Knowledge Base

IIoT for Small Industries

Industry 4.0, IoT and IIoT are the buzzwords today in the manufacturing sector. If you go on google and search for these terms, you will literally get millions of results. Industry 4.0 defines a paradigm wherein different technologies like artificial intelligence, IoT, robotics and Big Data gel together. The whole concept of Industry 4.0 revolves around automatic communication between machines and devices, data analysis, and automated decisions based on these inputs.IoT or the Internet of Things simply means gadgets and devices that talk to each other. IIoT is IoT applied to the industry. According to McKinsey, the value created from IIoT solutions will be anywhere between $1.2 and $3.7 trillion by 2025. That translates to about Rs. 875250 to Rs. 2699390 crores in Indian currency, or about SGD 16013 to 49374 crores in Singapore currency.

While it is easy to conceptualize IoT, IIoT and Industry 4.0, it is not so easy for manufacturers to envisage how IIoT exactly benefits them. One, there is a cost associated with implementing IIoT and two, whether to implement or not implement IIoT is not an easy decision. Of course, most big companies, especially those in the automotive, consumer goods, pharmaceuticals, processing and the aerospace sector have already implemented IIoT for the benefits it has given them. As a concrete example, consider the medical and healthcare field. For a patient that requires critical care, it is extremely vital to monitor all the biological functions of that patient. Maintaining real-time data of patients that may be having a chronic disease is important too. IIoT provides a bi-directional link to keep devices that monitor patient parameters online and transmit this data so that the physician and healthcare providers can take appropriate action.

Manufacturing industries where large scale automation is required, like the automobile sector and the aerospace industry have already embraced Industry 4.0 and IIoT, but what if you are a small or medium scale industry? If you have two milling machines, is it worth implementing IIoT? What about for a single machine? Take the case of a CNC machine. A single CNC machine generates a huge amount of data that includes the spindle parameters like speed and power consumed, feed axis current, tracking error, and material removal rate. In addition, a CNC also generates massive physical and geometrical data acquired by external sensors, such as cutting force, temperature, vibration, thermal deformation, and surface roughness of the part. Can IIoT be useful in this case? There are no hard and fast answers, but most experts believe that IIoT in general benefits everyone, irrespective of their size.

Benefits of IIoT
Before we discuss the merits and demerits of IIoT for small and medium scaled companies, let us take a look at a few of the benefits IIoT offers.

Continuous Production
The first and foremost requirement of a small scale industry is to ensure that whatever machines are working should be fully functional at all times. If a small manufacturing unit is operating with only one or two machines, it disrupts the schedule if one of the machines breaks down suddenly. With one machine, that is a 100% loss in production; with two it is a 50% loss. Small manufacturing units do not have spare capacity, and if the production is scheduled for a major customer, it impacts the delivery period adversely. Such delays are unacceptable in today’s competitive world. With proper IIoT in place, it is possible to monitor the working of a machine, and attend to any issues before there is a major breakdown. Additionally, part waste is reduced alongside fewer resources tied up in inventory and better overall product delivery.

Predictive Maintenance
As a corollary to monitoring manufacturing machines’ data, predictive maintenance is yet another benefit of IIoT. By connecting, collating and analyzing various machine parameters like pressure, temperature, speed, vibration, power consumption and many others, it is possible to predict beforehand if a machine will run into trouble. For example, an increase in noise along with increase in heat and more power consumption can indicate that there is an issue with bearings, and proper sensor monitoring using the right IIoT tools (say ThingWorx from PTC) can trigger alarms way earlier than when the breakdown occurs.  

Better Inventory Control
Even for small and medium scale industries, managing inventories properly is a chore. IIoT connectivity coupled with RFID can allow items to be tracked and the data recorded to the inventory management system automatically. By keeping proper track of the inventory, it is possible for organizations to reduce the number of working hours committed to inventory management each month and also reduce the probability of human error. If IIoT is coupled with augmented reality (AR), it can avoid potential work hazards and promote safety.  A product like PTC Vuforia is a good example of how IoT / AR combine to properly maintain inventory.

There are other benefits that IIoT offers like improved quality, security and safety.

IIoT Services
All the benefits any new technology offers ultimately boil down to the cost. While IIoT has been adopted by major corporate companies because of the benefits it offers, this is not true of small and medium scale industries. With a limited budget, these companies need to really explore if implementing IIoT can provide them tangible benefits. In countries like India, where there still a low adoption of Industry 4.0, digital transformation and IoT and IIoT, these small manufacturers are unsure about how to proceed with automation. There are service companies that specialize in implementing IIoT solutions, and approaching such companies for correct advice is a good idea. These companies have experience of implementing IIoT projects, and they will correctly assess your requirements and suggest a proper solution.

Bottom-line: The barriers to adopting IIoT technology have fallen significantly in the past decade. Now businesses have the opportunity to adapt and maintain operational excellence in these volatile times through digital transformation. Rapid advances in technology and declining hardware costs have made IIoT accessible to most industries. It is now very much possible to find actionable data metrics to turn into ideas for continuous improvement and increased productivity, even for medium or small manufacturers. This includes using proper IIoT tools (PTC ThingWorx and ThingWorx Manufacturing Apps for example), and proper analysis of the data. But since implementing IIoT costs money, companies need to conduct a pragmatic review of their business model and understand the degree of operational changes required and the challenges involved in ascertaining whether IIoT is beneficial for them.IIoT consultants should be an ideal choice for such companies, especially in a country like India.