators without considering their commercial worth is a waste of time.
“Not everything that can be counted counts and not everything that counts can be counted”
- Albert Einstein
But connecting goals to measurements is a certain way to track progress and improve processes. So let's get started with how to choose the most appropriate key performance indicators(KPIs) for your business.
Manufacturing KPI 2022: How to Choose the Right One?
Why are KPIs called “Key” Performance Indicators? While any statistic can be used to assess performance, KPIs are the most critical. Hence they are called key performance indicators. Companies' priorities while selecting their company KPIs may differ substantially depending on the industry in which they operate.
“Strategic-operational KPIs alignment gives the organization a powerful tool to use when implementing change.”
― Pearl Zhu
A corporation should not track more than ten manufacturing KPIs to avoid overblowing processes. So, manufacturing efficiency, customer satisfaction, lead times, etc., should all be included.
Depending on your business nature, you must select your KPIs. However, each of those indicators must meet a set of criteria before being considered meaningful.
So, what is a decent KPI for manufacturing?
It gives objective and clear data on progress toward a certain goal
It measures efficiency, quality, punctuality, and performance
It allows for tracking performance over time
It helps in decision making
It should be the one that matches the company's long-term objectives
It has to be measurable and quantifiable
It must be realistic and actionable
Following that, let's have a look at the most important manufacturing KPIs for 2022, which will assist you in better understanding your manufacturing business and formulating a growth strategy in line with that understanding.
Most Critical Manufacturing KPIs in Order of Priority
Despite the fact that manufacturers should also monitor general key performance indicators (KPIs) such as sales revenue, net profit margin, and so on, the manufacturing business demands the tracking of specific manufacturing metrics. Below are some of the most important manufacturing key performance indicators (KPIs).
Using this manufacturing KPI metric, you can see how much value there is in products still in progress. It assists manufacturing organizations in determining how much of their working capital is locked up in incomplete products and can aid in identifying supply chain managementdifficulties.
You can compute the Work-In-Progress (WIP) by using the formula provided below.
Return on Assets
This manufacturing KPIseems to be more about financing than manufacturing. Yes, it does. However, financial measurements are just as vital as production ones. A firm cannot exist unless it generates revenue, and this indicator measures how efficiently your company uses its assets and generates revenues.
The Return on Assets (ROA) of your company can be calculated using the formula below.
Cost Per Unit
It is critical to understand the overall manufacturing cost per unit. You can't appropriately price a product without it. This manufacturing KPIdivides total manufacturing costs by the number of units produced. Materials, overhead, depreciation, and labor are standard costs.
Companies utilize this manufacturing statisticto forecast future raw material needs to satisfy client demand. Unfortunately, this statistic is more challenging to employ because it is mainly dependent on unpredictable external circumstances. The basic formula is:
The seasonal factors are distinct
Average demand is calculated as:
A company's lead time, also known as order cycle time, is an important KPI. It shows how swiftly your organization processes orders and meets client requests. It is time it takes to complete an order from confirmation to delivery.
Long lead times can imply process inefficiencies that produce bottlenecks and excessive expenses. Conversely, short lead times are important since they allow you to respond to consumer needs swiftly and efficiently.
The total lead time can be divided into smaller segments as follows:
The time it takes to manufacture a product from start to finish
The time it takes to deliver a product from stockto a client
The time it takes suppliers to deliver products to manufacturers
By segmenting the lead time, you may more precisely identify the areas where inefficiencies in the process occur.
Toyota’s Four Key Performance Metrics
As a company, Toyota places a high focus on environmental protection. Toyota's vehicles are designed to use less fuel and produce less waste.
Regardless of the company's size, Toyota is committed to protecting the environment. Toyota's 'Earth Charter' was created in 1992 as part of the company's Global Policy initiative. It was Toyota's first overseas facility and the UK's first ISO14001-certified car manufacturer. Waterborne paints were utilized for the first time and zero waste was sent to landfills. In 2009, Toyota Manufacturing UK did not use any incinerators.
Toyota has developed a set of key performance indicators (KPIs) for each of its major production areas. There are four key performance metrics: energy, water, waste, and volatile organic compounds (VOCs).
Since its start in 1992, Toyota Manufacturing UK has attempted to mitigate its environmental impact. The figure below illustrates the environmental KPIsfor the Burnaston plant. Each year, Toyota sets new goals to improve its results.
79% reduction in vehicle energy consumption
62% reduction in waste per car
76% reduction in VOC emissions per car
79% reduction in water consumption per vehicle
You can use the aforementioned manufacturing KPIsto construct your manufacturing KPI template, but keep in mind that the manufacturing metricsyou need to track may differ from those listed here. The first prudent move any business can make while examining its operation is to identify and track the relevant KPIs. Also, in manufacturing, there are several different KPIs, phrases, and abbreviations need to be understood and used where it makes the most sense.
What is manufacturing KPI?
A manufacturing Key Performance Indicator (KPI) or metric is a well-defined and measurable indicator that the manufacturing sector uses to evaluate its performance over time and compare it to that of other industries.
What are the key KPIs for manufacturers?
On-Time Delivery, Production Schedule Attainment, Total Cycle Time, Throughput, Capacity Utilization, and Changeover Time are some of the key manufacturing KPIs.