Incremental Cost Savings
According to the PWC Global Industry 4.0 Survey 2018, organizations who adopt digitization are expected to achieve 16% cost savings in the next five years, versus 10% for Digital Novices. Capitalizing the benefits like improved efficiency, optimized quality and customer driven offerings, Industrial IoT helps manufacturers maximize productivity with an optimum number of resources. This creates positive impact on both the top line and the bottom line.
Increased Asset Performance
Condition monitoring and Predictive maintenance solutions of IIoT platforms integrated with Enterprise Asset Management are being leveraged to optimize asset performance across the industries. These assets could be oil wells, vehicle fleet or machines on the shop floor. As per the plant engineering maintenance survey, the equipment failure at the field had dropped from 61% to 57% in setups where predictive maintenance scheduling was combating unplanned downtime.
Reduced Inventory Cost
New Revenue Streams
The actionable insights provided by IIoT platforms is enabling industries to adopt innovative business models, create data sharing ecosystem and launch new service offerings. For example, Remote monitoring of assets in the oil & gas industry, coupled with predictive and perspective Analytics helps in providing maintenance and repair services before the actual breakdown and save significant cost. This is being offered as a” Service” and qualifies for an additional revenue stream.
Enhanced Operational Efficiency
Using advanced analytics, IIoT can enhance production efficiency of equipment and also entire production lines by optimizing process parameters. Machine learning algorithm analyzes data pertaining to all variables, including production, scheduling, asset condition (temperature, vibration etc.) and raw materials. It then provides actionable Insights to optimize OEE (Original Equipment Efficiency) and also change production schedules in case of demand fluctuations.
Increased Quality Control
IIoT platforms provide real-time batch tracking and product genealogy along with real-time analytics built on SPC methods to predict product quality and alert notifications for any deviations and non-conformances. Toyota claimed that IIoT has helped them improve their response time to quality issues. When the company has a field issue, it can trace a particular part back to its manufacturing conditions and try to understand if there’s something in the manufacturing process that is out of control.
Optimized Energy Consumption
Industrial IoT has helped manufacturers improve workplace and employee safety significantly. Integrated safety systems coupled with intelligent real-time dashboards enable faster response and quick resolution in case of an accident or malfunctioning. Predictive Analytics further helps in eliminating the occurrences of such incidents in the future to a great extent. Adoption of IoT enabled wearables also helps in supervising if employees are following proper workplace safety procedures and in taking corrective actions timely.