The evolution of a smart manufacturing enterprise

In an increasingly digitally connected world, the potential for efficient manufacturing is limited only by the ability to comprehend and utilise innovative applications and technologies.

The manufacturing industry is no stranger to transformation, and the rate of change of digital transformation is more than ever. Often referred to as the Industrial Internet of Things, the industry is once again being presented with a challenge to reinvent itself. This era of cyber-physical systems heralds a new vision for manufacturing: the smart manufacturing enterprise.

Historical advancements in technology and manufacturing have undoubtedly changed human life and the way we live and work. We have seen living standards dramatically improve, while real wages have risen and the price of items once considered a luxury have fallen. But faced with a new set of challenges, the manufacturing industry needs to step up and embrace the next evolution of smart technology.

By 2050, the population of Earth will hit nine billion people. In order to meet the demand generated by this nearly 30% increase, productivity and quality will have to significantly improve.

Another issue which has required more consideration than ever before is sustainability, as the manufacturing industry is a major energy user. Industries and governments are tirelessly working on ways which could help to reduce the amount of energy consumption and to implement ways of working that would be more eco-friendly and sustainable for the future.

When dealing with rising energy costs and a volatile commodities market, manufacturers today are challenged to increase productivity to meet the needs of a growing population without harming the environment while using fewer resources.

By harnessing the power of the Industrial Internet of Things (IIoT) in the right way, manufacturers have the opportunity to tackle these challenges head on and drive simplicity, efficiency and profitability for decades to come. The IIoT offers up a new vision for manufacturing in the form of the smart manufacturing enterprise.

The smart manufacturing enterprise

The ultimate world vision of the IIoT is an industry where smart connected assets operate as part of a larger system that makes up the manufacturing enterprise. This system comprises a variety of different levels of technology and machinery, ranging from sensing through to controlling, optimisation and autonomous operation.

Comprising smart machines, plants and operations, these systems have embedded higher levels of intelligence at the core of their structure. The links between each machine operate on cloud technologies and standard internet technologies, enabling secure access to devices and information. Across the entire supply chain, machines will hum in harmony, gathering intelligence from their environment, analysing it and using it to make autonomous decisions about how they function — optimising productivity and efficiency. The most significant transformation has been the adoption of both wired and wireless IP technologies for operational systems. This has allowed systems to evolve at a rate required by businesses in a sustainable and secure way.

While the long-term impact of the IIoT can be difficult to predict, there are three distinct operational environments which are set out for a smart manufacturing enterprise to emerge:

• Smart enterprise control: IIoT technologies will enable tight integration of smart connected machines and smart connected manufacturing assets within the wider enterprise. This will facilitate more flexible and efficient, and hence profitable, manufacturing. Smart enterprise control can be viewed as a mid- to long-term trend. It is complex to implement and will require the creation of new standards to enable the convergence of IT and OT systems.
• Asset performance management: The deployment of cost-effective wireless sensors, easy cloud connectivity (including WAN) and data analytics will improve asset performance. These tools allow data to be easily gathered from the field and converted into actionable information in real time. This will result in better business decisions and forward-looking decision-making processes.
• Augmented operators: Future employees will use mobile devices, data analytics, augmented reality and transparent connectivity to increase productivity. As fewer skilled workers are left behind to man core operations due to a rapid increase in baby boomer retirement, younger replacement plant workers will need information at their fingertips. That information will be delivered in a real-time format that is familiar to them. Thus, the plant evolves to be more user-centric and less machine-centric.

How do we prepare for a smart manufacturing enterprise?

Although companies would already have many systems and processes in place, executives find it hard to revise the whole operations infrastructure. Nevertheless, there are a variety of readily available solutions which assist in combining a platform concept with an open technology approach. In doing this, enterprise owners will be able to build and adapt their processes as they develop.

