IoT Technology In Manufacturing – Applications & Trends to Follow in 2024


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The manufacturing industry has undergone significant changes in recent years, with the advent of new technologies such as the Internet of Things (IoT). By integrating IoT-enabled solutions into manufacturing operations, companies can achieve greater efficiency, productivity, and safety. However, implementing IoT solutions can be challenging, requiring specialized skills, expertise, and investment.

In this article, we’ll explore in depth the applications, use cases, real-world examples and challenges of IoT technology in manufacturing. Continue reading to find out how your business can also reach the heights of glory by implementing IoT through professional IoT development services.

IoT is Taking Over the Manufacturing Industry – Overview

It is true that the Internet of Things (IoT) is having a significant impact on the manufacturing industry, as IoT is transforming the way products are made and delivered. IoT refers to the interconnectedness of devices and systems through the internet, enabling them to communicate with each other and share data in real time.

IoT is used in the manufacturing industry to improve efficiency, reduce costs, and enhance product quality. Smart sensors and devices are being used to monitor and optimize production processes, while predictive analytics is being used to anticipate and prevent equipment failures before they occur. This leads to increased uptime, reduced maintenance costs, and better product quality.

IoT in manufacturing is also being used to create smarter and more connected supply chains, allowing manufacturers to track raw materials and finished products in real time. This improves inventory management, reduces waste, Material Handling Solutions and enables faster delivery times.

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Benefits of IoT in the Manufacturing Industry

Still, second-guessing about IoT-enabled manufacturing? Here are 5 reasons why IoT is the future of manufacturing and the benefits of implementing IoT technology in the manufacturing industry:

IoT can Reduce Costs

IoT technology allows manufacturers to automate processes and optimize their use of resources, leading to reduced costs associated with labor, maintenance, and production. This leads to improved efficiency and cost-effectiveness, making it a key driver for the adoption of IoT in the manufacturing industry.

IoT can Release Products Faster

By leveraging IoT technology, manufacturers can accelerate their product development cycles and bring products to market faster. IoT-enabled sensors and analytics can provide real-time insights into product performance and quality, allowing manufacturers to make informed decisions and rapidly iterate on their designs.

IoT can Make Better Decisions

IoT technology provides manufacturers with unprecedented visibility into their operations, allowing them to make data-driven decisions and optimize their processes. With real-time data analytics, manufacturers can identify trends, detect anomalies, and make informed decisions to improve their overall efficiency and productivity.

IoT can Do Large-Scale Customization

IoT technology enables manufacturers to produce customized products at scale, allowing them to meet the diverse needs of their customers. By leveraging IoT-enabled sensors and analytics, manufacturers can collect data on customer preferences and use this information to produce products tailored to specific customer needs.

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IoT Offers Better Safety

IoT technology can be used to enhance safety in the manufacturing industry by monitoring manufacturing equipment and facilities in real-time. IoT-enabled sensors can detect potential safety hazards and alert workers to potential dangers, helping to prevent accidents and protect workers and equipment.

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How IoT is Revolutionizing the Manufacturing Industry (Real-World Applications)

The adoption of IoT in the manufacturing industry is leading to significant improvements in productivity, quality, and cost-effectiveness. As a result, we can expect to see more and more manufacturers embracing IoT technologies in the years to come.

1- Anomalies Can be Predicted Early

By using IoT sensors and data analytics, manufacturers can monitor their production processes in real-time and identify any anomalies or issues before they occur. This allows them to take proactive measures to prevent disruptions to their operations, reducing downtime and minimizing the risk of product defects.

2- Customer Satisfaction Levels are Elevated

By improving the overall quality of their products and ensuring timely delivery, manufacturers can enhance customer satisfaction levels. IoT technology allows manufacturers to track their products at every stage of the supply chain, ensuring that they reach their customers on time and in the best possible condition.

3- Asset Management is Enhanced

IoT sensors can be used to monitor the condition of manufacturing equipment, predicting when maintenance is required to prevent breakdowns and optimize the use of resources. This helps manufacturers reduce maintenance costs, extend the lifespan of their equipment, and improve their overall asset management.

4- Supply Chain is Managed Efficiently

By tracking raw materials and finished products in real-time, manufacturers can optimize their supply chain operations, reducing waste, and improving efficiency. This allows them to better manage their inventory, meet customer demand more effectively, and reduce overall costs.

