According to Gartner, smart manufacturing is orchestrating physical and digital processes within factories and across the entire ecosystem, including suppliers, logistics and customers. It is a long-term continuous improvement that involves using advanced technologies on top of automation across the whole manufacturing value chain, from product design to distribution across processes and systems.
Smart manufacturing is a broad concept that is often mistaken for smart factories. Terminologies like industry 4.0, Industrial Internet of Things (IIOT), smart manufacturing, industrial transformation and smart factory are frequently used interchangeably. Each term has a significant difference, and we will discuss the differences in the next paragraph.
In simple terms, smart manufacturing is about optimising the value chain by applying advanced technologies. It is about improving how people, processes, and technology work together for business agility, flexibility, and faster decision-making. This involves transforming and enhancing how individuals, processes, and technology function. Smart manufacturing practices can provide essential information that enhances the quality of decision-making about manufacturing, efficiency, cost-effectiveness, and adaptability.
A smart factory aims to improve efficiency, reduce costs, increase productivity, and enhance the overall competitiveness of a manufacturing operation by leveraging technology and data-driven insights. Smart factories and smart factory solutions are a vital component of Industry 4.0, representing the fourth industrial revolution driven by digital transformation and connectivity in manufacturing.
A smart factory refers explicitly to using advanced technologies to implement smart manufacturing practices within a manufacturing facility or fabrication plant to improve operational efficiency and productivity. It is a highly automated and connected cyber-physical space comprising interconnected networks of machines, systems and communication devices that use advanced technologies to optimise the manufacturing process via smart factory solutions.
A smart factory is interconnected across the various devices within a factory, data silos are eliminated, and data is collected in real-time. The main goal of a smart factory is to create an interconnected manufacturing ecosystem within the production plant or factory by reducing downtime and wastage, enhancing throughput and improving resource utilisation through smart factory solutions. The center of attention is the actual product production process, from raw material data to product formation.
These 2 concepts are closely related, complementary and mutually reinforcing.
Smart manufacturing can be seen as a macro view of the manufacturing business. It is a practice that spans across the entire manufacturing enterprise. Smart factories are a micro-view of the business – a single production facility. The essential physical prerequisites zoom down to look at machine performances and processes to achieve the ultimate goals of smart manufacturing.
A frequently neglected difference when discussing smart manufacturing and smart factories is that applying smart manufacturing technologies within a production factory might not mean it is a smart factory. Smart manufacturing practices like applying big data analytics on factory MES (Manufacturing Execution System) data and artificial intelligence insights through ERP applications based on specific factory data do not indicate that it is a “smart factory”. A primary differentiator would be the level of data exchange and interconnectedness of processes, devices and systems in both the physical and cyber spheres across the entire factory.
There are many levels of smart manufacturing due to technology adoption. However, in its most optimal form, a smart factory can self-optimise its processes and performance and run the production process autonomously.
At the heart of both Smart Manufacturing and Smart Factories is industrial automation, the deployment of control systems to manage and optimise various processes and machinery. Industrial automation technologies set the foundations for a smart manufacturing facility. Through Programmable Logic Controllers (PLCs), robotic arms, conveyors, sensors and control systems it allows for traditional factories to reduce reliance on human intervention, enhancing precision, and productivity.
Implementing smart manufacturing technologies in a factory is akin to giving a marionette the ability to move on its own will, analyse the course of actions required when faced with dangers and self-resolve the risks. In a smart factory, field devices, instruments, machines, equipment and systems are “smart”, intelligent and capable of data exchange.
Within a smart factory, smart manufacturing technologies act as the brain of the factory. It is a crucial enabler for a smart factory to achieve the goals of transparency, agility and an interconnected ecosystem. It connects processes, information streams and different levels of stakeholders across the shop floor in a streamlined fashion.
These technologies allow the exchange and analysis of the real-time data generated in a timely intervention when anomalies are detected by sending commands from the smart manufacturing systems to the machines. Enabling better material handling, quality control, predictive maintenance, remote access and demand-driven production. The higher the integration of advanced technologies with field devices, equipment, instruments, machines, processes and systems within your factory, the greater your competitive advantage.
Besides smart manufacturing technologies, many manufacturing equipment available in the market might not be intelligent (IoT-enabled). In such a situation, the application of smart technologies is still possible. However, there will be a hefty investment in hardware and set-up.
The four core benefits of smart factory solutions include data-driven initiatives, operational efficiency, quality control, and competitive advantage.
Smart factory solutions provide numerous advantages, including heightened quality control through real-time data monitoring and reduced defect rates, heightened operational efficiency and cost reduction through automation and predictive maintenance, and enhanced flexibility to adapt to changing market needs.
Additionally, smart factory solutions enable data-driven decision-making, optimise supply chain management, ensure regulatory compliance and traceability, bolster cybersecurity and data protection, promote environmental sustainability, and provide a competitive edge through agility and high-quality production. These combined benefits empower manufacturers to excel in a dynamic and technology-intensive industry.
There are 4 levels of a smart factory.
At the first level, the factory is not “smart”. Companies rely on conventional, often manual processes. Automation is limited, systems are usually disconnected, and data silos are the norm. Data collection is fundamental, and decision-making tends to be reactive, primarily based on past data and human input.
Advancing to Level 2, companies start to embrace automation and monitoring systems. They establish more organised data collection and analysis practices, improving their decision-making capacity. Some connectivity and system interoperability level is introduced, allowing for better communication between systems.
