The manufacturing industry is no stranger to digital transformation. The sector is constantly evolving to increase efficiency and reduce costs. The introduction of the Internet of Things (IoT) is part of this revolution because it allows manufacturers to offload responsibilities to improve productivity.
Let’s break down what IoT in Manufacturing is and how companies can use it to make better decisions that drive growth and maximize revenue.
What is IoT in Manufacturing?
The Internet of Things in manufacturing refers to the use of internet-connected devices such as individual machines, sensors, software, and communication technologies to gather real-time data across the manufacturing process.
Collecting this performance and operational information enables manufacturers to make data-driven decisions that optimize various aspects of manufacturing processes. But to fully realize the value of IoT in manufacturing, companies need to use a solution capable of integrating sensor data with business applications.
The best IoT solution should be able to collect sensor data from physical objects and equipment, analyze and correlate it with business data, and take action to accomplish a business goal.
Key Components of IoT in Manufacturing
Succeeding with IoT in manufacturing requires several critical components to work in tandem.
Sensors and Devices
IoT sensors and devices are the foundation for your data and automation capabilities. Generally, these devices are used to improve efficiency, quality, and safety in IoT-enabled facilities. Here’s how:
- Boosting efficiency: In smart manufacturing, vast amounts of real-time data inform continuous improvement and innovation. With IoT-enabled real-time monitoring and control of manufacturing processes, you can optimize your operations, carry out predictive maintenance, and reduce downtime.
- Guaranteeing quality: IoT sensors allow you to boost product quality by continuously monitoring given parameters.
- Enhancing safety: IoT solutions can detect hazardous conditions and make for a more reliable and safe manufacturing environment.
Connectivity Technologies and Integration With Existing Systems
IoT relies heavily on diverse connectivity technologies to enable seamless communication and data exchange. Technologies such as 5G, low-power wide-area networks (LPWAN), and edge computing play crucial roles in facilitating the deployment of IoT applications.
5G, with its high speed and low latency, provides the bandwidth required for high-volume device connectivity and data transfer. LPWAN technologies offer energy-efficient, long-range communication suitable for devices with lower power requirements. Edge computing complements these connectivity technologies by processing data closer to the source, reducing latency. and enhancing the efficiency of IoT ecosystems. Together, IoT and connectivity technologies forge the path toward a more interconnected, intelligent, and responsive digital environment.
The number of smart device options is growing by the day. However, manufacturing companies often lack the right tools to integrate this data into existing systems.
Boomi and Alleantia partner to integrate IoT data into enterprise systems. The solution caters to more than 1,500 unique endpoints, including more than 200 applications. This connectivity allows low-code, drag-and-drop, and any-to-any integration across cloud and on-premises systems.
Together, this makes it quick and easy for manufacturers to integrate device data with business applications, putting it exactly where it’s needed to drive better decisions and streamline applications. Intuitive, centralized integration management allows you to easily manage your IoT data to increase productivity, ensure compliance, and create new business models.
Learn more about how Boomi and Alleantia work together to see how it can help with your business processes.
Benefits of IoT in Manufacturing
Considering the manufacturing sector invests over $100 billion in IoT spending annually, it’s safe to say that businesses are finding more value in these solutions.
So, why should you consider implementing IoT tools into your workflow?
Improved Operational Efficiency
Increased efficiency is perhaps the No. 1 reason businesses incorporate IoT tools and processes.
Companies seeking to increase productivity and competitiveness typically rely on data from business applications for customer relationship management (CRM) or enterprise resource planning (ERP). But as a manufacturer, you have another source of data at your fingertips: the physical devices and sensors that monitor your machines.
With IoT, you can collect data from devices and correlate it with business data to augment analysis and gain unique insights to help you improve your operations.
For example, the Alleantia software stack connects to more than 5,000 industrial devices, providing users with a rich source of industrial IoT data for analysis. But to be useful, these IoT communication flows need to be available to an ever-expanding catalog of business applications. This is where Boomi helps.
Boomi’s runtime engine takes that device data and integrates it with business applications such as your ERP or finance systems.
The Boomi-Alleantia partnership combines the best of our core capabilities, leveraging both connectivity and integration to enhance operational efficiency.
Predictive Maintenance
Prevention is always better than cure. It’s also less expensive for businesses. IoT-enabled devices can alert users to system anomalies so that they can take swift action before failure occurs. With real-time monitoring capabilities, these devices make it easy to observe machinery around the clock.
By investing in predictive maintenance equipment, you can save on repair costs down the road.
Enhanced Compliance
In the manufacturing sector, IoT improves compliance by providing continuous monitoring of production processes. It ensures adherence to regulatory standards and quality controls by automatically tracking and documenting operational data, allowing for the prompt identification and correction of deviations. When you’re made aware of issues early on, you can work to resolve them, ensuring compliance and product quality.
Improved Supply Chain Management
Supply chain analytics facilitate high performance and resiliency by providing insights into demand patterns, supplier performance, and logistic efficiencies.
With analytics, you can improve risk management, engage in proactive decision-making, balance resource allocation, and adapt to market changes. The result is a more robust and efficient supply chain.
Learn more about the role of supply chain analytics from Boomi and partner Jade Global in our eBook, “Why Supply Chain Analytics Are the Key to a High-Performing, Resilient Supply Chain.“
Challenges for the Adoption of IoT in Manufacturing
Implementing an IoT solution necessitates collaboration across various departments, including business, operations, and security teams. This joint approach is crucial for ensuring scalability and security.
