Leverage IoT to Setup Smart Manufacturing Solutions
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The document discusses the implementation of the Internet of Things (IoT) in manufacturing to create smart factories, emphasizing its potential to improve product quality, optimize processes, and enhance customer satisfaction through real-time data integration. It outlines the business case for IoT, highlighting increased revenue opportunities, differentiated products, and more efficient business operations by using sensors, cloud computing, and mobile applications. Additionally, it offers a detailed implementation strategy including workshops aimed at assessing organizational needs and infrastructure for effective IoT integration.
Leverage IoT to Setup Smart Manufacturing Solutions
- 1. Leverage the Internet of Things to Set Up a Smart Factory
- 2. Content02 1. Executive Summary 2. IoT in a Nut-Shell 3. The Value Proposition 3.1 Increased Product Revenue 3.2 Differentiated Products and Service offerings 3.3 Optimized Business Processes 4. Business case of IoT in Manufacturing 4.1 Sensors 4.11 Temperature Sensors (Manufacturing Process): 4.12 Carbon Emission Sensors (Manufacturing Process & Environmental Emission): 4.13 Humidity Sensors (Storage/Warehouse conditions): 4.14 Noise Sensors (Worker conditions, compliance): 4.2 Cloud 4.3 Web & Mobile Application 5. Implementation Strategy 6. Conclusion ............................................................................................................................ 03 ............................................................................................................................ 04 ............................................................................................................................ 04 ..................................................................................................................... 05 ....................................................................................... 07 .............................................................................................................. 08 ................................................................................................ 10 ............................................................................................................................ 11 ...................................................................................... 11 .................................... 12 .............................................................................. 13 ................................................................................... 13 ............................................................................................................................ 15 ............................................................................................................................ 16 ............................................................................................................................ 21 ............................................................................................................................ 23
- 3. Executive Summary03 Leverage the Internet of Things to Set Up a Smart Factory Manufacturing units today are under tremendous pressure from management and customers to deliver high quality products and services at lower costs in a minimum amount of time. Any company that invests time and money in IoT will expect a favorable return on their investment. Today’s market leaders rightly believe that ROI is multidimensional and hence, they focus on customer satisfaction, collection of accurate data, converting it to the right information, brand differentiation, all of which can lead them to increased revenue The IoT (Internet of Things) is creating new opportunities for companies to enhance their services, gain business insights from accurate and timely data, improve business processes and differentiate their offerings. In fact, connecting machines is bringing companies closer to their customers while delivering real ROI and payback. This white paper from Softweb Solutions describes IoT value propositions for manufacturing units and defines an ROI model for building a business case and tracking results related to IoT initiatives.
- 4. IoT in a Nut-Shell The Value Proposition 04 Leverage the Internet of Things to Set Up a Smart Factory IoT embraces the fact that all products, devices, facilities, systems, equipment, delivered goods, processes, workflows, and people will coexist in a connected world, interacting and being inter-dependent. IoT systems will act like social networks, collating connected product data to foster unparalleled knowledge and collaboration. The value proposition of IoT falls into several buckets of capabilities that differentiate your products, including remote monitoring, remote service, usage analysis, ERP/CRM integration, and value-added services. Smart, connected products enable remote monitoring and remote service that drive both a reduction in the costs of services and an improvement in the level of service. Analysis of connected product data can improve business decisions, product design, and manufacturing processes. Core business processes like billing, field service, product registration, compliance, consumable management, recalls, and warranty management can all be improved with connected product data. And finally, the selling and marketing of connected products, which include new applications for end users, can deliver a competitive advantage and drive revenue growth.