5- Operational Intelligence is Implemented

By analyzing data from across their operations, manufacturers can gain insights into their processes, identifying areas for improvement and optimizing their operations. This leads to better decision-making and improved performance across the entire manufacturing process.

6- Overall Quality is Increased

By using IoT sensors and data analytics, manufacturers can improve the overall quality of their products, reducing defects, and ensuring that they meet customer requirements. This not only enhances customer satisfaction but also reduces costs associated with rework and product recalls.

7- Production Planning is Improved

By analyzing production data in real time, manufacturers can optimize their production schedules and ensure that they are producing the right products at the right time. This leads to more efficient use of resources, reduced downtime, and improved overall productivity.

8- Plant Safety and Security is Ensured

IoT technology can be used to monitor manufacturing facilities, ensuring that they are safe and secure for workers and equipment. By detecting potential safety hazards and security breaches in real time, manufacturers can take immediate action to prevent accidents and protect their assets.

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IoT Use Cases & Real-World Examples in Manufacturing

IoT technology has already set foot in the manufacturing industry, and it is the reason for the success of numerous businesses. Here are some examples of how IoT is being used in the manufacturing industry:

Remote Monitoring

IoT sensors can be used to remotely monitor manufacturing equipment, providing real-time data on equipment performance and identifying potential issues before they occur. For example, a manufacturer may use IoT sensors to monitor the temperature and humidity levels of their manufacturing facilities, ensuring that the conditions are optimal for production.

For Example: the leading portable toilet maker Armal uses moulding machinery to create plastic frames and other product components. They sought to monitor and optimize their machinery’s power consumption. By implementing IoT sensors and industrial software, Armal was able to remotely track the power consumption of their production cycle in real-time. The IoT monitoring system enabled them to cut machinery energy costs by nearly 40%, achieving their digitalization goal of obtaining an IoT solution that could monitor real-time power for each machine.

Digital Twinning

IoT technology can be used to create digital twins of manufacturing equipment, allowing manufacturers to simulate their equipment and optimize their performance. For example, a manufacturer may use IoT-enabled sensors to create a digital twin of a production line, allowing them to simulate different scenarios and identify areas for improvement.

For Example: Kaeser, a prominent manufacturing company and provider of compressed air products adopted digital twin technology to transform its business model from selling products to offering services. By utilizing the digital twin system, Kaeser was able to collect operational data on its equipment throughout its entire lifecycle, particularly air consumption rates. This real-time monitoring enabled Kaeser to implement a new pricing model that charges clients based on their actual air consumption, rather than a fixed rate. This approach led to a 30% reduction in commodity costs for Kaeser and helped the company to onboard almost half of all major vendors using digital twin technology.

Management of Logistics

IoT technology can be used to track and manage the logistics of manufacturing operations, from raw materials to finished products. IoT applications for logistics include IoT-enabled sensors to track the location and condition of their products in real-time, ensuring that they are delivered on time and in optimal condition.

For Example: Amazon has leveraged standalone drop shipping bots and lockers to improve delivery convenience and increase profits. This has also led to reduced shipping costs for manufacturers. IoT technology can help companies streamline their order processing and improve their overall operational efficiency. By automating order processing and providing real-time status updates, manufacturers can reduce their reliance on delivery staff and cut operating costs. In addition, connected bots can be used for last-mile delivery, further reducing costs and improving customer satisfaction. Logistics managers can also use IoT technology to optimize their operations, including monitoring fuel costs, smart deliveries, diagnostics, and driver performance. By providing real-time insights into driver and vehicle performance, manufacturers can improve safety, reduce inventory damage, and lower insurance payments.

Manufacturing of KPIs

IoT technology can be used to measure key performance indicators (KPIs) in the manufacturing industry, providing real-time data on production rates, downtime, and product quality. For example, a manufacturer may use IoT-enabled sensors to measure the energy consumption of their production lines, identifying areas for energy savings and reducing their carbon footprint.

For Example: Manufacturing companies have a wide variety of KPIs to choose from, and one of the most commonly used KPIs is overall equipment efficiency (OEE). This KPI is calculated by measuring a factory’s performance, availability, and quality. While OEE is a useful metric, it should be used in conjunction with other KPIs to gain a more comprehensive understanding of performance. By utilizing a KPI dashboard, manufacturing businesses can stay focused on their priorities and ensure that they are making progress in the right direction. The dashboard provides real-time data on key performance indicators, allowing decision-makers to make informed decisions and optimize their operations.

