Manufacturing Risk Advisor

The Benefits of Building a Manufacturing IoT Environment

The internet of things (IoT) refers to the connection of physical devices around the world connected to the internet, all collecting and sharing data. Industrial IoT employs a network of sensors to gather critical production data that can be turned into valuable insights about the efficiency of manufacturing operations.

The following are benefits manufacturers can experience by incorporating IoT into operations:

• Cost reduction—Companies can reduce operational costs and create new sources of revenue through IoT implementation and utilization. The IoT can provide optimized asset and inventory management, reduced machine downtime, more agile operations and more efficient energy use.
• Shorter time-to-market—The product cycle time will be reduced due to faster and more efficient manufacturing and supply chain operations.
• Mass customization—The IoT can facilitate mass customization by tracking inventory and manufacturing operations, a feat that becomes increasingly complex as inventory becomes more diverse. This source of real-time data is required for thoughtful forecasting, shop floor scheduling and routing.
• Improved safety—With IoT integration, a safer workplace is possible. IoT applications can be paired with wearable devices to monitor workers’ health and help avoid risky activity that may lead to injury. In addition, the IoT can monitor workplace safety by addressing safety problems in potentially hazardous environments, such as gas leakages in a pipe network.

It’s estimated that IoT applications in manufacturing are expected to generate $1.2 to $3.7 trillion of economic value annually by 2025, making it increasingly important for the manufacturing sector to invest in IoT solutions.

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