Smart Manufacturing: AI (Artificial Intelligence) and IA (Intelligent Automation) in Industry 4.0

We have come a long way since the first industrial revolution. The 1800s were one of human history’s most important turning points. Inventions such as the assembly line, telegraph, steam engine, sewing machine, and internal combustion engine led to improved production efficiency. It dramatically reduced the time it took to manufacture products. The factory systems developed during this period of time are responsible for the modern cities we live in today.

A century later, the use of petroleum and electric power ushered in the Second Industrial Revolution. The introduction of computers in the middle of the 20th century marked the beginning of the third industrial revolution. This period saw the early development of factory automation and robotics. It also saw the first use of computerized business systems that were able to manage and analyze data. The ability to manage and analyze data turned out to be a pivotal moment, setting the stage for Industry 4.0, or the fourth industrial revolution.

The Age of Smart Manufacturing

Industry 4.0 has reinvented how businesses design, manufacture, and distribute their products. How? By supercharging the management and analysis of factory floor data using AI (Artificial Intelligence) and IIoT (Industrial Internet of Things). In other words, it has given rise to ‘Smart Manufacturing’.

When we talk about Smart Manufacturing, we’re really talking about data. It is how modern factories operate: using real-time data to automatically adapt to changes in customer demand and business need. Factory floor equipment uses data from its machines and sensors to optimize production, enhance quality, and ensure smooth equipment operation. The supply chain also implements this data-driven manufacturing process to anticipate disruptions and avoid problems.

For a better understanding, let’s look at how Toyota leveraged AI and IIoT to streamline its automobile manufacturing unit in Indiana, US. The Japanese car manufacturer needed a solution that would reduce downtimes and breakdowns and lower overall maintenance costs. To achieve all of that, they needed a set of applications for asset management, monitoring, predictive, and reliability maintenance. In short, they wanted granular visibility of the factory floor equipment. To resolve the operational challenges, Toyota deployed IBM’s cloud-based Maximo Application Suite. The deployment of IBM’s Maximo software helped Toyota gain better insights, which resulted in a reduction in unplanned downtime by an average of 43%, breakdowns by 70%, increased end-user productivity by 28% and reduced overall maintenance costs by 25%. Result!

Deconstructing the Digital Factory: Inside Industry 4.0

A smart digital factory works by connecting equipment, workers and data to a single digital ecosystem. It not only gathers and analyses floor data but also gains insights from the data to forecast trends and predict events. Furthermore, it also undergoes a continuous procedural improvement to self-correct and self-optimize, leading to a productive and efficient manufacturing process. For all of it to work in sync and deliver results, the structure of a smart factory can be broadly summarised in the three steps. The steps are:

Data Acquisition:

Modern database technologies and AI enable factories to identify and acquire accurate, relevant data from the floor. The IIoT allows the connected equipment to transfer the data into the digital ecosystem using sensors and gateways.

Data Analysis

Machine Learning and intelligent business systems leverage advanced analytics and modern data management solutions to process and analyze all the compiled data. This continuous processing and analysis help factories identify equipment that may need repair and servicing.

Intelligent Factory Automation

After the data is acquired and analysed, workflows are set, and rules are relayed to the different equipment within the factory. These processes and smart workflows are always being monitored and adjusted according to the requirements.

Figure 1: The Framework for Smart Manufacturing

Why Smart Factories Win: Increased Efficiency, Productivity, and Profitability

According to Forbes magazine, in 2017, just 43% of manufacturers had smart factory initiatives underway. By 2019, 68% of them did. However, recent research published by Markets and Markets showed that the global smart factory market size is expected to grow from USD 100.6 billion in 2024 to USD 164 billion by 2029, registering a CAGR of 10.3%. This means that businesses recognize the promise and potential of investing in digital transformation and smart factory solutions. The benefits are:

Productivity and Efficiency:

Manufacturing has traditionally been about reacting—looking at an event or trend that has already occurred and then attempting to guide the firm in a different direction after the fact. Smart manufacturing processes aim to eliminate the requirement for reactive operations and shift supply chain management to a more resilient and responsive mode.

Predictive analytics and Big Data analysis enable the identification and implementation of optimized procedures. Just-in-time inventory management, accurate demand forecasting, and faster time to market are just a few of the efficiency advantages that smart factories provide. People working in smart factories can use digital data to streamline their efforts, increasing total efficiency.

Sustainability and Safety:

Modern smart factory technologies make it easier for firms to discover and execute opportunities for more environmentally friendly, safe, and socially responsible manufacturing operations. Smart factory managers may leverage digital advancements such as blockchain and RFID sensors to secure the irrefutable provenance and quality control of all materials and supplies, even those from the furthest reaches of the supply chain.

Product Quality and Customer Experience:

Cloud connectivity and end-to-end visibility in smart factories enable real-time information and recommendations at all stages of the manufacturing process. The capacity to quickly customize items and respond to changing trends ensures that they are in line with customer preferences. Comprehensive analysis of system data identifies flaws or areas for improvement. This improves market competitiveness, results in better product reviews, and reduces the number of costly returns or recalls.

The Future is Now: Embrace Industry 4.0

One of the best things about smart factory transformation is that to be effective; it doesn’t have to happen all at once. How you begin your smart factory transformation will depend on which processes are the most critical to your business.

However, a key point to keep in mind is that while AI, machine learning, advanced analytics, and automation are the driving forces behind the smart factory, the human element remains irreplaceable. In the Smart Manufacturing era, the most successful businesses will be those that empower their workforce to adapt, learn, and thrive alongside intelligent machines.

Industry 4.0 represents more than simply a technology upgrade. By knocking down silos and connecting teams and operations across the manufacturing landscape, businesses can gain a competitive edge.

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Image source: Ant Rozetsky on Unsplash