Increasing manufacturing performance with IoT Analytics
Digitalization is changing the landscape in manufacturing as companies adopt Industry 4.0, Smart Manufacturing, and Digital Transformation initiatives. In fact, a recent Tech-Clarity survey shows that over one-half of manufacturers believe that digitalization / digital transformation initiatives are “important” if not “critical” to achieving their business strategy.
The Internet of Things (IoT) is a critical component of digitalization in the plant, helping companies connect with production assets to better monitor how they perform. Beyond gathering data, manufacturers can leverage advanced analytics to gain real intelligence about plants and production to improve operations, driver higher performance, and guide continuous improvement.
Justifying IoT Analytics Investments
For some companies, leveraging the Industrial IoT (IIoT) is simply a strategic “must do.” For others, they have to cost justify it. This eBook offers a framework to develop an ROI for IoT investments using a common manufacturing metric, Overall Equipment Effectiveness (OEE).
Analyzing improvement potential by OEE allows companies to determine potential savings in the context of the plant. The framework shows how companies can use the IoT and analytics to reduce the “Six Big Losses of OEE” and tangibly improve the three components of OEE – Availability, Performance, and Quality. Manufacturers can compare these improvement opportunities to the investment required to achieve them in order to calculate an ROI.
“Based on our research, the greatest potential for creating value will be in operations optimization—making the various processes within the factory more efficient.
Overall, IoT applications in operations optimization have the potential to create value of $633 billion to $1.8 trillion per year in the factory setting in 2025.” McKinsey&Company
Further reading: Adopting IoT for Manufacturing Sector
To summarize, download the eBook to read more about:
- Ways to improve productivity through digitalization
- IoT, Analytics, and overall equipment effectiveness
- The Six Losses of OEE
- How to improve Equipment Availability & Performance
- How to improve Production Quality
- How to calculate potential OEE Improvement
- How to improve Analytics ROI by Reducing Cost of Ownership
This is an excerpt from the eBook “Improving Manufacturing Performance with IoT Analytics” by Tech-Clarity, sponsored by PTC.
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