Smart Manufacturing, IIoT and Industry 4.0: Differentiating Between Hype and Reality

wirelessNplantThere are seems to be two stories revolving around Smart Manufacturing (Industry 4.0). One is product oriented. Businesses selling connected products or services that contribute in some way to “data” are using these labels to let customers know that they are part of the future of manufacturing. But, the people steering manufacturing operations aren’t asking themselves if they have enough Smart Manufacturing projects underway.

The second narrative around these terms is the one that manufacturers are having on the plant floor – it’s more familiar and less jargon filled. The terms smart manufacturing, IIoT and Industry 4.0 aren’t the theme of meetings. Discussions that seek to improve efficiency, overcome competition and meet consumer demands have remained the same. Decision makers look at their competitive strengths and weaknesses and plan ways to grow market share over the coming years just like always, but plans are adapting to new challenges.

Planning for the future, more than just talking about it

As manufacturing infrastructure ages and becomes obsolete, plant operators are busy planning the best ways to meet their goals. Manufacturers have seen buzzwords come and go throughout the years, but no one doubts the digital direction the industry is headed. The movement towards digital manufacturing is robust because manufacturers are preparing and prioritizing each step of the process instead of buying into the hype. According to Smart Industry’s 2016 State of Initiative Report recently released by SmartIndustry.com (Penton Media):

“The 2016 State of Initiative report, which for the first time allows trend lines to be drawn from identical questions asked in May 2015, shows that while some skeptics remain on the sidelines, many more organizations have moved to identify pilot IIoT applications and to fund broader application roll-outs in just the past year. IIoT strategies are maturing quickly as well, with an increasing percentage of respondents indicating that their companies have moved from informal explorations to more formal, structured plans.”

Leading manufacturers are planning infrastructure improvements that look similar to the visions laid out by Smart Manufacturing and Industry 4.0 initiatives – even though that’s not how they refer to it. The future of manufacturing is developing underfoot regardless of whatever labels marketers apply. While new, future-oriented products and services might have a small part in the process improvements, the most important improvements only require ink and paper.

Keeping Pace with Consumer Demand

Rapidly evolving consumer demand is the biggest challenge facing manufacturers, so production lines and processes have to be flexible in order to remain competitive. Planning for more flexibility means lines need hardware and software that are as dynamic and smart as the consumers that drive them. Next generation lines will enable a digital thread that can sense, track and trace products so that consumer needs are met today and flexible enough to meet them tomorrow. In order to make these goals a reality, industrial networks are growing with security in mind and connected enterprise infrastructure is developing.

At a higher level in the organization, Marketing and R&D departments are designing fast-paced consumer-driven product changes that will require production to change at the same pace. The product life cycle is changing faster than ever before.

Where to Start

Some suppliers are selling a vision of manufacturing that doesn’t quite exist yet, but the hype is helping manufacturers envision their future plant floor. With a clear vision and attainable goals in mind, planning sets the stage for the changes that come next. A roadmap that deliberately deploys infrastructure improvements will turn marketing jargon into a reality in the years to come. Unfortunately, it’s still up to the people on the plant floor to build the future that marketers envision.
A couple years ago, we wrote a post about the implications of the IoT and IoE before the IIoT was dubbed. It’s one of our best performing posts. Give it a look.