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Smart Factory - How Companies successfully Implement the Concept

Man and machine working hand in hand - data-based, flexible and efficient. This vision forms the basis of the smart factory within Industry 4.0. In order for such a production environment to be realized, companies must create the right conditions for it. 

The Definition of a Smart Factory 

The smart factory concept is based on the most complete possible networking of all processes within a production or manufacturing plant. Collaboration between people and machines is optimized by intelligent IT systems to such an extent that maximum efficiency can be achieved in all work steps.

Some features are central to a smart factory:

In addition to these aspects, many companies are already relying on digital twins. These represent digital replications of physical production facilities and make it possible to plan or simulate a wide variety of production scenarios in detail before actual adjustments are made to the process.

Smart Factory: Challenges during Implementation 

A largely fully automated production plant - from logistics to production - is naturally of interest to many companies. However, there are still a number of key challenges on the road to implementation that stand in the way of practical feasibility:

These problems require a differentiated approach in order to identify suitable and practicable solutions. After all, the digital transformation of individual companies cannot work without overcoming these challenges.

Solution Approaches for Smart Factory Concepts

The following approaches have proven successful in solving the above-mentioned problems:

However, a sensible implementation of all these solution approaches is hardly conceivable without modern manufacturing execution software (MES). In many production companies, MES systems have long served as the central interface and control instance with which the entire production - and all relevant data flows - can be precisely tracked and controlled. A well-configured MES therefore forms the backbone of every smart factory.

Important Elements of a Smart Factory

A key aspect of the Smart Factory is the fact that such a system not only works autonomously, but is also self-optimizing. This cyclical structure of processes is reflected in the “Smart Factory Elements” model.

Graphic representation of the elements of a Smart Factory

In the Smart Factory Elements model, all sections are part of a continuous optimization process of the Smart Factory as a whole. © GFOS Group

Prediction

This module includes the ability to predict future events or conditions based on historical and current data. Artificial intelligence, machine learning and predictive analytics can be used to forecast maintenance requirements, quality deviations or demand trends, for example. This allows companies to act proactively and not have to wait for problems to occur. 

Planning

Planning and scheduling ensure that resources, materials and capacities are used efficiently. Intelligent algorithms and the integration of real-time data from the warehouse, production and logistics enable production plans to be dynamically adjusted and bottlenecks to be avoided. As a result, production remains both resilient and sufficiently flexible at all times.

Realization

After planning, this module focuses on operational implementation. Machines and employees work together, with their activities being coordinated by digital systems such as an MES. As part of operational implementation, process-related data is continuously collected and evaluated (IoT sensors) in order to identify and counteract any complications in real time.

Analysis

The analysis forms the conclusion - and at the same time the starting point - of the smart factory cycle. Here, production data is systematically evaluated, key figures are calculated and causes of deviations are identified. These findings are then used to refine forecasting models, adjust KPIs and identify optimization potential. 

The Road to the Smart Factory - Key Questions for Companies

Before a company decides to make the transition to a truly intelligent production environment, there are a number of questions that those responsible for the project should ask themselves and answer honestly.

Taking Stock - Where do We Stand?

Entrepreneurs need to have a clear picture of the current status of their own production, recording and documenting machines and processes in detail. What technologies are already in place and how are they being used? Is networking and machine communication already in place? Are software solutions already being used in production?

There must also be a comprehensive exchange with the specialists and department heads at production level. This is where the crucial knowledge about the company's internal processes and workflows lies - and this is the only way to create a complete picture of the current situation.

Objectives - Where do We Want to Go?

To introduce Industry 4.0, a company needs two basic things. Firstly, digital production control in the form of a holistic manufacturing execution system to consistently record and collect all data. Secondly, there must be a clear vision for the corporate and product strategy. This is because the digitalization of the manufacturing industry not only leads to new, mostly automated logistics and production processes: it also opens up access to other markets and requires a concrete, digital business model.

A target state must be defined, on the basis of which a specification sheet for a smart factory can be created. This is the only way that MES consulting agencies or software providers can program and implement their knowledge, experience and ultimately their IT solutions in line with requirements.

Technology - How good are our Systems?

As Industry 4.0 is a digitalization project, it is clear that an IT infrastructure is fundamental to its introduction. Networks must be available with sufficient performance and signal strength so that data can be transferred in real time. 

The basic IT landscape naturally also includes industrial PCs and databases. While on-premise solutions have mostly been used in the past, cloud and hosting services are becoming increasingly important. These offerings allow the setup and administration of IT infrastructures to be outsourced - saving money and resources.

Specialist Knowledge - Do We Have the Know-How?

The Smart Factory is a project that networks processes across departments and divisions. This therefore also means that there are (no longer) any isolated solutions and that the flow of information and knowledge must function both seamlessly and holistically.

Digital competence must be built up or expanded within the company - from the managing director to the employee, from the division manager to the specialist. This is not just about learning the new software and how it works, but also about topics such as data protection, information security and many other aspects.

Implementation - Where do We Start?

The digital transformation towards the smart factory is an industrial revolution and therefore a far-reaching intervention in business models and processes in industry. A step-by-step and area-by-area introduction is therefore advisable. If a manufacturing execution system is already in use, its range of functions and modules should be expanded as much as possible. 

If only isolated solutions are currently in use, a professional MES solution should be introduced first - and attention should be paid to its Industry 4.0 and AI capability. Software providers usually offer IT solutions that can be adapted to industry and company size requirements. This means that the manufacturing execution system is flexible and can be adapted to new circumstances and requirements at any time.

From Theory to Practice - How Companies are Proceeding

Based on the above questions, many production companies are now working with step-by-step approaches to realize the concept of a smart factory in the long term. 

Important: Where companies are planning to make their production processes fit for the challenges of Industry 4.0, they need to keep three key factors in mind: They need the right technology, the right processes and capable, motivated employees.

Ultimately, all of these factors build on each other - and companies must be careful to consider all three factors in their planning projects. This is the only way to achieve a successful transformation to a smart factory.

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