- 5. The Value Proposition05 Leverage the Internet of Things to Set Up a Smart Factory STEP 1: Determine the value of connected product services for each product unit assuming the average selling price of a connected application is $50 per year per user, and the average number of users per connected product is 20. Example: $50 x 20 users per product = $1,000 per product. STEP 2: Estimate the total product revenue increase. Assuming a 25 percent attach rate on a total product unit volume of 100,000, the increase in product revenue for the new connected application would be 100,000 units x 25% x $1,000 = $25,000,000 1 INCREASED PRODUCT REVENUE IoT enablement bears fruits through direct as well as in-direct revenue streams as described below with examples. Based on value-added services that can be enabled by IoT, company ABC estimates that a connected product line could generate an additional revenue stream. Assuming customers will subscribe to these services within the first year of product ownership, here is a sample calculation of increased revenue:
- 6. The Value Proposition06 Leverage the Internet of Things to Set Up a Smart Factory Saving on Labor Cost Example: ABC Company estimated that each field service technician deployed in the field has a capacity of ten on-site customer visits per week. The expected results for implementing remote service would be a reduction in total on-site visits by 30 percent. The burden rate for a field service technician is $100 per hour. STEP 1: Determine the number of visits per week, assuming that an average field-service visit at a customer location is four hours long. Example: 40 hours per week/4 hours per visit = 10 calls on average per field service technician per week STEP 2: Determine the man-hours saved by using IoT to remotely diagnose and repair 30 percent fewer issues without an on-site visit. Example: 10 calls x 30% x 4 hours = 12 man-hours saved per week STEP 3: Develop a quantifiable metric; subtract the amount of time required per workweek times the burden rate for a field service technician to determine labor cost savings. Example: 12 hours per week x $100 per hour = $1,200 in savings per workweek. STEP 4: Determine the impact across the entire field service organization Example: Assuming 100 technicians x 50 workweeks x $1,200 per workweek = $6,000,000 annual savings
- 7. The Value Proposition07 Leverage the Internet of Things to Set Up a Smart Factory 2 DIFFERENTIATED PRODUCTS AND SERVICE OFFERINGS Improved product design: The understanding gained from real end-user behavior and usage patterns also allows product managers and engineers to design better products and prioritize new features, as well as drive an increased market share by offering a superior product design. The company can utilize this usage data to define next-generation product requirements and ensure that companies design a product that takes into consideration real-world customer feedback. Identification of quality issues: By looking at the trends across multiple systems, you can reduce costs by identifying any quality issues or design flaws in parts supplied by third parties or within your own manufacturing processes, allowing you to understand what is causing downtime for customers. Understanding the relationships between problems and specific batches or production runs can identify a bad batch early and streamline the recall process. It is also possible that the problems are more serious and are still part of the current manufacturing process. In this case, usage data may trigger the need to change the current manufacturing process. Predictive maintenance (schedule maintenance only when required): Accurately predict the maintenance cycle of your devices, machines and their discreet components by analyzing historical data. Analysis of connected product data, including sensor data, will uncover patterns in connected product data readings that are early indicators of failures.
- 8. The Value Proposition08 Leverage the Internet of Things to Set Up a Smart Factory Rather than performing preventive maintenance on a calendar basis when it may not be needed, companies can track exactly how much a device has been used and if it’s time for service; thereby eliminating unnecessary preventive maintenance calls and premature repairs or component replacement. Servicereps can also perform preventive maintenance during scheduled calls, reducing unplanned and planned downtime and customer interruption. This predictive maintenance knowledge can then feed increased revenues by providing increased uptime with premium SLA pricing. 3 OPTIMIZED BUSINESS PROCESSES : The Value of Smart, Connected Product Data Integration and Business Process Efficiency: Organizations, and particularly manufacturing units, who have now connected things/assets/entities over the internet, are taking the best advantage by pulling real time, accurate data into enterprise systems like CRM, ERP or data warehouses. IoT data from connected assets, in collaboration with other enterprise systems, can provide visible automation across the organization. Additionally, integration with quality assurance (QA) or, product lifecycle management (PLM) can help enhance product features based on real-world data that shows usage patterns or equipment issues—helping to improve customer satisfaction and streamlining beta programs. Measuring critical data points in a device allows for notification to the service team if there is a risk of failure, and, simultaneously, the finance department can be informed when warranty guidelines are not being upheld.
- 9. The Value Proposition09 Leverage the Internet of Things to Set Up a Smart Factory It optimizes critical business processes, reduces service call times, warranty claims etc. The real value delivered with this coherent unit is described in the table below. Key Benefits of Smart, Connected Entities’ data integrated into Business Systems (CRM, ERP etc.) Business Process Customer Service Field Service Warranty Management --- Recall Management Consumable Management Compliance Configuration Management Measure Length & Frequency of support calls Time to Resolution Number of warranty services, warranty costs Support cases of recalled products Consumable Revenue Cost of compliance Cost of configuration management Benefits Effective troubleshooting and CRM efficiency increased Reduction in warranty claims and warranty service costs More efficient recalls with accurate data of which machine/product needs to be recalled Increase in sale of consumables More efficient auditing of interactions with machines, humans and decreased compliance cost Accurate data about installed equipment and configuration Proactive creation of field service request with accurate data and health status
- 10. Business case of IoT in Manufacturing CloudSensors Web & Mobile Application 10 Leverage the Internet of Things to Set Up a Smart Factory Every manufacturing company operates on various production lines that consist of many critical processes. Here we identify few common processes to present our case of an IoT enabled manufacturing unit. Manufacturing controls require continuous measurement of environment variables like temperature and pressure. Compliance regulations also make it necessary for the company to provide safe working conditions for its employees such as noise level of the workshop, hygiene of the water etc. In this case we are describing all the components, processes and the final outcome of the IoT implementation involved in this manufacturing unit.
