How is IoT Revamping the Manufacturing Sector For the Future?

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Currently, the global manufacturing sector has been valued at $415.13 billion, which is expected to reach $641.88 billion by 2027. Those numbers are simply magical, but at the heart of the operations lie points of failure. How? For example, imagine a CNC machine not getting properly analyzed before safety operations. In such a case, what could it lead to? Accidents and that’s what the report says, which claims that employees are exposed to accidents due to faulty machines and the inability of the manufacturing units to track them in due time properly. Here’s where IoT changes the game.

Enter: IoT

IoT or the Internet of Things could provide an amenable solution to this problem by automating the process. Hence, it wouldn’t require human intervention to evaluate the efficiency of the product unit. In this blog, we shall see how IoTs shall change other segments of the manufacturing sector and improve safety standards.

Key Segments Getting Revolutionized Via IoT

Monitoring & Management

Monitoring is an essential segment to improve the operational efficiency of a manufacturing unit. As per stats, the manufacturing sector requires real-time data like the health of machines, stock-depletion notifications and others, and based on such data, more than 81% of the manufacturing units are taking decisive actions. IoTs cut down the dependency on a manual process and introduce automation so that the operations can be efficiently streamlined. It has been found that optimizing the manufacturing process leads to $1.5 million in savings. IoTs simply monitor by integrating the solutions in the manufacturing process, which can provide timely data to influence decision-making.

Supply chains

The post-pandemic phase has caused significant adjustments in the manufacturing sector, where industries often walk on the edge of the cliff in terms of meeting demand. In doing so, they have put the supply chain at risk, which could adversely impact the cost of the goods. IoTs have eliminated that concern by not forcing industries to operate at close to capacity; on the other hand, IoT-empowered warehouse management systems take due cognizance of the developments and improve the inventories based on analytical actionable data to improve the manufacturing and keep the supply chain intact and in order with no point of failure as per the changing demand conditions.

Waste Management

As per report, 20% of every dollar spent on manufacturing is wasted, which makes 10% of the global GWP level. As a result, the need of the hour is to develop a solution to eliminate such wastage significantly. Lean is a great way to supercharge the manufacturing sector, embrace new challenges, and work towards its immediate resolution. However, lean manufacturing requires a technologically sound approach to problem-solving. In this regard, IoTs have been construed as an amenable solution. 

Through IoTs, value stream mapping using machine-to-machine communication instead of a manual human evaluation can be put in place to improve operational efficiency. When lean manufacturing fuses with advanced software, sensors, automation, and robotics, it will be possible to trigger faster decision-making and improve managerial efficiency, directly impacting waste management. All of these could happen only when machines get smart enough to interact with one another and provide important information as and when required to increase production efficiency.

Business Transformation

Through technology, it is possible to help business processes evolve, and IoTs will have a key role to play in this regard. How? For example, think of a manufacturing company selling heavy equipment to the excavation company. In this model, the manufacturing company sells machinery to the excavation company, and the deal ends in a normal setup. This does create entry barriers for more excavation companies to flourish because they need heavy capital investments to procure machines. Through IoTs, the manufacturing company can set up a new hire purchase model where, instead of selling the machinery, they can sell its benefits. 

The excavation company can purchase the machinery hours and operate at optimized budgets because now they need not have to buy the machine but hire and the manufacturing company shall have to incur other related expenses. However, the manufacturing company can still benefit from the same because such a business model taps another revenue-generating opportunity where the manufacturing company will have access to sensitive data that improves user experience, analytics, and machine performance. At the same time, the excavation company can perform their operations at half the cost, which is a win-win situation for both the manufacturing and the excavation company.

Conclusion

In the next five years, the demand for digital factories will increase. As a result, it will be necessary for the manufacturing sector to adjust according to the needs of the hour. IoTs have the potential to establish a better facility management system that can not only look at operational efficiencies but also significantly impact safety and security, which can help the manufacturing sector rapidly expand in the technological future. 

VE3 stands out as a key facilitators for leveraging cutting-edge IoT solutions. We specialize in tailoring comprehensive and scalable systems for the manufacturing industry. With our expertise in designing intelligent networks that seamlessly integrate machinery, sensors, and analytics to optimize operational processes, we contribute to heightened efficiency and address crucial safety and security aspects within digital factories. Through our customizable IoT expertise, we empower businesses to meet their demands of the present and proactively navigate the dynamic landscape that lies ahead. As the manufacturing sector evolves into a more digitally driven environment, we stand ready to play a pivotal role in shaping the success of digital factories, fostering growth, and ensuring a secure and efficient future for the industry. To know more, explore our innovative digital solutions or contact us directly.

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