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Smart Manufacturing: How AI and IoT are Transforming the Industry

In recent years, the manufacturing industry has been significantly impacted by the effects of rising labour costs and increased customer demand for products which are not only high-quality, but also sustainable, convenient and customised for specific tastes. Driven by these concerns, manufacturers are increasingly turning to smart manufacturing to transform the way products have historically been processed, enhance productivity and reduce environmental impact.

Smart Manufacturing refers to the application of technological advancements, such as Artificial Intelligence (AI) and the Internet of Things (IoT) to manufacturing services, products, processes and even supply chains. These intelligent systems are part of Industry 4.0 or the Fourth Industrial

Revolution, which is powered by disruptive technologies in four categories:

    1. Connectivity, data and computational power
    2. Analytics and intelligence
    3. Human-machine interaction
    4. Advanced Engineering
According to research conducted by McKinsey and the World Economic Forum 1, companies who are at the forefront of AI and other advanced technologies by 2025 can expect to see a 122% positive cash flow change. Companies who follow this strategy later will only see a 10% increase, while those who fail to adopt it could see a 23% downturn. But how can IoT and AI be applied to a manufacturer’s operations and what are the benefits?

The Internet of Things (IoT)
In simple terms, the Internet of Things is a network of interconnected devices that communicate and share data. In the context of manufacturing, this could involve embedding sensors and other smart devices into machinery or equipment. These devices would then be able to continuously collect data on various parameters, such a temperature, pressure, speed and efficiency.

The real-time data provided by IoT devices offers several advantages. It enables manufacturers to monitor their operations closely, identifying inefficiencies and problems as they arise. For instance, the startup Landing.ai 2, has developed what is known as ‘machine-vision’ tools, which equip AI with incredibly high-resolution cameras to identify microscopic defects in intricate products, such as microchips and circuit boards. This immediate insight allows for quicker responses, minimising downtime and waste. Additionally, by closely tracing how resources are used, factories can reduce unnecessary consumption of materials and energy, contributing to a more sustainable production process.

IoT also helps manufacturers to manage their assets more effectively. By understanding exactly how and when equipment is used, manufacturers can optimise maintenance schedules and extend the lifespan of their machinery, further enhancing the efficiency and sustainability of their operations.

Artificial Intelligence (AI)
Artificial Intelligence takes the possibilities of IoT to the next level. AI algorithms can analyse the vast amounts of data collected by IoT devices to extract meaningful insights and identify patterns. This analysis can lead to predictive insights, allowing manufacturers to anticipate problems before they occur and to optimise production processes for better efficiency and product quality.

AI-driven automation can also control various aspects of the manufacturing process, by adjusting machine settings in real time for optimal performance or by managing supply chains. AI has the ability to monitor an enormous range of factors and analyse customer demand trends to adjust order quantities, secure quality suppliers and update product catalogues to stay ahead of competitors and improve efficiency.

One of the most significant benefits to using AI is predictive maintenance, an innovative approach to upkeep that is being adopted by an increasing number of manufacturers. According to a survey by Plant Engineering 3, 44% of factories spend more than 40 hours a week performing maintenance. Instead of following a fixed maintenance schedule, however, predictive maintenance uses data to determine the actual condition of equipment and predict when and where maintenance should be performed.

Not only does this result in a more efficient use of resources, but it also reduces downtime for machinery and extends the lifetime of equipment as far as possible. Additionally, potential issues can be addressed before accidents or failure occur, contributing to a safer overall working environment.

Smart manufacturing, powered by IoT and AI, represents a transformational shift in the industry. It enables more efficient, flexible and sustainable operations, aligning with the global emphasis on environmental responsibility. As technology continues to evolve, the potential for smart manufacturing is unlimited and we can expect to see a future where factories incorporate these systems as standard practice to meet the evolving demands of consumers.

Author: Shirley Carruthers - Content Creator at ParkerSteel Limited

References:
McKinsey's Industry 4.0
Landing AI
Plant Engineering - The Maintenance Function

First published on 12/01/24

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