How Industrial IoT Is Changing the Manufacturing Industry

Find out how manufacturing companies are using IIoT to improve product quality, reduce costs, make better decisions, and increase customer satisfaction.

Industry 4.0 (the Fourth Industrial Revolution) blurs the line between the digital and physical world and uses smart technology to monitor and automate industrial processes and supply chains. A key component of Industry 4.0 is the introduction of the Industrial Internet of Things (IIoT). IIoT uses small electronic devices (for example, remote sensors) that monitor and transmit data for use by larger back-end systems, such as an Enterprise Resource Planning (ERP) system, which gives visibility over critical areas in their manufacturing processes. 

How IIoT is used in manufacturing 

Examples of IIoT in manufacturing include adding sensing devices on machines and tools used on the shop floor, at various points in the manufacturing process, and on key components of the finished product. Data is collected from these sensors and sent to the back-end ERP (or another data repository) for analysis. The amount of data collected can be substantial, requiring advanced analysis tools to make sense of the information.  

Often, these analysis tools include artificial intelligence (AI) and machine learning (ML) to help them crunch the numbers and perform predictive analysis on the data. The results can then be displayed as easy-to-read dashboards showing critical metrics, such as inventory levels, process efficiencies, machine utilization, and component performance and health.  

What IIoT means for manufacturers 

The adoption of IIoT by manufacturers means companies can glean valuable information that can be used to improve the quality of end products, speed of manufacture, inventory replenishment processes, and extend the lifetime of their equipment. Key personnel can be notified via alerts whenever equipment malfunctions or a failure is imminent in the field. Various processes can be simulated and optimized for quality and efficiency. Supply chain bottlenecks can be more easily identified and corrected. 

But it doesn’t stop there. IIoT is also used effectively by manufacturing companies in areas such as asset management, network utilization and control, product improvements, increased productivity, predictive maintenance, plant safety and security improvements, and energy conservation. 

Benefits of IIoT for manufacturing 

Manufacturers that have adopted IIoT report substantial benefits to their bottom line:  

• Reduced Costs – Optimized plant operations and predictive maintenance reduce downtime and costs
• Increased Productivity – Real-time analysis allows immediate corrections, reducing production time while improving quality
• Greater Insights – Management is given instant visibility into all areas of their business, resulting in better decision-making
• Customer Satisfaction – Improvements in product quality and faster production times result in higher customer satisfaction

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