There’s no question that digital operations are transforming manufacturing. A range of innovations that fall under the Industrial Internet of Things (IIoT) or Industry 4.0 umbrella all point towards more computer-integrated manufacturing operations or the ‘connected enterprise’.
Some manufacturers are moving towards varying levels of IT and OT systems integration managed through a centralised platform, but the practicalities of actually achieving IIoT capabilities seems far off for others. Nevertheless, research shows businesses will need to heavily invest in digital technologies over the next five years in order to remain competitive.
The common theme? Manufacturing is becoming more connected and centralised. As this connectivity increases, companies must dedicate more resources to data analysis and management.
We propose that central management of computer-integrated manufacturing systems is essential. Here's why.
First, it's useful to outline two distinct concepts of what ‘centralised computer-integrated manufacturing operations’ might look like:
1. The fully integrated operation.
Fully integrated operations are incrementally harnessing IoT technologies through the use of:
2. The Integrated Manufacturing Operations Centre (IMOC).
While a plant can be fully integrated, the management of each system's data will likely fall under a number of departments and staff. While more data can be gleaned from new systems, there isn’t always time to process and use it to affect change. A central division that’s dedicated to monitoring and analysing plant-wide (or multiple plants’) data may suit some organisations with distributed operations.
We call this the Integrated Manufacturing Operations Centre (IMOC). It combines the fully integrated operation with traffic management’s brainchild: a centralised ‘operations centre’ with a dedicated team making collective decisions about the business.
See our next blog post: ‘Operations centres: How they’re making manufacturing smarter' for the benefits of a centralised Integrated Manufacturing Operations Centre.
Here are the 5 benefits of smarter, fully integrated operations:
Integration does what the name suggests: it connects what happens on the shop floor to the enterprise level. The most widely used digital transformation routes are through manufacturing execution systems (MES), dashboards displaying trend data, and enterprise resource planning (ERP) connections to plant floor systems.
Some business-wide advantages of a connected system:
Manufacturing demands adherence to strict quality standards. But manufacturers can be reactive rather than preventative when it comes to quality management. This is especially true when quality reports are only available the next day, or if the source of product defects can’t be pinpointed along the line.
Fully integrated operations can improve quality through:
Greater integration naturally produces more data, which can be a challenge in itself. It’s one ‘concern’ that as IoT technologies come online we’ll be inundated with more data than we know what to do with.
Lucky for us, advancements in machine learning are taking the pressure off humans.
Currently, standard data processing for integrated operations looks like this:
Data collection from machines, production lines and business systems > data conditioning > combination of data from disparate streams > data analysis and modelling from such consolidation > data interpretation and action by humans > repeat.
Slowly machines are driving more of the data analysis and corrective or preventative actions, so data processing will become more like:
Data collection from machines, production lines and factories > data conditioning > combination of data from disparate streams > data analysis and modelling from such consolidation > data interpretation and action by machines > monitored by humans > repeat.
Machine learning and Artificial Intelligence technologies can:
Sometimes what seems counterintuitive makes business sense – and the data will prove it.
Accurate, real-time data from multiple points across the production line can reveal improvement areas. For example, say machine speed is increased from 5500 to 6000 units an hour. Management's happy because they’re making more products in less time. However, the system is recording higher waste output than when the machine was running at 5500. Despite apparently improving efficiency, the profit margin is higher if the machine runs slower. Such insights can only be gleaned from correlating multiple data points in time.
Advanced data analytics have fed into continuous improvement programs with impressive results. A top biopharmaceutical company increased yield by more than 50 per cent, with no additional capital expenditure. How? Closely related production activities were clustered and put into one database. Then, advanced analysis pinpointed which process parameters impacted yield and which were interdependent, revealing where changes should be made in the process.
Finally, an integrated system will bolster predictive and preventative maintenance programs. Integrated systems, for example, can automatically schedule machines for maintenance checks when sensors pick up abnormal heat or friction.
Having that data collected and analysed allows the business to make informed decisions based on the interaction of factors rather than on individual factors themselves.
Consolidation of multiple data sets often gives organisations a clearer picture of the entire operation. In one case, a major supermarket chain consolidated its forecasting, scheduling and traceability data across its meat processing operations. The solution involved a customised pull model that managed raw materials according to store demands. The supermarket chain saved $50 per pallet and increased product shelf life by 1.5 days – all thanks to an integrative approach that used available data to better track products from farm to consumer.
If you're a CIO starting to scope your next big digital transformation project, download our free cheat sheet: The opportunities and risks of integrating IT and OT manufacturing systems. It will give you the must-knows before you make your final decision.