May 04 The Benefits of the Internet of Things (IoT) in Manufacturing
The Internet of Things (IoT) is revolutionizing the way most industries operate. The IoT references a network of connected computing devices that transfers data without the need for human-to-human or human-to-computer interaction. This includes our everyday smart devices like an Amazon Echo or a Fitbit – anything connected to the internet that can communicate data and be controlled remotely. It is important to understand what IoT is and what advantages it gives you and your business so you can have the competitive edge as this technology continues to evolve.
Manufacturers can use this new bridge between operational technology and information technology to streamline their processes and ultimately improve the speed and efficiency of operations. By analyzing machine-generated data captured by connected devices allows for an unbiased evaluation to identify optimization possibilities. Industrial IoT gives manufacturers the unique opportunity to monitor and even automate many of the complex processes involved with operations, and get real-time feedback and alerts for proactive management of operations.
Here are some perks to the Industrial Internet of Things:
- IoT devices can transmit operational information to specific point people remotely and in real-time to allow for improved automation and optimization of processes.
- With manufacturing equipment, some tools are required to function under a certain working environment such as temperatures and specific times. IoT devices can actively monitor machines and send alerts when equipment is failing or needs attention to increase operational efficiency.
- IoT applications can provide cross-channel visibility to effectively track and trace inventory as it moves through the supply chain, providing efficiencies and identifying lags or issues.
- Smart tracking mechanisms can track a product’s status during transit and the impacts of certain variables like weather and travel to offer insights as to how to re-engineer products and packaging for overall performance.
As mentioned, these are some of the benefits to the IoT in manufacturing. However, there are threats this new technology poses as well. Be on the lookout for our next installment on the IoT coming soon on what the possible dangers to be aware of are.
As Industrial IoT continues to pick up steam, do not hesitate to reach out to Sax’s Manufacturing and Distribution Practice to learn more about leveraging this technology to reduce waste, error and machine downtime, conserve energy and man-power, and in-turn cut costs.
Jennifer L. Moroz, CPA is a Partner at Sax and heavily active in the firm’s Manufacturing and Distribution Practice. She provides technical industry expertise and comprehensive services to improve productivity and maximize profits such as cash flow, inventory analysis, order processing and succession planning. She can be reached at [email protected].