Smart factories and industry 4.0: The next frontier of industry

Smart factories make use of the latest technology to optimize production. Through technologies such as the Internet of Things, AI, and other forms of digital automation, a factory can produce connected devices to improve efficiency, quality and sustainability. You won't want to miss out on how Adidas has upgraded its operations with a smart tech factory. Smart manufacturing is now the order of the day within the realm of industry 4.0.

Have you heard of smart factories and Industry 4.0?

We have all heard about the industrial revolution. Fireplaces, mechanization and steam power… we all have a picture in our heads of a 19th century in a state of constant change. However, that is not the end of the story. With the advent of mass production, electricity, computers, and automation, the industry as a whole has undergone several revolutions so far. A clue: the smart factory and industry 4.0. In recent years, we have re-entered a new field of industrialization. Dubbed “Industry 4.0,” this collective system shock involves the “Internet of Things,” cyber-physical systems, and cognitive or cloud computing. In simple terms, Industry 4.0 refers to the way our devices communicate with each other and are able to learn over time, thereby increasing efficiency and decentralization. In practice, these advances are most clearly manifested in what is known as the smart factory.

What is a smart factory?

Smart factories are those that emphasize optimization and adaptation of a complex nature. Through the interconnection made possible by the Internet of Things and other cyber-physical systems, and with efficiency in mind, smart factories can be integrated with the rest of the supply chain, thus allowing for the alteration and improvement of the real-time process. In practice, the greatest asset of a smart factory is its integration with artificial intelligence (AI). The fact that something is automated does not mean that it has the capacity to make complex decisions, especially those that can radically alter a business and its processes. With AI, not only are these decision-making powers enabled, but you will also experience constant self-correction and improvement. It might sound a bit like the Skynet from The Terminator , but really, there's nothing to fear from smart factories. Rather, its features, benefits, and overall impact should persuade everyone to implement it.

What are the characteristics of a smart factory?

The implementation of processes related to the smart factory has revolutionized the manufacturing industry. In fact, many traditional manufacturers and industry leaders have seen Industry 4.0, smart factories, and its inherent features as the solution to several problems endemic to their line of work. For example, decentralization, optimization, and transparency all play necessary roles.

Decentralization

Decentralization, in any context, relies heavily on reliability at all levels, in order to trust that efficiency and overall decision-making are maintained without senior management oversight. The same is true of smart factories, as they require little manual interference and are able to optimize and fine-tune their processes through sheer automation.

Transparency

In the case of smart factories, transparency refers to the availability of relevant data throughout the entire supply chain. With information easily accessible to everyone, both automated processes and human management will be able to take note of trends, make more accurate decisions or detect errors before they arise.

Optimization

Smart factories, with proper optimization, take advantage of their decentralized and transparent automation to become more flexible and dynamic. In this way, the smart factory will not only be able to adapt with ease, but also be able to take action against anomalies before they become a threat to the overall infrastructure. What are the benefits of a smart factory? By their very nature, smart factories lead to an optimized, decentralized and transparent production process for both the factory itself and the supply chain in general. However, many companies focus on tangible benefits, beyond the broader features. To that end, the benefits of a smart factory include increased production efficiency, quality and sustainability.

Efficiency

Self-adaptation and its effect on efficiency is the biggest benefit of the smart factory. An efficient smart factory, when fully operational, will have continuous access to an ever-changing stream of data. In this way, a smart factory will always analyze and correct itself so that the production process and its result are as efficient as possible.

Quality

Thanks to the smart factory's ability to detect and resolve production problems before they become disruptions, your production is never affected. Therefore, the quality of the final product of any smart factory will be superior to that of any of the products made by non-automated means, which sometimes lead to defective products.

Sustainable Production

Within traditional factories and manufacturing spaces, disruptions have been known to occur on occasion, whether due to occupational, environmental, or accidental factors. The adaptability and self-correction processes that accompany smart factories eliminate the possibility of human error. Therefore, automation can lead to greater safety and ensure the sustainability of production.

What are the impacts of smart factories?

Smart factories do not simply exist in a vacuum. While its features and benefits have altered production processes in factories around the world, its impact is much broader. What effect does this new industrial revolution have on the workforce, the supply chain and security? The answer may surprise you!

Workforce Disruption

The processes of an industry cannot undergo such a revolution without affecting the worker in some way. As in previous industrial revolutions, the role of the human workforce has changed. In general terms, workers will shift from physical work to technological support, requiring a more technical set of skills.

Adaptation of the supply chain

Throughout the entire supply chain, from manufacturing to quality control to warehouse management, the rise of smart factories has forced adaptation at all levels. Since the automation and self-correcting processes of a smart factory work 24/7, the rest of the supply chain needs to maintain the same level of flexibility as well.

Security issues

In our digital age, information has become more accessible than ever, but at the cost of security. Data protection has quickly become a fully developed industry as many entities seek to protect information. Smart factories are not inherently exempt from this problem, but they have inspired many companies to prioritize finding a solution.

Smart factory technology: real life application

For the average individual, factories are likely to continue to conjure up images of 20th-century assembly lines and 19th-century working conditions. However, as mentioned, the smart factories that have emerged in the 21st century are far from the stereotypes of yesteryear. Adidas, as an example of an older company that has embraced the business potential of modernization, has used the Internet of Things, along with its smart factories, to optimize its supply chain management processes. In this way, Adidas has managed to reduce the time required for shoe design by 66% and production by an equally impressive margin. With these extraordinary numbers, Adidas has ensured that its popular items don't necessarily have to disappear from store shelves. However, the variable that has not yet been tested is that of expansion and scalability. For example, as demand increases, will the rest of the supply chain, including delivery, be able to scale accordingly? Since the concept of smart factories and their inherent technology is so new, time will surely tell.

Are you ready for building a smart factory? If yes, we, the EnergySaver are your next point of call. Our solutions and services allow the minimisation of production process times, irrespective of the industry your business is in, as well as its costs, as it is able to adapt and optimize the processes in addition to storing and analysing a large amount of data in real time. Connect with us today.