Q: What are the biggest challenges and obstacles to setting up a connected factory?

Investment costs Depending on your existing infrastructure, integrating equipment and starting the journey towards a connected factory can be a significant investment. Managers must often prove the potential ROI to decision-makers with hard numbers before gaining buy-in. Data security Integration is all about data, which can prompt manufacturers to ask: what happens if there’s a data security breach? How can we keep the hackers at bay ? The potential consequences of a breach are calamitous, halting operations and costing millions per hour . Employee training The connected factory is likely to require new skills within your team—whether operational, IT and data analytic, or cybersecurity skills. Manufacturers need to look at the skills gaps and consider whether they can re-skill current employees or if hiring new talent will be worthwhile. Cultural resistance to change Transitioning to a connected factory is a significant change for many manufacturers, and you need the whole team on board to ensure its success. However, some leaders and employees may naturally resist changing the status quo.

Question 1

What is a connected factory?

Accepted Answer

A connected factory uses digital technology to allow seamless information sharing between people, machines, and sensors.

The great enabler of a connected factory is integration. Rather than manually moving data from one system to another, integration enables data to move automatically and seamlessly between equipment and systems.

This reduces the risk of human error and gives manufacturers access to a greater range of data from the factory floor, which they can use to make better decisions around improved operations, higher productivity, lower waste, and higher quality goods.

Question 2

What is propelling the rise of the connected factory?

Accepted Answer

1. Industry 4.0 and digitization

Industry 4.0 and digitization are catapulting the manufacturing industry into a new realm. Also known as the fourth industrial revolution, Industry 4.0 refers to an environment where machines interact and respond intelligently to their physical surroundings.

The impact of Industry 4.0 and the connected factory on manufacturing’s growth and success is undeniable. According to a recent report by MarketsandMarkets, the connected manufacturing market is expected to grow from $20.7 billion in 2020 to $37.8 billion by 2026.

2. Globalization and complex supply chains

Globalization has revolutionized manufacturers’ operations by creating intricate supply chain networks spanning multiple countries, cultures, and regulatory environments.

Even within the United States, modern supply chains often involve multiple tiers of suppliers, subcontractors, distributors, and retailers operating across diverse geographical locations. End-to-end visibility is critical if manufacturers are going to navigate this supply chain maze.

3. Evolving consumer demands

As the end users, consumers have always significantly influenced CPG manufacturers’ decisions. Now, however, manufacturers face increasing scrutiny around sustainability, waste management, provenance, and more. Consumers are demanding transparency into the complete lifecycle of any product. And that’s not all—they want more customization of goods, sustainability, and choice.

4. Increased competition and margin pressure

The CPG industry is facing a margin crisis, with manufacturers struck by rising labor costs, supply chain challenges, and a consumer base that’s increasingly intolerant of price increases. Adding to this is increased competition in the sector. It’s no wonder factory owners and managers are under growing pressure to optimize efficiency and lower costs wherever possible.

Question 3

What are the benefits of integration and connectivity for a smart factory?

Accepted Answer

For CPG manufacturers who want to stay competitive and prepare their business for the future, integration is a vital part of the solution. Here are some key ways integration can add value for CPG manufacturers:

Make smarter decisions

Integration gives the entire company—from the C-suite to the factory floor—access to the same data for decision-making. Data insights can be used to pinpoint stoppages and bottlenecks, reduce waste, improve overall equipment effectiveness (OEE), identify trends, scale efficiencies, and eliminate common or recurring issues.

Optimize production processes

Plant managers and production line operators constantly strive to improve their facility’s OEE. Even a seemingly minor change can make a big difference to the company’s bottom line, product quality, and brand reputation.

That’s where integration comes in. With more machines connected on the factory floor and providing data, managers can evaluate production at multiple levels and identify opportunities for improvement and sources of waste.

Enhance product quality

Data analytics can help alert you to quality issues with your products, such as when processes may be out of tolerance or may yield quality problems. The machines and sensors that detect defects can be integrated to share real-time data with each other and a central system.

Production teams can instantly know when quality issues occur during any production run. Workers can react and remedy the situation fast instead of writing off losses at the end of the shift.

Reduce waste

Using data to improve processes lowers the chance of errors, which reduces waste. It also lets you see where improvements can be made to reduce waste through production, contributing to sustainability efforts and lower costs.

Integration also enables higher product quality, which reduces waste. For example, when cartonprint-and-apply machinesare integrated with product databases and vision systems, there are fewer labeling errors, meaning less packaging rework and waste.

Improve demand forecasting

Integration gives you insights to better manage your equipment, resources, and workforce for future demands. You can predict demand according to seasonality, helping you gear up labor and resources to meet high demand and ensure you are not over-resourced for low demand.

Strengthen supply chain partnerships

Getting your products through the supply chains easily and efficiently requires seamless information sharing between supply chain partners. System integration facilitates seamless data sharing and collaboration, enabling traceability and strengthening supply chain partnerships.

Question 4

What are the biggest challenges and obstacles to setting up a connected factory?

Accepted Answer

Investment costs

Depending on your existing infrastructure, integrating equipment and starting the journey towards a connected factory can be a significant investment. Managers must often prove the potential ROI to decision-makers with hard numbers before gaining buy-in.

Data security

Integration is all about data, which can prompt manufacturers to ask: what happens if there’s a data security breach? How can we keep the hackers at bay? The potential consequences of a breach are calamitous, halting operations and costing millions per hour.

Employee training

The connected factory is likely to require new skills within your team—whether operational, IT and data analytic, or cybersecurity skills. Manufacturers need to look at the skills gaps and consider whether they can re-skill current employees or if hiring new talent will be worthwhile.

Cultural resistance to change

Transitioning to a connected factory is a significant change for many manufacturers, and you need the whole team on board to ensure its success. However, some leaders and employees may naturally resist changing the status quo.

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