Exploring the Benefits of Smart Factory

Exploring the Benefits of Smart Factory

Manufacturing Technology Insights | Friday, July 26, 2024

A smart factory guarantees cost savings, improved productivity, and better efficiency.

FREMONT, CA: Investing in intelligent factories will enable companies to enable their workforces to function more effectively. It was widely believed before the COVID-19 pandemic that companies could reach a state of "lights out manufacturing," whereby they could operate without employees. Over the past 18 months, the value of manufacturing labor has grown, and even with increasingly sophisticated technology being used on the production line, humans are still frequently necessary to enable it. Many manufacturers are now looking to the "smart factory" concept to help them achieve their manufacturing goals. The smart factory is an adaptable system that helps manage whole production processes, self-optimizes performance across a more comprehensive network, and improves human workforces by swiftly adjusting to changing situations.

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According to a Deloitte and MAPI study, 86 percent of firms think intelligent factories will be the primary source of competition by 2025, and 83 percent believe they will revolutionize the manufacturing processes. A market expected to grow to $244 billion by 2024 presents a significant opportunity for smart factories. To attract the next generation of workers, intelligent factories can also aid in changing the public's impression of factories as antiquated locations of tedious labor.

Getting started on the brilliant factory journey requires manufacturers to consider the following factors:

Objectives concerning the environment, society, and governance (ESG): Smart factory technology can help organizations meet ESG goals embedded in today's manufacturing environments. Today, intelligent manufacturing has converged with ESG frameworks to support industry-wide sustainability efforts to create and protect value for companies and stakeholders. Sustainable companies are valued by consumers, vendors, and suppliers alike.

Greenfield smart factories offer an excellent opportunity to set comprehensive, site-specific ESG goals and implement innovative solutions to achieve them. Manufacturers can also use intelligent factory initiatives to implement, track, and measure their existing corporate ESG goals. By adopting intelligent factory technologies like connected worker digital tools, artificial intelligence (AI), and Internet of Things (IoT) devices, it is possible to establish a connection between the corporate Environmental, Social, and Governance (ESG) initiatives and the work being performed on the production floor. This will enable us to comprehend how such technology might help us reach ESG goals.

Smart factories can bridge the skills gap and change perceptions: Deloitte predicts the US manufacturing sector will have 2.1 million unfilled jobs due to a skills gap by 2030. There may be some answers to this pressing issue in intelligent factories. Especially as older workers decide not to return following closures from COVID-19, intelligent factories can help bridge an immediate gap for companies. Smart factories are dynamic and modern with their increased visibility, connectivity, and adaptability.

 

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