- 11. Business case of IoT in Manufacturing11 Leverage the Internet of Things to Set Up a Smart Factory 1 SENSORS Sensors are integral components of the IoT ecosystem in manufacturing. Sensors monitor critical processes, environmental variables throughout the production unit, parameters that affect product quality and working conditions of the workers. It also consolidates the real time and accurate data with ability to integrate with direct database systems, legacy ERP Systems or data warehouses. Temperature Sensors (Manufacturing Process): Many production processes in manufacturing plants essentially require temperature control with zero degree tolerance. Production workers do not get sufficient time to take the right decision when this production rule is compromised. What if you could pre-program all your decisions in this unwanted situation? That is the core offering of IoT systems where you can in fact shut off the machine, process and; alert the user at that very second, when the trigger is hit with the set value. It is imperative to not undermine the data it collects even when everything is running fine. IoT tools on their own mine this data for you to derive highly useful set of information which helps you make the right moves from your product design to after sales support. Besides this use case, the same sensors can be utilized in non-production areas such as offices, to maintain your HVAC systems to ensure that they do not consume more energy. E.g. AC units can now intelligently tell what the peak time for their use is and when it sits idle.
- 12. Business case of IoT in Manufacturing12 Leverage the Internet of Things to Set Up a Smart Factory Carbon Emission Sensors (Manufacturing Process & Environmental Emission): Nowadays, your carbon credit is directly proportional to your environmental and social credibility. How would you make sure that your inevitable carbon emissions during production are not exceeding the threshold? Various gas & environmental sensors are the answer to it. They are capable of measuring particular gas emissions like CO2 and other toxic gases. The data is fed into the system at every second and this historical data also helps you devise new processes to lessen the environmental burden from the trends it derives.
- 13. Business case of IoT in Manufacturing13 Leverage the Internet of Things to Set Up a Smart Factory Humidity Sensors (Storage/Warehouse conditions): When products go from the manufacturing unit to the warehouse, environmental conditions need to be maintained to keep their quality intact. In our case, let’s assume luminosity of the warehouse is the factor. With the help of luminosity sensors of high range, we can constantly monitor the warehouse conditions and ensure that the product quality is not compromised. Noise Sensors (Worker conditions, compliance): Labor law and compliance bodies require you to follow the set standards surrounding worker conditions. Noise is a very important parameter for manufacturing units. What if your up-to-the-minute data proves that your company has always met the regulatory standards? With noise sensors you can do exactly this since they will keep accurate data on noise levels. It will be an essential addition to your production floor.
- 14. Business case of IoT in Manufacturing14 Leverage the Internet of Things to Set Up a Smart Factory The picture below describes the location/process of each sensor in manufacturing unit:
- 15. Business case of IoT in Manufacturing15 Leverage the Internet of Things to Set Up a Smart Factory 2 CLOUD For you to understand simply, cloud is where the storage and computation is happening on gathered data by sensors. It is a core part of the whole IoT eco-system in any setup. It is capable of storing virtually any amount, any type of data at any velocity it comes in. Gathered data is analyzed in real time against your business rules and set values. The cloud consists of some intelligent analytics and machine learning tools that convert data into easily understandable, accurate information and can help you make the right decision over it in a timely fashion. Machine learning tools can also command back to the device/process/sensor to take decisions on behalf of actual human decision makers. This is all pre-programed by you, strictly following your business rules.
- 16. Business case of IoT in Manufacturing16 Leverage the Internet of Things to Set Up a Smart Factory 3 WEB & MOBILE APPLICATION This is the part of the system which is directly visible to you. It is an intelligent dashboard that makes information very handy for you. Mobile apps give you quick, real time updates by means of alerts and notifications. With smart sensors you can send commands back to the devices to remotely operate them. This makes it extremely easy for you to maintain your policies and compliance standards. Analytics will be plotted on graphs and the historical data presented will be very intuitive.
- 17. Business case of IoT in Manufacturing17 Leverage the Internet of Things to Set Up a Smart Factory 3 WEB & MOBILE APPLICATION Few screenshots here will help you visualize how great it is going to be.