Collaboration is also essential to enable the seamless integration of IoT solutions with ERPs, CRMs, and inventory systems, among other considerations. While the adoption of IoT technologies is becoming all but inevitable, there are a few things manufacturers should keep in mind before diving headfirst into the process.
Here are some of the primary challenges manufacturing companies encounter when working with IoT:
Data Security and Privacy
Maintaining data security and privacy is a concern due to the vast amount of valuable business data generated and exchanged.
As manufacturing processes become more interconnected, the risk of cyberattacks and data breaches increases, potentially compromising proprietary information and production integrity.
Ensuring compliance with evolving data privacy regulations across the world adds another layer of complexity. The diversity of IoT ecosystem makes standardizing security measures even more difficult.
Addressing these challenges requires robust encryption, secure storage, and proper transmission protocols to protect against emerging threats.
Workforce Training
Because technology is rapidly evolving, workforce training must be ongoing. Workers need to be trained not only in traditional manufacturing practices, but in digital literacy, data analysis, and cybersecurity. Organizations must invest in continuous education and skills development.
The huge variety of IoT devices and platforms requires versatile and adaptive training. Reducing the gap between your workforce’s existing skill set and the new competencies needed for IoT integration, allows you to avoid a potential shortage of qualified personnel.
Scalability
Although the potential benefits of IoT are plentiful, it requires putting a solid infrastructure in place. By implementing robust IoT architecture, businesses can preempt scalability issues and ensure workflows are able to grow and adapt alongside their companies.
An IoT architecture consists of all the hardware and software necessary to achieve IoT solutions that are extensible and scalable with minimal changes.
Cost
Cost is another consideration when discussing IoT in manufacturing. In addition to the initial cost of the technology, you need to factor integrating it with existing systems into your budget.
You will also need to pay for ongoing maintenance and updates to keep your systems functioning as they should.
Use Cases For IoT In Manufacturing
There are numerous ways you can use IoT in manufacturing. Here are some of the most common use cases:
Predictive Maintenance
IoT sensors collect data on machine performance and wear, which is then analyzed to predict potential failures before they occur. This reduces downtime, extends equipment life, and lowers maintenance costs.
Inventory Management
Traditional dock-to-door monitoring of inventory and delivery lacks transparency and coordination between internal and external systems.
Using IoT tools, businesses can track real-time inventory levels to quickly identify potential bottlenecks and better understand their needs to improve demand planning. This leads to optimized inventory management and, combined with improved collaboration with suppliers and partners, builds resilience in the supply chain.
Boomi enables real-time visibility for instant collaboration with suppliers and active product tracking. That allows users to:
- Gain visibility across the entire supply chain ecosystem
- Quickly identify procurement and shipping problems
- Meet customer expectations and deepen collaboration with suppliers and partners
Quality Control
IoT aids in quality control by using sensors to detect and flag deviations from predefined standards in real time.
This data allows proactive intervention to prevent defects or production errors by tracking data such as the weight of an item, ambient storage temperature, or equipment vibration levels.
Leveraging IoT for quality control provides greater accuracy, efficiency, and consistency in the manufacturing processes.
How to Implement IoT for Manufacturing
Here are some tips to consider as you explore implementing IoT solutions into your business:
- Assess current needs and gaps: Before incorporating IoT in manufacturing, it’s essential to conduct a thorough assessment of existing processes to identify any data blind spots, efficiency shortcomings, or other areas where IoT technology can bring improvements. That will help ensure a strategic and tailored implementation.
- Choose the right IoT partner: Selecting the appropriate IoT partner is crucial for successful integration. Evaluate potential partners based on their expertise, experience, and the compatibility of their solutions with your manufacturing requirements.
- Properly train employees: To maximize the benefits of IoT, plan to provide comprehensive training programs for employees. This will ensure staff members are well-versed in operating and interpreting data from IoT devices.
- Perform continuous monitoring: Implement a robust system for ongoing monitoring of IoT devices and their data. Continuous surveillance enables real-time identification of issues, allowing for prompt corrective actions and adjustments.
What is the Future of IoT in Manufacturing?
There is no doubt that IoT is the future of scalability in manufacturing. As IoT capabilities expand and modernization takes hold over a growing number of businesses, improvements to existing technologies and further innovations are inevitable.
Here are some of the other exciting things to watch for in this space in the coming years:
Edge Computing
Edge gateways are often underutilized. But they are essential components of any effective IoT solution.
For example, Alleantia ISC, an IoT edge hub for data integration, is an industrial IoT platform that connects your machines to your applications. It provides complete control and monitoring for sensors, industrial devices, and single machines.
With Alleantia installed on an edge gateway near your machine, and the Boomi platform installed on the cloud, on-premises, or even directly on the same gateway, your business can easily configure integration processes to use device data and correlate it with any business application.
This partnership allows you to make good use of the computation power of the gateway and reduces local network traffic to easily build, deploy, and manage complex integration patterns.
Improved AI
Smart factories, built on advanced artificial intelligence, will have a major impact on manufacturing going forward by further automating and optimizing production processes.
Blockchain For Security
Blockchain technology is likely to fundamentally transform security in the manufacturing space. Combined with IoT, it will offer a decentralized and tamper-proof system for data transactions. This will ensure data integrity and traceability, reducing the risks posed by cyberattacks and data breaches.
Boomi For Better Manufacturing
The benefits of IoT in manufacturing are far-reaching. From streamlining operations to enabling predictive maintenance, it’s the way of the future – there has never been a better time to hop aboard IoT train.
Boomi and Alleantia for manufacturing incorporate IoT to offer real-time supply chain visibility and reduce the effort it takes to produce and deliver great products.
Get in touch with us today to learn more about our solutions and how we can help launch your business into the future.