Building a Smart Factory

The concept of the Smart Factory has become increasingly important as manufacturing organizations look for better productivity, greater visibility, improved quality and more responsive production systems. Automation, connected machines, sensors, ERP, Production Planning and Control (PPC), data analytics and digital technologies are creating new opportunities for manufacturers to improve the way they plan and execute operations. However, building a Smart Factory is not simply about installing automated machines or connecting equipment to software. A truly smart manufacturing environment requires a combination of people, processes, technology and reliable data. The objective is to create a manufacturing system in which information flows efficiently, decisions are supported by accurate data and processes continuously improve.

What Is a Smart Factory?

A Smart Factory is a manufacturing environment where machines, processes, people and information systems are connected to improve operational performance. Instead of relying primarily on isolated machines, manual records and delayed reports, a smart manufacturing environment enables information to move across different stages of the operation. Production status, machine performance, material availability, quality information and order progress can be captured and made available to the people who need it. This allows production teams and management to respond more quickly to changing conditions. The level of technology required will vary from one organization to another. A Smart Factory does not necessarily mean complete automation. It means using appropriate technology to make manufacturing processes more visible, measurable, connected and controllable.

Start with the Manufacturing Process

The first step towards building a Smart Factory should be understanding the existing manufacturing process. Technology should not be introduced simply because it is available. The organization should first iden