- 18. Business case of IoT in Manufacturing18 Leverage the Internet of Things to Set Up a Smart Factory 3 WEB & MOBILE APPLICATION Few screenshots here will help you visualize how great it is going to be.
- 19. Business case of IoT in Manufacturing19 Leverage the Internet of Things to Set Up a Smart Factory
- 20. Implementation Strategy20 Leverage the Internet of Things to Set Up a Smart Factory Softweb Solution Inc., understands very well that becoming an IoT enabled company is not an easy decision to make. Hence we have laid down a very systematic and gradual implementation plan to help you realize your IoT dreams. To jumpstart, an exclusive workshop has been designed. It’s joint brainstorming exercise for us to - Understand your business vision, core processes - Understand critical junctures and transitions within the organization - Learn your existing infrastructure and setup - Identify and locate critical parameters, its permissible values, implications in overall systems on violations - Understand your Business Rules, Policies, Standards to comply with - Know about existing legacy systems (ERP, CRM etc.) and how data flows between various departments Now our experts will churn every detail in the IoT spectrum that will bring - Identification of entities, processes that can be improved & automated through IoT - How to control the critical parameters in permissible range and at the same time giving control through hand held (i.e. Mobile, Tablets etc.) - How Rules, Policies and compliance standards can be improved - What infrastructure changes to be brought in to keep overall cost down and minimal - How legacy systems can be more efficient and seamless by directly passing data from sensors to systems
- 21. Workshop Agenda21 Leverage the Internet of Things to Set Up a Smart Factory Time : 9:00 – 9:30 Topic : Introduction to IoT & verticals it serves Participants : All Outcome : Awareness of IoT among your staff members and general benefits for any vertical Time : 9:30 – 10:00 Topic : IoT in specific vertical (i.e. Manufacturing) Participants : All Outcome : Understanding of IoT ecosystem in any manufacturing system with its advantages Time : 10:00 – 11:00 Topic : Understanding Sensors, Cloud, Big Data and Analytics Participants : Architects, IT Team Outcome : Understand the components & infrastructure of IoT Time : 11:00 – 12:00 Topic : Evaluating your business needs processes. Understand existing setup with legacy systems in place Participants : All Outcome : Identification of processes, critical parameters and scope of IoT implementation in existing setup Time : 12:00 – 1:00 Topic : Lunch/Open discussion
- 22. Workshop Agenda22 Leverage the Internet of Things to Set Up a Smart Factory Time : 1:00 – 3:00 Topic : Listing of MVP (POC) phase scope Participants : All Outcome : Identification of Number of users, sensors along with features/functionality of minimum viable product as POC for the company along with web and mobile offering Time : 3:00 – 4:00 Topic : Solution assessment and architecture review Participants : Architects, IT Team Outcome : Basic architecture of the MVP product, infrastructure requirements and setup environment Time : 4:00 – 5:00 Topic : Effort and Cost Estimation to implement POC Participants : Business Team Outcome : Identifying minimum investment of cost and time to implement MVP in the existing environment with set of deliverables.
- 23. Conclusion23 Leverage the Internet of Things to Set Up a Smart Factory Softweb Solution Inc., your technology partner would like to keep you ahead in the industry revolution with IoT, which will be mandatory in the very near future. Gone are the days when technology used to be just supplementary to core business processes, in fact it has become the “The driving force” in running successful business in every vertical. With advancement in smart sensors and cloud technologies, companies will enjoy more intelligent services at a cheaper cost. The time is now to make your company smarter and more efficient than before. To know more, enroll for our IoT workshop.
- 24. Softweb Solutions, Inc. is a Chicago, IL, based software development company that specializes in Cloud Services, Content Management System (CMS), Enterprise Mobility, and Mobile Application Management (MAM). Softweb Solutions has been providing high-quality and exceptionally flexible solutions to Large Enterprises and SMEs for the last 10 years. The company has an extensive experience in providing the most sophisticated, high-end enterprise grade solutions to a range of industries including health and life science, construction, manufacturing, automotive, IT, financial services, entertainment and many other sectors. ABOUT SOFTWEB SOLUTIONS 2531 Technology Drive, Suite 312, Elgin, Illinois 60124 US Toll Free Number: 1-866-345-7638 Email: [email protected] WebSite : www.softwebsolutions.com 300+ Expert Developers for iOS, Android & Windows 10+ Years of Software Development 500+ Satisfied Clients & Growing 1000+ Successful Projects Delivered