The Internet of Things (IoT) has grown from a consumer desire to connect all our smart devices together - in manufacturing. Network connected machines and automation across a facility to a single digital platform or infrastructure. Machines, automation and other assets throughout a factory can be connected to an IIoT platform to maximize scale and digital intelligence. We call this the Industrial Internet of Things (IIoT).
An efficient exchange of information between production and business systems takes production to a new level. With better data and process integration, operations can be more precisely controlled. Enterprise resource planning systems (ERP) contain information about customer demand and manufacturing execution systems (MES) control production. An integration of both systems noticeably increases the operational efficiency!
Companies have a benefit in many ways. You can react more flexibly and faster to individual and changing customer requirements. The real-time exchange of information between the commercial area and the production increases the Overall Equipement Effektiveness (OEE), cycle times are reduced and the management receives more transparency for optimized decisions. In concrete terms this means:
1. More precise delivery schedules: ERP schedules become more realistic when faster production times are registries due to the latest improvements in production. Downtime can be reported to the ERP system due to damaged or defective equipment and the delivery dates - if necessary - pushed back.
2. Lower Warehouse Costs: By integrating ERP and production data for more precise demand forecasts, companies can avoid overproduction and reduce their storage. Excess storage for Raw materials, semi-finished or finished products that can be better used by companies elsewhere.
3. Optimized Production Quantities: Demand changes captured in ERP systems can be fed into production schedules. The production volume is therefore more in line with demand and enables leaner and more efficient production.
4. More Efficient Change Order Management: Better system integration supports more efficient execution of change orders. New manufacturing processes that affect production times and costs must be immediately communicated to enterprise systems. This is important to reduce pricing and update delivery information. All product changes from customer side must also be transferred to the production systems as soon as possible to avoid delays in order execution.
5. Less urgend orders: ERP MES integration allows manufacturers to reorder from their suppliers before stocks fall below a pre-defined level. Avoiding rush orders not only minimizes the risk of delays, but also saves costs associated with last minute and rush surcharges.
6. Faster response time for quality issues: If there is a quality problem in production, it should report in real time to the business systems. Only then can corrective actions be taken as soon as possible. For example, if defective material is detected, it can be removed from inventory and returned to the supplier. The manufacturer saves money by preventing scrap due to inadequate raw material and reduces recalls and potential liability issues.
Difference between IoT and IIoT
Although IoT and IIoT are based on the same concepts and technologies in many areas, it is still possible to delineate the two concepts. The Internet of Things focuses mainly on human interactions with devices and objects. Devices can interact with the user and inform or warn them when certain events occur. Users remotely control devices or monitor objects. Remote control is also possible with the IIoT, but there are far more extensive options.
The IIoT technology is not used to interact with humans, but is primarily responsible for controlling and monitoring production processes. IoT and IIoT have in common that each intelligent and networked devices must be available. The purpose of the IoT devices is to increase the comfort for their users while at the same time being beneficial. IIoT devices have a higher quality and equipped with more sensitive and precise sensors. In addition, they are designed for use in industrial environments and reliably perform their work even under adverse environmental conditions. Due to the less demanding technology, the smaller range of functions and the use only in the Comsumer environment, IoT devices are much cheaper to produce.