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Use of IoT in increasing opeartional efficiency in manufacturing plants- a case study
1. WAYS TO INCREASE OPERATIONAL EFFICIENCY
AT MANUFACTURING PLANTS- APPLICATION OF
IOT-A CASE STUDY
MANISH
SAXENA,
Joint Advisor,
Telecom Regulatory Authority of
India,
Regional Office,
Jaipur
2. PROBLEM: HOW TO INCREASE OPERATIONAL
EFFICIENCY AT MANUFACTURING PLANTS
Customers
Needs to
address
Manufacturing Plants
There are many ways, IoT can help in
increasing operational efficiency in
manufacturing plants e.g. inventory control and
supply chain management. But one of the
greatest advancement may be made possible
by the IoT is energy management .
• How to minimize and optimize energy
consumption
3. TRADITIONAL SOLUTION
•Energy is often one of the largest expenses for
manufacturers. Traditionally , most of the plants managers
obtain energy consumption data from monthly utility bills or
energy monitoring tools with limited data points.
•Monthly utility bills are delivered after a substantial period
post the end of the billing cycle. Further they often report
energy use for entire manufacturing plants. This information
is of little use for plant managers for identifying waste or
enabling reduction of consumption.
4. IoT Solution
• Using device connectivity enabled by
IoT, manufacturers can track energy
consumption patterns at the device level.
A sensor /actuator is installed at each of
the machinery part/ energy consuming
component to remotely monitor and
control the energy consumed by that
manufacturing equipment/component .
• Machinery energy consumption data is
also collected through the sensors and
devices send periodic message
regarding energy consumed to the
controlling station may be in the same
premises or at remote location of IoT
company. This data is analyzed to help
optimize the energy consumption in
manufacturing process.
IoT SOLUTION AND BENEFITS
5. Benefits
By tracking each piece of machinery on the floor,
managers and executive get granular visibility into
energy consumption, actionable insight about
waste, increased operational efficiencies, impending
equipment failures, regulatory compliance etc.
Resource Utilization: Real time energy profiles allow
manufacturers to detect off-hours consumption,
optimize manufacturing production schedules and
identify anomalies.
Benchmarking: Manufacturer can benchmark similar
piece of equipment to find out systems that are not
functioning properly to detcet hidden operational
inefficiencies and energy waste.
IOT SOLUTION AND BENEFITS
Predictive Maintenance: Manufacturer gets alerts
for service when service is needed based on
recognized unusal energy usage, thus avoiding the
high costs equipment downtime.
Efficient Production: Same or greater outputs with
more efficient energy use due to optimal
manufacturing processes.
6. Operational Efficiency and
Profitability: Increased operational
efficiencies made possible by this
IoT solution of device level energy
management immediately affects
the bottom line for manufacturers.
For example using predictive
maintenance manufacturers can
eliminate machinery failure , which
is costly and its associated down
time which may be even more
costly. Moreover with device-level
energy consumption data made
possible by IoT, manufacturer can
reduce their wasteful consumption
and hence their energy spent.
IoT SOLUTION AND BENEFITS
7. Feature Requirement Comment
Network Area • Wide Extended area of manufacturing plants
and control/monitoring centre at remote
location require significant signal
coverage
Spectrum • Dedicated Quality of service of transmission is a
crucial factor
Battery Life • Short/ N/A Device may be charged by factory
supply
Connectivity
cost
• Medium Associated with the type of technology.
Module Cost • Medium/High Price may not be an issue in big
manufacturing plants
Bandwidth • Medium Data needed to monitor energy use in
various components may be moderate.LPWA 2G 3G
TECHNOLOGIES
8. MOST LIKELY BUSINESS MODEL
Business Model Revenue of the IoT
company
Device ownership
Costs-saving sharing Recurring IoT company
• The IoT company installs, operate and maintain the monitoring and control
equipments/system with no upfront fees.
• The end user (manufacturing plant) pays for the equipment rental from the
energy savings generated by the IoT solution.
9. OPERATIONAL ISSUES & POLICY TOPICS
Network coverage
Business Model
Global
deployment &
taxation
Legal framework
in Cost-saving
business model
Operational
Considerations
Policy areas
Mechanism to
assess savings in
cost