Connected Factory – How to Make Your Factories Connected

Table of Content:

What are the Steps to Make Your Factory Connected?

1. Assess Current State

To begin with, it is important to assess what manufacturing processes are being used currently. This includes reviewing your current hardware, processes, and technical architecture. But how might a large automotive manufacturing plant begin to measure this kind of operations technology infrastructure? For example, it could map all its assembly line tools—determining which are digitally capable and which continue to operate from old legacy systems. This assessment should also include an evaluation of your data collection and analysis capabilities. Are you already gathering data from certain processes? How is this data being used?

2. Develop a Connectivity Strategy

After assessing your situation, it really boils down to creating a holistic connectivity strategy. This is where you will connect the strategy to your high-level business objectives and describe how a connected factory can fit into this. A pharmaceutical firm may aspire to minimize production errors by 50% with the help of real-time monitoring and automated quality control. Your plan should also dictate the size and scope in which you deploy connectivity—are you going to pilot this in one area of the factory? Or roll out changes across your entire facility?

3. Choose the Right Technologies

Choosing the right technologies is essential to connect your factory. That means digging into the different IoT devices, sensors, networking protocols, and data analytics platforms that make the most sense for you. As far as networking is concerned, options range from Wi-Fi and cellular (4G/5G) to specialized industrial protocols like PROFINET or EtherCAT. Remember, the technologies you choose should be scalable, interoperable, and future-proof to ensure long-term success in your connectivity journey.

4. Implement Connectivity Solutions

At this point, you have your approach dialed in, and it is time to start executing. This is basically a well-structured plan that outlines the activities sequence, resources required, and potential risks to be faced. Mostly, it is a good idea to begin with a pilot project. Look at an aerospace parts manufacturer, for example, who starts with just one CNC machining cell hooked up to the IIoT and then fine-tuned it before replicating it across the entire shop floor. All stakeholders, from the machine operator to IT staff, therefore need to be involved during implementation.

5. Ensure Data Security

As factories become more interconnected, safeguarding data and systems is crucial. This involves implementing advanced security measures to protect against potential threats. For example, a defense contractor may employ MFA, end-to-end encryption, and regular security audits to secure proprietary data in connected factory solutions. In less sensitive industries, the focus may shift to protecting intellectual property and ensuring operational continuity.

6. Hire/Train Employees

The last, and probably the most critical part of connecting your factory, is ensuring your workforce has the right skills and knowledge. This typically entails a split between bringing in new talent and training existing employees. For example, a steel manufacturer implementing advanced analytics might need to hire data scientists who can develop and maintain predictive models for their production processes. At the same time, they would need to train their existing operators on how to interpret and act on the insights provided by these models.

What are the Benefits?

Increased Efficiency and Productivity

A smart factory survey from Deloitte in 2019 showed that companies achieve benefits of up to 12% in manufacturing output, factory utilization, or  labour productivity through investments in smart factory initiatives. It also shows that smart factories will potentially increase net  labour productivity by up to 30% in 2030 (compared with a traditional factory).

Enhanced Quality Control

Manufacturers can identify and correct quality problems at the earliest stages of production, rather than only in final inspections, by integrating sensors and real-time facilitating technologies at various stages of production. Connected automotive assembly lines can inspect every component in real-time using edge computing systems, for example, picking up defects that may be overlooked by human inspectors.

Improved Flexibility and Scalability

Interconnected systems and real-time data enable manufacturers to adjust production schedules, reconfigure assembly lines, and launch new products with minimal downtime. For instance, a connected electronics factory can swiftly switch from producing one mobile phone model to another by replanning assembly processes and automatically reordering supplies.

Cost Reduction

PwC reports an expected average cost reduction of 3.6% globally from smart manufacturing, amounting to $421 billion in savings. Additionally, optimized energy management systems in smart factories can lead to substantial utility savings. A study from the Kelley School of Business found that across 87 factories, average power usage decreased by 7.46%, resulting in over $41 million in energy savings enterprise-wide.

What are the Challenges?

Significant Initial Investment

As per PwC, manufacturing companies invest approximately $1.1 trillion annually in digital transformation activities. Such a heavy monetary investment brings along the costs of new hardware, software, training, and maintenance over time. It is one of the hardest challenges that most of these businesses face—justifying the cost of such transformation, as returns are uncertain in the near term.

Credit: PwC

Data Overload and Management

A NAM study “Data Mastery: A Key to Industrial Competitiveness,” found 44% of manufacturers report the number of data being collected has doubled in just the last two years, and they expect it to triple by 2030. Although the data could provide valuable insights into optimizing operations, the majority of organizations indicate only a relatively moderate level of confidence in their analytics capabilities.

Employee Resistance and Skill Gaps

A review of the NAM Outlook Survey shows that over 65% of manufacturing leaders indicate that finding quality workers remains still the biggest problem. The gap still is surprisingly wide between the latest available advanced manufacturing technologies and the available worker capabilities. These new systems alienate employees either due to unfamiliarity or the fear of displacement in the course of automation.

Credit: The National Association of Manufacturers (NAM)

Regulatory Compliance and Standards

Industrial standards and regulatory compliance are essential to operational safety, product quality, and safeguarding data privacy. Connected factories, nowadays, are an integration technology or solution of multiple technologies or platforms, and their producers require constant awareness of regulations.

Credit: The National Association of Manufacturers (NAM)

Conclusion

As we’ve explored, the question of “How to make factories connected?” is at the forefront of modern manufacturing. The journey to make factories smart is complex but crucial for staying competitive in today’s rapidly evolving industrial landscape. By embracing digital transformation and leveraging innovation in consulting alongside robust manufacturing IT services, organizations can navigate the challenges of implementation and unlock unprecedented levels of efficiency, productivity, and quality control.

Ready to transform your manufacturing processes? Connected factory service providers like Pratiti Technologies can help you navigate the complexities of Industry 4.0. Our innovation consulting services integrate the entire value chain, seamlessly connecting design, engineering, manufacturing, and operations systems with cutting-edge software and analytics capabilities.

As a leader in IT services for manufacturing, we understand the challenges manufacturers face in delivering complex, personalized products rapidly. Our integrated technology stack ensures a consistent and complete data flow from product design to manufacturing and beyond, driving maturity in Industry 4.0 initiatives.

Don’t let the challenges of digital transformation hold you back. Contact us today to get started on your journey towards smarter, more connected factories.