Latest IoT Trends in Manufacturing in 2024

Here are some of the latest IoT development trends in manufacturing that demonstrate the growing importance of IoT in the manufacturing industry and the potential benefits it can bring to businesses:

Financial Safety of Employees

IoT is being used to improve employee safety in manufacturing facilities. According to a report by MarketsandMarkets, the global IoT in the manufacturing market is expected to grow from $12.67 billion in 2016 to $45.30 billion by 2022, with a compound annual growth rate (CAGR) of 24.8%.

Physical Safety of Employees

IoT technology is being used to monitor and improve workplace safety, reducing the risk of accidents and injuries. According to a report by MarketsandMarkets, the global IoT in the manufacturing market for safety and security applications is expected to grow from $1.69 billion in 2016 to $6.47 billion by 2022, with a CAGR of 24.8%.

Privacy & Security Improvement

As more manufacturing operations become connected, privacy and security are becoming increasingly important. A survey by Deloitte found that 39% of manufacturers have already implemented IoT security solutions, and another 34% plan to do so in the next two years.

Machine-to-Machine (M2M) Automation

M2M communication is becoming more prevalent in manufacturing, allowing machines to communicate with each other and optimize their performance. According to a report by Grand View Research, the global M2M market is expected to grow from $22.67 billion in 2015 to $85.96 billion by 2024, with a CAGR of 21.0%.

VR and AR Integration to Inter-Mingle Digital and Physical Worlds

Virtual and augmented reality (VR and AR) technologies are being integrated into manufacturing operations to improve efficiency and accuracy. According to a report by ABI Research, the global market for enterprise AR hardware and software is expected to grow from $822 million in 2018 to $21 billion by 2024, with a CAGR of 68.9%.

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Why It is Necessary to Consult with IoT Industry Experts?

Integrating IoT technology into manufacturing operations can bring many benefits, but it also poses several challenges. Consulting with IoT industry experts can help companies overcome these challenges and ensure that their IoT systems are secure, efficient, and effective. Experts can provide guidance on data security, investment and ROI, employee training, and IT/OT integration, helping companies to achieve their IoT goals and realize the benefits of this technology.

Here are some of the main challenges of integrating IoT in manufacturing & why it is better to contact experts:

Data Security Issues

One of the biggest challenges of IoT in manufacturing is data security. IoT devices are often connected to networks and can potentially expose sensitive data to cyber threats. Companies must take steps to ensure the security of their IoT systems, including implementing firewalls, encryption, and access controls.

Investment and ROI Requirements

Implementing IoT technology in manufacturing requires a significant investment in hardware, software, and infrastructure. Companies must carefully consider the cost of implementing IoT solutions and weigh them against the potential return on investment (ROI).

Employee Expertise & Skills

Integrating IoT technology in manufacturing requires specialized skills and expertise. Employees must be trained to use and maintain IoT systems, which can be challenging for companies without a background in technology.

Mixing IT and OT

IoT in manufacturing requires the integration of information technology (IT) and operational technology (OT). These two areas have traditionally been separated and require different skills and expertise. Integrating IoT systems into manufacturing operations requires companies to bridge this gap and ensure that their IT and OT systems work together seamlessly.

Conclusion: Choose Hoff & Mazor to Create IoT-enabled Solutions for Your Manufacturing Business

Integrating IoT technology into your manufacturing operations can bring significant benefits, including increased efficiency, better decision-making, and improved safety. However, it also poses significant challenges, including data security issues, investment requirements, employee training, and IT/OT integration.

To ensure that your IoT solutions are secure, efficient, and effective, it’s essential to work with experienced IoT industry experts. Hoff & Mazor is a leading provider of IoT-enabled solutions for the manufacturing industry. Their team of experts has extensive experience in developing and implementing IoT solutions for a wide range of manufacturing applications.

By partnering with Hoff & Mazor, you can be sure that your IoT solutions will be tailored to your specific needs and requirements. They will work with you every step of the way to ensure that your IoT solutions are seamlessly integrated into your manufacturing operations, improving efficiency, productivity, and safety.

So, if you’re looking to take advantage of the benefits of IoT technology in manufacturing, contact Hoff & Mazor today to discuss your needs and learn more about how they can help you achieve your IoT goals.

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