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What is Smart Manufacturing?

July 31st, 2024

4 min read

By Leyla Shokoohe

The age of human-free manufacturing is upon us. Well, mostly. While humans will probably always remain essential to the manufacturing floor, whether they’re on it depends on if you’re employing smart manufacturing in your workplace.

Smart manufacturing is the process and execution of manufacturing with a smart technology component, such as AI, robotics, or machine learning. And it’s not so far-fetched as it might seem. Extreme robotics are already heavily used by automakers (like Tesla) to automate and expedite the manufacturing process, using IoT sensors with AI and machine learning to make it happen.

But is smart manufacturing something you should implement even if you’re not a massive automaker or Fortune 500 company? It certainly can be – if you understand it, and how it can work for your business.

In this article, you’ll discover what smart manufacturing is, how it works, why it’s beneficial, who can implement it, and when is the right time to make the leap. You’ll walk away with a clear understanding of how smart manufacturing can transform your operations, making them more efficient and future-proof.

What is Smart Manufacturing?

Smart manufacturing can also be called Industry 4.0 and Factory Automation but they all refer to the integration of advanced technologies like artificial intelligence (AI), machine learning, robotics, and the Internet of Things (IoT) into the manufacturing process. This integration allows for more efficient production methods, improved quality control, and enhanced data analysis.

AI and machine learning help predict maintenance needs, optimize production schedules, and ensure quality control. Robotics enables robots to perform repetitive tasks with high precision, reducing the risk of human error. IoT sensors collect data from various parts of the manufacturing process, providing real-time insights and enabling better decision-making.

How Does Smart Manufacturing Work?

Smart manufacturing leverages interconnected systems and data analytics to streamline production. You can eliminate all the human variables, inefficiencies and errors, as soon as you bring machines into the picture.

For example, Tesla uses extreme robotics to automate car manufacturing, relying heavily on AI to manage and optimize the process. Data collected from IoT sensors is analyzed using AI and machine learning to predict maintenance needs, optimize workflows, and enhance product quality. Robots perform tasks ranging from assembly to quality inspection, ensuring consistent output without fatigue or errors.

When it comes to integrating smart manufacturing processes with JD Edwards, you’re looking at the power of the REST API. Think of every machine like a country, and any server or computer like a country. An API is the dock or the port. APIs send each other messages – they are the ships going back and forth. The ships contain all this information in containers; that other port has to have the machinery, recognition and capability to not only dock your ship, but load new information, and send it back to another country. All of these different docks are on servers across the world.

Why is Smart Manufacturing Useful?

Implementing smart manufacturing can bring numerous benefits to your business. Machines can operate 24/7 without breaks, leading to higher productivity. For instance, in pharmaceutical manufacturing, robots handle delicate processes like batch orders, ensuring precision and reducing downtime.

Robots and AI perform tasks with high accuracy, reducing the risk of defects. This is particularly beneficial in industries like food processing – automation reduces labor costs and minimizes errors, leading to significant savings over time.

Beyond the short-term immediacy of smart manufacturing, there are also the future predictive capabilities it offers. Data gathered from smart manufacturing can be pushed through AI algorithms and LLM to predict demand. In as much as Amazon serves personalized ads based on your shopping history, the same effect will be elicited by smart manufacturing on the warehouse floor, in backrooms, and in board rooms.

Who Can Implement Smart Manufacturing?

Smart manufacturing is not limited to large corporations; it can be adopted by businesses of all sizes across a wide spectrum of sectors. While large companies may have more resources to invest initially, small and medium-sized enterprises can also implement smart manufacturing incrementally, focusing on areas with the highest ROI. Successful implementation requires buy-in from all stakeholders, including management, engineers, and shop floor workers.

JDE is being used throughout the world, with more than 50% of customers being manufacturing companies. These companies must innovate. There are lots of market pressures from low-cost countries in the Americas and Asia that have been investing in smart manufacturing for decades now. A lot of American manufacturing runs on JDE, so it’s essential for them to adopt this next cycle. There are common sense quick win ways of eating this elephant in small bites.

Challenges and Solutions in Smart Manufacturing

While smart manufacturing offers numerous benefits, it also comes with challenges. Many people perceive AI and machine learning as complex and intimidating. Educating your team and stakeholders about the benefits and practical applications of these technologies is crucial.

Change can be difficult. Employees may resist new technologies, preferring familiar processes. Address these concerns through training and demonstrating the long-term benefits of smart manufacturing.

Broadly speaking, you won’t take your company from human-powered to totally automated overnight. It is imperative to have a roadmap for your rollout. Identifying areas where smart manufacturing will have outsized impact is essential.

Maybe your focus is earnings, or internal operational efficiency. Maybe it’s quality improvement or customer satisfaction. You need to go step by step, identifying pain points and potential areas of improvement. Maybe it’s even as simple as asking yourself, “In which department can I make use of latest and greatest technology? What’s my five-year goal for this department?”

By starting small, you can focus on those high-impact areas and gradually scale up to maximized success and efficiency.

When Should Smart Manufacturing be Undertaken?

Determining the right time to adopt smart manufacturing depends on several factors. Our smart manufacturing readiness assessment is an excellent way to determine what timeline will work best for you and your business.

Your first step on the smart manufacturing readiness path is to assess your current operations and identify pain points that smart manufacturing can address. Do you struggle with production inefficiencies, or quality control issues? It could be time to consider automation.

Your next step is to keep an eye on industry trends. Check out what your peers and competitors are doing; stay updated with your industry publications and trend forecasting measures. Many manufacturing sectors are rapidly adopting smart technologies to stay competitive.

Finally, you should conduct a thorough readiness assessment using the information you’ve gathered to ensure your organization is prepared for the transition. This includes evaluating your current technology stack and workforce capabilities.

Future of Smart Manufacturing

The future of smart manufacturing is bright, with continuous advancements and innovations. As more companies adopt smart manufacturing, the industry will see increased productivity, improved quality, and reduced costs, leading to a more competitive market. By integrating advanced technologies into your manufacturing processes, you can achieve greater efficiency, precision, and cost savings. While the transition may seem challenging, the benefits far outweigh the initial hurdles.

Your future factory awaits. Let’s get you there.

Leyla Shokoohe

Leyla Shokoohe is an award-winning journalist with over a decade of experience, specializing in workplace and journalistic storytelling and marketing. As content manager at ERP Suites, she writes articles that help customers understand every step of their individual ERP journey.