Level 3 represents a stage where companies leverage predictive analytics and real-time data. They utilise technologies like the Internet of Things (IoT), sensors, and advanced analytics to predict anomalies, prevent downtime and optimise the manufacturing processes. Automation has become more widespread, and systems are connected to enable seamless data sharing.
Level 4 signifies a high level of maturity in smart manufacturing. Companies at this stage have fully integrated systems capable of adapting to changing conditions in real-time. Data-driven decision-making has become the norm, and automation is deeply embedded in manufacturing processes. Smart factories operating at this level can respond to disruptions and optimise operations autonomously with minimal human intervention.
At the last level, the factory is capable of autonomous manufacturing. It is also commonly described as a lights-out factory. At this level, equipment and systems can make independent decisions and take actions without human intervention. This is the highest level of smart manufacturing maturity, characterised by extensive automation and autonomy.
For Smart Factory solutions, the choice of advanced technologies varies depending on the industry, product, and the depth of visualisation needed. There are five common technology types used in smart factory solutions:
An IOT sensor is a popular smart factory solution. Sensors across the facility collect real-time data on equipment, environmental conditions, and production processes. This data drives proactive maintenance and optimization, but the sheer volume requires advanced analytics tools.
Smart factory solutions can also make use of Big Data Analytics. The copious data generated by sensors and IoT devices is analysed using big data analytics, extracting valuable insights for informed decision-making, process enhancement, and predictive maintenance.
Smart factory solutions can employ machine learning and artificial intelligence to analyse data patterns, predict outcomes, and optimise operations. This technology adapts to changes, enhances quality control, and boosts efficiency.
Integral to smart factory solutions, robots and collaborative robots (cobots) handle hazardous tasks or require precision. They work alongside human employees, increasing productivity and safety.
Cloud computing stores and processes large data volumes, ensuring critical information accessibility from anywhere, while edge computing enables real-time data processing at the source, reducing latency for timely decisions. Cloud computing can be used in smart factory solutions to boost productivity. Cloud computing allows factories to eliminate labour and costs on maintenance of hardware within the factory facilities and even remote access into the factory’s network to view performance and send commands to the production floor.
The key principles of a smart factory are connectivity, intelligence and autonomy.
A smart factory is equipped with a network of devices, machines, and systems that can communicate with each other and share information seamlessly. A connected smart factory leverages technology to establish a networked ecosystem where data flows freely between devices and systems across the manufacturing facility.
A smart factory should have the capability to collect, analyse, and act upon data in an automated and informed manner to optimise its operations. In essence, intelligence in a smart factory is about the ability to make data-driven decisions and take actions to improve efficiency, productivity, quality, and other key performance metrics.
A smart factory has the capability to operate and make decisions without constant human intervention. Tasks in the production process should be performed with minimal human intervention, bottlenecks and inefficiencies can be identified and corrected without human input. A smart factory can operate efficiently, make decisions based on data and algorithms, optimise its own processes, and adapt to changing conditions—all with the goal of improving productivity, quality, and resource utilisation while reducing costs and human intervention.
The journey towards a smart factory with smart factory solutions starts with assessing your manufacturing process, goals and objectives, followed by a roadmap. Transforming a factory into a ‘smart’ facility need not be a prohibitively expensive endeavour; it can be achieved efficiently without replacing every piece of machinery in your manufacturing chain. By thoroughly assessing your manufacturing processes and identifying critical areas, you can swiftly implement changes and smart factory solutions that benefit the entire operation.
This analysis should involve a diverse team, including specialists from various departments, to ensure comprehensive insights and practical improvements. Engaging the workforce in these enhancements is crucial, as their involvement can lead to more impactful changes. Additionally, employees may require training to adapt to new smart factory solutions and roles as their responsibilities shift towards monitoring systems, data analysis, and proactive maintenance. Collaboration between engineers, management, and IT specialists is essential for identifying areas for upgrades, optimising processes, boosting sales, reducing costs, and saving time across the entire manufacturing process.
The actual changes to embark on the smart factory transition journey kick in at the data collection and connectivity stage. You may face challenges with implementing the newer technologies in some smart factory solutions due to the need for data collection and connectivity, especially for legacy equipment and PLCs. However, this is the most critical foundation for your journey.
As Smart Factories rely on interconnected systems and digital technologies, they become vulnerable to cyber threats such as malware, ransomware, and phishing attacks. A robust cybersecurity framework is essential to protect sensitive data and critical infrastructure from potential breaches.
The disruption from cyberattacks can lead to hefty financial losses; hence, adhering to industry-specific cybersecurity standards and regulations is crucial to ensure compliance. Conduct regular audits and assessments and assess the cybersecurity practices, standards and protocols of third-party vendors and suppliers in the supply chain to keep your smart factory safe from cyber threats.
As industries embark on the journey towards Industry 4.0, integrating Smart Factory solutions and Smart Manufacturing has become a pivotal consideration. While the benefits are abundant, it’s essential to acknowledge that adopting this transformative approach is challenging.
It is crucial to carefully evaluate the pros and cons of smart factories and smart factory solutions to determine if this approach fits your business. By conducting a thorough analysis and considering industry specifics, you can make an informed decision that positions your company for success in the dynamic landscape of modern manufacturing.
Electrotek is the leading provider of smart manufacturing and smart factory solutions. Electrotek aims to help businesses with different starting points and capabilities that want to embrace Industry 4.0 and create a smart factory.