Before an enterprise would implement any smart solutions, it is best to gain an understanding of any issues or gaps in their existing operations:

• Operational must-haves: Are you losing productivity because your workers have to manually input data?
• Unfilled needs: Do you need a dashboard showing all production? Could you reduce energy costs by analysing different resources? What about better workflow management?
• Existing applications: Do they work for you? Are they integrated, so that you can access critical data from one system into the other?

The next step required is to build out a complete understanding of the technologies and applications available in the marketplace, taking into consideration:

• Platform technologies: Look for proven, flexible, standards-based options.
• Open technology: Look to see if your current providers are taking an open approach that allows their applications to be easily integrated and aligned with offerings from other providers.
• Disruptive technologies: Take a look at key areas like the cloud, ubiquitous reporting and virtualisation. Though your organisation may not be ready to embrace these yet, you need to understand the potential they offer and ensure that the application providers you are using or considering are integrating these technologies in their future plans.

If it is building an enterprise from the beginning or even upgrading an already existing set-up, it is key to always consider the above factors. This will ensure companies will have a smart and connected infrastructure which is suitable for their enterprise.

A platform fit for the future

Manufacturers are required to source ways to maximise both flexibility and standardisation to achieve success. While engineers require flexibility to diversify, be innovative and differentiate their products, corporate management requires tight control in order to reduce variability, ensure cost efficiency, deliver high consistent quality and maintain product safety.

To kick off the implementation of an overarching integration platform, the required functionality includes plant floor automation connectivity, process data, reporting, collaborative workflows and mobility. The importance of this platform being secure and scalable is essential for a smoothly functioning structure.

The platform will further provide a basis to integrate additional software applications as they advance and suit the unique demands of the business. Energy management software is also another platform that can be used to monitor the usage of energy throughout an enterprise. Effective management of energy-consuming systems such as HVAC, lighting and blind control can reduce energy bills by up to 30%.

What technology is leading the IIoT evolution?

As we know, the IIoT is altering the boundaries between physical and virtual entities. The result of this provides room for more flexible manufacturing models, especially when accessing process and machine data. While generating and collecting data is an important aspect of the IIoT, this alone will not enable manufacturers to realise the full benefit of the IIoT. Some other components that are required for consideration include: smart connected devices that are IIoT-ready; edge gateways to aggregate data; applications and services to assist in analysing data and achieving business objectives; and an open and collaborative environment.

Devices that are ‘IIoT ready’ are smart connected technologies that have embedded technologies such as wireless connectivity and web services already built into the device. These embedded devices become critical to support processes such as optimisation.

Edge gateways, or pass-through capabilities of devices at the edge, are optimal for aggregating data collected from various sources and delivering real-time business information to the right people at the right time. This is vital, as it facilitates value-added services independent of the control system. It also ensures a high level of performance and connectivity, which is also critical to the platform’s effectiveness and efficiency.

Digital applications and services serve a significant purpose in achieving the business performance gains promised by the IIoT. Simple data collection must be extended to include analytics that deliver pertinent and valuable business information.

An open and collaborative environment will enable partners to develop specific applications that extend offerings and reach to help deliver the results from the IIoT. A consistent development environment with effective governance and processes will create easy integration across IIoT platforms. Most importantly, an appetite for adopting new business models to invest in these newer technologies, and levels of connectivity in order to maximise the benefits of these new ways of doing things, is essential.

Moving forward

All in all, the smart manufacturing enterprise continues to evolve. It is clear that the potential for efficient working is limited only by the ability to comprehend and utilise innovative applications and technologies. Advancements within technology have allowed enterprises to implement software solutions integrated with systems that have enhanced connectivity, intelligence and automation, which is required to drive efficiency in productivity.

There are still many areas that require standards to fully realise the potential of the IIoT. In order for companies to remain competitive in the marketplace, businesses are required to implement and adopt these IIoT technologies. It is essential to work with companies that have the expertise to apply the IIoT technologies to production systems and drive the evolution towards smart manufacturing enterprise that is more efficient, safe and sustainable.

Australian companies can now embrace this change, and smart manufacturing enterprises are the next step in the journey to a fully connected and more productive future.